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 AT&T Corp. v. Hulteen (U.S. 2009)
Ogletree Deakins - June 18, 2009 The U.S. Supreme Court recently held that an employer did not violate Title VII of the Civil Rights Act by granting limited service credit for purposes of calculating retirement benefits for pregnancy leaves taken before Title VII was amended in 1978 by the Pregnancy Discrimination Act (PDA). In a 7-2 decision, the majority found that the company based its benefit calculations on a "bona fide" seniority system.  HIGH COURT UPHOLDS PENSION SYSTEM THAT GAVE LIMITED CREDIT FOR PREGNANCY LEAVE TAKEN OVER 30 YEARS AGO.Ballard Rosenberg Golper & Savitt - June 01, 2009 Since April 1979, the federal Pregnancy Discrimination Act has prohibited employers from adopting pension plans that give employees less retirement credit for pregnancy leave than for medical leave in general. But, in the case of AT&T Corp. v. Hulteen, the United States Supreme Court has now ruled that an employer may continue to treat pre-1979 pregnancy leave differently when making benefit calculations under a preexisting pension plan that is part of a bona fide seniority system. Supreme Court Decides in AT&T Corp. v. Hulteen in Favor of Employer and Addresses Lilly Ledbetter Fair Pay Act for First Time.Littler Mendelson, P.C. - May 28, 2009 On May 18, 2009, the Supreme Court announced its decision in AT&T Corp. v. Hulteen. In a 7-2 decision authored by Justice Souter (with Justice Ginsberg and Justice Breyer dissenting), the Court held that an employer does not necessarily violate the Pregnancy Discrimination Act (PDA) when it pays pension benefits calculated in part based on an accrual rule – in use prior to the PDA's enactment – that gives less retirement credit for pregnancy than for short-term disability leave. The Court held that the employer's method of calculating benefits was insulated from a Title VII challenge because it was part of a bona fide seniority system. Supreme Court Finds No Current Violation of Title VII Based on Pre-PDA Leave Credit Policy.Ford & Harrison LLP - May 21, 2009 On May 18, 2009, the U.S. Supreme Court issued its 7-2 decision in AT&T Corp. v. Hulteen, holding that an employer does not necessarily violate the Pregnancy Discrimination Act (PDA) by paying pension benefits calculated, in part, based on a system that did not give full credit for time spent on pregnancy-related leave but did give full credit for other types of medical leave, where the pregnancy leave accrual policy was applied only prior to the enactment of the PDA. Further, the Court held that the employer's benefit calculation rule was part of a bona fide seniority system under § 703(h) of Title VII, which insulates it from challenge. Supreme Court Rules Employers Not Required to Adjust Pension Benefits for Pre-1979 Maternity Leave.Jackson Lewis LLP - May 19, 2009 The U.S. Supreme Court has ruled that an employer does not necessarily violate the Pregnancy Discrimination Act (the “PDA”) when it calculates pension benefits using a seniority-based system that does not accord full credit for time spent on maternity leave prior to Title VII’s ban on pregnancy discrimination. Justices Rule for Employer in Maternity Leave Case.Fisher & Phillips, LLP - May 18, 2009 On May 18, 2009, the Supreme Court upheld AT&T's method of calculating pension benefits for women who, prior to the April 1979 effective date of the Pregnancy Discrimination Act (PDA), took pregnancy-related leave and did not receive full service credit for the period of their leaves.
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