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JUDICIAL BODY. The United States Second Circuit Court of Appeals. FACTS. Ida Morelli is suing former employer Cedel, a Luxembourg bank, under the Age Discrimination in Employment Act (ADEA)Plaintiff was summoned into boss' office Was forced to sign separation agreementWould receive three month's
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1. MORELLI V. CEDEL CSA 6470 – International Legal Framework
Professor Stephen Muffler
Sheryl Walters-Malcolm
2. JUDICIAL BODY The United States Second Circuit Court of Appeals
3. FACTS Ida Morelli is suing former employer Cedel, a Luxembourg bank, under the Age Discrimination in Employment Act (ADEA)
Plaintiff was summoned into boss’ office
Was forced to sign separation agreement
Would receive three month’s severance
Was relieved of her duties immediately
Plaintiff was 54 years old at the time
Plaintiff filed complaint in the United States District Court for the Southern District of New York
Case was dismissed on the grounds that defendant was not subject to ADEA
4. ISSUE Two major Issues
Court to decide if domestic employees of foreign corporations protected under ADEA
If so, should foreign employees be counted in determining whether the corporation has enough employees to be subject to the ADEA
5. DECISION
Court ruled in favor of the plaintiff
6. RATIONALE Domestic employees of foreign corporations protected?
ADEA enacted in 1967, amended in 1984, and no evidence that any amendments were intended to exempt domestic offices of foreign employers
Civil Rights Act and Americans with Disabilities Act both indicate foreign employees not exempt
Foreign corporations should treated as equally as domestic corporations and subject to the same laws
US subsidiaries of foreign corporations are subject to anti discrimination statutes
Court agrees with EEOC Policy Guideline that law applies “to foreign firm operating on US soil”
7. RATIONALE Should foreign workers be counted?
Businesses with at least 20 employees subject to ADEA
Language does not specifically state domestic employees only should be counted
1984 Amendments state ‘employee’ includes US citizens working overseas and does not distinguish between foreign and domestic employees
No requirement that employee protected to be counted
US corporation with less than 20 domestic and several foreign employees subject to ADEA
8. RELEVANCY Manager should know requirements of ADEA and other anti discrimination acts
If decision is made to fire employee protected under any anti discrimination act ensure reasons are well documented and justified, and in no way construed that firing was because of age or other discriminating factor.