Justia Labor & Employment Law Opinion Summaries

In 2006, W&S hired Martino, a naturalized citizen born in Italy, as a sales representative. He signed an agreement that prohibited him from engaging in any other business or work for remuneration or profit without consent. W&S only approved outside positions requiring five or fewer hours a week on average, not including Sundays, and average weekly pay of $100 or less. Martino also served as a pastor of a small church and he submitted an outside position request, indicating that his pastoral position involved eight to 10 hours per week, not including Sundays, with average weekly pay of $300. After rejecting Martino’s argument that his position was a public service, human resources responded that W&S was not discharging Martino but asking that he resign his pastoral position. Martino subsequently was unable to timely produce I-9 eligibility to work documentation. Within two months of hiring him, W&S terminated Martino. The district court entered summary judgment for W&S in Martino’s suit, alleging termination based on religious beliefs and defamation. The Seventh Circuit affirmed. Martino’s evidence neither called into doubt W&S’s explanation for his discharge nor established a prima facie case of defamation. View "Martino v. W & S Fin. Grp." on Justia Law

A new union of ARC blood collection specialists was elected in 2007 and certified in 2010. During the unionization process, ARC filed repeated objections, ultimately overruled by the National Labor Relations Board, delaying certification. During the delay, ARC made changes in its union-represented employees’ terms of employment without notice to or bargaining with the new union, including: suspending merit pay increases; discontinuing matching contributions to the employees’ 401(k) plan; closing its defined pension plan to new employees; changing health insurance benefits; promoting team leaders to team supervisors and having them continue to perform unit work; reassigning truck loading work outside the bargaining unit; decreasing the number of personal time-off hours an employee can carry over; and allowing non-unit employees to perform bargaining unit work. As a result, worker involvement in union activities declined. Some employees feared retaliation and some were discouraged by the union’s failure to prevent ARC’s changes. An ALJ held that ARC violated 29 U.S.C. 158(a)(5). The district court ordered rescission of ARC’s failure to grant scheduled merit pay increases and a temporary injunction prohibiting further unilateral changes. The Seventh Circuit affirmed in part, but remanded for entry of the additional injunctive relief sought by the NLRB. View "Harrell. v. Am. Red Cross, Heart of Am. Blood Servs. Region" on Justia Law

Central States is a multiemployer pension plan for members of the Teamsters union in the eastern half of the U.S. Ready Mix employed Teamsters labor and participated in the Central States plan. In 2007 Ready Mix ceased employing covered workers and incurred $3.6 million in withdrawal liability to fully fund its pension obligations. Two affiliated companies under common control by Nagy, the owner of Ready Mix, conceded liability for the shortfall under the Employee Retirement Income Security Act, as amended by the Multiemployer Pension Plan Amendments Act of 1980, 29 U.S.C. 1301(b)(1). The district court concluded that Nagy held and leased property to Ready Mix as a passive investment, not a trade or business, so the leasing activity did not trigger personal liability, but that Nagy’s work as a manager for a country club was as an independent contractor, not an employee, and this activity qualified as a trade or business under section 1301(b)(1), which was enough for personal liability. The Seventh Circuit affirmed, holding that Nagy’s leasing activity is categorically a trade or business for purposes of personal liability under 1301(b)(1). View "Cent. States SE & SW Areas Pension Fund v. Nagy" on Justia Law

Plaintiffs filed a putative class action, claiming that fiduciaries for their retirement plans violated the Employee Retirement Income Security Act, 29 U.S.C. 1001, by continuing to offer employer stock as an investment option while the stock price dropped. The individual retirement account plan at issue allowed employees to choose among more than 20 investment funds with different risk profiles that had been selected by plan fiduciaries. ERISA imposes on the fiduciaries a duty to select only prudent investment options. One of the investment options in the Plan was the M&I Stock Fund, consisting of M&I stock, under an Employee Stock Ownership Plan. In 2008- 2009, M&I’s stock price dropped by approximately 54 percent. The district court applied a presumption of prudence, found that plaintiffs’ allegations could not overcome it, and dismissed without addressing class certification. The Seventh Circuit affirmed, stating that plaintiffs’ theory would require the employer and plan fiduciaries to violate the plan’s governing documents and “seems to be based often on the untenable premise that employers and plan fiduciaries have a fiduciary duty either to outsmart the stock market, which is groundless, or to use insider information for the benefit of employees, which would violate federal securities laws.” View "White v. Marshall & Ilsley Corp." on Justia Law

Majors worked at GE’s Bloomington plant for 32 years. In 2000, she suffered a work-related injury to her right shoulder that left her limited to lifting no more than 20 pounds and precluded her from work above shoulder level with her right arm. The restrictions were considered temporary at first, but according to her medical file maintained by GE, the restrictions later were determined to be permanent. After GE denied her temporary and permanent positions to which she was otherwise entitled under the seniority-based bidding procedure, Majors sued under Americans with Disabilities Act, 42 U.S.C. 12101 and Title VII of the Civil Rights Act of 1964, 42 U.S.C. 2000e, claiming retaliation for filing EEOC charges after being denied hours, and that GE constructively discharged her when she elected to retire. The district court granted GE summary judgment. The Seventh Circuit affirmed. Majors couldn’t perform an essential function of the position she sought without an accommodation that was not reasonable and presented insufficient evidence of retaliation. View "Majors v. Gen. Elec. Co." on Justia Law

Cromwell was fired from his position as a Momence police lieutenant, after an incident of alleged misconduct involving alcohol that was followed by lying and insubordination during the investigation. Cromwell sued, arguing that his termination was procedurally inadequate and that that he had a constitutionally protected property interest in his continued public employment derived from the city’s Police Department Rules and Regulations, which provide that probationary employees may be terminated at any time for any reason but omit similar language with regard to nonprobationary employees. The district court rejected this argument and dismissed. The Seventh Circuit affirmed. The regulations on which Cromwell based his claim do not contain the clear language needed to overcome Illinois’s presumption of at-will employment. Something more than inference from silence is required. View "Cromwell v. City of Momence" on Justia Law

Cloe started working for the City of Indianapolis in 2007 as an Unsafe Buildings/Nuisance Abatement Project Manager. In 2008, she was diagnosed with multiple sclerosis, a chronic, incurable neurological disorder that rendered her disabled and significantly impaired her day-to-day life. In 2009, the city terminated her, ostensibly for poor performance. Cloe sued under the Americans with Disabilities Act, 42 U.S.C. 12101, alleging that the city discriminated against her because of her disability; failed to reasonably accommodate her disability; and retaliated against her for requesting accommodations. The district court granted summary judgment in favor of the city. The Seventh Circuit affirmed with respect to the reasonable accommodation claims, but reversed on the discrimination and retaliation claims, noting “suspicious timing, ambiguous statements oral or written, and other bits and pieces from which an inference of retaliatory intent might be drawn.” View "Cloe v. City of Indianapolis" on Justia Law

Allegedly in retaliation for Modrowski’s unwillingness to skimp on building repairs, defendants fired him, withheld $11,000 in wages, had Modrowski jailed, and locked Modrowski out of his personal Yahoo email account. Modrowski sued, challenging the refusal to relinquish control over his email account. The district court issued a temporary restraining order, but Modrowski discovered that years’ worth of personal correspondence had vanished. Modrowski claimed violation of the Stored Wire and Electronic Communications Act (18 U.S.C. 2701), the Federal Wire Tapping Act (18 U.S.C. 2511), and the Computer Fraud and Abuse Act (18 U.S.C. 1030). The district court dismissed the first two claims because Modrowski acknowledged that he voluntarily linked his personal account with the defendants’ business account. The district court dismissed without prejudice the Computer Fraud Act claim for failure to allege an injury of at least $5,000. When Modrowski returned his first amended complaint, defendants moved for summary judgment. The window for fact discovery had closed and neither party had sought an extension. Modrowski responded by attacking perceived deficiencies of the defendants’ motion. Noting Modrowski’s failure to offer “any evidence in response to defendants’ motion, let alone evidence sufficient to raise a triable issue of fact,” it granted defendants’ motion. The Seventh Circuit affirmed. View "Modrowski v. Pigatto" on Justia Law

Steine was a subcontractor for installation of thermal units at a Wal-Mart store in Gas City, Indiana. Steine rented a boom lift from NES. Steine foreman Crager signed a one-page, two-sided NES “Rental Agreement” with a signature line is at the bottom of its front side. Above the signature line, the Agreement states: “Signer acknowledges that he has read and fully understands this rental agreement including the terms and conditions on the reverse side” and “Please note that there are important terms on the reverse side of this contract, including an indemnification provision.” Menendez, a Steine employee, died from injuries he suffered while operating the 40-foot boom lift. His family filed sued NES and others, alleging negligence. NES sought indemnification from Steine. The district court entered summary judgment in favor of Steine. The Seventh Circuit affirmed. The indemnification clause in the rental agreement does not expressly state, in clear and unequivocal terms as Indiana law requires, that Steine agreed to indemnify NES for NES’s own negligence. View "NES Rentals Holdings, Inc.l v. Steine Cold Storage, Inc." on Justia Law

Although Hall has been a plumber for the City of Chicago since 1995, she was on disability leave from 1999 to 2003 due to a work-related injury. Hall returned to the City’s employ with the limitation that she could not lift over 25 pounds. Hall and the City agree this restriction precluded her from resuming work as a plumber, so Hall began working in the House Drain Inspectors Division of the Department, which was composed of 13 male house drain inspectors and the supervisor’s female secretary. Hall claims that the supervisor created a hostile work environment by assigning her menial work and prohibiting coworkers from interacting with her. The district court granted the defendants summary judgment in her Title VII suit, finding that the conduct was not hostile in comparison to other employees’ responsibilities and that Hall failed to produce evidence that the supervisor’s conduct was because of her sex. The Seventh Circuit reversed, stating that a jury could infer that deliberate isolation of Hall was sufficiently pervasive to constitute a hostile work environment and that the supervisor’s comments to Hall could indicate that Hall’s gender played a part in his actions. View "Hall v. City of Chicago" on Justia Law