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Court orders more proceedings on suit involving former Junior Achievement VP

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The 7th Circuit Court of Appeals Tuesday had to determine how best to read Section 510 of the Employment Retirement Income Security Act of 1974 to rule whether a former vice president of Junior Achievement of Central Indiana was fired because of his protests about the company’s failure to deposit money into his retirement account.

Victor George discovered in the summer of 2009 that money withheld from his paycheck wasn’t being deposited into his retirement and health savings accounts. He lodged several complaints with Junior Achievement accountants and some executives and contacted the U.S. Department of Labor. He declined to file a written complaint, however. In October 2009, he received checks in the amount owed, plus interest.

George was contemplating retirement when, in early January 2010, JA’s president told George not to come to work the next day. He believes his protests to how JA handled his retirement funds led to his firing. Section 510 of the act prohibits retaliation “against any person because he has given information or has testified or is about to testify in any inquiry or proceeding relating to this [Act].”

Junior Achievement argued – to which the trial court agreed – that the language doesn’t cover George’s complaint. The Circuit courts have disagreed about the scope of Section 510. Some have observed that “testify” and “proceeding” denote formal actions and that “inquiry” also should be understood as a formal proceeding. Two Circuits held Section 510 applies to unsolicited informal complaints, and the 9th Circuit stated that reporting misconduct is a necessary step in the commencement of any formal inquiry.

“We conclude that the best reading of §510 is one that divides the world into the informal sphere of giving information in or in response to inquiries and the formal sphere of testifying in proceedings. This means that an employee’s grievance is within §510’s scope whether or not the employer solicited information. It does not mean that §510 covers trivial bellyaches — the statute requires the retaliation to be ‘because’ of a protected activity,” Chief Judge Frank Easterbrook wrote in Victor George v. Junior Achievement of Central Indiana Inc., 11-3291. “Someone must ask a question, and the adverse action must be caused by the question or the response. What’s more, the grievance must be a plausible one, though not necessarily one on which the employee is correct.”

“George notified Junior Achievement of the potential breach of its fiduciary duties and asked (repeatedly) what would be done to remedy the situation. Those conversations involved an ‘inquiry,’ as we understand that word, because Junior Achievement responded to them rather than ignoring them,” he continued.

The judges reversed summary judgment and noted the District Court must decide whether there is some other ground on which this case may be resolved short of trial or whether a trial on causation is necessary.

 

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  1. "So we broke with England for the right to "off" our preborn progeny at will, and allow the processing plant doing the dirty deeds (dirt cheap) to profit on the marketing of those "products of conception." I was completely maleducated on our nation's founding, it would seem. (But I know the ACLU is hard at work to remedy that, too.)" Well, you know, we're just following in the footsteps of our founders who raped women, raped slaves, raped children, maimed immigrants, sold children, stole property, broke promises, broke apart families, killed natives... You know, good God fearing down home Christian folk! :/

  2. Who gives a rats behind about all the fluffy ranking nonsense. What students having to pay off debt need to know is that all schools aren't created equal and students from many schools don't have a snowball's chance of getting a decent paying job straight out of law school. Their lowly ranked lawschool won't tell them that though. When schools start honestly (accurately) reporting *those numbers, things will get interesting real quick, and the looks on student's faces will be priceless!

  3. Whilst it may be true that Judges and Justices enjoy such freedom of time and effort, it certainly does not hold true for the average working person. To say that one must 1) take a day or a half day off work every 3 months, 2) gather a list of information including recent photographs, and 3) set up a time that is convenient for the local sheriff or other such office to complete the registry is more than a bit near-sighted. This may be procedural, and hence, in the near-sighted minds of the court, not 'punishment,' but it is in fact 'punishment.' The local sheriffs probably feel a little punished too by the overwork. Registries serve to punish the offender whilst simultaneously providing the public at large with a false sense of security. The false sense of security is dangerous to the public who may not exercise due diligence by thinking there are no offenders in their locale. In fact, the registry only informs them of those who have been convicted.

  4. Unfortunately, the court doesn't understand the difference between ebidta and adjusted ebidta as they clearly got the ruling wrong based on their misunderstanding

  5. A common refrain in the comments on this website comes from people who cannot locate attorneys willing put justice over retainers. At the same time the judiciary threatens to make pro bono work mandatory, seemingly noting the same concern. But what happens to attorneys who have the chumptzah to threatened the legal status quo in Indiana? Ask Gary Welch, ask Paul Ogden, ask me. Speak truth to power, suffer horrendously accordingly. No wonder Hoosier attorneys who want to keep in good graces merely chase the dollars ... the powers that be have no concerns as to those who are ever for sale to the highest bidder ... for those even willing to compromise for $$$ never allow either justice or constitutionality to cause them to stand up to injustice or unconstitutionality. And the bad apples in the Hoosier barrel, like this one, just keep rotting.

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