Justia Labor & Employment Law Opinion Summaries

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

The Supreme Court affirmed the judgment of the circuit court granting summary judgment in favor of Mid-Century Insurance Company and dismissing Christina Blanchard's bad-faith complaint, holding that the circuit court properly granted summary judgment for Mid-Century. In her complaint, Blanchard alleged that Mid-Century pursued a "baseless and meritless appeal" from a decision of the South Dakota Department of Labor awarding Blanchard workers' compensation benefits. On appeal, Blanchard argued, among other things, that the circuit court erred in excluding evidence under the litigation conduct rule. The Supreme Court concluded that the circuit court's exclusion of the evidence under the litigation conduct rule was determinative of the appeal, and therefore it was unnecessary to discuss Blanchard's other claims of error, holding that the circuit court properly excluded the evidence and properly granted summary judgment based upon the other undisputed facts in the record. View "Blanchard v. Mid-Century Insurance Co." on Justia Law

Plaintiff filed suit against his former employer for retaliation under the False Claims Act. The Fifth Circuit reversed the district court's grant of summary judgment to the employer and held that plaintiff demonstrated a causal connection between his protected activity and his firing. Therefore, the district court erred in holding that plaintiff failed to establish his prima facie case. The court also held that there was a genuine issue of material fact regarding pretext. In this case, as evidence of pretext, plaintiff pointed to temporal proximity between his protected activity and his firing; his dispute of the facts leading up to his termination; a similarly situated employee who was not terminated for similar conduct; harassment from his supervisor after the company knew of his protected whistleblowing conduct; the ultimate stated reason for the company's termination of plaintiff had been known to the company for years; and the company stood to lose millions of dollars if its conduct was discovered. Accordingly, the court remanded for further proceedings. View "Garcia v. Professional Contract Services, Inc." on Justia Law

The Ninth Circuit granted the Secretary's petition for review of the Commission's decision interpreting a provision of the Respiratory Protection Standard promulgated under the Occupational Safety and Health Act of 1970. The panel adopted the Secretary's interpretation of section 1910.134(d)(1)(iii) of the Act to require covered employers to evaluate the respiratory hazards at their workplaces whenever there is the "potential" for overexposure of employees to contaminants, in order to determine whether respirators are "necessary to protect the health" of employees. The panel explained that the text, structure, purpose, and regulatory history of the Standard all point in the same direction as the Secretary's interpretation. View "Secretary of Labor v. Seward Ship's Drydock, Inc." on Justia Law

The Federal Arbitration Act (FAA), 9 U.S.C. 1–16, places certain arbitration agreements on equal footing with all other contracts, requiring courts to enforce such agreements according to their terms. Section 2 provides that the FAA covers “a written provision in any maritime transaction or a contract evidencing a transaction involving commerce,” but section 1 states that “nothing” in the FAA “shall apply to contracts of employment of seamen, railroad employees, or any other class of workers engaged in foreign or interstate commerce.” Singh brought this putative class action on behalf of New Jersey Uber drivers, alleging that Uber misclassified them as independent contractors rather than employees, which resulted in their being deprived of overtime compensation and incurring business expenses for Uber's benefit. Singh opposed a motion to compel arbitration, arguing that, to the extent that he had an agreement with Uber, it fell within the “any other class of workers” portion of section 1. The court dismissed, concluding that clause only extends to transportation workers who transport goods. The Third Circuit disagreed, citing its “longstanding precedent,” to hold that the residual clause of section 1 may extend to a class of transportation workers who transport passengers if they are engaged in interstate commerce or in work so closely related thereto as to be in practical effect part of it. The court remanded for resolution of the engaged-in-interstate-commerce inquiry. View "Singh v. Uber Technologies, Inc." on Justia Law

Southern Bakeries appealed the Board's determination that it violated Sections 8(a)(1) and (3) of the National Labor Relations Act (NLRA) by relying on a prior unlawful discipline in disciplining and terminating an employee (Briggs) and designating her "not for hire," and by violating Section 8(a)(1) by directing a second employee (Muldew) not to discuss her discipline with other employees and then telling her she was being discharged in part for doing so. The Eighth Circuit held that the Board erred in concluding that the prior final written warning, standing alone, satisfied the General Counsel's burden to prove a prima facie case of discriminatory discipline. Therefore, the court granted Southern Bakeries' petition for review in part. The court also held that the ALJ's credibility findings were based on careful review of the testimony, supported by the Muldew discharge document. Furthermore, the findings were far from conscience-shocking, and no extraordinary circumstance warrants reversing the Board's order to cease and desist from telling employees not to discuss their discipline with other employees, or that they are being disciplined for doing so. Accordingly, the court denied in part Southern Bakeries' petition for review and enforced in part the Board's order. View "Southern Bakeries, LLC v. NLRB" on Justia Law