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Title VII's 15-employee threshold is not jurisdictional
February 22, 2006 by Ross Runkel at LawMemo
Arbaugh v. Y & H Corp (US Supreme Court 02/22/2006): The US Supreme Court holds (unanimously) that Title VII's definition of "employer," which includes only those having "fifteen or more employees" is matter going to the substantive ingredients of a Title VII claim for relief, and is not a matter that affects federal court subject-matter jurisdiction.
Arbaugh sued in federal court under Title VII and state tort law. After a jury verdict for Arbaugh, the trial court granted summary judgment for the defendants and vacated the verdict because the defendant corporation did not employ 15 or more employees and thus was not an "employer" under Title VII. The 5th Circuit affirmed. The US Supreme Court reversed the 5th Circuit decision.
So what?
- If a federal court lacks subject-matter jurisdiction, the court must dismiss the complaint in its entirety. That would mean the court would lose jurisdiction over both the Title VII case and the state law case (over which the federal court has supplemental jurisdiction).
- A subject matter jurisdiction question can be raised at any time (even on appeal) and can be raised by the court even if the parties do not raise it. Because the 15-employee threshold goes to the merits, it has to be raised by the defendant or it is waived, and it has to be raised prior to the close of trial on the merits.
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