Taylor v. Fannie Mae
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A federal judge laid down a standard favorable for employees by giving deference to decisions made at the Department of Labor’s Administrative Review Board.
Summary of Filed Complaint
TELG Client Keith Taylor reported that Fannie Mae had been making misrepresentations regarding the effectiveness of Fannie Mae’s internal controls to the FHFA. Later, the employee who had made the misrepresentations attempted to blame Taylor for the “mistakes.” This led to a lower score on Taylor’s employee evaluation, which harmed his ability to earn bonuses. Taylor also received an increased workload and was eventually terminated.
What Happened in Court
Although the case was ultimately sent to arbitration, this case set a positive standard for employees going forward. Namely, a federal judge in this case indicated that courts should give Chevron deference to decisions made by administrative judges at the often more employee-friendly Department of Labor Administrative Review Board.