Justia Labor & Employment Law Opinion Summaries

In this case, the plaintiff, Lorenzo Dominguez, who was a former employee of Better Mortgage Corporation, alleged that the company violated federal and state wage-and-hour laws, primarily by failing to pay overtime to him and other mortgage underwriters. Upon being sued, Better Mortgage attempted to reduce the size of the potential class and collective action by persuading employees to agree not to join any collective or class action and to settle their claims individually. The district court found that Better Mortgage's communications were misleading and coercive. As such, the court nullified the new employment agreements, release agreements, and ordered the company to communicate with current and former employees about wage-and-hour issues only in writing and with prior approval.The United States Court of Appeals for the Ninth Circuit affirmed the district court’s order imposing a communication restriction on Better Mortgage, considering the company's appeal timely due to a motion to reconsider the restriction, thus tolling the time to file the notice of appeal. The appellate court held that it had jurisdiction to review the communication restriction and found it both justified and tailored to the situation created by the employer’s misleading and coercive communications. However, the appellate court dismissed for lack of jurisdiction the employer’s appeal from the district court’s order nullifying agreements between the employer and current and former employees. The appellate court found that it lacked jurisdiction to consider the merits of the nullification order because the issue was raised in an interlocutory appeal and did not fit any exception that would allow for review. View "DOMINGUEZ V. BETTER MORTGAGE CORPORATION" on Justia Law

The case involves Strategic Technology Institute, Inc. ("STI") and the National Labor Relations Board. STI had a contract to maintain engines and propellers for the U.S. Air Force from August 2017 until July 2020. During this time, STI's employees at a Little Rock facility began discussing unionizing. In response to this, Tyler Boyd of STI fired 17 employees — three on September 27, 2019, and fourteen on October 9, 2019. The administrative law judge and the Board found that these terminations violated subsections 8(a)(1) and (3) of the National Labor Relations Act, which prohibits employers from interfering with, restraining, or coercing employees in their right to engage in union activities and from discriminating in regard to hire or tenure of employment to encourage or discourage membership in any labor organization.STI petitioned for a review of the Board's order, and the United States Court of Appeals for the Eighth Circuit granted the petition, vacated the order, and remanded the case. The court found that there was no substantial evidence to support the Board's finding that the terminations were motivated by anti-union animus. The court noted that the only evidence of STI's knowledge of the union activities were two phone calls informing Tyler Boyd that the employees were considering unionizing and the timing of the firings. The court held that this was not sufficient to establish that STI acted with an anti-union motive when it terminated the employees. The court also found that the Board's reliance on the "small plant doctrine" to infer employer knowledge of union activity was not applicable in this case since there was no other evidence indicating a likelihood that Boyd knew of the union activities. Furthermore, the court held that the Board erred in finding that STI's reasons for the firings were pretextual because they were based on legitimate factors such as performance, attendance, and interpersonal skills. The court concluded that the General Counsel failed to meet its burden of providing substantial evidence that STI harbored anti-union animus and that the terminations were motivated by animus. Consequently, the court vacated the Board's order and remanded the case for proceedings consistent with its opinion. View "Strategic Technology Institute v. NLRB" on Justia Law

In the case before the Supreme Court of the State of Montana, the plaintiff, Kevin Barber, appealed against his former employer, Bradford Aquatic Group, LLC, alleging wrongful termination. Bradford Aquatic Group, a North Carolina-based company, had employed Barber as a Regional Business Development Manager for its Rocky Mountain region, which includes Montana. The employment contract between Barber and the company included a choice-of-law and forum selection clause, specifying that any disputes arising from the agreement would be governed by North Carolina law and adjudicated in North Carolina courts.Barber, a resident of Montana, argued that Montana law should apply to his claims of wrongful discharge, breach of contract, and bad faith, and that the suit should be heard in Montana. The district court dismissed Barber's claims due to improper venue, based on the choice-of-law and forum selection clauses in the employment agreement.Upon review, the Supreme Court of the State of Montana affirmed the district court's decision. The court found that the choice-of-law provision in the employment agreement was valid and that North Carolina law should apply to Barber's claims. The court also upheld the validity of the forum selection clause, concluding that it is enforceable under North Carolina law. Therefore, the court determined that the dispute should be adjudicated in North Carolina, not Montana. View "Barber v. Bradford Aquatic" on Justia Law

Jose Velasquez, as a condition of probation, had entered a residential rehabilitation program sponsored by The Salvation Army and was injured while working in its warehouse. The Workers’ Compensation Appeals Board (the Board) denied Velasquez's claim for workers’ compensation benefits, determining that Velasquez was not employed by either The Salvation Army or the County of Santa Barbara (the County). The Court of Appeal of the State of California Second Appellate District held that The Salvation Army is statutorily excluded from being an employer for workers’ compensation purposes under section 3301 of the Labor Code, and affirmed the Board’s decision in that respect. However, the Court found that the record was inadequately developed during the administrative proceedings to determine whether the County was Velasquez’s employer. Therefore, the Court annulled the Board’s decision as to the County and remanded the matter for further consideration. View "Velasquez v. Workers' Comp. Appeals Bd." on Justia Law

In the case before the Court of Appeal of the State of California Second Appellate District Division Eight, the plaintiff, Eunices Argueta, appealed against the judgment in favor of her former employer, Worldwide Flight Services, Inc. Argueta had sued Worldwide for sexual harassment and retaliation, alleging that she was sexually harassed by a certain Mr. Nguyen, an employee of Worldwide, and that the company had failed to prevent the harassment.The case arose when several employees working under Argueta lodged complaints against her for bullying, harassment, and other misconduct. Subsequently, Argueta filed a complaint against Nguyen, accusing him of sexual harassment. The company investigated the allegations and issued a "Letter of Concern" to Nguyen, imposing certain conditions on his continued employment.Argueta eventually resigned, citing a hostile work environment. At trial, the jury returned a verdict in favor of Worldwide, and Argueta's motions for a new trial and for judgment notwithstanding the verdict were denied by the trial court. Argueta appealed, arguing that the trial court erred in admitting evidence of the substance of the complaints made against her by other employees.The appellate court agreed with Argueta, finding that the admission of the substance of the complaints was prejudicial. The court ruled that such evidence had little relevance to Argueta's claims of sexual harassment and was highly prejudicial to her case, potentially causing the jury to view her as a bad person. The court thus reversed the trial court's denial of her motion for a new trial. The court did not find it necessary to consider her motion for judgment notwithstanding the verdict. View "Argueta v. Worldwide Flight Services, Inc." on Justia Law

In a case involving the Employee Retirement Income Security Act of 1974 (ERISA), a plan participant, Ian C., sought coverage for his son, A.C., to receive treatment at Catalyst Residential Treatment for mental health and substance abuse issues. UnitedHealthcare Insurance Company (United), the claims fiduciary for the plan, initially covered the treatment but subsequently denied coverage. Ian C. appealed this denial internally, a process in which United upheld its original decision. Ian C. then took his case to federal district court, alleging that United's denial violated his right to a "full and fair review" of his claim under ERISA. The district court ruled in favor of United.On appeal to the United States Court of Appeals for the Tenth Circuit, the court held that United's denial of benefits was arbitrary and capricious, violating ERISA regulations guaranteeing a "full and fair review" of claims. In particular, the court found that United had failed to consider A.C.'s substance abuse as an independent ground for coverage in their decision to deny benefits, in violation of their fiduciary duties under ERISA. The court therefore reversed the district court's decision. View "C., et al. v. United Healthcare Insurance Company" on Justia Law

The Supreme Court of the State of Alaska was asked to determine whether the question of a deceased worker's status as an employee or independent contractor under the Alaska Worker's Compensation Act should be determined by a jury or a judge. The lawsuit was initiated by the estate of Nicholson Tinker, a worker who was killed in a construction accident while working for Mark Welty, doing business as North Country Services. Welty had no workers' compensation coverage at the time of the accident. Tinker's estate argued that he was an employee and that under the Act, Welty was presumed negligent because he had no compensation coverage. Welty argued that Tinker was an independent contractor, hence the Act did not apply.The superior court decided that the question of employee status was an issue for the jury to decide. The estate appealed this decision, arguing that the Supreme Court's earlier decision in Benson v. City of Nenana determined that a judge, not a jury, should decide the issue of a worker's status under the Act.The Supreme Court of the State of Alaska agreed with the estate, holding that the superior court must determine whether Tinker was an employee or independent contractor under the Act as a preliminary issue before trial. The Court reasoned that the applicability of the Act is a legal determination with factual underpinnings that the court should decide as a preliminary matter. The Court also noted that determining the employee status promptly is significant due to its potential impact on basic issues such as the type of action a party can bring or the burden of proof for negligence. Therefore, the Court reversed the superior court’s order that the jury decides the issue of employee status and remanded for further proceedings. View "Leona Seal, Personal Representative of the Estate of Nicholson J. Tinker v. Mark C. Welty D/B/A North Country Services" on Justia Law

In a dispute between the State of Alaska, Department of Health & Social Services and Jennifer D. White and John P. Shannon, D.C., the Supreme Court of the State of Alaska had to consider whether an adjudicative agency could refuse to consider a contested legal question because the legislature had given a different agency authority over the contested legal issue. In this particular case, the employer disputed its liability under the Alaska Workers’ Compensation Act for an injured employee’s chiropractic care, alleging that the care provided was not compensable because it was outside the scope of the chiropractor’s license. The Alaska Workers’ Compensation Board decided it did not have jurisdiction to determine the chiropractor’s scope of practice because the legislature had granted that authority to the Alaska Board of Chiropractic Examiners. The Supreme Court of the State of Alaska affirmed the Commission’s decision, agreeing that the workers’ compensation agencies lacked jurisdiction to determine the boundaries of chiropractic practice in the context of this case. The court also agreed with the Commission’s discovery decision, concluding that the discovery was not relevant to issues within the Board’s jurisdiction. The court further affirmed the Commission’s decision that the treatments were compensable. View "State of Alaska, Department of Health & Social Services v. White" on Justia Law

In the case before the United States Court of Appeals for the Tenth Circuit, the plaintiff, Robert Hampton, sued his former employer, the Utah Department of Corrections (UDC), alleging violations of the Rehabilitation Act. Hampton, who was born without the second and fifth digits on both hands, claimed that UDC refused to accommodate his disability, treated him disparately based on that disability, and retaliated against him for requesting accommodation.Hampton, who had previously worked as a corrections officer in Arizona, was hired by UDC in 2016. He was required to qualify on UDC-approved firearms, including a Glock 17 handgun. Hampton requested an accommodation to use a different handgun, a Springfield 1911, due to difficulties he encountered in handling the Glock due to his disability. This request was denied, and Hampton was later terminated from his position.The Court of Appeals reversed the district court’s grant of summary judgment on Hampton's failure-to-accommodate claim and remanded for further proceedings. The court found that Hampton’s request for a different handgun could be considered a reasonable accommodation under the Rehabilitation Act, and that the district court erred in determining that using a Glock handgun was an essential function of Hampton’s job based solely on the UDC’s firearms policy.However, the court affirmed the district court’s grants of summary judgment on Hampton’s claims of disparate treatment and retaliation. It found that Hampton had not provided sufficient evidence to demonstrate that his disability was a determining factor in his termination or that his reassignment to a different position constituted an adverse employment action. View "Hampton v. Utah Department of Corrections" on Justia Law

Plaintiff employees who opted out of their union and employer-sponsored health plans received a monetary credit, part of which was deducted as a fee that was then used to fund the plans from which plaintiffs had opted out. Plaintiffs argue that this opt-out fee should be treated as part of their “regular rate” of pay for calculating overtime compensation under the Fair Labor Standards Act (FLSA).   The Ninth Circuit affirmed the district court’s grant of summary judgment. The panel held that the opt-out fees were not part of the employees’ “regular rate” of pay, but rather were exempted as “contributions irrevocably made by an employer to a trustee or third person pursuant to a bona fide plan for providing” health insurance under 29 U.S.C. Section 207(e)(4). View "ANTHONY SANDERS, ET AL V. COUNTY OF VENTURA" on Justia Law