Opinion ID: 401040
Heading Depth: 1
Heading Rank: 2

Heading: Credit for Unemployment Compensation Benefits

Text: 11 Citing Abron v. Black & Decker Manufacturing Company, 439 F.Supp. 1095 (D.Md.1977), modified on other grounds, 654 F.2d 951 (4th Cir. 1981), the magistrate concluded that the unemployment compensation collected by the plaintiffs during their layoff should not be construed as interim earnings to be applied against their back pay. 42 U.S.C., Section 2000e-5(g) provides: 12 Interim earnings or amounts earnable with reasonable diligence by the person or persons discriminated against shall operate to reduce the back pay otherwise allowable. 13 The Fifth Circuit has considered this question in Merriweather v. Hercules, Incorporated, 631 F.2d 1161 (5th Cir. 1980) and in Marshall v. Goodyear Tire & Rubber Company, 554 F.2d 730 (5th Cir. 1977). Some courts have ordered a deduction for unemployment benefits without explanation. See, e.g., Satty v. Nashville Gas Company, 522 F.2d 850, 855 (6th Cir. 1975), affirmed in part and vacated in part, 434 U.S. 136, 98 S.Ct. 347, 54 L.Ed.2d 356 (1977); Ostapowicz v. Johnson Bronze Company, 541 F.2d 394, 401 (3d Cir. 1976), cert. denied, 429 U.S. 1041, 97 S.Ct. 741, 50 L.Ed.2d 753 (1977). 14 Any decision at this time on this question would be premature. We do not know what the outcome of this case on the merits may be when it shall have been heard agreeably to Burdine standards. Therefore, we express no opinion about it at this time. 15 Upon remand, after such further hearings as may be necessary, if any, the trier of fact will determine (1) whether the asserted budgetary problems of the City of Bogalusa actually existed (and why or why not), (2) if so, whether the defendants have articulated any legitimate, nondiscriminatory reasons for terminating plaintiffs' positions rather than effecting the necessary cutbacks in other ways, (3) whether, under Burdine, these plaintiffs are entitled to prevail on the merits, and (4) such other issues, if any, as should be decided incidental thereto. 16 VACATED and REMANDED.