Supreme Court to take up LGBT job discrimination cases

U.S. Court News

The Supreme Court is taking on a major test of LGBT rights in cases that look at whether federal civil rights law bans job discrimination on the basis of sexual orientation and gender identity.

The justices said Monday they will hear cases involving people who claim they were fired because of their sexual orientation and another that involves a funeral home employee who was fired after disclosing that she was transitioning from male to female and dressed as a woman.

The cases will be argued in the fall, with decisions likely by June 2020 in the middle of the presidential election campaign. The issue is whether Title VII of the federal Civil Rights Act of 1964, which prohibits sex discrimination, protects LGBT people from job discrimination. Title VII does not specifically mention sexual orientation or transgender status, but federal appeals courts in Chicago and New York have ruled recently that gay and lesbian employees are entitled to protection from discrimination. The federal appeals court in Cincinnati has extended similar protections for transgender people.

The big question is whether the Supreme Court, with a strengthened conservative majority, will do the same. The cases are the court's first on LGBT rights since the retirement of Justice Anthony Kennedy, who authored the court's major gay rights opinions. President Donald Trump has appointed two justices, Neil Gorsuch and Brett Kavanaugh.

The justices had been weighing whether to take on the cases since December, an unusually long time, before deciding to hear them. It's unclear what caused the delay.

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Workers’ Compensation Subrogation of Administrative Fees and Costs

When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.

In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.

In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.