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Contribution, Indemnification or Contract
Faced with hefty legal bills, damage awards, or settlements as a result of discrimination or harassment claims, employers have attempted to recover costs from third parties whom they perceive as causing or sharing responsibility for the problem. To this end, employers have sued unions and even their own employees in an effort to spread the financial responsibility. The theories behind such suits, and their results, have been mixed.
Supreme Court Authority
The United States Supreme Court examined the issue of whether an employer held liable to its female employees for back pay under the Equal Pay Act and Title VII was entitled to seek contribution from unions that allegedly bore at least partial responsibility for the statutory violations in Northwest Airlines, Inc. v. Transport Workers Union of America, AFL-CIO, 451 U.S. 77 (1981). In that case, the Court held that neither Title VII nor federal common law expressly creates a right to contribution. Northwest Airlines has been cited as authority for denying a right to contribution under the ADEA (see Rodolico v. Unisys Corp., 189 F.R.D. 245 (E.D.N.Y. 1999)) and the ADA (see Lane v. United States Steel, 871 F.Supp. 1434 (M.D. Ala. 1994)).
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