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MORELLI V. CEDEL

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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MORELLI V. CEDEL

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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.

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