Justia Labor & Employment Law Opinion Summaries

JB Viva Vegas, L.P. challenged the assessment of withdrawal liability imposed by the Nevada Resort Association-International Alliance of Theatrical Stage Employees and Moving Picture Machine Operators of the US and Canada Local 720 Pension Trust under the Multiemployer Pension Plan Amendments Act (MPPAA). JB had contributed to the Trust’s pension plan for stagehands working on a theatrical production, which later closed. The Trust asserted withdrawal liability, arguing that its plan no longer qualified for the entertainment industry exception due to a shift in employee work from entertainment to convention-related activities.After JB’s request for review went unanswered, it initiated arbitration. The arbitrator initially ruled in JB’s favor, finding the plan qualified for the entertainment exception and ordering rescission of the withdrawal liability. The Trust then sought to vacate the arbitration award in the United States District Court for the District of Nevada. The district court vacated the award, reasoning that the relevant year for determining the plan’s status was the year JB withdrew, not when it joined, and remanded to the arbitrator. On remand, the arbitrator granted summary judgment to the Trust, concluding that the MPPAA was ambiguous as to how much entertainment work was required and that the plan did not “primarily” cover entertainment employees because less than half earned most of their wages from entertainment work. The district court affirmed the arbitrator’s decision, granting summary judgment to the Trust.On appeal, the United States Court of Appeals for the Ninth Circuit reviewed the district court’s summary judgment de novo. The court held that the MPPAA’s entertainment industry exception does not require a minimum amount of entertainment work for an individual to qualify as an “employee in the entertainment industry.” Therefore, the Trust’s plan primarily covers such employees if a majority perform any entertainment work. The Ninth Circuit reversed the district court’s decision and remanded the case. View "NEVADA RESORT ASSOCIATION-INTERNATIONAL ALLIANCE OF THEATRICAL STAGE EMPLOYEES AND MOVING PICTURE MACHINE OPERATORS OF THE US AND CANADA LOCAL 720 PENSION TRUST V. JB VIVA VEGAS, LP" on Justia Law

A construction company in southern Nevada ceased contributing to a multiemployer pension plan after it stopped operating in the state. The pension plan’s trustees assessed the company for withdrawal liability, asserting the company owed over $2.8 million under the Multiemployer Pension Plan Amendments Act (MPPAA). The company challenged the assessment, arguing it was exempt from liability because its asbestos abatement work qualified for the “building and construction industry” exception in the MPPAA. The company pointed out that asbestos abatement involves removing or remediating hazardous materials from buildings, including demolition and substantial alterations to structures.An arbitrator initially ruled in favor of the pension plan’s trustees, interpreting the “building and construction industry” narrowly to include only work that literally builds new structures, and finding that asbestos abatement did not meet this definition. The company then brought suit in the United States District Court for the District of Nevada to vacate or modify the arbitration award. The district court rejected the arbitrator’s and trustees’ narrow construction, instead adopting a broader understanding of the industry that includes maintenance, repair, alteration, and demolition. The district court granted summary judgment to the company, holding that its asbestos abatement work qualified for the statutory exception, and ordered the return of payments made toward the assessed liability.On appeal, the United States Court of Appeals for the Ninth Circuit affirmed the district court’s judgment. The Ninth Circuit held that the phrase “building and construction industry” in the MPPAA incorporates the definition established by the National Labor Relations Board under the Taft-Hartley Act, which includes erection, maintenance, repair, and alteration of buildings and structures. Applying this definition, the court ruled that asbestos abatement is covered by the exception, exempting the company from withdrawal liability. View "WALKER SPECIALTY CONSTR., INC. V. BD. OF TR. OF THE CONSTR. INDUS. AND LABORERS JOINT PENSION TRUST" on Justia Law

Amazon was accused of unfair labor practices under the National Labor Relations Act for refusing to recognize and bargain with the Teamsters Amazon National Negotiating Committee, which represented a group of former Amazon delivery drivers. After Amazon terminated its contract with a delivery service whose drivers were represented by the union, the Teamsters alleged that Amazon and the contractor were joint employers and demanded bargaining rights. Amazon declined, prompting the Teamsters to file unfair labor practice charges with the National Labor Relations Board (NLRB). The NLRB’s General Counsel filed a complaint against Amazon, alleging threats, retaliation, and refusal to bargain.Following the initiation of the NLRB administrative proceedings, Amazon sued in the United States District Court for the Central District of California, seeking to enjoin the Board from continuing those proceedings. Amazon argued that the Board’s structure and adjudicative procedures were unconstitutional and requested a preliminary injunction. The Teamsters intervened in the case to represent the interests of the drivers. The district court denied Amazon’s motion, holding that it lacked jurisdiction under the Norris-LaGuardia Act, which prohibits federal courts from issuing injunctions in cases involving or growing out of labor disputes.On appeal, the United States Court of Appeals for the Ninth Circuit addressed whether Amazon’s constitutional challenge “involved or grew out of” a labor dispute, as defined by the Norris-LaGuardia Act. The Ninth Circuit held that both the parties and the underlying dispute satisfied the requirements of the Act, as Amazon’s claims were directly connected to a labor dispute between an employer and a union. The court affirmed the district court’s denial of the preliminary injunction, concluding that federal courts lack jurisdiction to issue such relief in this context. View "AMAZON.COM SERVICES, LLC V. NATIONAL LABOR RELATIONS BOARD" on Justia Law

Jennifer Gates, a former loan officer at VIP Mortgage, claimed that VIP violated the Fair Labor Standards Act (FLSA) and Arizona state law by failing to pay her required overtime wages. She alleged that she was made to work more than forty hours per week but was instructed to record only eight-hour days on her timesheet. After her resignation in September 2022, Gates initiated arbitration as required by her employment agreement. VIP responded with counterclaims for breach of fiduciary duty and breach of contract, but these were later settled, with both parties agreeing to bear their own attorneys’ fees and costs for the counterclaims.The arbitration took place under the Federal Arbitration Act, and the arbitrator ultimately issued an award in favor of Gates, granting her unpaid overtime, liquidated damages, and attorneys’ fees. Despite the prior stipulation regarding counterclaims, the arbitrator did not distinguish between time spent on Gates’s claims and VIP’s counterclaims when awarding attorneys’ fees. VIP petitioned the United States District Court for the District of Arizona to vacate the award, arguing that the arbitrator erred by awarding attorneys’ fees that included time spent on the counterclaims. The district court found the arbitrator’s decision to be detailed and reasoned, concluding that the arbitrator did not manifestly disregard the law or act irrationally.The United States Court of Appeals for the Ninth Circuit reviewed the case de novo and affirmed the district court’s rulings. The court held that federal courts may vacate arbitration awards based on a factual error only in rare cases where the error involves a “legally dispositive fact” that was obvious and intentionally ignored by the arbitrator. Here, although the factual error was legally dispositive, the arbitrator’s failure to recall the fee stipulation was not so obvious or intentional as to warrant vacatur. The arbitration award was confirmed. View "VIP MORTGAGE INCORPORATED V. GATES" on Justia Law

Several former employees brought a class action lawsuit against their previous employer, a fast-food chain, challenging three company policies: excessive wage deductions for the Oregon Workers’ Benefit Fund (WBF), failure to pay for interrupted meal breaks longer than 20 minutes, and deductions for non-slip shoes required for work. The WBF overdeductions occurred when the employer failed to adjust employee contribution rates as the state rate decreased, causing employees to pay more than their share. The company also required employees to purchase specific non-slip shoes, from which it received vendor rebates, and allowed the cost to be deducted from wages.In the United States District Court for the District of Oregon, the plaintiffs prevailed on the WBF claims, with the court finding at summary judgment that the WBF overdeductions were willful, and that shoe deductions were for the plaintiffs’ benefit, leaving for trial whether the shoes were authorized in writing. The jury awarded substantial penalty wages for the WBF overdeductions, but the district court later reduced the jury’s award relating to shoe deductions, holding that written authorization was a defense. The court also denied class certification for the unpaid break claims, finding individual inquiry necessary, and refused to exclude class members who did not receive mailed notice or to reduce prejudgment interest for alleged plaintiff delay.On appeal, the United States Court of Appeals for the Ninth Circuit reversed in part and affirmed in part. The court held that the district court erred in granting summary judgment on willfulness regarding the WBF overdeductions and on whether the shoe deductions were for the employees’ benefit, requiring both issues be retried by a jury. The appellate court also clarified that written authorization was not a defense to minimum wage and overtime violations relating to shoe deductions. The court affirmed the district court’s judgment on the unpaid break claims and on notice and prejudgment interest issues. The case was remanded for further proceedings consistent with these holdings. View "GESSELE V. JACK IN THE BOX INC." on Justia Law

A dancer who regularly performed at a Portland strip club called Sassy’s alleged that the club’s owners and managers misclassified dancers as independent contractors, thereby violating wage and hour provisions under the Fair Labor Standards Act (FLSA). After the dancer filed a lawsuit regarding these alleged violations, one of the club’s partners, who also managed another club called Dante’s, canceled the dancer’s scheduled performance at Dante’s, explicitly citing the lawsuit as the reason. The dancer then amended the complaint to include a claim that this cancellation constituted unlawful retaliation under the FLSA.The United States District Court for the District of Oregon granted summary judgment in favor of the defendants. The court reasoned that the FLSA’s anti-retaliation provision only provides a private right of action for retaliation committed by a current employer, and thus the dancer needed to have been employed by Dante’s at the time of the alleged retaliatory act. The court also found that the wage-related claims were time-barred and dismissed the state law claims without prejudice.On appeal, the United States Court of Appeals for the Ninth Circuit reversed the district court’s summary judgment. The Ninth Circuit held that the FLSA’s anti-retaliation provision does not require the retaliator to be the plaintiff’s current employer, nor does it require the plaintiff to have been employed by the retaliator at the time of the alleged retaliation. Instead, the statute covers retaliation by any person acting directly or indirectly in the interest of an employer in relation to an employee. The court remanded the case for the district court to determine whether the dancer was an employee of Sassy’s under the “economic realities” test and whether the cancellation of the performance constituted retaliation. The court also reinstated the state law claims for further proceedings. View "HOLLIS V. R&R RESTAURANTS, INC" on Justia Law

Several individuals, representing a class, challenged a health insurance company’s refusal to cover gender-affirming care for transgender individuals diagnosed with gender dysphoria. The company, acting as a third-party administrator for employer-sponsored, self-funded health plans, denied coverage for such treatments based on explicit plan exclusions requested by the employer sponsors. Some plaintiffs also alleged that they were denied coverage for treatments that would have been covered for other diagnoses, such as precocious puberty, but were denied solely because of the concurrent diagnosis of gender dysphoria.The United States District Court for the Western District of Washington certified the class and granted summary judgment in favor of the plaintiffs. The district court rejected the company’s arguments that it was not subject to Section 1557 of the Affordable Care Act because its third-party administrator activities were not federally funded, that it was merely following employer instructions under ERISA, and that it was shielded by the Religious Freedom Restoration Act (RFRA). The district court also found that the exclusions constituted sex-based discrimination under Section 1557.On appeal, the United States Court of Appeals for the Ninth Circuit agreed with the district court that the company is subject to Section 1557, that ERISA does not require administrators to enforce unlawful plan terms, and that RFRA does not provide a defense in this context. However, the Ninth Circuit held that the district court’s analysis of sex-based discrimination was undermined by the Supreme Court’s intervening decision in United States v. Skrmetti, which clarified the application of sex discrimination standards to exclusions for gender dysphoria treatment. The Ninth Circuit vacated the summary judgment and remanded the case for further proceedings to consider whether, under Skrmetti, the exclusions at issue may still constitute unlawful discrimination, particularly in cases involving pretext or proxy discrimination or where plaintiffs had other qualifying diagnoses. View "PRITCHARD V. BLUE CROSS BLUE SHIELD OF ILLINOIS" on Justia Law

North Mountain Foothills Apartments (NMFA), a company managing a large apartment complex in Phoenix, Arizona, hired Jasper Press as a maintenance technician during a period of increased workload due to a heatwave. Press discussed his compensation and the poor conditions at the complex with several coworkers. Management became aware that other employees knew about Press’s pay and housing benefits, leading to a meeting where Press was reprimanded for these discussions and told not to talk about pest issues with residents. The day after this meeting, Press was terminated, allegedly for failing to complete work orders. Press filed a complaint with the National Labor Relations Board (NLRB), alleging unfair labor practices.An administrative law judge held an evidentiary hearing and found that NMFA violated Section 8(a)(1) of the National Labor Relations Act by interrogating Press about his wage discussions, issuing overly broad directives restricting such discussions, threatening reprisals, and discharging Press for engaging in protected activities. The NLRB adopted these findings and ordered remedies including reinstatement and back pay for Press. NMFA appealed, raising for the first time constitutional challenges to the NLRB’s structure and process, and also contested the Board’s factual findings.The United States Court of Appeals for the Ninth Circuit held that it had jurisdiction to consider NMFA’s unexhausted constitutional claims because such structural challenges are not suited to agency resolution. The court rejected NMFA’s Article II removal protection challenge for lack of demonstrated harm, found no Seventh Amendment right to a jury trial in NLRB proceedings, and held that the combination of investigatory and adjudicatory functions within the NLRB does not violate due process. On the merits, the court found substantial evidence supported the NLRB’s finding that Press was discharged for protected activity and granted enforcement of the NLRB’s order. View "NATIONAL LABOR RELATIONS BOARD V. NORTH MOUNTAIN FOOTHILLS APARTMENTS, LLC" on Justia Law

A group of building engineers and craftsmen represented by a union worked at several stores operated by a large retail company. After the company and the union failed to reach agreement on a new collective bargaining agreement, the union members voted to reject the company’s final offer and began a strike. The company’s final offer expired, and after three months on strike, the union ended the strike and made an unconditional offer for its members to return to work. The company then locked out the union members who reported for work, stating it would not reinstate them until a new agreement was in place. The union filed a charge with the National Labor Relations Board (NLRB), alleging that the lockout was an unfair labor practice.An Administrative Law Judge (ALJ) held a hearing and found that the company violated Sections 8(a)(1) and (3) of the National Labor Relations Act by locking out employees without providing a timely, clear, and complete offer setting forth the conditions necessary to avoid the lockout. The ALJ recommended reinstatement and make-whole relief for affected employees. The NLRB adopted the ALJ’s findings, modifying the remedy to include compensation for any direct or foreseeable pecuniary harms resulting from the lockout.The United States Court of Appeals for the Ninth Circuit reviewed petitions from both the union and the company, as well as the NLRB’s application for enforcement. The court held that it had jurisdiction, found substantial evidence supporting the NLRB’s conclusion that the lockout was unlawful, and determined that the NLRB did not abuse its discretion in fashioning remedies. The court enforced the NLRB’s order, holding that the company’s lockout violated the Act because employees were not clearly and fully informed of the conditions for reinstatement, and that the NLRB’s make-whole relief, as ordered, was within its authority. The court denied both the union’s and the company’s petitions for review and granted enforcement of the NLRB’s order. View "MACY'S INC. V. NATIONAL LABOR RELATIONS BOARD" on Justia Law

A group of more than 80 former at-will employees of a nonprofit healthcare system in Washington were terminated after refusing to comply with a COVID-19 vaccination mandate issued by their employer, which was in response to an August 2021 proclamation by the state’s governor requiring healthcare workers to be vaccinated. The employees alleged that, at the time, only an “investigational” vaccine authorized for emergency use was available, and they claimed their rights were violated when they were penalized for refusing it. They also argued they were not adequately informed of their right to refuse the vaccine.The United States District Court for the Western District of Washington first dismissed all claims against the governor, then dismissed the federal claims against the healthcare system, and denied the employees’ motions for leave to amend and reconsideration. The district court also declined to exercise supplemental jurisdiction over the remaining state-law claims against the healthcare system.The United States Court of Appeals for the Ninth Circuit reviewed the case and affirmed the district court’s dismissal. The Ninth Circuit held that none of the employees’ statutory or non-constitutional claims, which were based on various federal statutes, regulations, agreements, and international treaties, alleged specific and definite rights enforceable under 42 U.S.C. § 1983. The court also found that the employees’ constitutional claims failed: the Fourteenth Amendment substantive due process claim was foreclosed by Jacobson v. Massachusetts and Health Freedom Defense Fund, Inc. v. Carvalho; the procedural due process claim failed because at-will employment is not a constitutionally protected property interest; and the equal protection claim failed because the mandate survived rational-basis review. The court further held that amendment of the federal claims would be futile and upheld the district court’s dismissal of the state law claims against the governor and its decision to decline supplemental jurisdiction over the state law claims against the healthcare system. View "Curtis v. Inslee" on Justia Law