Justia Labor & Employment Law Opinion Summaries

Articles Posted in Arizona Supreme Court
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In this case, Pedro Barriga, an auto detailer at Precision Auto Body, LLC, quit his job due to a dispute with a coworker over the placement of a cooling fan and a perceived favoritism shown by his supervisor towards his coworker. Barriga then applied for unemployment benefits from the Arizona Department of Economic Security (“ADES”), claiming he quit due to an intolerable work situation. The ADES initially denied his benefits, but an Administrative Law Judge (“ALJ”) reversed this decision. Precision Auto Body appealed to the ADES Appellate Services Administration Appeals Board, which reversed the ALJ's decision, finding that the working conditions at Precision did not rise to the level of an intolerable work situation.Barriga appealed to the Arizona Court of Appeals, which vacated the Appeals Board’s decision, interpreting the factors in Arizona's regulation R6-3-50515(C)(2) as non-exhaustive and remanding the case back to the Appeals Board.The Supreme Court of the State of Arizona, however, disagreed with the Court of Appeals, vacating its opinion and affirming the Appeals Board’s decision. The court held that while the factors in R6-3-50515(C)(2) meant to determine whether a workplace situation is intolerable are not exhaustive, Barriga failed to present evidence of any unbearable condition to establish an intolerable work situation. A dispute over a cooler placement, while unpleasant, was not intolerable. The court also found that Barriga did not adequately attempt to adjust his grievance before leaving his employment. The court also concluded that Barriga waived his claim that he quit because of a health condition by failing to sufficiently raise this issue at earlier stages of the proceedings. View "BARRIGA v ADES/PRECISION" on Justia Law

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The Supreme Court reversed the decision of the trial court dismissing this action brought by Arizona corrections officers seeking overtime compensation for time spent in mandatory pre-shift security screenings, holding that whether the corrections officers were entitled to overtime should be decided as a matter of law.At issue was whether the State has incorporated the Portal-to-Portal Act, 29 U.S.C. 251–262, into Ariz. Rev. Stat. 23-392 to govern Arizona corrections officers’ claims for overtime compensation for time spent in mandatory pre-shift security screenings. The trial court granted the State's motion to dismiss, concluding that the pre-shift security screening was not compensable. The Supreme Court reversed and remanded the case, holding that for purposes of defining "work" to determine overtime eligibility for law enforcement officers under section 23-392, the state has not incorporated the Act in the statute, and state agency regulations purporting to do so are not legally binding. View "Roberts v. State" on Justia Law

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The Supreme Court accepted a question certified to it by the United States Court of Appeals for the Ninth Circuit and answered that Arizona has not consented to damages liability for a state agency's violation of the minimum wage or overtime provisions of the federal Fair Labor Standards Act (FLSA), 29 U.S.C. 206-207.Plaintiff brought this putative claims action complaint asserting that the State violated the FLSA by failing to pay minimum wage and overtime compensation to state-employed in-home caretakers who, like herself, provide around the clock care to beneficiaries of the Arizona Long-Term Care System. The State removed the case to federal district court. The court granted the State's motion to dismiss, thus rejecting Plaintiff's contentions that the State waived its sovereign immunity by removing the case to the federal court and that the State waived its sovereign immunity as a matter of law. The Ninth Circuit then certified its question to the Supreme Court. The Supreme Court answered that the legislature has neither expressly consented nor implied its consent to federal damages liability, and therefore, Arizona has not consented to damages liability for a state agency's violation of the FLSA's minimum wage or overtime provisions. View "Redgrave v. Ducey" on Justia Law

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The Supreme Court set aside the decision of administrative law judge (ALJ) for the Industrial Commission of Arizona (ICA) denying the claim for benefits filed by deputy John France, who developed post-traumatic stress disorder after he shot and killed a man, holding that the administrative law judge erred by failing to apply the standard required by Ariz. Rev. Stat. 23-1043.01(B).Under section 23-1043.01(B), employees may receive compensation for mental injuries if an unexpected, unusual or extraordinary employment-related stress was a substantial contributing cause of the mental injury. An ALJ denied France's claim for benefits, concluding that the shooting incident was not "unusual, unexpected, or extraordinary." The Supreme Court set aside the ICA's decision, holding (1) under section 23-1043.01(b), a work-related mental injury is compensable if the specific event causing the injury was objectively "unexpected, unusual or extraordinary"; (2) under this objective standard, an injury-causing event must be examined from the standpoint of a reasonable employee with the same or similar job duties and training as the claimant; and (3) the ALJ erred by limiting her analysis to whether France's job duties encompassed the possibility of using lethal force in the line of duty and failing to consider whether the shooting incident was unexpected or extraordinary. View "France v. Industrial Commission of Arizona" on Justia Law

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The Supreme Court held that a one-time payout for accrued sick leave does not form part of an employee's compensation for purposes of calculating that employee's pension benefit.The City of Phoenix paid pension benefits to eligible retiring employees, and the amount of that benefit partly depended on the employee's highest average annual compensation paid over a multi-year period. The City also paid employees for unused accrued sick leave upon retirement. Petitioners brought this action alleging that the City violated their constitutional rights by not considering accrued sick leave payouts upon retirement as pensionable compensation. The trial court entered judgment in favor of Petitioners, ruling that Petitioners had common law and constitutional rights to have one-time payouts for accrued sick leave included in the calculation of the employee's average compensation. The Supreme Court reversed, holding that one-time payouts for accrued sick leave upon retirement are not salary or wages because they are not paid annually or at regular intervals. View "Piccioli v. City of Pheonix" on Justia Law

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The Supreme Court held that a one-time payout for unused vacation leave does not form part of an employee's compensation for purposes of calculating that employee's pension benefit.The City of Phoenix paid pension benefits to eligible retiring employees. The amount of that benefit partly depended on the employee's highest average annual compensation paid over a multi-year period, and the City also paid for unused accrued vacation leave upon retirement or separation from employment. Petitioners sued the City alleging that the City violated their constitutional rights by not using one-time accrued vacation leave payouts in calculating employees' final average compensation. The trial court granted summary judgment for the City. The Supreme Court affirmed, holding that one-time payouts for accrued vacation leave are not pensionable salary or wages. View "American Federation of State County & Municipal Employees AFL-CIO Local 2384 v. City of Phoenix" on Justia Law

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At issue in this case was the correct interpretation of Ariz. Rev. Stat. 23-750(E)(5), which provides that income earned by any individual who performed certain services while employed by an entity that provides such services to or on behalf of an "educational institution" cannot be used to qualify for unemployment during breaks between academic terms if that person is guaranteed reemployment.Plaintiffs were employees of Chicanos For La Cause (CPLC), a nonprofit corporation that administered federally funded Early Head Start and Migrant Seasonal Head Start programs and provided services to help school districts comply with their obligations under the Individuals with Disabilities Education Act (IDEA), 20 U.S.C. 1400 et seq. When the summer break began, Plaintiffs applied for unemployment insurance benefits from Arizona Department of Economic Security (ADES), which granted benefits. The ADES Appeals Board reversed. The Supreme Court remanded the case to ADES to award unemployment benefits to two plaintiffs and for further proceedings to resolve the claims of the remaining plaintiffs, holding that section 23-750(E)(5) applies to plaintiffs only if they performed services for CPLC that CPLC supplied to the school districts. View "Rosas v. Arizona Department of Economic Security" on Justia Law

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In this case concerning the administration of the Arizona State Retirement System (ASRS) the Supreme Court held that the requirement to submit a retirement application for receipt of retirement benefits pursuant to Ariz. Rev. Stat. 38-757(A) does not violate Ariz. Const. art. XXIX, 1(D) and that all conditions listed in Ariz. Rev. Stat. 38-764(A) must be satisfied in order to elect a retirement date under the ASRS Plan.Plaintiff began her Plan-qualified employment in 1978 and became eligible for a normal retirement in 2005. In 2016, Plaintiff submitted an application for retirement, listing 2005 as her date for commencing retirement. The ASRS Agency rejected that date and instead used the 2016 date as Plaintiff's retirement date. After unsuccessfully pursuing administrative remedies, Plaintiff sought judicial review in superior court. The court affirmed the Agency's decision. The Supreme Court affirmed, holding (1) the Plan processed Plaintiff's retirement date as provided for in statute and calculated her chosen monthly life annuity benefit as required; and (2) therefore, the Plan complied with section 38-757(A), and no forfeiture, impairment, or diminishment of Plaintiff's normal retirement benefits occurred in violation of article 29, section 1(D) of the Arizona Constitution. View "Lagerman v. Arizona State Retirement System" on Justia Law

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The Supreme Court set aside an administrative law judge's (ALJ) denial of Gilbert Aguirre's workers' compensation claim for benefits, holding that a claimant does not waive appellate review of the legally sufficiency of findings before the Industrial Commission of Arizona (ICA).In Post v. Industrial Commission of Arizona, 160 Ariz. 4, 7-9 (1989), the Supreme Court held that when an ALJ fails to make findings on all material issues necessary to resolve the case the award is legally deficient and must be set aside. In this case, after an ALJ denied Aguirre's claim for benefits he filed a request for administrative review. In his request, Aguirre did not specifically challenge the ALJ's failure to make material findings as required by Post. The ALJ summarily affirmed the award. The court of appeals set aside the award based on the absence of legally-sufficient findings. At issue on appeal was whether, because Aguirre did not challenge the lack of material findings required by Post in his request for review, Appellant waived appellate review on that issue. The Supreme Court disagreed, holding that the ALJ's award was legally deficient and must be set aside regardless of whether Aguirre raised the issue. View "Aguirre v. Industrial Commission of Arizona" on Justia Law

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At issue was whether Arizona’s automatic assignment provision in Ariz. Rev. Stat. 23-1023(B) applies when an employee receives workers’ compensation benefits under another state’s laws. The Supreme Court held that the law of the state in which the employee’s workers’ compensation is paid determines the assignment rights of the employer and employee, thus reversing the superior court’s grant of summary judgment in favor of the third-party tortfeasor in this case.Plaintiff, a South Carolina resident, was employed as a semi-trick driver with a Nebraska limited liability company, which, in turn, contracted with Defendant, an Arizona company, to provide training for Plaintiff in Arizona. Plaintiff was a passenger in a semi-truck driving by Defendant’s employee was the truck rolled, injuring Plaintiff. Plaintiff received workers’ compensation in Nebraska paid for by the LLC. Plaintiff then filed this personal injury action against Defendant. The Supreme Court granted summary judgment in favor of Defendant, concluding that, pursuant to section 23-1023(B), Plaintiff had no legal interest in the action. The Supreme Court reversed, holding (1) because Plaintiff received workers’ compensation benefits in Nebraska, Nebraska’s law regarding assignment applied to her claims against Defendant in this action; and (2) because Nebraska does not have an automatic assignment provision, Plaintiff had a legal interest in those claims. View "Jackson v. Eagle KMC LLC" on Justia Law