Justia Labor & Employment Law Opinion Summaries

The Supreme Court reversed the court of appeals' decision reversing the order of the Commissioner of the Department of Labor and Industry for Baywood Home Care to pay unpaid overtime wages and liquidated damages, holding that the court erred in determining that the Commissioner's conclusion that split-day plans are not permitted under the Minnesota Fair Labor Standards Act, Minn. Stat. 177.21-.35, was based on an unpromulgated rule. Baywood paid its employees using a split-day plan even after an employee had worked forty-eight hours in a workweek. The Commissioner issued compliance order ordering Baywood to cease and desist from failing to pay overtime. The court of appeals reversed. The Supreme Court reversed, holding (1) the Act requires employers to pay employees at least time-and-a-half wages for all hours worked in the first forty-eight hours of a given workweek, regardless of whether the employee received time-and-a-half compensation during the first forty-eight hours of employment in that workweek; (2) time-and-a-half payments for regularly scheduled work occurring before an employee has worked forty-eight hours in a workweek may not be excluded from an employee's remuneration to calculate the employee's regular rate; and (3) the Commissioner's failure to promulgate interpretive rules meant that the Department's interpretation did not receive deference, but the Court nevertheless adopted that interpretation. View "In re Minnesota Living Assistance, Inc." on Justia Law

The Supreme Court affirmed the judgment of the court of appeals affirming the decision of the Commissioner of the Department of Human Services (DHS) determining that Appellant was permanently disqualified from working in a capacity where he may have contact with people who access services from a DHS-licensed program, holding that Appellant's claims on appeal failed. After DHS discovered a 2002 child-protection report that Appellant had sexually abused his son sometime around 1998, Appellant was disqualified from employment as a residence manager at a DHS-licensed substance abuse treatment program. The court of appeals affirmed DHS's decision. The Supreme Court affirmed, holding (1) Defendant's right to due process was not violated; (2) the Department of Human Services Background Studies Act, Minn. Stat. ch. 245C, does not create a permanent, irrebuttable presumption that DHS's decision was correct; and (3) Appellant was provided constitutionally sufficient notice of his rights under the Act. View "Jackson v. Commissioner of Human Services" on Justia Law

The Supreme Court affirmed the order of the district court affirming in part and reversing in part a decision of the Department of Labor and Industry's Office of Administrative Hearings on Elizabeth Mays' wage claim against Sam's Inc., holding the district court's judgment was without error. Mays filed a wage claim against Sam's with the Montana Department of Labor and Industry, alleging that she was misclassified as an independent contract and was owed to employment wages for the hours she worked. After the Independent Contractor Central Unit determined that Mays was an employee the Wage and Hour Unit determined that Mays was owed $33.43 in wages. The district court reversed the agency's determinations that Sam's was entitled to an offset for Mays' tips and that Sam's was not required to pay a penalty. Mays appealed. The Supreme Court affirmed, holding (1) the district court's order constituted a final order in a contested case for which judicial review was available; (2) the district court did not err by affirming the agency's determination of the terms of Mays' employment; and (3) the district court did not err by affirming the agency's finding that Sam's was not obligated to reimburse Mays for fees. View "Wage Claim of Mays v. Sam's Inc." on Justia Law

The Supreme Court reversed the judgment of the court of appeals granting Thomas Beyer's request for a writ of mandamus and ordering the Industrial Commission of Ohio to vacate its decision denying Beyer's request for an award under Ohio Rev. Code 4123.57 for the permanent partial loss of sight in his right eye, holding that a physician, not the commission, must determine the degree of a claimant's impairment. In denying Beyer's request, the Commission found that the record did not contain sufficient medical evidence to substantiate it because Beyer did not present medical evidence of the percentage of vision lost. The court of appeals ordered the commission to vacate its decision and grant Beyer the requested award, finding that Beyer had provided the commission with sufficient evidence for the commission to determine the percentage of vision lost. The Supreme Court reversed, holding (1) claims involving medical determinations may be established only by submitting appropriate medical evidence; and (2) Beyer's evidence fell short because he did not present evidence of a physician's determination of the degree of his impairment. View "State ex rel. Beyer v. Autoneum North America" on Justia Law

Skelton sustained an ankle injury in 2012, and a shoulder injury in 2014, while working for the DMV. In the latter incident, she also claimed to have sustained an injury to her neck. Skelton filed separate workers’ compensation benefits applications. Skelton sought to be reimbursed for her wage loss for time missed at work for medical treatment and for medical evaluations (temporary disability indemnity (TDI)). Skelton’s work hours were not flexible, and she could not visit her doctors on weekends. She initially used her sick and vacation leave but eventually, her paycheck was reduced for missed time. She was then “forced to miss doctors’ appointments.” Skelton’s shoulder injury was found permanent and stationary in November 2017. Her ankle injury was not yet permanent and stationary at the time of the hearing. DMV contended that Skelton was not entitled to TDI because she had returned to work, citing Labor Code section 4600(e)(1). The Appeals Board affirmed that Skelton was not entitled to TDI for wage loss to attend medical treatment appointments following her return to work but was entitled to TDI for wage loss to attend medical-legal evaluations. The court of appeal affirmed. DMV’s obligation to pay temporary disability benefits is tied to Skelton’s actual incapacity to perform the tasks usually encountered in her employment and the resulting wage loss. View "Skelton v. Workers Compensation Appeals Board" on Justia Law

Rebecca, employed by SNS, enrolled herself and her husband in SNS’s health-benefits coverage. In 2013, Rebecca fell at work and injured her knee. Her injury was too severe to permit her to continue working. She signed a form requesting to open a workers’ compensation claim and to receive a leave of absence. The form did not mention the “Family and Medical Leave Act.” SNS sent a letter instructing her to complete paperwork for processing her absence under the FMLA. She did so. SNS approved her leave of absence as FMLA leave (rather than paid leave) for the first 12 weeks, but did not give her any other written notice of that designation. SNS deducted her insurance contributions from her workers’ compensation checks. SNS notified Rebecca when her FMLA leave expired, stating that, if her employment was terminated, she could continue health benefits under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). Having received no premium payment weeks later, SNS notified Rebecca that the benefits had been discontinued. SNS terminated her employment. Rebecca sued, alleging that SNS failed to notify her of the right to temporarily continue health-benefit coverage under COBRA and breached its fiduciary duty under ERISA by failing to so notify her. The district court determined that a qualifying event occurred with the reduction in Rebecca’s work hours on the day after her injury, requiring notice. The Sixth Circuit reversed because the terms of Rebecca’s insurance coverage did not change upon her taking a leave of absence. No “qualifying event” occurred to trigger a COBRA notification obligation. View "Morehouse v. Steak N Shake" on Justia Law

This consolidated appeal arose after Massage Envy’s stated reason for the termination of intervenor was its fear that she might contract and later develop Ebola due to her trip to Ghana. EEOC and intervenor appealed the entry of judgment for Massage Envy on their employment discrimination claims under the Americans with Disabilities Act of 1990 (ADA), as amended by the ADA Amendments of 2009. The Eleventh Circuit held that, even construing the statute broadly, the terms of the ADA protect persons who experience discrimination because of a current, past, or perceived disability—not because of a potential future disability that a healthy person may experience later. Therefore, the court affirmed the district court's final judgment in favor of Massage Envy. View "Lowe v. STME, LLC" on Justia Law

In this Private Attorneys General Act (PAGA), Cal. Lab. Code 2698 et seq., action seeking civil penalties under Cal. Labor Code 558 the Supreme Court held that the civil penalties a plaintiff may seek under section 558 through the PAGA do not include the "amount sufficient to recover underpaid wages." Real party in interest Kalethia Lawson brought this action naming as Defendants her employer and its parent company (collectively, ZB). Lawson had agreed to arbitrate all employment claims and forego class arbitration with her employer. The court of appeals ordered the trial court to deny ZB's motion to arbitrate that portion of Lawson's claim for unpaid wages, concluding that section 558's civil penalty encompassed the amount for unpaid wages and that Lawson's unpaid wages claim could not be compelled to arbitration under Iskanian v. CLS Transportation Los Angeles, LLC, 59 Cal.4th 348 (2014). The Supreme Court affirmed, holding (1) the amount for unpaid wages is not recoverable under the PAGA, and section 558 does not otherwise permit a private right of action; and (2) therefore, the trial court should have denied ZB's motion. View "ZB, N.A. v. Superior Court" on Justia Law

The UAW negotiates collective-bargaining agreements (CBAs) with automotive manufacturers including Fiat Chrysler (FCA). Plaintiffs claim that FCA officials bribed UAW officials to get a more company-friendly CBA. The scandal resulted in federal convictions and indictments. Plaintiffs filed a purported class action, alleging violations of Labor-Management Relations Act (LMRA) section 301, 29 U.S.C. 185. The Second Amended Complaint named individuals formerly employed by both FCA and UAW, alleges that “FCA executives and FCA employees agree[d] ... and willfully paid and delivered, money and things of value to officers and employees of the UAW,” and that plaintiffs have been unable to discover the complete extent of defendants’ collusive conduct because of the secrecy of the ongoing federal criminal investigations. The complaint refers to a “hybrid 301 claim” and raises two counts: violation of the LMRA and breach of the LMRA duty of fair representation, both of which must be properly alleged in a hybrid claim. The Sixth Circuit affirmed the dismissal of the complaint. A section 301 “hybrid claim” requires evidence of the violation of a contract or CBA and the complaint explicitly does not allege that defendants violated any CBA provision. Plaintiffs failed to allege that they exhausted internal union remedies and CBA grievance procedures and did not establish proximate cause between defendants’ alleged malfeasance and plaintiffs’ injuries. View "Swanigan v. Fiat Chrysler Automobiles U.S., LLC" on Justia Law

After plaintiff was terminated from his position as a substitute teacher, he filed suit against defendants under 42 U.S.C. 1983, alleging in relevant part procedural due process and stigma‐plus claims related to the termination of his employment. Plaintiff was terminated from his position after defendants instituted an investigation into sexual misconduct claims, but ultimately concluded that there were no grounds for an investigation. The Second Circuit held, with respect to plaintiff's due process claim, that he failed to establish a clearly established right to the meaningful opportunity to utilize his teaching license. The court also held that plaintiff failed to demonstrate that defendantsʹ conduct was sufficiently stigmatizing under clearly established law so as to give rise to a "stigma‐plusʺ claim. Therefore, the court held that defendants were entitled to qualified immunity and the district court erred by denying summary judgment as to both claims. The court remanded with instruction. View "Mudge v. Zugalla" on Justia Law