Home Risk & Insurance Legal Roundup: Male Model Abuse Case Filed, Uber and Lyft to Pay $328 Million NYC Wage Settlement and More : Risk & Insurance

Legal Roundup: Male Model Abuse Case Filed, Uber and Lyft to Pay $328 Million NYC Wage Settlement and More : Risk & Insurance

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Legal Roundup: Male Model Abuse Case Filed, Uber and Lyft to Pay $328 Million NYC Wage Settlement and More : Risk & Insurance

American Airways faces uniform backlash, employment discrimination claims attain settlement at Apple and extra on this version of Authorized Roundup.

Abercrombie & Fitch Accused of Sexual Abuse of Male Fashions

The Case: In the event you have been an adolescent within the ’90s or 2000s, chances are high excessive that you just keep in mind Abercrombie & Fitch — the expensive clothes model that usually featured younger, muscle-bound male fashions.

Whereas the advertisements helped catapult the model into American consciousness, there was one thing nefarious taking place below the floor, based on allegations by a former mannequin.

David Bradberry sued the corporate, accusing it of enabling former CEO Mike Jeffries to function a sex-trafficking ring throughout his tenure from 1992 to 2014, based on CBS Information.

The lawsuit, filed within the U.S. District Court docket for the Southern District of New York, alleges that Jeffries, with assistance from modeling scouts, focused younger males below the pretense of modeling alternatives, resulting in their exploitation and abuse.

Scorecard: The case has not too long ago been filed and has not come to a decision.

Abercrombie & Fitch, now below new management, has distanced itself from these allegations, emphasizing its dedication to a values-driven tradition and stating its unawareness of Jeffries’ alleged misconduct.

Takeaway: This case underscores the crucial significance of moral management and sturdy oversight mechanisms. It highlights the hazards of alleged unchecked autonomy in high-level positions, notably when profitability eclipses moral issues.

Companies should make sure that their company tradition and practices align with authorized and moral requirements, whatever the particular person successes of their leaders.

Uber and Lyft Settle New York Wage-Theft Case

The Case: Uber and Lyft confronted allegations of illegal wage deductions and noncompliance with state and New York Metropolis legal guidelines relating to sick go away.

NBC Information supplied these two examples of wage deductions: “From 2014 to 2017, Uber deducted gross sales taxes and Black Automobile Fund charges from drivers’ paychecks and misrepresented that it will accomplish that in its phrases of service. And Lyft, the AG alleged, deducted an 11.4% administrative cost that equaled the quantity of the gross sales tax and Black Automobile Fund charges between 2015 and 2017.”

Scorecard: Uber and Lyft have agreed to a $328 million settlement to resolve the allegations.

Uber pays $290 million, and Lyft pays $38 million.

The settlement represents the most important wage-theft settlement received by the state legal professional normal’s workplace, based on NBC Information. Each corporations have agreed to supply a assured minimal incomes of $26 per hour exterior New York Metropolis and paid sick go away for drivers statewide.

Takeaway: The settlement has broad implications for danger managers and enterprise leaders, particularly throughout the gig economic system. It underscores the significance of compliance with state and federal labor legal guidelines, even in industries the place employment relationships are nontraditional.

The excessive price of the settlement highlights the monetary dangers related to noncompliance. It additionally indicators a rising regulatory deal with gig economic system corporations, suggesting that comparable actions might happen in different jurisdictions.

Companies should proactively adapt to altering authorized landscapes to mitigate potential authorized and monetary dangers.

After Well being Issues, Flight Attendants Win Case Towards Uniform Maker

The Case: Tracey Silver-Charan’s face was battered as if she have been in a boxing match — however it was only a extreme chemical response to her American Airways uniform, she alleged.

Silver-Charan is considered one of 4 American Airways flight attendants who sued Twin Hill Acquisition Co. over well being points they attributed to allergic reactions to new uniforms offered by the corporate.

Alleging that the clothes contained dangerous chemical compounds like formaldehyde and toluene, the flight attendants sued in Alameda County Superior Court docket. American subsequently ended the uniform contract with Twin Hill and now works with Land’s Finish.

Scorecard: The jury discovered that the uniforms have been a “substantial think about inflicting hurt” to the flight attendants, awarding $320,000 in misplaced earnings and ache and struggling to Silver-Charan and $750,000 in damages to fellow plaintiff Brenda Sabbatino, based on the Related Press.

The jury didn’t discover Twin Hill negligent in its design of the uniforms or in failing to recall them after complaints surfaced.

The Related Press stated the decision could possibly be “the tip of the iceberg,” as there are lots of extra flight attendants who made comparable claims.

Takeaway: The case emphasizes the necessity for thorough testing and vetting of the supplies utilized in worker uniforms, particularly when introducing new merchandise.

The case additionally illustrates the potential authorized and monetary implications of failing to adequately reply to worker well being considerations.

Firms ought to have clear channels for addressing such complaints and take proactive steps to research and mitigate potential dangers. Furthermore, the case underlines the significance of company duty in defending worker well being and wellbeing, which might have vital authorized and reputational penalties.

Apple Settles Employment Discrimination Claims for $25 Million

The Case: Tech big Apple was sued over allegations that it favored immigrant employees over U.S. residents and inexperienced card holders for sure positions.

The case arose from Apple’s alleged noncompliance with federal legal guidelines prohibiting citizenship-based discrimination in employment, based on Reuters.

The Division of Justice highlighted that Apple didn’t adequately recruit U.S. residents or everlasting residents for jobs eligible below the federal PERM program, which permits employers to sponsor immigrant employees for inexperienced playing cards.

Scorecard: Apple agreed to pay $6.75 million in civil penalties and $18.25 million to affected employees, whose precise quantity stays unspecified, based on Reuters.

The corporate acknowledged its unintentional noncompliance with DOJ requirements and dedicated to a complete remediation plan.

This settlement, the most important of its sort involving citizenship discrimination claims, adopted findings that Apple’s recruitment practices for these positions have been much less efficient and deviated from its customary procedures.

Takeaway: The case serves as a reminder of the significance of compliance with federal employment legal guidelines, particularly these associated to nondiscrimination.

It underscores the necessity for corporations to usually assessment and replace their recruitment and hiring practices to make sure they don’t inadvertently discriminate towards any body of workers. &

Jared Shelly is a journalist based mostly in Philadelphia. He may be reached at [email protected].