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National Litigation Hotline

By ALM Staff | Law Journal Newsletters |
August 24, 2003

Supreme Court Adopts EEOC Guidance on Who Is 'Employee'

The United States Supreme Court has held that a determination of who is an 'employee' of a professional medical corporation for federal anti-discrimination law purposes rests on Equal Employment Opportunity Commission (EEOC) guidance, which focuses on the common law's emphasis on right to control. Clackamas Gastroenterology Associates v. Wells, 123 S. Ct. 1673; 155 L. Ed. 2d 615 (U.S. May 24).

In so holding, the high court remanded Deborah Wells' American with Disabilities Act suit against Clackamas Gastroenterology Associates to the U.S. Court of Appeals for the Ninth Circuit to rule on whether shareholders were employees based on the EEOC test. The Ninth Circuit had held that the physician-shareholders of Clackamas Gastroenterology Associates were technically 'employees' that could be counted towards the minimum number of employees necessary to bring a company within the ambit of the ADA.

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