Supreme Court Finds No Current Violation of Title VII Based on Pre-PDA Leave Credit Policy

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On May 18, 2009, the U.S. Supreme Court issued its 7-2 decision in AT&T Corp. v. Hulteen, holding that an employer does not necessarily violate the Pregnancy Discrimination Act (PDA) by paying pension benefits calculated, in part, based on a system that did not give full credit for time spent on pregnancy-related leave but did give full credit for other types of medical leave, where the pregnancy leave accrual policy was applied only prior to the enactment of the PDA. Further, the Court held that the employer's benefit calculation rule was part of a bona fide seniority system under § 703(h) of Title VII, which insulates it from challenge.

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