Supreme Court Case: Clackamas Gastroenterology Associates (2003)

Background

• Court: Supreme Court of the United States
• Year: 2003
• Parties Involved:
  • Clackamas Gastroenterology Associates
  • Four physician shareholders (also board of directors)
• Legal Issue: Whether the physicians are considered employees or proprietors under the Americans with Disabilities Act (ADA).

Importance of the Distinction

• ADA Requirements: Organizations with 15 or more employees are subject to ADA regulations.
• Lawsuit: An employee alleged unlawful discrimination based on disability after termination.
• Clinic’s Defense: Claimed it had fewer than 15 employees by not counting the four physician shareholders as employees.

Judicial Proceedings

• District Court Ruling:
  • Sided with the clinic.
  • Considered the physicians as partners, not employees.
• Court of Appeals for the Ninth Circuit:
  • Reversed the District Court decision.
  • Argued that a professional corporation cannot avoid liability by claiming partnership status.

Factors Considered in Employee vs. Proprietor Determination

• Control of the Organization: Who holds decision-making power?
• Agreements: What do the legal agreements and documents state?
• Profit and Loss Sharing: Does the individual share in profits and losses?

Supreme Court Decision

• Held that a professional corporation cannot avoid ADA liability by claiming partnership status.
• Remanded the case to the Court of Appeals.
  • Instructed to reconsider the status of the physician shareholders using EEOC guidelines.
  • Focus on their control and independence within the clinic.

Additional Notes

• The case highlights the complexities involved in distinguishing between employees and partners in professional corporations under employment law.