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Part One of this article discussed why law firms are susceptible to discrimination suits by their partners ' especially large firms. It also covered the threshold requirements for law firm partners to do so. In Part Two, the authors examine case law on determining whether a partner is an “employee” and how a firm's size and type of ownership can affect a partner's ability to sue for employment discrimination.
Sidley: Law Firms are on Notice
In October 2002, the Seventh Circuit decided EEOC v. Sidley Austin Brown & Wood, 315 F.3d 696 (7th Cir 2002) (hereinafter Sidley), which should serve as a wake-up call for law firms, especially large firms. In Sidley, the firm demoted 32 of its equity partners to “counsel” or “senior counsel,” prompting the Equal Employment Opportunity Commission (EEOC) to initiate an investigation, sua sponte, to determine whether the demotions violated the Age Discrimination in Employment Act (ADEA). As part of its investigation, the EEOC issued a subpoena seeking documents that would allow it to determine whether the demoted partners were employees and could therefore invoke the ADEA.
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