Adam Herzog Comments on Fifth Circuit Employment Agreement Ruling

February 16, 2024

In a new article for Bloomberg, KBK Partner Adam Herzog commented on the recent U.S. Court of Appeals Fifth Circuit ruling that cut what may be the largest ever jury-verdict won by an employee suing for racial bias from $366 million to $249,000. Mr. Herzog criticizes the Court’s reasoning that upheld an Employment Agreement provision drastically cutting the statute of limitations on her Section 1981 claim from four years to six-months.

He commented that the Court’s ruling is “galling,” particularly because Section 1981 was created to prevent discrimination in contracts and the Fifth Circuit’s ruling allows employers to exploit their unequal bargaining power to more easily discriminate against employees due to their race.

Katz Banks Kumin advises and represents employees and executives in negotiation of their employment agreements and how to avoid these and similarly harmful provisions, learn more about their work here: https://katzbanks.com/practice-areas/employment-law/employment-contracts/

Read the full article here: https://news.bloomberglaw.com/daily-labor-report/slashed-366-million-bias-verdict-shows-damage-cap-downsides

 

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