Seventh Circuit Favors “Economic Realities” Test
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Seventh Circuit Favors “Economic Realities” Test

A hotel worker sued her employer and the management company hired to run daily operations at the employer's hotel, asserting claims for a sexually hostile work environment and retaliation under Title VII and state law. After granting summary judgment to the management company, the court awarded the employee backpay and prejudgment interest. On appeal, the Seventh Circuit singled out the test for Title VII Joint Employer Liability, the multi-factor “economic realities” test to determine whether management company could be considered employee's employer and remanded to take measures to make the employee whole. The court reversed summary judgment and remanded the case for application of the proper test.

Frey v Coleman