Supreme Court Grants Certiorari in Quality Stores

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October 1, 2013

The Supreme Court, not surprisingly, granted cert this morning in the Quality Stores case.  As we have previously reported (see our prior coverage here), the Court is now poised to resolve a conflict between the Sixth Circuit and the Federal Circuit regarding whether severance payments paid to employees pursuant to an involuntary reduction in force are “wages” subject to FICA taxation.  Notably, Justice Kagan did not participate in the order granting the petition, perhaps because she had some involvement in the case during her tenure as Solicitor General.  Her recusal creates the theoretical possibility that the Court could ultimately divide 4-4 on the case and thus be unable to resolve the conflict.

The government’s opening brief is due November 15.  Oral argument will likely be scheduled for January 2014.