Microsoft temps who missed stock buys may be rewarded
By Richard Carelli, Associated Press, 01/10/00
WASHINGTON - The Supreme Court today refused, for the second time in two years, to free Microsoft from possibly having to pay thousands of former temporary employees who were not allowed to join the company's lucrative stock-purchase program.
The justices, without comment, let stand a federal appeals court ruling that, according to Microsoft's unsuccessful appeal, "has far-reaching implications for the field of employment law."
Eight people who once worked for the Redmond, Wash., computer software company sued in 1992, saying they and thousands more "permatemps" illegally had been shut out of an employee stock purchase plan that allows employees to buy Microsoft stock at a discount.
The 9th U.S. Circuit Court of Appeals twice has ruled, most recently last May, that the temporary employees wrongly had been treated as "independent contractors" or employees of employment agencies.
They had been entitled under Washington state law to be considered regular employees, the appeals court said as it told a federal trial judge to figure out what damages each of thousands of Microsoft's former temporary employees is owed.
In the appeal acted on today, Microsoft contended that the appeals court allowed too large a "class" of former temporary employees to have a stake in the case. That class could include current temporary employees and any temp who worked at Microsoft since 1987.
The appeal also argued that the 9th Circuit court wrongly concluded "that an individual employed by an employment agency can simultaneously claim employee benefits from both the employment agency and the agency's client for which the individual performs services."
Although the case acted on today centered only on Microsoft's stock-purchase plan, temporary employees also are suing the company for health insurance and pension benefits.
Courts traditionally have considered numerous factors in deciding someone's employment status. Microsoft's appeal said the appeals court ignored most of those factors.
But lawyers for the ex-temps urged the justices to reject the appeal. They said the same Microsoft arguments were denied review in an appeal that the nation's highest court rejected last year.
Since 1982, the percentage of temps has quadrupled to 2.2 percent of all workers, according to the Economic Policy Institute, a private think-tank.
On any given day, about 1.3 million temps are at work, part of an estimated $60 billion industry.
Up to 90 percent of U.S. companies use temps, often because they provide a flexible, quick and cheaper source of labor.
Temps, who are mostly women, are clustered in lower-paying jobs. Few get health insurance or other benefits from their employment agencies, according to Economic Policy Institute studies.
Microsoft has other legal problems. A federal judge is expected to rule sometime early next year on the federal government's antitrust allegations against the company.
A federal appeals court judge is serving as a mediator in an attempt to negotiate a settlement in that massive case.
The case acted on today is Microsoft Corp. vs. Vizcaino, 99-498.
