In today’s news and commentary, the Supreme Court rules for Cornell employees in an ERISA suit, the Sixth Circuit addresses whether the EFAA applies to a sexual harassment claim, and DOGE gains access to sensitive labor data on immigrants. 

On Thursday, the Supreme Court made it easier for employees to bring ERISA suits when their retirement plan fiduciaries undertake prohibited transactions. In Cunningham v. Cornell, a class of current and former Cornell University employees accused Cornell of paying excessive fees for recordkeeping and administrative services, an ERISA violation. The Second Circuit had ruled for Cornell, deepening a circuit split over whether plaintiffs had to negate exemptions to liability under ERISA before defendants asserted them. The Supreme Court reversed unanimously, holding that the exemptions were affirmative defenses, and that it would be “illogical” to require plaintiffs to meet a higher pleading standard. 

One day later, the Sixth Circuit addressed a timing issue in the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act. The EFAA prevents forced arbitration in cases involving sexual assault or sexual harassment. It applies to “claims that accrue” and “disputes that arise” on or after March 3, 2022. Kassandra Memmer, a mortgage underwriter, was allegedly harassed at work and quit her job prior to the EFAA’s enactment, but filed a discrimination charge with the EEOC and sued under Title VII of the Civil Rights Act after March 2022. Her employer moved to compel arbitration, but the Sixth Circuit held that the “relevant question is when the parties became adverse to one another,” not necessarily when her harassment occurred. It then remanded the case to the district court to determine when the dispute arose in Memmer’s case.

Meanwhile, DOGE has reportedly gained access to multiple Department of Labor systems, including its National Farmworker Jobs Program and its Foreign Labor Application Gateway, among others. NFJP offers funding for organizations supporting migrant, seasonal, and low-income farm workers, while FLAG is responsible for wage protections and visa programs for foreign workers. These programs maintain data on Social Security numbers, services received by beneficiaries, as well as work addresses, phone numbers, and other sensitive personal information.