Orlando 5/24/2011 1:17:42 AM
News / Law

Bankruptcy Discrimination Ruling May Affect Job Applicants in Private Sectors

The workplace discrimination lawyers at Morgan and Morgan are alerting the public to a recent ruling which could affect employee rights in regard to bankruptcy discrimination. The U.S. Eleventh Circuit Court of Appeals ruled in Myers v. TooJay’s Management Corp. that a private employer can refuse to hire job applicants based solely on the fact that they have filed for bankruptcy. This is the third federal appeals court ruling of its kind.

Bankruptcy discrimination law contains two subsections, one pertaining to government employers and the other to private employers. According to the first subsection, government employers cannot deny employment, terminate employment or otherwise discriminate against workers on the basis of bankruptcy. While the second subsection also bans private employers from firing or discriminating against employees who are or have been in bankruptcy, it does not explicitly prohibit a private employer from denying employment on such grounds. The Myers v. TooJay’s Management Corp. case looked to challenge this section of the law on behalf of a plaintiff who was allegedly discriminated against based on his bankruptcy past. 

In the bankruptcy discrimination lawsuit, Eric Myers alleged that TooJay’s had discriminated against him because of his bankruptcy by refusing to hire him, and alternatively, by firing him after being hired. According to the lawsuit, Myers interviewed for a managerial position at TooJay’s and spent two days in an on-the-job evaluation, after which he reportedly signed a number of documents, including a W-4 and I-9 form. Allegedly, the manager then made him an unconditional offer of employment and discussed salary, hours and his start date. The manager denied these allegations, and expressed that the plaintiff was aware that the job offer hinged on a background check. After providing two weeks notice to his previous employer, Myers received an adverse action letter from TooJay’s stating that the offer of employment was revoked based on information provided in a consumer report. 

While this ruling will make it difficult for job applicants in the private sector to bring refusal to hire bankruptcy discrimination claims, they may still have legal recourse after being fired or otherwise discriminated against in employment based on their financial past. If you were discriminated against at your job due to your bankruptcy history, or other protected class such as age, race or gender, the workplace discrimination lawyers at Morgan and Morgan may be able to assist with your claim. Visit http://www.forthepeople.com/understanding_discrimination.htm to learn more about workplace discrimination and to receive a free, online case review. 

About Morgan and Morgan

Morgan and Morgan is one of the largest Personal Injury law firms in the country with multiple office locations throughout Florida and the Southeast. The firm handles auto accident cases, personal injury cases, and medical malpractice cases, as well as claims against drug and medical device manufacturers. Visit Morgan and Morgan online at http://www.forthepeople.com/ for a free case evaluation and information about your legal rights.