WEBVTT - Employment Cases From Reverse Discrimination to RICO

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<v Speaker 1>This is Bloomberg Law with June Brusso from Bloomberg Radio.

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<v Speaker 1>The Supreme Court has at least five cases on its

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<v Speaker 1>dock at this term that could potentially reshape the employment

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<v Speaker 1>law landscape. The cases cover a broad range of issues,

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<v Speaker 1>from a failed drug test by a truck driver suing

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<v Speaker 1>CBD makers using the Rico statute to an Ohio public

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<v Speaker 1>employees claim that she was denied promotion and demoted because

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<v Speaker 1>she's a heterosexual. The first case that Justice has heard

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<v Speaker 1>this term on Monday involve workers suing Alabama over unemployment

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<v Speaker 1>benefits who are stuck in a sort of catch twenty two.

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<v Speaker 1>Here's how Justice Sonya Sotomayor put it. See it really

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<v Speaker 1>stuck in a state process with a loop that you

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<v Speaker 1>can't get out of. Joining me is an expert in

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<v Speaker 1>employment law, Anthony Ancidi, a partner scour Tony. The Justices

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<v Speaker 1>kicked off the term with an employment law case tell

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<v Speaker 1>us about it.

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<v Speaker 2>This case involves residents of Alabama who had applied for

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<v Speaker 2>unemployment benefits during the COVID pandemic, and they challenged the

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<v Speaker 2>way that the State of Alabama had handled their claims.

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<v Speaker 2>They sought to bring claims under a federal Statute Section

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<v Speaker 2>nineteen eighty three, and that allows individuals to sue the

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<v Speaker 2>state government and officials of the state government for violating

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<v Speaker 2>the civil rights under federal law. They alleged that the

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<v Speaker 2>state's policies and its practices and its procedures related to

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<v Speaker 2>unemployment compensation applications violated the Social Security Act of nineteen

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<v Speaker 2>thirty five, which is obviously a federal statute. They also

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<v Speaker 2>claimed that they had suffered a violation of their due

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<v Speaker 2>process rights under the Constitution. This case comes to the

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<v Speaker 2>US Supreme Court from the Alabama Supreme Court, which said

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<v Speaker 2>that state law requires that the plaintiffs in the case

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<v Speaker 2>first bring their claims to the state's Department of Labor

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<v Speaker 2>and exhaust all administrative remedies that are available under state law,

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<v Speaker 2>and according to the Alabama Court, that is supported by

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<v Speaker 2>Supreme Court precedents, saying that that requirement does exist with

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<v Speaker 2>respect to these claims. So the issue is whether these

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<v Speaker 2>workers who are seeking unemployment benefits need to exhaust state

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<v Speaker 2>administrative remedies before they can bring a claim under a

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<v Speaker 2>federal civil rights law. The reason why this is going

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<v Speaker 2>to be important, I think probably in these cases is

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<v Speaker 2>because they didn't do that, and if it is determined

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<v Speaker 2>that they were required to exhaust state administrative remedies, that

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<v Speaker 2>that could jeopardize the federal claims that they're seeking to

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<v Speaker 2>make under Section nineteen eighty three in this case.

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<v Speaker 1>And tell us about the Supreme Court's prior rulings in

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<v Speaker 1>this area in the cases of Patsy versus Board of

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<v Speaker 1>Regents and Felder versus Casey, and.

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<v Speaker 2>That's exactly what the Alabama Supreme Court relied upon. And

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<v Speaker 2>the fact that the US Supreme Court then took this

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<v Speaker 2>case up may mean that there has been a shift

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<v Speaker 2>or a change in the Supreme Court's point of view

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<v Speaker 2>with respect to this because the US Supreme Court has,

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<v Speaker 2>of course complete discretion as to what cases it does

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<v Speaker 2>or does not take, and it takes obviously a very

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<v Speaker 2>small handful of cases every year. And the fact that

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<v Speaker 2>they have granted sorcherai that is the Latin word for

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<v Speaker 2>the review that is granted in this case and in

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<v Speaker 2>these cases generally, may suggest that there is a different

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<v Speaker 2>point of view.

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<v Speaker 1>During the oral arguments, Justice Sonia Sotomayor told the plaintiff's

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<v Speaker 1>lawyer that he was really stuck in a state process

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<v Speaker 1>with a loop that you can't.

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<v Speaker 2>Get out of right. And I think again, this is

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<v Speaker 2>one of those situations where it may seem like a technicality,

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<v Speaker 2>but there is a lot of law with respect to

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<v Speaker 2>these issues in the ployment context and in the administrative

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<v Speaker 2>context that does exist. We see this all the time,

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<v Speaker 2>where these administrative filings and processes, although they do sometimes

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<v Speaker 2>take on somewhat of a pro forma status, meaning that

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<v Speaker 2>the lawyer representing the claimant simply has to file something

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<v Speaker 2>and often can do it online. And in California, where

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<v Speaker 2>I'm most familiar with administrative filings and the employment context,

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<v Speaker 2>the state administrative agency California Civil Rights Department, will open

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<v Speaker 2>and close the administrative file the very same day, and

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<v Speaker 2>in almost every single case, the administrative apparatus is not

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<v Speaker 2>triggered and they don't get involved. But if the plaintiff

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<v Speaker 2>has not done that first and proceeds directly to court

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<v Speaker 2>without having exhausted those remedies, that's a means by which

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<v Speaker 2>the defense can then say you can't proceed in the

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<v Speaker 2>case because you should have at least given the administrative

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<v Speaker 2>apparatus or the agency some opportunity to prosecute this. I

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<v Speaker 2>think some of this is a result of just the

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<v Speaker 2>passage of time, because many of these civil rights statutes,

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<v Speaker 2>for example, when they were first passed, they were not

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<v Speaker 2>intended to directly lead to litigation or court cases or

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<v Speaker 2>jury trials or any of this. They were supposed to

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<v Speaker 2>be and they were often designed to be decided by

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<v Speaker 2>administrative agencies, which is obviously a somewhat lesser formal proceeding

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<v Speaker 2>than having a case go to court. In the way

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<v Speaker 2>in which the laws developed, though, and procedures have developed,

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<v Speaker 2>and I think really administrative agencies have just been overwhelmed

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<v Speaker 2>with the number of claims. The administrative apparatus is kind

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<v Speaker 2>of atrophied in these cases, and so as a result

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<v Speaker 2>of that, it may seem again like a technicality that

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<v Speaker 2>that has to be done. But the law has not

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<v Speaker 2>been changed in most places. And that's I think what

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<v Speaker 2>is probably at the root of what Justice Sodomayer was

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<v Speaker 2>talking about.

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<v Speaker 1>So you think that the court is going to uphold

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<v Speaker 1>the requirement of exhausting administrative remedies.

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<v Speaker 2>It seems like they should probably is something that ultimately

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<v Speaker 2>would have to be decided or probably better decided and

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<v Speaker 2>a remedied. If a remedy is going to be obtained

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<v Speaker 2>from a legislative body that would look at something like

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<v Speaker 2>this and make the determination that, as I said, some

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<v Speaker 2>of these administrative agencies have atrophied, and there's really not

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<v Speaker 2>as much of a reason today as there might have

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<v Speaker 2>been thirty or forty years ago to require those processes.

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<v Speaker 1>Next week, the court is going to hear the case

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<v Speaker 1>of medical marijuana versus Horn. This case intrigues me because

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<v Speaker 1>it involves a truck driver, medical marijuana and the RICO Act.

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<v Speaker 2>Walked into a bar. Yeah, it's a group of unlikely

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<v Speaker 2>entities and parties I suppose that are involved in this case,

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<v Speaker 2>and the set of circumstances is somewhat unique. This was

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<v Speaker 2>a commercial truck driver who was required to pass periodic

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<v Speaker 2>drug screen and he was fired when he tested positive

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<v Speaker 2>for THHC, which of course is the psychoactive compound that

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<v Speaker 2>is part of the cannabis plant and that is triggered

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<v Speaker 2>in the event that one consumes or smokes cannabis. The

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<v Speaker 2>driver claimed that he had not intentionally ingested THHC, but

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<v Speaker 2>that he had used an elixir an interesting word for

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<v Speaker 2>severe pain that was marked as containing only CBD, which

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<v Speaker 2>is another compound that comes from marijuana. But which is

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<v Speaker 2>not psychoactive and is not illegal. It's generally legal to

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<v Speaker 2>consume CBD. So his argument was I essentially consume something

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<v Speaker 2>that was mislabeled and by the way that mislabeling then

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<v Speaker 2>led to his being fired. He has now made this

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<v Speaker 2>claim in the form of a assertion of fraud under

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<v Speaker 2>the RICO the Racketeer Influenced in Corrupt Organizations Act, which

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<v Speaker 2>typically originally was I think intended to reach mafia members

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<v Speaker 2>but often gets thrown around these days in different types

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<v Speaker 2>of cases. But it's known by the acronym RICO riico,

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<v Speaker 2>and he's claiming that the CBD maker slash. I guess

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<v Speaker 2>the thhc CBD maker in this case has conducted itself

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<v Speaker 2>in a way that it has violated. The RICO statute, usually,

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<v Speaker 2>as I say, was typically used for targeting organized crime,

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<v Speaker 2>but it does allow plaintiffs to bring certain civil cases

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<v Speaker 2>for fraud and potentially collect triple damages. So in this case,

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<v Speaker 2>the damages that he'll be seeking presumably will be the

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<v Speaker 2>lost wages and benefits that flowed from his loss of employment.

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<v Speaker 2>I suppose there may be other damages that he's going

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<v Speaker 2>to seek as well. This case found itself to the

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<v Speaker 2>Second Circuit Court of Appeals in New York, and that

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<v Speaker 2>court allowed the driver to proceed with his claim. But

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<v Speaker 2>other appeals courts have tossed similar lawsuits where there was

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<v Speaker 2>an attempt to seek monetary damages under RICO for personal injuries.

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<v Speaker 2>I don't know that it's arisen previously in the context

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<v Speaker 2>of CBD THCHC, but that happens to be the factual

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<v Speaker 2>scenario in this case. And so in this case, the

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<v Speaker 2>CBD manufacturer wants the Supreme Court to dismiss the RICO claim,

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<v Speaker 2>asserting that it's merely a garden variety products liability suit

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<v Speaker 2>and that it should not be able to proceed under

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<v Speaker 2>the Rico statute.

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<v Speaker 1>There's a split in the circuits on this. Do you

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<v Speaker 1>think the Supreme Court took the case to overturn the

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<v Speaker 1>Second Circuit?

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<v Speaker 2>It sounds like they might. Again. You never can tell,

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<v Speaker 2>because it certainly is not the case that every time

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<v Speaker 2>the US Supreme Court, or really any appellate court takes

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<v Speaker 2>a case when they have discretion that they are accepting

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<v Speaker 2>review to affirm. I guess the inclination is, why not

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<v Speaker 2>just leave well enough alone? If they're just going to

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<v Speaker 2>affirm the lower court. You typically think that they will

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<v Speaker 2>do something different, but they obviously don't always affirm the

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<v Speaker 2>lower court. And in this situation, as I said, there

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<v Speaker 2>is a conflict among the circuits, and that's typically when

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<v Speaker 2>the US Supreme Court does get involved. So they may

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<v Speaker 2>grant a review in a case in which one of

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<v Speaker 2>seven circuits rules one and the other sixth rule another way.

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<v Speaker 2>It doesn't necessarily mean they're going to affirm or reverse

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<v Speaker 2>that one circuit. It just means they're trying to resolve

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<v Speaker 2>whether the other six were right and this one was wrong,

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<v Speaker 2>or vice versa. And I guess we're not going to

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<v Speaker 2>really know for a time. We should also say these

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<v Speaker 2>are all cases that are in the current term of

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<v Speaker 2>the US Supreme Court, which begins every year on the

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<v Speaker 2>first Monday of October, and the term then usually concludes

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<v Speaker 2>with a great degree of drama and fireworks in late

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<v Speaker 2>June early July. I've often said that the Supreme Court

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<v Speaker 2>has an unerring sense of drama and of entertainment in

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<v Speaker 2>some ways, I suppose because they saved the biggest cases

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<v Speaker 2>for the last as they did the last term when

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<v Speaker 2>they had a number of very significant opinions that came

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<v Speaker 2>out in late June. They're almost all out, I think,

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<v Speaker 2>without exception before the fourth of July holiday.

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<v Speaker 1>Absolutely.

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<v Speaker 2>See.

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<v Speaker 1>My theory is they're not saving the best for a last,

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<v Speaker 1>They're saving the most controversial for last, and then they

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<v Speaker 1>take off on their three month vacation.

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<v Speaker 2>But you know that's perhaps and avoid any demonstrations some

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<v Speaker 2>of their opinions.

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<v Speaker 1>On November fifth, there will be oral arguments in a

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<v Speaker 1>case involving Overton exemptions, of.

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<v Speaker 2>Course, I know, you know, and we should mention that

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<v Speaker 2>November fifth, something else is happening that day, really election

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<v Speaker 2>den Yes, So this this case involves Again it sounds

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<v Speaker 2>like somewhat of a dry issue, but I think it's

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<v Speaker 2>an extremely important one, especially for employers and employees. That's

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<v Speaker 2>the context in which it arises, and it arises under

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<v Speaker 2>a statute known as the Fair Labor Standards Act, which

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<v Speaker 2>is a federal law that protects wage an hour practices

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<v Speaker 2>of employees and employers that governs those situations. And the

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<v Speaker 2>question here has to do with the preponderance of evidence

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<v Speaker 2>standard of proof versus what's called the clear and convincing

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<v Speaker 2>standard of evidence. And I should say that there are

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<v Speaker 2>at least three differing standards of proof that typically arise

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<v Speaker 2>in the case. In most civil cases, you have the

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<v Speaker 2>preponderance of evidence standard. Law students are taught that that

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<v Speaker 2>means that the plaintiff has to prove basically about fifty

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<v Speaker 2>one percent of the evidence in their favorite that's kind

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<v Speaker 2>of a rough way of saying it. But it doesn't

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<v Speaker 2>have to be a huge amount in the favor of

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<v Speaker 2>the plaintiff, meaning that the burden of proof is not

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<v Speaker 2>that particularly burden some but the preponderance means that more

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<v Speaker 2>than not the evidence needs to point in the favor

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<v Speaker 2>of the plaintiff in order for the plaintiff to win.

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<v Speaker 2>The other standard that we're all pretty familiar with just

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<v Speaker 2>from watching TV shows is the beyond the reasonable doubt standard,

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<v Speaker 2>which is a much higher burden of proof. That is

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<v Speaker 2>the criminal standard of evidence that is required to get

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<v Speaker 2>a criminal conviction, So the prosecution needs to prove that

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<v Speaker 2>the defendant in a criminal case violated the law beyond

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<v Speaker 2>the reasonable doubt. Somewhere floating between those two standards is

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<v Speaker 2>the clear and convincing evidence standard, meaning it's got to

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<v Speaker 2>be a little bit more than half, but a lot

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<v Speaker 2>less than what you would need for beyond a reasonable doubt,

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<v Speaker 2>their floats somewhere in between. And that's the very question

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<v Speaker 2>that that issue in this case, as comes out of Richmond, Virginia,

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<v Speaker 2>the Fourth Circuit Court of Appeals, The question is does

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<v Speaker 2>an employer have to prove, because the employee does have

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<v Speaker 2>the burden of proof on these cases, that when an

0:13:14.960 --> 0:13:19.199
<v Speaker 2>employee claims that they've been misclassified, meaning that they didn't

0:13:19.200 --> 0:13:21.800
<v Speaker 2>get overtime and they should have, they were misclassified for

0:13:21.840 --> 0:13:24.920
<v Speaker 2>some reason as exempt from overtime, does the employer have

0:13:25.000 --> 0:13:29.240
<v Speaker 2>to prove that the employee was properly classified by the

0:13:29.679 --> 0:13:33.080
<v Speaker 2>clear and convincing standard, which is that medium proof standard,

0:13:33.559 --> 0:13:36.480
<v Speaker 2>or just the preponderance of the evidence standard, which is

0:13:36.520 --> 0:13:40.360
<v Speaker 2>an easier burden to meet. Obviously, the plaintiffs in a

0:13:40.440 --> 0:13:42.560
<v Speaker 2>case like this are going to be pushing for clear

0:13:42.600 --> 0:13:44.319
<v Speaker 2>and convincing because that would mean it's going to be

0:13:44.360 --> 0:13:47.840
<v Speaker 2>harder for the employer to win, and in this case,

0:13:48.040 --> 0:13:50.439
<v Speaker 2>that's going to be the issue. A number of federal

0:13:50.480 --> 0:13:52.960
<v Speaker 2>circuit Courts of Appeals have already weighed in on this,

0:13:53.080 --> 0:13:56.000
<v Speaker 2>including the Fifth, sixth, seventh, ninth, ten to eleven, and

0:13:56.040 --> 0:13:59.600
<v Speaker 2>they've all applied the lower standard of preponderance of the evidence.

0:14:00.000 --> 0:14:02.400
<v Speaker 2>In this case, the Fourth Circuit Court said that the

0:14:02.400 --> 0:14:05.280
<v Speaker 2>clear and convincing standard is the one that applies.

0:14:05.760 --> 0:14:09.720
<v Speaker 1>I'm betting on the fifth, sixth, seventh, ninth, tenth, and

0:14:09.800 --> 0:14:11.640
<v Speaker 1>eleventh Circuits in this case.

0:14:12.120 --> 0:14:15.160
<v Speaker 2>Yes, If the number of courts is the deciding factor,

0:14:15.200 --> 0:14:17.400
<v Speaker 2>then I think you're probably right. The Fourth seems to

0:14:17.440 --> 0:14:21.520
<v Speaker 2>be standing alone in connection with its determination on this case.

0:14:21.640 --> 0:14:26.320
<v Speaker 1>Coming up next a case claiming reverse discrimination. I'm June Grosso.

0:14:26.320 --> 0:14:29.320
<v Speaker 1>When you're listening to Bloomberg, the Supreme Court is scheduled

0:14:29.320 --> 0:14:33.200
<v Speaker 1>to hear at least five cases involving employment law and

0:14:33.280 --> 0:14:36.600
<v Speaker 1>a range of issues. I've been talking to Anthony on CD,

0:14:36.880 --> 0:14:39.520
<v Speaker 1>a partner at Prosskauer. Next, we have a case with

0:14:39.880 --> 0:14:45.160
<v Speaker 1>six circuits split on former employees suing under the Americans

0:14:45.160 --> 0:14:46.360
<v Speaker 1>with Disabilities Act.

0:14:46.800 --> 0:14:49.800
<v Speaker 2>This is an interesting case and it could affect obviously

0:14:50.440 --> 0:14:55.440
<v Speaker 2>many many employees, former employees, retired employees, in particular, as

0:14:55.480 --> 0:14:58.480
<v Speaker 2>the population continues to age. I saw statistic the other

0:14:58.520 --> 0:15:00.640
<v Speaker 2>day it said that more people are are reaching their

0:15:00.680 --> 0:15:03.320
<v Speaker 2>sixty fifth birthday this year. Then I guess has ever

0:15:03.360 --> 0:15:07.360
<v Speaker 2>occurred on planet early or certainly in the United States.

0:15:07.400 --> 0:15:09.200
<v Speaker 2>You know, it's sort of the tail end of the

0:15:09.240 --> 0:15:13.000
<v Speaker 2>Baby Boomers have now reached retirement age in many instances,

0:15:13.040 --> 0:15:15.520
<v Speaker 2>and that's really what's that issue. In this particular case,

0:15:15.560 --> 0:15:19.400
<v Speaker 2>this was a plaintiff a former firefighter for the City

0:15:19.440 --> 0:15:25.320
<v Speaker 2>of Sanford, Florida, and she retired due to Parkinson's disease

0:15:25.400 --> 0:15:28.800
<v Speaker 2>in twenty eighteen. She had served as a firefighter for

0:15:28.840 --> 0:15:32.160
<v Speaker 2>about nineteen years when she joined the fire department in

0:15:32.240 --> 0:15:35.040
<v Speaker 2>nineteen ninety nine. The city's policy was that it would

0:15:35.040 --> 0:15:38.880
<v Speaker 2>provide free health insurance until age sixty five from employees

0:15:38.880 --> 0:15:41.560
<v Speaker 2>who were retiring due to a disability. In two thousand

0:15:41.600 --> 0:15:44.560
<v Speaker 2>and three, the city changed its plan and it limited

0:15:44.560 --> 0:15:49.680
<v Speaker 2>the health insurance subsidy that disability retirees would get to

0:15:49.840 --> 0:15:52.880
<v Speaker 2>twenty four months post retirement, meaning it wouldn't go until

0:15:52.880 --> 0:15:54.560
<v Speaker 2>the age of sixty five. It would only go for

0:15:54.560 --> 0:15:57.840
<v Speaker 2>twenty four months. In this case, former firefighter who did

0:15:57.880 --> 0:16:01.720
<v Speaker 2>retire due to a disability out suit before her subsidy

0:16:01.800 --> 0:16:04.720
<v Speaker 2>was set to expire, and she said that this change

0:16:04.760 --> 0:16:07.400
<v Speaker 2>in policy was a violation of the Americans with Disabilities Act,

0:16:07.520 --> 0:16:12.440
<v Speaker 2>the Rehabilitation Act, and then some statutory provisions under Florida law,

0:16:12.480 --> 0:16:14.840
<v Speaker 2>as well as the Equal Protection clause under the Constitution.

0:16:15.440 --> 0:16:19.000
<v Speaker 2>The district court dismissed and granted some re judgment on

0:16:19.080 --> 0:16:22.600
<v Speaker 2>other claims, but otherwise disposed of her case and ruled

0:16:22.640 --> 0:16:25.240
<v Speaker 2>in favor of the city. And the reason they did

0:16:25.280 --> 0:16:27.960
<v Speaker 2>that again sound somewhat like a technicality, but obviously a

0:16:28.080 --> 0:16:31.120
<v Speaker 2>very important one. They ruled that the statutes that she

0:16:31.280 --> 0:16:35.400
<v Speaker 2>was proceeding under only applied to plaintiffs who quote hold

0:16:35.600 --> 0:16:39.440
<v Speaker 2>or desire an employment position with the defendant at the

0:16:39.440 --> 0:16:42.920
<v Speaker 2>time of the defendants allegedly wrongful act, and of course

0:16:43.200 --> 0:16:46.040
<v Speaker 2>she neither held nor did she desire to hold, which

0:16:46.080 --> 0:16:49.440
<v Speaker 2>really is a different word for saying an applicant unemployment

0:16:49.480 --> 0:16:53.200
<v Speaker 2>position at the time of the alleged wrongful act. And

0:16:53.240 --> 0:16:56.760
<v Speaker 2>so the precise question is ken a retiree such as

0:16:56.800 --> 0:16:59.800
<v Speaker 2>the plaintiff in this case, sue for discrimination under the

0:17:00.000 --> 0:17:04.119
<v Speaker 2>Americans with Disabilities Act over post employment fringe benefits that,

0:17:04.160 --> 0:17:07.080
<v Speaker 2>had she said, been taken away on the basis of

0:17:07.160 --> 0:17:08.800
<v Speaker 2>a discriminatory policy.

0:17:09.000 --> 0:17:12.359
<v Speaker 1>Does this come up often, Tony, that a retiree is

0:17:12.400 --> 0:17:14.720
<v Speaker 1>trying to sue over the ADA.

0:17:15.240 --> 0:17:16.960
<v Speaker 2>You know, I don't think so. It's not something that

0:17:16.960 --> 0:17:18.800
<v Speaker 2>I've seen a lot of. But again, since we're having

0:17:18.840 --> 0:17:24.040
<v Speaker 2>a lot more retirees who are moving into that status.

0:17:24.040 --> 0:17:26.760
<v Speaker 2>I would not be surprised if there are not other

0:17:26.840 --> 0:17:30.640
<v Speaker 2>cases like this in the very near future where policies

0:17:30.640 --> 0:17:33.200
<v Speaker 2>have been changed, because what is common, I can tell you,

0:17:33.320 --> 0:17:37.920
<v Speaker 2>is the pairing down and in some cases eliminating the

0:17:37.960 --> 0:17:41.760
<v Speaker 2>actual benefits that employees have received. There was a period

0:17:41.760 --> 0:17:45.360
<v Speaker 2>of time when retirees, you know of the our companies

0:17:45.400 --> 0:17:47.960
<v Speaker 2>and many other industries in the United States, would receive

0:17:47.960 --> 0:17:50.800
<v Speaker 2>what's called a defined benefit plan, meaning they knew that

0:17:50.880 --> 0:17:53.560
<v Speaker 2>when they retired they would get x hundred or thousand

0:17:53.600 --> 0:17:56.439
<v Speaker 2>dollars a month as part of their retirement. Because those

0:17:56.440 --> 0:18:00.240
<v Speaker 2>policies became so expensive due to inflation and and just

0:18:00.280 --> 0:18:03.639
<v Speaker 2>any number of other factors, most employers have long since

0:18:03.680 --> 0:18:06.840
<v Speaker 2>shifted away from what are called defined benefit plans like

0:18:06.880 --> 0:18:09.679
<v Speaker 2>that to what's called a defined contribution plan, which is

0:18:09.680 --> 0:18:12.400
<v Speaker 2>more like a four toh one K, which is there's

0:18:12.440 --> 0:18:16.960
<v Speaker 2>a certain maximum amount you can contribute to those plans,

0:18:17.160 --> 0:18:19.520
<v Speaker 2>or that the employer will contribute on your behalf, but

0:18:19.560 --> 0:18:22.120
<v Speaker 2>there's no guarantee you're going to get x amount at

0:18:22.119 --> 0:18:24.199
<v Speaker 2>the time that you retire. If you invest in the

0:18:24.200 --> 0:18:27.399
<v Speaker 2>stock market, which of course the stock market over the

0:18:27.440 --> 0:18:29.480
<v Speaker 2>last seventy or eighty years has had a fairly good

0:18:29.480 --> 0:18:32.960
<v Speaker 2>track record ten percent plus. I think the returns on

0:18:33.119 --> 0:18:36.440
<v Speaker 2>average over that period of time. You may very well

0:18:36.640 --> 0:18:40.240
<v Speaker 2>be able to sort of ballpark what your retirement benefits are,

0:18:40.320 --> 0:18:42.359
<v Speaker 2>but that's not exactly the same thing as knowing for

0:18:42.400 --> 0:18:45.400
<v Speaker 2>sure what you're going to have plopped into your bank

0:18:45.440 --> 0:18:47.879
<v Speaker 2>account every month. And that's what a defined benefit plan is,

0:18:47.880 --> 0:18:49.600
<v Speaker 2>and those are few and far between these days.

0:18:49.800 --> 0:18:52.720
<v Speaker 1>Just last Friday, the Court agreed to take a case

0:18:53.320 --> 0:18:57.440
<v Speaker 1>challenging a rule by an Ohio public employee who claim

0:18:57.560 --> 0:18:59.800
<v Speaker 1>she's a victim of reverse discrimination.

0:19:00.560 --> 0:19:04.040
<v Speaker 2>Yes, you saved perhaps the most controversial case so far

0:19:04.520 --> 0:19:07.280
<v Speaker 2>this term for last June. As I know, you have

0:19:07.359 --> 0:19:09.760
<v Speaker 2>that unerring sense of drama like the Supreme Court.

0:19:09.960 --> 0:19:11.880
<v Speaker 1>So you've been accused of worse though.

0:19:13.720 --> 0:19:17.480
<v Speaker 2>So as you say, the review petition was granted just

0:19:17.600 --> 0:19:20.399
<v Speaker 2>last Friday. There's no oral argument yet schedule, but it

0:19:20.440 --> 0:19:23.840
<v Speaker 2>will be heard and decided before the fourth of July

0:19:24.000 --> 0:19:29.000
<v Speaker 2>twenty twenty five. And in this case, the employee sues

0:19:29.119 --> 0:19:33.520
<v Speaker 2>the Ohio Department of Youth Services, where she had worked

0:19:33.600 --> 0:19:37.440
<v Speaker 2>for I believe several decades of public service. She had

0:19:37.480 --> 0:19:42.280
<v Speaker 2>been earlier in her employment assigned to a new supervisor

0:19:42.320 --> 0:19:45.800
<v Speaker 2>who was gay. She I should say, is a white, heterosexual,

0:19:46.040 --> 0:19:49.640
<v Speaker 2>female former employee. She was assigned to a new supervisor

0:19:49.760 --> 0:19:53.560
<v Speaker 2>who was gay. In twenty nineteen. She applied to be

0:19:53.680 --> 0:19:57.000
<v Speaker 2>the department's bureau chief of quality, so she was seeking

0:19:57.000 --> 0:19:59.359
<v Speaker 2>a promotion. She did not receive that position. In a

0:19:59.359 --> 0:20:02.040
<v Speaker 2>few days later, she learned that she was being removed

0:20:02.040 --> 0:20:04.600
<v Speaker 2>from her administrator position, the lower position that she had.

0:20:05.000 --> 0:20:07.879
<v Speaker 2>The decision to remove her from the administrator position was

0:20:07.960 --> 0:20:11.639
<v Speaker 2>made by not the gay supervisor, who was the first

0:20:11.880 --> 0:20:16.440
<v Speaker 2>level supervisor above her position, but the second level supervisor

0:20:16.600 --> 0:20:19.280
<v Speaker 2>and the department's director, both of whom were straight. So

0:20:19.320 --> 0:20:22.879
<v Speaker 2>this becomes a somewhat problem issue for her in this

0:20:22.960 --> 0:20:25.520
<v Speaker 2>case because the fact that she's being supervised by a

0:20:25.560 --> 0:20:29.399
<v Speaker 2>gay employee seemingly had no effect at least as the

0:20:29.440 --> 0:20:32.800
<v Speaker 2>case is currently framed upon. The demotion and the failure

0:20:32.840 --> 0:20:37.240
<v Speaker 2>to give her the promotion. The department then awarded her

0:20:37.280 --> 0:20:40.320
<v Speaker 2>former administrator position to a twenty five year old gay

0:20:40.400 --> 0:20:43.639
<v Speaker 2>mad The department then selected a gay woman to serve

0:20:43.720 --> 0:20:47.240
<v Speaker 2>as its bureau chief of quality. She then filed claims

0:20:47.320 --> 0:20:51.919
<v Speaker 2>of discrimination the straight white female employee. She filed claims

0:20:51.920 --> 0:20:55.960
<v Speaker 2>a discrimination based on her sexual orientation and gender against

0:20:55.960 --> 0:20:59.520
<v Speaker 2>the department. She said that she was discriminated against on

0:20:59.640 --> 0:21:04.480
<v Speaker 2>the base of being a heterosexual female. What happens next,

0:21:04.560 --> 0:21:06.960
<v Speaker 2>The district Court, which is the trial court in the

0:21:06.960 --> 0:21:11.239
<v Speaker 2>southern District of Ohio, grants some rey judgment to the

0:21:11.280 --> 0:21:15.000
<v Speaker 2>employer and dismisses the case, and the Sixth Circuit in

0:21:15.080 --> 0:21:19.840
<v Speaker 2>this case, which is based in Cincinnati, Ohio, affirms that dismissal.

0:21:20.400 --> 0:21:22.879
<v Speaker 2>The basis for the dismissal and the affirming of the

0:21:22.920 --> 0:21:26.520
<v Speaker 2>dismissal is as follows. They say that this plaintiff did

0:21:26.520 --> 0:21:32.480
<v Speaker 2>not establish the necessary quote background circumstances close quote to

0:21:32.520 --> 0:21:35.600
<v Speaker 2>sustain her claim of sexual orientation. So what's going on

0:21:35.680 --> 0:21:38.239
<v Speaker 2>in this case? Why is the Supreme Court interested in it?

0:21:38.560 --> 0:21:41.600
<v Speaker 2>The reason the Supreme Court's interested in it is because

0:21:41.680 --> 0:21:45.040
<v Speaker 2>this element that both the district court, the trial court,

0:21:45.080 --> 0:21:48.960
<v Speaker 2>and the appellate court applied, that is, requiring the employee

0:21:49.000 --> 0:21:53.800
<v Speaker 2>to prove these background circumstances only exists if the plaintiff

0:21:53.880 --> 0:21:57.080
<v Speaker 2>happens to be in the majority, meaning if it's a

0:21:57.119 --> 0:22:01.720
<v Speaker 2>white employee, heterosexual employee, or in this case, I guess

0:22:01.720 --> 0:22:04.680
<v Speaker 2>for gender reasons female. I guess there may be more

0:22:04.680 --> 0:22:06.919
<v Speaker 2>females than males. I'm not sure how that's going to

0:22:07.000 --> 0:22:09.800
<v Speaker 2>work out. But the real question is whether or not

0:22:09.880 --> 0:22:13.359
<v Speaker 2>there is an additional burden placed upon a so called

0:22:13.440 --> 0:22:18.440
<v Speaker 2>majority plaintiff that does not exist for a minority plaintiff

0:22:18.520 --> 0:22:20.760
<v Speaker 2>or a plaintiff that is a member of a protected

0:22:20.800 --> 0:22:24.280
<v Speaker 2>class that is a minority. Typically, in a discrimination case

0:22:24.640 --> 0:22:27.760
<v Speaker 2>under Title seven, which is the federal anti discrimination law,

0:22:27.920 --> 0:22:30.399
<v Speaker 2>an employee must show first of all, they belonged to

0:22:30.440 --> 0:22:33.800
<v Speaker 2>a protected class. Two, they did well in their position,

0:22:33.880 --> 0:22:36.359
<v Speaker 2>but were terminated, or they were demoted, or they didn't

0:22:36.359 --> 0:22:39.400
<v Speaker 2>get a promotion, some other adverse action happened, and then

0:22:39.400 --> 0:22:43.720
<v Speaker 2>they were third replaced by or treated worse than someone

0:22:43.800 --> 0:22:47.320
<v Speaker 2>outside of the protected class. But if the person who's

0:22:47.640 --> 0:22:51.879
<v Speaker 2>challenging the adverse action, as this plaintiff is, is a

0:22:51.920 --> 0:22:55.400
<v Speaker 2>member of the traditional majority, for example, a white employee

0:22:55.400 --> 0:22:58.720
<v Speaker 2>bringing a race discrimination claim or a male employee bringing

0:22:58.720 --> 0:23:01.640
<v Speaker 2>a sex discrimination claim, that does not apply. We've seen

0:23:01.640 --> 0:23:05.240
<v Speaker 2>in this case that plaintiff must prove an additional element,

0:23:05.280 --> 0:23:09.280
<v Speaker 2>and that is they must demonstrate background circumstances which proves

0:23:09.359 --> 0:23:13.160
<v Speaker 2>that their employer is the unusual one. That's the language

0:23:13.160 --> 0:23:17.199
<v Speaker 2>of the court, unusual one who discriminates against the majority

0:23:17.600 --> 0:23:21.640
<v Speaker 2>to sustain their claims. And this is another example, as

0:23:21.640 --> 0:23:25.359
<v Speaker 2>you mentioned earlier, of all kinds of courts at the

0:23:25.760 --> 0:23:29.240
<v Speaker 2>appellate level ruling in different ways. There again, is there

0:23:29.320 --> 0:23:33.119
<v Speaker 2>very much a circuit split on this question of whether

0:23:33.200 --> 0:23:37.639
<v Speaker 2>there really needs to be this additional factor proven by

0:23:37.960 --> 0:23:40.480
<v Speaker 2>the plaintiff if they are a member of a majority group.

0:23:40.880 --> 0:23:43.600
<v Speaker 1>How do you think the Supreme Court, without hearing the

0:23:43.720 --> 0:23:46.639
<v Speaker 1>oral arguments, are seeing the briefing, do you have a feel.

0:23:46.440 --> 0:23:49.320
<v Speaker 2>For how they Yeah, My feel is that this is

0:23:49.359 --> 0:23:51.800
<v Speaker 2>the next shoe. I don't think it's going to be

0:23:51.880 --> 0:23:53.919
<v Speaker 2>the last shoe, but this is the next shoe falling

0:23:54.440 --> 0:23:59.359
<v Speaker 2>in the affirmative action changes that have begun already at

0:23:59.359 --> 0:24:01.840
<v Speaker 2>the Supreme Court level, which we saw last year in

0:24:01.840 --> 0:24:06.399
<v Speaker 2>twenty twenty three with respect to college admissions. Everybody who

0:24:06.760 --> 0:24:10.800
<v Speaker 2>does represent employers and employees in the employment bar throughout

0:24:10.800 --> 0:24:13.800
<v Speaker 2>the United States is waiting for the US Supreme Court

0:24:13.880 --> 0:24:17.000
<v Speaker 2>to take further action with respect to both affirmative action

0:24:17.240 --> 0:24:21.160
<v Speaker 2>in the workplace and now in this case, discrimination claims

0:24:21.280 --> 0:24:24.520
<v Speaker 2>in the workplace. And my suspicion is that there will

0:24:24.520 --> 0:24:27.200
<v Speaker 2>be a split in the Supreme Court, and I suspect

0:24:27.200 --> 0:24:28.920
<v Speaker 2>it will be probably either a six y three or

0:24:28.960 --> 0:24:31.320
<v Speaker 2>a five to four, depending on the Chief Justice rules

0:24:31.800 --> 0:24:37.439
<v Speaker 2>in favor of abandoning the background circumstances test and saying,

0:24:37.800 --> 0:24:40.399
<v Speaker 2>as some circuits have said, and indeed, as one of

0:24:40.400 --> 0:24:44.960
<v Speaker 2>the concurring judges said in this case, that discrimination is discrimination,

0:24:45.200 --> 0:24:48.159
<v Speaker 2>and if a white employee, or a male employee, or

0:24:48.280 --> 0:24:51.720
<v Speaker 2>anybody who's member of a quote majority group is discriminated

0:24:51.760 --> 0:24:54.480
<v Speaker 2>against on the basis of their being a part of

0:24:54.520 --> 0:24:58.119
<v Speaker 2>that group, they have a right to proceed with an

0:24:58.119 --> 0:25:02.240
<v Speaker 2>anti discrimination claim irrespective of whether they have these so

0:25:02.320 --> 0:25:06.320
<v Speaker 2>called background circumstances, in addition to the other things that

0:25:06.359 --> 0:25:09.160
<v Speaker 2>a member of a minority group would have to show.

0:25:09.760 --> 0:25:12.280
<v Speaker 1>I agree with you one hundred percent, and I am

0:25:12.320 --> 0:25:15.320
<v Speaker 1>going to play this when we get the decision, we'll

0:25:15.320 --> 0:25:16.159
<v Speaker 1>see if it's six.

0:25:16.080 --> 0:25:19.280
<v Speaker 2>To three, I mean, if past is prologue, I suppose

0:25:19.359 --> 0:25:21.920
<v Speaker 2>then we have a pretty good idea of what's going

0:25:21.960 --> 0:25:22.320
<v Speaker 2>to happen.

0:25:22.600 --> 0:25:25.040
<v Speaker 1>We really do. Thanks so much, Tony for giving us

0:25:25.119 --> 0:25:29.400
<v Speaker 1>this preview of the term. That's Anthony Oncidi of Proskauer

0:25:29.640 --> 0:25:33.840
<v Speaker 1>coming up next, TikTok gets sued again. This is Bloomberg.

0:25:35.440 --> 0:25:38.639
<v Speaker 1>More than a dozen states and the District of Columbia

0:25:38.800 --> 0:25:43.119
<v Speaker 1>sued TikTok this week, saying the popular short term video

0:25:43.200 --> 0:25:46.919
<v Speaker 1>app is designed to be addictive to kids and harms

0:25:46.960 --> 0:25:50.760
<v Speaker 1>their mental health. The lawsuits stem from a national investigation

0:25:50.880 --> 0:25:54.360
<v Speaker 1>into TikTok launched in March of twenty twenty two by

0:25:54.400 --> 0:25:58.919
<v Speaker 1>a bipartisan coalition of attorneys general. The lawsuits claim that

0:25:59.080 --> 0:26:04.120
<v Speaker 1>TikTok design features that addict children to the platform, such

0:26:04.119 --> 0:26:08.880
<v Speaker 1>as the ability to scroll endlessly through content, push notifications

0:26:08.880 --> 0:26:12.359
<v Speaker 1>that come with built in buzzes, and face filters that

0:26:12.440 --> 0:26:17.560
<v Speaker 1>create unattainable appearances for users. A TikTok spokesman said they

0:26:17.600 --> 0:26:21.360
<v Speaker 1>strongly disagree with the claims, many of which they believed

0:26:21.400 --> 0:26:25.240
<v Speaker 1>to be inaccurate and misleading. Joining me is Eric Goldman,

0:26:25.320 --> 0:26:28.960
<v Speaker 1>a professor at Santa Clara University Law School and co

0:26:29.040 --> 0:26:32.640
<v Speaker 1>director of the school's High Tech Law Institute. What are

0:26:32.640 --> 0:26:34.440
<v Speaker 1>the claims here against TikTok?

0:26:34.920 --> 0:26:37.960
<v Speaker 3>State's trains General are taking a position that TikTok has

0:26:38.280 --> 0:26:41.840
<v Speaker 3>designed its service in a way that hurts its users,

0:26:42.119 --> 0:26:46.040
<v Speaker 3>and that its design is both legally problematic, as well

0:26:46.080 --> 0:26:49.800
<v Speaker 3>as its failure to disclose some of the information it

0:26:49.920 --> 0:26:51.639
<v Speaker 3>had was also problematic.

0:26:52.119 --> 0:26:58.159
<v Speaker 1>The California Attorney General Rob Bonta said that California's investigation

0:26:58.520 --> 0:27:02.600
<v Speaker 1>found that TikTok offers unique safety features for users in

0:27:02.720 --> 0:27:06.640
<v Speaker 1>China that are not available to users in the US,

0:27:06.680 --> 0:27:10.720
<v Speaker 1>including usage time limits. But I thought there were default

0:27:10.760 --> 0:27:15.680
<v Speaker 1>screen time limits and other different safeguards that they've introduced.

0:27:15.240 --> 0:27:20.200
<v Speaker 3>To mean that observation is frankly irrelevant. Every service customizes

0:27:20.520 --> 0:27:24.159
<v Speaker 3>for local conditions, whether that's because the users have different

0:27:24.160 --> 0:27:28.119
<v Speaker 3>needs or because the law is different. For example, in

0:27:28.240 --> 0:27:30.880
<v Speaker 3>other countries they don't have the First Amendment, and so

0:27:31.200 --> 0:27:34.080
<v Speaker 3>service in the US just routinely look different than they

0:27:34.080 --> 0:27:35.399
<v Speaker 3>do in other parts of the world.

0:27:35.920 --> 0:27:42.120
<v Speaker 1>Washington's lawsuit accused TikTok of facilitating sexual exploitation of underage users,

0:27:42.240 --> 0:27:46.159
<v Speaker 1>saying TikTok's live streaming and virtual currency operate like a

0:27:46.240 --> 0:27:51.119
<v Speaker 1>virtual strip club with no age restrictions. Is that the

0:27:51.240 --> 0:27:55.879
<v Speaker 1>use of exaggeration to show a point or can they

0:27:55.960 --> 0:27:56.399
<v Speaker 1>prove that?

0:27:57.000 --> 0:28:01.040
<v Speaker 3>Certainly, any efforts to engage in sexual predation on any

0:28:01.119 --> 0:28:04.159
<v Speaker 3>site is troubling, and I wish that didn't occur. I

0:28:04.200 --> 0:28:07.359
<v Speaker 3>wish that wasn't part of the human condition. However, it's

0:28:07.600 --> 0:28:12.040
<v Speaker 3>easy enough for the regulators to point to specific actions

0:28:12.040 --> 0:28:14.639
<v Speaker 3>that they don't like, but it's harder to talk about

0:28:14.640 --> 0:28:18.760
<v Speaker 3>how TikTok might design a service that would prevent those

0:28:18.880 --> 0:28:22.639
<v Speaker 3>actions from ever taking place, and some of the solutions

0:28:22.800 --> 0:28:25.919
<v Speaker 3>that might prevent it would have other collateral damage that

0:28:25.960 --> 0:28:29.880
<v Speaker 3>could to materially degrade the service for everybody, or make

0:28:29.920 --> 0:28:32.560
<v Speaker 3>it impossible for anyone to talk to each other, And

0:28:32.640 --> 0:28:37.160
<v Speaker 3>so it's not really super insightful to talk about the

0:28:37.440 --> 0:28:41.840
<v Speaker 3>virtual crime scene without contemplating the overall ecosystem.

0:28:42.120 --> 0:28:46.880
<v Speaker 1>Are these suits under different states consumer protection laws?

0:28:47.160 --> 0:28:50.320
<v Speaker 3>That's my understanding. So each s they filed its own complaint,

0:28:50.440 --> 0:28:54.120
<v Speaker 3>and each complaint that would have referenced its local statutes

0:28:54.160 --> 0:28:57.040
<v Speaker 3>as part of the allegations, so it's.

0:28:56.880 --> 0:28:59.200
<v Speaker 1>Not one class action lawsuit.

0:28:59.440 --> 0:29:01.400
<v Speaker 3>Well have to be a class action lawsuit for it

0:29:01.480 --> 0:29:05.320
<v Speaker 3>to be consolidated. So over forty state attorney generals are

0:29:05.440 --> 0:29:09.600
<v Speaker 3>coordinating their efforts in a single challenge against Facebook, But

0:29:10.000 --> 0:29:12.880
<v Speaker 3>in this case, for reasons that are unclear to me,

0:29:13.680 --> 0:29:16.360
<v Speaker 3>each state is doing their own thing, but obviously they're

0:29:16.400 --> 0:29:20.280
<v Speaker 3>coordinated as well. But each state is incurring significantly higher

0:29:20.640 --> 0:29:23.520
<v Speaker 3>enforcement costs than if they were to combine their resources.

0:29:23.600 --> 0:29:25.880
<v Speaker 1>Do you think that this is a strong lawsuit?

0:29:26.240 --> 0:29:29.480
<v Speaker 3>The short answers, we don't know how strong these lawsuits

0:29:29.520 --> 0:29:33.840
<v Speaker 3>are because none of the similar lawsuits have reached a

0:29:34.040 --> 0:29:38.480
<v Speaker 3>final resolution that answers the key legal questions. There have

0:29:38.480 --> 0:29:43.160
<v Speaker 3>been many challenges in many different venues against social media

0:29:43.200 --> 0:29:47.520
<v Speaker 3>services for a variety of alleged misdeeds, and many of

0:29:47.600 --> 0:29:50.200
<v Speaker 3>us are still working through the court system waiting appeal

0:29:50.600 --> 0:29:54.880
<v Speaker 3>or additional review by higher courts. And until we hear

0:29:54.880 --> 0:29:58.240
<v Speaker 3>from the higher courts, the data is noisy. We can't

0:29:58.360 --> 0:30:01.280
<v Speaker 3>really tell where the line is today legally, and so

0:30:01.840 --> 0:30:04.640
<v Speaker 3>it's hard to judge the efficacy of these particular suits

0:30:04.800 --> 0:30:07.480
<v Speaker 3>until we get additional data from the appellate courts.

0:30:07.880 --> 0:30:11.880
<v Speaker 1>I feel like another day, another lawsuit against TikTok. Is

0:30:11.920 --> 0:30:14.560
<v Speaker 1>there a point in this sort of piling on? It

0:30:14.600 --> 0:30:18.160
<v Speaker 1>seems like there are many many lawsuits against TikTok already.

0:30:18.360 --> 0:30:19.880
<v Speaker 3>It's a great point, and I would take it one

0:30:19.920 --> 0:30:23.480
<v Speaker 3>step further. California recently passed the law that was designed

0:30:23.520 --> 0:30:27.440
<v Speaker 3>to target alleged addiction of users by the social media

0:30:27.600 --> 0:30:30.280
<v Speaker 3>that won't go into effect for a few years. California's

0:30:30.320 --> 0:30:33.360
<v Speaker 3>involvement in this particular enforced action is basically trying to

0:30:33.480 --> 0:30:36.280
<v Speaker 3>move up the time period of that law before when

0:30:36.320 --> 0:30:38.600
<v Speaker 3>the legislature thinks that the community is ready for it.

0:30:38.760 --> 0:30:42.640
<v Speaker 3>So basically Bonta is jumping the gun on a statute

0:30:42.680 --> 0:30:45.520
<v Speaker 3>that's designed to accomplish the exact same goals, which is

0:30:45.560 --> 0:30:51.080
<v Speaker 3>an unusual and somewhat troubling allocation of prosecutorial resources. Why

0:30:51.120 --> 0:30:53.600
<v Speaker 3>not wait until the statue comes in ef fact that

0:30:53.680 --> 0:30:57.120
<v Speaker 3>the legislature is carefully crafted and it believes requires some

0:30:57.200 --> 0:31:00.600
<v Speaker 3>compliance time to go into effect. Having said that, you know,

0:31:00.800 --> 0:31:03.720
<v Speaker 3>I think that all of the lawsuits and the statutes

0:31:03.720 --> 0:31:06.320
<v Speaker 3>are going to be sort of substantial criticism when they

0:31:06.360 --> 0:31:09.720
<v Speaker 3>go up on appeal, and so nobody really knows the laws,

0:31:09.760 --> 0:31:13.920
<v Speaker 3>and I'm the investment in new lawsuits without uncertainty is

0:31:14.040 --> 0:31:15.440
<v Speaker 3>just in a sense, piling on.

0:31:15.720 --> 0:31:19.240
<v Speaker 1>As TikTok spokesperson pointed to the safeguards that were introduced

0:31:19.280 --> 0:31:23.520
<v Speaker 1>by the company, including default screen time limits, family pairing,

0:31:23.560 --> 0:31:27.120
<v Speaker 1>and privacy defaults for minors under sixteen, Do you see

0:31:27.120 --> 0:31:29.720
<v Speaker 1>that as their defense or might they have another defense?

0:31:30.240 --> 0:31:33.520
<v Speaker 3>It's impossible to talk about a defense until we understand

0:31:33.560 --> 0:31:38.200
<v Speaker 3>precisely what problem the state ages are concerned about, and

0:31:38.800 --> 0:31:42.720
<v Speaker 3>for all of the negativity they introduce, it's not entirely

0:31:42.800 --> 0:31:46.040
<v Speaker 3>clear that we can precisely identify the problem and the

0:31:46.080 --> 0:31:50.200
<v Speaker 3>solution that would ameliorate that problem. So, for example, when

0:31:50.240 --> 0:31:53.960
<v Speaker 3>we talk about this concept of addiction that's not necessarily

0:31:53.960 --> 0:31:56.560
<v Speaker 3>in a clinical sense, that might be more of a

0:31:56.800 --> 0:32:01.480
<v Speaker 3>lay term, and so we don't really have a scientifically

0:32:01.560 --> 0:32:06.000
<v Speaker 3>authorized protocol for how to deal with the clinical condition

0:32:06.080 --> 0:32:09.600
<v Speaker 3>of social media addiction. So in that sense, everyone's kind

0:32:09.640 --> 0:32:14.200
<v Speaker 3>of guessing at what actually will help and what troubles

0:32:14.240 --> 0:32:17.200
<v Speaker 3>means when the state decides to put its finger on

0:32:17.240 --> 0:32:20.000
<v Speaker 3>the scale of those guesses and say we're going to

0:32:20.080 --> 0:32:22.920
<v Speaker 3>side for you, with no clinical evidence to back us up,

0:32:23.000 --> 0:32:27.280
<v Speaker 3>and then no consideration for how the solution might actually

0:32:27.280 --> 0:32:29.520
<v Speaker 3>not solve the problem or actually might make things worse.

0:32:30.080 --> 0:32:34.680
<v Speaker 1>So the FTC sued TikTok in August for violating the

0:32:34.720 --> 0:32:39.360
<v Speaker 1>federal Children's Privacy Law. Is that a different kind of

0:32:39.440 --> 0:32:41.840
<v Speaker 1>suit than this or are they all based on the

0:32:41.880 --> 0:32:44.440
<v Speaker 1>same sort of allegations?

0:32:45.440 --> 0:32:48.720
<v Speaker 3>All of them derived from a core impulse, which is

0:32:48.800 --> 0:32:52.360
<v Speaker 3>that the governments decided that it wants to determine how

0:32:52.520 --> 0:32:57.040
<v Speaker 3>social services should operate. It's tired of letting services negotiate

0:32:57.040 --> 0:33:00.479
<v Speaker 3>that directly with their audience. So whether it's framed as

0:33:00.480 --> 0:33:04.120
<v Speaker 3>a privacy lawsuit or an addiction targeting lawsuit, or a

0:33:04.200 --> 0:33:09.720
<v Speaker 3>statute that designed to hard code specific operational practices, they're

0:33:09.800 --> 0:33:14.560
<v Speaker 3>all reflecting this basic underlying impulse that the government's taking

0:33:14.600 --> 0:33:17.040
<v Speaker 3>over here, and they're going to decide for everyone.

0:33:17.160 --> 0:33:19.440
<v Speaker 1>I mean, they might have waited to see if TikTok

0:33:19.520 --> 0:33:22.760
<v Speaker 1>is even in existence in a few years. What's happening

0:33:22.800 --> 0:33:26.680
<v Speaker 1>with TikTok battling the US law that could ban.

0:33:26.640 --> 0:33:29.720
<v Speaker 3>The app Congress enacted the law earlier this year that

0:33:29.960 --> 0:33:33.680
<v Speaker 3>forces TikTok to change its ownership structure and failing that,

0:33:34.320 --> 0:33:36.760
<v Speaker 3>to be kicked out of the US market entirely. And

0:33:37.120 --> 0:33:39.920
<v Speaker 3>I still find people who have no idea that Congress

0:33:39.960 --> 0:33:44.040
<v Speaker 3>has literally banned TikTok. It's really a shocking development when

0:33:44.040 --> 0:33:47.520
<v Speaker 3>people think about it. Everyone, including Congress, contemplated that the

0:33:47.600 --> 0:33:50.320
<v Speaker 3>law would be subject to a legal challenge. That legal

0:33:50.400 --> 0:33:54.480
<v Speaker 3>challenge is currently pending with the DC Circuit Court of Appeals,

0:33:54.520 --> 0:33:55.960
<v Speaker 3>But the real action is going to come from the

0:33:55.960 --> 0:33:58.560
<v Speaker 3>Supreme Court. Whatever the DC Circuit says is going to

0:33:58.600 --> 0:34:00.760
<v Speaker 3>go to the Supreme Court and then we're going to

0:34:00.840 --> 0:34:03.560
<v Speaker 3>get more of our answer. So until we hear for

0:34:03.640 --> 0:34:05.800
<v Speaker 3>the Supreme Court, everything is pretty speculative.

0:34:05.920 --> 0:34:09.359
<v Speaker 1>The oral arguments at the DC Circuit didn't seem to

0:34:09.400 --> 0:34:11.840
<v Speaker 1>be leaning in TikTok's favor.

0:34:12.160 --> 0:34:16.880
<v Speaker 3>Whatever the DC Circuit opinion says will be of interest,

0:34:17.080 --> 0:34:19.520
<v Speaker 3>but it's going to be subject to review by the

0:34:19.560 --> 0:34:22.440
<v Speaker 3>Supreme Court. So I've not invested a lot of emotional

0:34:22.520 --> 0:34:25.520
<v Speaker 3>energy and the possibility that they're going to do something weird,

0:34:26.000 --> 0:34:30.120
<v Speaker 3>because it really doesn't matter. They're just warming up act

0:34:30.200 --> 0:34:32.280
<v Speaker 3>before the Supreme Court, you know, they're like the opening

0:34:32.320 --> 0:34:33.840
<v Speaker 3>knack to the main scene.

0:34:34.120 --> 0:34:39.040
<v Speaker 1>And what about the lawsuits by private plaintiffs in California

0:34:39.160 --> 0:34:41.000
<v Speaker 1>federal and state court, So.

0:34:41.000 --> 0:34:43.880
<v Speaker 3>That battle is well ahead of this battle, and so

0:34:44.440 --> 0:34:47.399
<v Speaker 3>it's entirely likely that we're going to get answers from

0:34:47.440 --> 0:34:50.280
<v Speaker 3>that court case that will influence this one. And again

0:34:50.480 --> 0:34:53.879
<v Speaker 3>raises the consideration that maybe the AGS pulled the trigger

0:34:53.880 --> 0:34:55.880
<v Speaker 3>a little bit early. They didn't wait to see what

0:34:56.000 --> 0:34:59.480
<v Speaker 3>happened with those cases and didn't then iterate based on

0:34:59.600 --> 0:35:02.719
<v Speaker 3>the less from those cases. They're basically replicating the same

0:35:02.719 --> 0:35:06.360
<v Speaker 3>claims that have been made elsewhere. So there's an enormous

0:35:06.360 --> 0:35:09.560
<v Speaker 3>sense of deja vous about this particular stive enforcement actions.

0:35:09.640 --> 0:35:12.680
<v Speaker 1>There certainly is. Thanks so much, Eric. That's Professor Eric

0:35:12.719 --> 0:35:16.520
<v Speaker 1>Goleman of Santa Clara University School of Law. And that's

0:35:16.520 --> 0:35:19.520
<v Speaker 1>it for this edition of the Bloomberg Law Podcast. Remember

0:35:19.560 --> 0:35:22.239
<v Speaker 1>you can always get the latest legal news by subscribing

0:35:22.280 --> 0:35:25.759
<v Speaker 1>and listening to the show on Apple Podcasts, Spotify, and

0:35:25.840 --> 0:35:29.799
<v Speaker 1>at Bloomberg dot com, slash podcast, Slash Law. I'm June

0:35:29.840 --> 0:35:32.000
<v Speaker 1>Grosso and this is Bloomberg