States’ EEOC Lawsuit Over Certain Pregnancy-Related Workplace Accommodations May Proceed
In the first ruling of its kind, an appellate court heard a challenge to the Pregnant Workers Fairness Act (PWFA). This decision could impact whether employers must update their policies and training before they receive accommodation requests under the PWFA.
On Feb. 20, the Eighth Circuit Court of Appeals ruled that a lawsuit brought by 17 state attorneys general challenging the Equal Employment Opportunity Commission’s (EEOC) rules on how to implement the PWFA may proceed. It reversed a district court ruling from the Eastern District of Arkansas that dismissed the states’ lawsuit after finding the states did not have standing to sue. The Eighth Circuit disagreed. The three-judge panel held that the states – which include Alabama, Florida and Tennessee – do have standing to bring the case as the “object of the EEOC’s regulatory action.”
At issue is the EEOC’s final rule under the PWFA that requires employers to make accommodations for pregnant workers, including time off for, recovery from, and treatment related to abortion. The Eighth Circuit disagreed with the EEOC’s argument that its final rule did not compel states to act and did not produce an injury until an employee requested an accommodation. The states faced injury in part, the panel said, by way of the need to update their employment policies and train staff on the rule’s requirements. “An employer cannot meet its obligations under the Rule without taking steps to ensure that its employees know their rights and obligations under the Rule,” the panel said. “As a practical matter, the Rule requires immediate action by the States to conform to the Rule, and this action produces an injury in fact.”
The Eighth Circuit panel did not issue a decision on the merits in the case. It remanded the case back to the lower court. The Department of Justice represents the EEOC in court, and under the new administration, it remains to be seen whether it will continue to fight the states' lawsuit.
This ruling is the first decision concerning the EEOC’s PWFA rules made by an appellate court. District courts have split in cases brought by states and religious organizations over these regulations, so employers should remain up to date on the latest rulings on the EEOC’s implementation of the PWFA. For more information or advice and guidance, contact Trey Clark or any member of the Phelps labor and employment team.
