Justia Labor & Employment Law Opinion Summaries

Articles Posted in U.S. 3rd Circuit Court of Appeals
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In the 1960s, the founder’s sons (plaintiff and his brothers) joined the business, later incorporated as MBP. The business grew to have annual sales of $60 million. Plaintiff served as vice-president, secretary, and a member of the board of directors, and was a shareholder. Plaintiff had a “spiritual awakening” in 1995. He claims that the change resulted in antagonism toward him. Plaintiff delivered a eulogy at his father’s 2009 funeral, which upset family members. Days later, plaintiff received notice of termination of his employment and that various benefits would cease. The letter explained that “[y]our share of any draws from the corporation or other entities will continue to be distributed to you.” Plaintiff continued on the board of directors until August, 2009, when the shareholders did not re-elect him. Plaintiff filed charges of religious discrimination under Title VII of the Civil Rights Act of 1964, 42 U.S.C. 2000e-2(a)(1) and of hostile work environment. The district court dismissed, finding that he was not an employee under Title VII and did not establish existence of a hostile work environment. The Third Circuit affirmed, stating that it was clear that plaintiff was entitled to participate in development and governance of the business. View "Mariotti. v. Mariotti Bldg. Prods., Inc." on Justia Law

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Cambria County owned and operated Laurel Crest Nursing and Rehabilitation Center, which was subject to Pennsylvania labor law. In 2010 Grane bought Laurel Crest, and established a new entity, Cambria Care, to serve as its operator. Because Grane and Cambria are private employers, labor relations at the facility became subject to the National Labor Relations Act, 29 U.S.C. 151. Prior to the transfer, most Laurel Crest employees applied to work at Cambria Care, and the majority were hired. Grane, however, did not hire four of the five Local 1305 officers or an employee who had participated in the union’s public activities opposing the sale. Grane and Cambria Care refused to recognize or bargain with the unions. The National Labor Relations Board found that the companies violated NLRA provisions prohibiting employers from refusing to bargain collectively with their employees‘ representatives and from not hiring applicants based on their union membership or activity. The Third Circuit granted the Board‘s petition for enforcement. View "Grane Health Care v. Nat'l Labor Relations Bd." on Justia Law

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In 2009, the Union submitted three grievances on behalf of Company employee and Union member Lubik, alleging that the company violated a past practice by failing to schedule Lubik, a maintenance clerk, for Saturday overtime when the maintenance department was scheduled to work. After the Arbitrator sustained the three grievances and ordered the company to pay Lubik back wages for the missed overtime. The district court vacated the award because it concluded that the award did not draw its essence from the Collective Bargaining Agreement, determining that the plain language of the CBA unambiguously‖ gave the company the exclusive right to schedule its workforce. The Third Circuit reversed and ordered enforcement of the arbitration award. View "Akers Nat'l Roll Co. v. United Steel, Paper & Forest,Rubber, Mfg., Energy, Allied Indus. & Serv. Workers Int'l Union" on Justia Law

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Wiest worked in Tyco’s accounting department for 31 years, until his termination in 2010. Beginning in 2007, Wiest refused to process reimbursement claims that he believed were unlawful or constituted “parties” at resorts. Wiest sued Tyco and its officers and directors under the whistleblower protection provisions in Section 806 of the Sarbanes-Oxley Act, 18 U.S.C. 1514A, and under Pennsylvania law. The district court dismissed the federal whistleblower claims and declined to exercise supplemental jurisdiction. The Third Circuit reversed in part, holding that the court erred in requiring that Wiest allege that his communications to his supervisors “definitively and specifically relate to” an existing violation of a particular anti-fraud law, as opposed to expressing a reasonable belief that corporate managers are taking actions that could run afoul of a particular anti-fraud law. View "Wiest v. Lynch" on Justia Law

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Montone was an officer with the Jersey City Police Department from 1981 until 2010, when she retired as a sergeant. Plaintiffs are present or former sergeants in the JCPD. The plaintiffs claim that retaliation for exercise of First Amendment rights and discrimination, in violation of 42 U.S.C. 1983 and New Jersey state law, was the basis of their failure to be promoted from the rank of sergeant to lieutenant during Healy’s tenure as mayor and Troy’s tenure as police chief. Healy’s mayoral campaign was heated and personal. Plaintiffs claim that all promotions from sergeant to lieutenant were halted by Healy and Troy to penalize Montone for her support of Healy’s opponent. Each plaintiff had passed the civil service examination required to be promoted to the rank of lieutenant. The district court entered summary judgment in favor of the defendants. The Third Circuit vacated, finding that genuine issues of material fact remained concerning defendants’ motivations for their decisions. View "Montone v. City of Jersey City" on Justia Law

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Freeman worked at PPG until his firing in 2008; PGW subsequently assumed PPG’s liabilities. PPG maintains a 40 percent interest in PGW. After losing his job, Freeman, age 60, sued PGW under the Age Discrimination in Employment Act, 29 U.S.C. 621. The parties entered a binding arbitration agreement, listing three potential arbitrators. Lally-Green, a law school teacher, formerly a state judge, appeared at the top of both lists. Lally-Green acknowledged that she “knew some people at PPG” and had taught a seminar with a PPG attorney. The parties proceeded with Lally-Green as their arbitrator. The proceeding was fair and thorough. Lally-Green concluded that Freeman lost his job because he “had limited recent sales experience ... [and] received average performance ratings in a poorly performing region.” Three months later, Freeman moved to vacate the decision, claiming that Lally-Green had failed to disclose campaign contributions that she had received from PPG and its employees during her campaign for a seat on the state’s highest court. These contributions totaled $4,500. Lally-Green had raised $1.7 million during her unsuccessful campaign. The district court denied the motion. The Third Circuit affirmed, noting that the law firm representing Freeman had contributed $26,000 to Lally-Green’s campaign. View "Freeman v. Pittsburgh Glass Works, LLC" on Justia Law

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Knoll filed suit following her termination from the city Parks Department, alleging gender discrimination, harassment, and retaliation in violation of Title VII of the Civil Rights Act, 42 U.S.C. 2000, and the Pennsylvania Human Relations Act, 43 Pa. Cons. Stat. 951. The district court dismissed the gender discrimination claim; the jury returned a verdict in favor of Allentown on the harassment and retaliation claims. Following Knoll’s unsuccessful motions for a new trial and for sanctions, the court concluded that the motions were frivolous but declined to order sanctions. The Third Circuit affirmed, holding that the court was not required to engage in a six-factor analysis before dismissal of a post-trial motion, based on procedural noncompliance. View "Knoll v. City of Allentown" on Justia Law

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Burton founded and ran companies that manufactured and distributed medical device parts. By 2006, the companies employed approximately 140 people and generated annual revenue of $14 million. In 2007, Burton sold to Teleflex and entered into a two-year employment agreement with Teleflex, providing that she could terminate her employment by providing 30 days’ written notice. Teleflex could fire Burton without cause by providing 30 days’ written notice or could fire Burton for cause, upon written notice and an opportunity to cure. Burton, then age 67, became Vice President of New Business Development, supervised by Boarini. The two had a strained relationship. During an argument, Burton asked Boarini whether he wanted her to resign. There is evidence that she stated that she was resigning, stayed out of the office for two days, then left on a previously-scheduled vacation, after which SMD “accepted” her resignation in writing. The district court granted Telefex summary judgment on claims under the Age Discrimination in Employment Act, 29 U.S.C. 621; Title VII of the Civil Rights Act, 42 U.S.C. 2000e; and state law. The Third Circuit reversed, finding genuine issues of fact on whether Burton resigned. View "Burton v. Teleflex Inc." on Justia Law

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Araujo, who worked for New Jersey Transit Rail Operations, witnessed a fatal accident in 2008, when a construction worker was electrocuted on the job. He reported an emotional injury and was later suspended for violation of a rule relating to the accident. He filed a complaint with the Occupational Safety & Health Administration Office of Whistleblower Protection, which issued findings in favor of Araujo, and ordered NJT to pay $569,587 in damages, to which NJT objected. Araujo then filed suit, alleging that he was disciplined in retaliation for his participation in an activity protected by the Federal Rail Safety Act, 49 U.S.C. 20109, in reporting his injury. The district court found that the discipline was not retaliatory and granted NJT summary judgment. The Third Circuit reversed, holding that NJT failed to refute Araujo’s assertion that his actions were in line with NJT practice at the time of the accident. View "Araujo v. NJ Transit Rail Operations, Inc." on Justia Law

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The school district hired Connelly as a teacher. Connelly had nine years of teaching experience, all in Maryland. Because Connelly acquired his teaching experience outside Pennsylvania, the district credited him with only one year. Other new teachers with like experience acquired within Pennsylvania (but not in the district) received at least partial credit for each year they had taught. Connelly’s initial annual salary was $38,023, which was substantially less than the $49,476 Connelly alleged he would have received with full credit for his experience. Connelly‘s initial salary determination continued to adversely affect his pay. In 2011 Connelly filed suit, asserting Fourteenth Amendment claims under 42 U.S.C. 1983: that failure to fully credit his out-of-state teaching experience violated his right to interstate travel under the Privileges and Immunities Clause and denied him equal protection of the law. The district court dismissed, holding that the classification alleged is based on location of teaching experience, not residency. The Third Circuit affirmed, applying rational basis review. A school district may rationally place a premium on teachers who have more experience working within the Pennsylvania school system in order to achieve the legitimate goal of an efficient and effective public education system. View "Connelly v. Steel Valley Sch. Dist." on Justia Law