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TITLE VII and PARTNERSHIP

TITLE VII and PARTNERSHIP. Partners not covered by Title VII -- are not employees Decision to promote to partner is covered by Title VII -- “condition of employment” -- Hishon v. King & Spaulding Is person bona fide partner -- can’t use title simple to defeat coverage . Partner or Employee?.

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TITLE VII and PARTNERSHIP

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  1. TITLE VII and PARTNERSHIP • Partners not covered by Title VII -- are not employees • Decision to promote to partner is covered by Title VII -- “condition of employment” -- Hishon v. King & Spaulding • Is person bona fide partner -- can’t use title simple to defeat coverage

  2. Partner or Employee? • “Common Law Test” – Clackamas Gastroenterology Assocs., P.C. v. Wells [123 S.Ct. 1673 (2003)]: • Can the organization hire/fire or set rules to control the individual’s work? • Does the organization supervise the individual’s work – to what extent? • Does the individual report to someone higher up the organization? • Whether and to what extent is the individual able to influence the organization? • Did the parties intend the individual to be an employee – in contract or agreement? • Does the individual share in the profit/loss and liabilities of the organization?

  3. Other Legal Tests • “Economic Realities” Test -- look to factors to determine status: • participation in profit / loss • investment in firm • exposure to liability • partial ownership of firm assets • voting rights • direction and management of firm • “Per Se” approach where firm is corporation • Both were rejected by the Court in Clackamas

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