Supreme Court Sides With Employer In Pregnancy Discrimination Case — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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Supreme Court Sides With Employer In Pregnancy Discrimination Case

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On May 18, the U.S. Supreme Court held that the Pregnancy Discrimination Act (PDA) does not apply retroactively. In doing so, the High Court reversed a 9th Circuit Court decision that AT&T violated the PDA by refusing to adjust pension benefits that were partially based on pre-PDA calculations.


Background: AT&T calculated pension benefits based on seniority. In the 1960s and 1970s, prior to the passage of the PDA, its policy provided employees with full service credit while on disability leave, but only provided up to 30 days for employees on personal leave, which included pregnancy leave. It later changed the policy to provide employees on pregnancy leave with service credit for up to six weeks.


The PDA, which amended Title VII, became effective in 1979. At that time, AT&T changed its policy so that employees on pregnancy leave received the same service credit as employees on disability leave. It did not ma...(register to read more)

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