Justia Labor & Employment Law Opinion Summaries

An employee with over twenty years of service at the State of Hawai‘i Department of Public Safety was discharged from her position as warden of a correctional facility following allegations of creating a hostile work environment and sexual harassment. The investigation led to multiple charges, some of which were sustained by a hearings officer, resulting in the Director’s decision to terminate her employment. The employee had no prior disciplinary record and had previously received recognition for her service.The employee appealed her discharge to the Merit Appeals Board (MAB), which held a contested case hearing. The MAB found credible evidence to sustain some, but not all, of the charges, including one for sexual harassment under a progressive discipline policy. However, the MAB found no credible evidence to support the charge brought under the employer’s zero-tolerance workplace violence policy. Considering the employee’s long, discipline-free record and the principle of progressive discipline, the MAB modified the discharge to a sixty-day suspension and ordered her reinstatement.The Department of Public Safety appealed to the Circuit Court of the First Circuit, which reversed the MAB’s decision, concluding that the MAB exceeded its statutory authority by applying progressive discipline rather than deferring to the zero-tolerance policy. The Intermediate Court of Appeals affirmed the circuit court’s judgment.The Supreme Court of the State of Hawai‘i reviewed the case and held that the MAB acted within its statutory authority under Hawai‘i law when it modified the disciplinary action from discharge to a sixty-day suspension. The Supreme Court determined that the sustained charges were not subject to the zero-tolerance policy, and the MAB’s application of progressive discipline was proper. The Supreme Court reversed the lower courts’ decisions and affirmed the MAB’s order. View "Department of Public Safety v. Forbes" on Justia Law

An airport restaurant and bar manager sustained bilateral knee injuries in 2007 while lifting a beer keg at work. Her right knee required surgery, and she experienced ongoing pain, swelling, and functional limitations in both knees, which affected her ability to return to her previous job and participate in daily activities and hobbies. After vocational rehabilitation, she found sedentary work as a medical coder and biller. Multiple medical evaluations rated her right knee at 5% impairment and her left knee at 0% impairment, based on the AMA Guides.The Department of Labor and Industrial Relations Disability Compensation Division awarded her 7% permanent partial disability (PPD) for the right knee and 0% for the left knee. She appealed to the Labor and Industrial Relations Appeals Board (LIRAB), seeking higher PPD percentages. LIRAB increased the awards to 8% for the right knee and 3% for the left knee, but its chair dissented, advocating for 20% and 5% respectively. The Intermediate Court of Appeals (ICA) affirmed LIRAB’s majority decision, finding that LIRAB had sufficiently explained its reasoning and properly considered her inability to return to her prior job.The Supreme Court of the State of Hawaiʻi reviewed the case and found that LIRAB’s findings and conclusions were insufficiently clear to allow meaningful appellate review. The court held that LIRAB’s decision was clearly erroneous and adopted the reasoning of the LIRAB chair’s dissent, awarding 20% PPD for the right knee and 5% for the left knee. The court also held that LIRAB improperly considered vocational rehabilitation and temporary total disability benefits in determining the PPD award. The ICA’s judgment and LIRAB’s decision were vacated in part, and the case was remanded to LIRAB to determine the compensation amount consistent with the Supreme Court’s opinion. View "Noborikawa v. Host International" on Justia Law

Plaintiff, Ann Gima, was employed by the City and County of Honolulu's Department of Budget and Fiscal Services (BFS) for over twenty years. After being promoted to Real Property Technical Officer (RPTO) in 2012, Gima alleged that her supervisor, Robert Magota, began verbally harassing her, leading to her diagnosis of major depressive disorder and anxiety disorder. Gima was placed on workers' compensation leave intermittently from 2014 to 2018. In November 2017, she requested a reasonable accommodation to work under a different supervisor, which was denied. Magota retired in December 2017, and Gima returned to work in February 2018 under a new supervisor, Steven Takara. Shortly after, she received a substandard performance evaluation and was demoted.Gima filed claims with the Hawai‘i Civil Rights Commission (HCRC) for disability discrimination and retaliation and subsequently filed a lawsuit in the Circuit Court of the First Circuit. The circuit court granted summary judgment in favor of the City, concluding that Gima failed to establish a prima facie case of disability discrimination or retaliation and that her request for an alternate supervisor was unreasonable as a matter of law.The Supreme Court of the State of Hawai‘i reviewed the case. The court held that Gima established a prima facie case of disability discrimination, as she demonstrated she had a disability, was qualified for her position, and was demoted because of her disability. The court found a genuine issue of material fact regarding whether the City’s reasons for her negative evaluation and demotion were pretextual. The court also held that Gima’s request for an alternate supervisor was not unreasonable as a matter of law and that there was a genuine issue of material fact as to whether the City could have assigned her a different supervisor.However, the court concluded that the City engaged in an interactive process to accommodate Gima by offering her a position in another department, which she declined after Magota retired. The court also found that Gima established a prima facie case of retaliation, as she engaged in protected activities, suffered adverse employment actions, and demonstrated a causal connection between the two. The court affirmed in part and vacated in part the circuit court’s order, remanding the case for further proceedings. View "Gima v. City and County of Honolulu" on Justia Law

An employee, Delbert P. Costa, Jr., suffered a workplace injury on May 9, 2012, while employed by the County of Hawai'i, Department of Water Supply. Costa reported the injury, and the County filed an industrial injury claim, contesting compensability pending investigation. The County did not contest that temporary total disability (TTD) benefits would be due if the injury was compensable. The Director of the Department of Labor and Industrial Relations found the injury compensable on June 24, 2013, but the County did not appeal this decision or pay TTD benefits.Costa applied for a hearing to address the nonpayment of TTD benefits, and the Director issued a supplemental decision on April 25, 2014, awarding TTD benefits and imposing a 20% penalty for late payment. The County appealed to the Labor and Industrial Relations Appeals Board (LIRAB), which reversed the Director’s supplemental decision, finding no statutory basis for the penalty as the TTD benefits were not due before the Director’s decision on compensability.The Intermediate Court of Appeals (ICA) affirmed the LIRAB’s decision, although it noted errors in the LIRAB’s application of the evidentiary standard and its characterization of HRS § 386-92 as punitive. The ICA agreed with the LIRAB that the Director’s decision did not order TTD benefits and thus did not support the imposition of a penalty.The Supreme Court of the State of Hawai'i reviewed the case and held that a penalty under HRS § 386-92 is appropriate where an employer fails to make timely TTD benefit payments after a final decision on compensability. The Court vacated the ICA’s judgment and the LIRAB’s decision, remanding the case to the LIRAB to assess the penalty and determine attorneys’ fees and costs. View "Costa v. County of Hawai'i" on Justia Law

A landlord operated a business renting homes and had a tenant who performed repair, maintenance, and improvement work in exchange for reduced rent and payment. The tenant fell while working on the roof of one of the rental units and filed a workers' compensation claim. The landlord denied an employment relationship and disputed the work-related injury.The Director of the Department of Labor and Industrial Relations ruled in favor of the tenant, finding an employer-employee relationship. The landlord appealed, and the Labor and Industrial Relations Appeals Board (LIRAB) reversed the Director's decision, concluding there was no employment relationship under the control and relative nature of work tests. The tenant appealed to the Intermediate Court of Appeals (ICA), which vacated parts of LIRAB's decision, instructing LIRAB to apply the substantial evidence standard instead of the preponderance of the evidence standard.The Supreme Court of the State of Hawai'i reviewed the case. The court held that the landlord did not present substantial evidence to rebut the presumption of an employment relationship under the relative nature of the work test. The tenant's work was integral to the landlord's rental business, and the tenant did not have a business of his own. Therefore, the court concluded that an employer-employee relationship existed, and the tenant's injury was covered under Hawai'i's workers' compensation laws. The court vacated LIRAB's decision and the ICA's judgment, remanding the case to LIRAB to compute compensation. The court also held that the landlord was not responsible for the tenant's attorney fees and costs. View "Borrson v. Weeks" on Justia Law

In this case, the petitioner, a former employee, sustained a work injury in 1999 and entered into a settlement agreement in 2002, which included a lump sum payment for permanent partial disability and ongoing medical care for his left hip. In 2003, the Director of the Department of Labor and Industrial Relations (DCD) denied further treatment for the petitioner’s low back pain but allowed continued treatment for his left hip. The last payment of compensation was made in 2005.The petitioner applied to reopen his workers' compensation claim in 2017, but the Director denied the application, citing the eight-year statute of limitations under Hawai‘i Revised Statutes (HRS) § 386-89(c). The Labor and Industrial Relations Appeals Board (LIRAB) affirmed the Director’s decision, with a majority opinion stating that the petitioner had the burden of proof to show his application was timely and a concurring opinion stating that the employer had the burden of proof to show the application was untimely.The Intermediate Court of Appeals (ICA) affirmed the LIRAB’s decision, concluding that the petitioner did not provide substantial evidence to support his reopening application and that the claim was properly closed in 2007.The Supreme Court of the State of Hawai‘i held that the eight-year period in HRS § 386-89(c) is a statute of limitations, and thus, the employer has the burden of proof to show that an application for reopening a claim is untimely. The court concluded that the employer met this burden, as the last payment was made in 2005, and the petitioner’s application to reopen was filed nearly twelve years later. The court also affirmed that the workers' compensation case was properly closed in 2007. Consequently, the ICA’s Judgment on Appeal was affirmed. View "Webb v. OSF International, Inc." on Justia Law

Augustina Dean, a former elementary school teacher, filed a workers' compensation claim with the Department of Labor and Industrial Relations (DLIR) in Hawaii, asserting she had suffered a work-related injury. The Director of the DLIR, however, found that Dean did not suffer a work-related injury. Dean appealed this decision to the Labor and Industrial Relations Appeal Board (LIRAB). The LIRAB reversed the Director's decision and ordered a new hearing. Following the new hearing, the Director awarded Dean $2,424.24 for "1% permanent partial disability of the whole person," and "medical care, services and supplies as the nature of the injury may require." Dean appealed this decision to the LIRAB, but the LIRAB refused to hear the case, arguing that Dean had missed the appeal deadline by one day.The Intermediate Court of Appeals (ICA) sided with the LIRAB, affirming its decision to dismiss Dean's appeal as untimely. The ICA relied on the precedent set in Kissell v. Lab. & Indus. Rels. Appeals Bd., which declared that the time for filing a written notice of appeal is mandatory. Dean, still self-represented, appealed this decision to the Supreme Court of the State of Hawaii.The Supreme Court of the State of Hawaii vacated the ICA's summary disposition order. The court held that the LIRAB, the agency rejecting an appeal as untimely based on the Department’s “sent” date, must have direct evidence that the decision was sent on that date. In this case, the LIRAB did not have sufficient evidence. The court concluded that the Department did not offer adequate evidence that it mailed its decision on the date it claimed. Therefore, Dean may appeal to the LIRAB. The court remanded the case to the LIRAB to address the merits of Dean's appeal. View "Dean v. State" on Justia Law

In the case before the Supreme Court of the State of Hawai‘i, the issue was whether a subrogee insurance company, which timely intervened pursuant to HRS § 386-8(b), has an independent right to continue to pursue claims and/or legal theories against a tortfeasor that were not asserted by the subrogor employee, after summary judgment has been granted against the subrogor employee, on the subrogor employee’s claims. This case involved Hyun Ju Park, a bartender who was shot by an off-duty Honolulu Police Department officer while at work. Park sued the City and County of Honolulu, alleging negligence and other claims. Dongbu Insurance Co., Ltd., the workers' compensation insurance carrier for Park's employer, intervened in the case, alleging additional negligence claims that Park had not raised. The City moved to dismiss all of Park’s claims and some of Dongbu's claims, which the court granted, leaving two of Dongbu's claims - negligent supervision and negligent training - remaining. The City then moved for summary judgment against Dongbu, arguing that since Park's claims were dismissed, Dongbu's claims also failed.The Supreme Court of Hawai‘i held that a subrogee insurance company, which timely intervened, does have an independent right to continue to pursue claims and/or legal theories against a tortfeasor that were not asserted by the subrogor employee, even after summary judgment has been granted against the subrogor. The court reasoned that an affirmative answer protects subrogation, aligns with Hawai‘i’s workers’ compensation subrogation law, and does not undermine employers’ and insurers’ intervention rights. The court also rejected the City's claim preclusion argument, stating that Dongbu's remaining claims for negligent supervision and negligent training had not yet been decided and were not barred by res judicata. Therefore, Dongbu may continue to pursue its non-dismissed claims. View "Park v. City and County of Honolulu" on Justia Law

The Supreme Court affirmed the judgment of the circuit court dismissing this action brought by Academic Labor United (ALU) requesting declaratory judgments that graduate assistants were foreclosed from exercising the collective bargaining rights provided to public employees under Haw. Const. art. XIII, 2 and Haw. Rev. Stat. 89, holding that there was no error.ALU, which represented graduate student employees of the University of Hawaii who wish to engage in collective bargaining, brought this suit arguing that a pair of 1972 decisions of the Hawaii Public Employment Relations Board determined that graduate assistants were not "employees" under chapter 89 and were thus foreclosed from exercising collective bargaining rights. The circuit court dismissed the case on jurisdictional grounds. The Supreme Court affirmed, holding that because ALU had not invoked Hawaii Administrative Rules 12-42-9 to clarify whether its members are employees under chapter 89 and had not exhausted its administrative remedies, the circuit court did not have jurisdiction over ALU's action. View "Academic Labor United v. Bd. of Regents of the University of Haw." on Justia Law

The Supreme Court vacated the order of the intermediate court of appeals (ICA) dismissing Appellant's appeal in this workers' compensation case for lack of a final, appealable order, holding that the ICA erred when it dismissed this appeal for lack of jurisdiction.These consolidated cases consisted of the decision of the Director of the Department of Labor and Industrial Relations (DCD) determining that Appellant sustained compensable work-related injuries but denying her claim for compensation relating to her alleged neck injury and sleep disorder. Following years of proceedings before the Labor and Industrial Relations Appeals Board (LIRAB) and DCD, the LIRAB issued several orders, including an order granting Employer/Insurer's two motions to compel and denying Appellant's motion for partial summary judgment. The ICA dismissed Appellant's appeal. The Supreme Court reversed, holding that the ICA had jurisdiction to review the LIRAB's order granting the motions to compel and denying partial summary judgment as to the order compelling Appellant to undergo an independent medical examination. View "Suzuki v. American Healthways, Inc." on Justia Law