Justia Labor & Employment Law Opinion Summaries

A school principal used the school's printer after hours to create a coaster as a retirement gift for a friend. The coaster design contained the School District's official logo but altered the District's motto in a disrespectful manner. A custodian took pictures of the coaster, which were shared on social media, leading to public outrage. The principal left the community the next day. The District proposed to terminate him for incompetence and violating anti-harassment policies. After a brief pretermination hearing, the District terminated the principal. The principal appealed, and the Board upheld the termination following an additional hearing.The principal then appealed to the superior court, which also affirmed his termination. The court found that the District had grounds to terminate the principal due to substantial noncompliance with District rules and regulations and that the community's reaction to the coaster was reasonable. The court also rejected the principal's free speech arguments, stating that his speech was not protected under the First Amendment. The court acknowledged that the pretermination hearing process was flawed but deemed the error harmless due to the subsequent post-termination hearing.The Supreme Court of the State of Alaska reviewed the case. The court held that the Board had a reasonable basis to terminate the principal for incompetency under AS 14.20.170(a)(1) due to his inability to perform his duties effectively after the incident. The court also concluded that the principal's termination did not violate his free speech rights under AS 14.20.095 or the First Amendment. However, the court found that the pretermination hearing process did not provide sufficient due process, as the principal was not informed of his right to call witnesses. The court affirmed the termination but reversed the superior court's decision denying back pay, awarding back pay through the date of the Board's post-termination hearing decision. View "Stirling v. North Slope Borough School District" on Justia Law

Two workers' compensation claimants, represented by attorney David Graham, settled their claims with Southeast Alaska Regional Health Consortium (SEARHC) except for attorney's fees. The Alaska Workers' Compensation Board awarded Graham significantly less than he requested. The Alaska Workers' Compensation Appeals Commission affirmed the Board's decision, but the Alaska Supreme Court reversed it, instructing the Commission to consider enhanced fees. On remand, the Commission did not change the fee award, leading to another appeal.The Alaska Workers' Compensation Appeals Commission initially affirmed the Board's reduced fee award. The Alaska Supreme Court reversed this decision, clarifying that the Alaska Workers' Compensation Act allows for enhanced fees and remanded the case for reconsideration. On remand, the Commission again awarded $450 per hour, citing past awards and the factors in Alaska Rule of Professional Conduct 1.5(a), but did not enhance the fee despite acknowledging the complexity and novelty of the issues.The Alaska Supreme Court reviewed the Commission's decision, finding that the Commission abused its discretion by not adequately considering the factors that supported an enhanced fee. The Court emphasized the need for the Commission to apply the modified lodestar method, which involves calculating a baseline fee and then considering whether to adjust it based on various factors, including the complexity and novelty of the case and the contingent nature of the work. The Court vacated the Commission's fee award and remanded the case, directing the Commission to enhance the fees based on its findings. The Court also clarified that the Commission must consider all relevant factors and not rely solely on past awards. View "Rusch v. Southeast Alaska Regional Health Consortium" on Justia Law

Samuel Amos fell from the roof of a shop building he was helping David Tidwell construct on property owned by Travis and Tabitha Plambeck. Tidwell had promised to pay Amos for his work. Amos filed a workers’ compensation claim against Tidwell and the Alaska Workers’ Compensation Benefits Guaranty Fund for his injuries. Tidwell requested the Alaska Workers’ Compensation Board dismiss Amos’s claim, alleging he had not hired Amos. The Board found that Amos had an employment contract with Tidwell but determined Tidwell was not an “employer” under the Alaska Workers’ Compensation Act, reasoning that the employment was based on friendship and thus fell within consumptive uses exempt from the Act’s coverage.The Alaska Workers’ Compensation Appeals Commission affirmed the Board’s decision, agreeing that Tidwell’s activities were consumptive rather than productive. The Commission also speculated that Amos’s work might fall under the statutory exemption for “harvest help and similar part-time or transient help,” although the Board had not made findings on this issue. Amos appealed, arguing that the Commission and the Board incorrectly construed the law and that there is no “buddy” exemption to the employer-employee relationship under the Act.The Supreme Court of the State of Alaska reviewed the case. The Court held that the Commission erred by creating an implicit exemption for “buddies” and by applying the productive/consumptive distinction to Tidwell’s employment of Amos. The Court clarified that the productive/consumptive distinction applies only to householders and not to individuals like Tidwell who hire others for work on third-party properties. The Court also found that the Commission improperly speculated about the applicability of the statutory exemption for part-time or transient help without proper findings. The case was reversed and remanded for further proceedings consistent with the opinion. View "Amos v. Tidwell" on Justia Law

The Supreme Court of Alaska affirmed a lower court's decision that the Copper River Native Association (CRNA), a non-profit corporation formed by federally recognized Alaska Native tribes, is an arm of its member tribes and thus entitled to tribal sovereign immunity. The case arose when a former employee sued CRNA over her termination. The superior court dismissed her complaint, concluding that CRNA was an arm of its member tribes and therefore entitled to sovereign immunity. The former employee appealed, arguing that CRNA was not entitled to tribal immunity. The Supreme Court of Alaska agreed with CRNA that the legal landscape defining the contours of tribal sovereign immunity has shifted significantly since its 2004 decision in Runyon ex rel. B.R. v. Association of Village Council Presidents. The court adopted a multi-factor inquiry to determine whether an entity is entitled to “arm-of-the-tribe” immunity. Applying this multi-factor inquiry, the court concluded that CRNA is an arm of its member tribes and affirmed the superior court's decision. View "Ito v. Copper River Native Association" on Justia Law

In the case of Brett Lane v. the State of Alaska, Department of Family & Community Services, Office of Children’s Services, the Supreme Court of the State of Alaska affirmed the lower court's decision denying the Office of Children's Services's (OCS) post-trial motion for a new trial on liability. The court concluded that the weight of the evidence supported the jury's verdict on Lane's theories of retaliation. However, the court found an error in the jury instruction relating to noneconomic damages caused by a dangerous client, Wilson. As a result, the court vacated the damages judgment and remanded for a new trial solely on noneconomic damages. The court also remanded the matter back to the lower court for an evidentiary hearing on OCS's claim that the jury award duplicated workers’ compensation benefits that Lane received. The court held that OCS should be given the opportunity to prove that the jury award created an impermissible duplication of damages. View "State of Alaska v. Lane" 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

Alaska, pursuant to a collective bargaining agreement with the Alaska State Employees Association (ASEA), a public sector union representing thousands of State employees, including union members and nonmembers, deducted union members’ dues from their paychecks and deducted from nonmembers’ paychecks a mandatory “agency fee” and transmitted the funds to ASEA. In June 2018 the United States Supreme Court held in Janus v. American Federation of State, County, & Municipal Employees, Council 31 (Janus) that charging union agency fees to nonmember public employees violated their First Amendment rights by “compelling them to subsidize private speech on matters of substantial public concern.” The State and ASEA modified their collective bargaining agreement to comply with Janus, and the State halted collecting agency fees from nonmembers. In 2019, after a change in executive branch administrations following the November 2018 election, the State took the position that Janus also required the State to take steps to protect union member employees’ First Amendment rights. The State contended that Janus required it to obtain union members’ clear and affirmative consent to union dues deductions, or else they too might be compelled to fund objectionable speech on issues of substantial public concern. The governor issued an administrative order directing the State to bypass ASEA and deal directly with individual union members to determine whether they wanted their dues deductions to continue and to immediately cease collecting dues upon request. Some union members expressed a desire to leave the union and requested to stop dues deductions; the State ceased collecting their union dues. The State then sued ASEA, seeking declaratory judgment that Janus compelled the State’s actions. ASEA countersued seeking to enjoin the State’s actions and recover damages for breach of the collective bargaining agreement and violations of several statutes. The superior court ruled in favor of ASEA, and the State appealed. The Alaska Supreme Court affirmed the superior court’s declaratory judgment in favor of ASEA because neither Janus nor the First Amendment required the State to alter the union member dues deduction practices set out in the collective bargaining agreement. And because the State’s actions were not compelled by Janus or the First Amendment, the Supreme Court affirmed the superior court’s rulings that the State breached the collective bargaining agreement and violated relevant statutes. View "Alaska, et al. v. Alaska St. Emp. Ass'n, et al." on Justia Law

An elementary school nurse who unsuccessfully attempted to save the life of a choking child sought workers’ compensation benefits for mental health problems she attributed to the incident. She argued that she suffered post-traumatic stress disorder (PTSD) due to exposure to the child’s bodily fluids and resulting risk of disease and to the mental stress of the incident. The Alaska Workers’ Compensation Board denied her claims, concluding that her exposure to bodily fluids was not a sufficient physical injury to trigger a presumption of compensability and that the mental stress of the incident was not sufficiently extraordinary or unusual to merit compensation. The Board was most persuaded by the opinion of the employer’s medical expert that the nurse’s mental health problems were the result of a pre-existing mental health condition and were not caused by the incident. The Alaska Workers’ Compensation Appeals Commission affirmed. After review, the Alaska Supreme Court found: (1) the Board failed to recognize the link between exposure to bodily fluids and mental distress over the risk of serious disease, which under Alaska precedent was enough to establish a presumption that the mental distress is compensable; and (2) the Board failed to consider the particular details of the child’s death and the nurse’s involvement when it concluded as a general matter that the stress of responding to a choking incident at school was not sufficiently extraordinary to merit compensation for mental injury. However, because the Board found in the alternative that the incident was not the cause of the nurse’s mental health problems, and because both the Commission and the Alaska Supreme Court had to respect the Board’s credibility determinations and the weight it gave conflicting evidence, the denial of benefits was affirmed. View "Patterson v. Matanuska-Susitna Borough School District" on Justia Law

The Alaska Workers’ Compensation Board decided that a carpenter who admitted using alcohol and cocaine before his injury had a compensable disability because it determined the accident would have happened regardless of his drug and alcohol use. The Workers’ Compensation Benefits Guaranty Fund, which was responsible for payment if an employer defaults, appealed, arguing that the employee’s intoxication barred compensation. The Workers’ Compensation Appeals Commission affirmed the Board’s decision because substantial evidence supported it. The Alaska Supreme Court affirmed the Commission’s decision. View "Alaska Workers' Compensation Benefits Guaranty Fund v. Adams, et al." on Justia Law