Justia Labor & Employment Law Opinion Summaries

David Hieber, who led Oakland County’s Equalization Department for nearly twenty years, was terminated after an employee reported him for creating a hostile work environment. Hieber sued Oakland County and his supervisor, Kyle Jen, under 42 U.S.C. § 1983 for deprivation of pretermination and post-termination due process, political-affiliation retaliation, and age discrimination. He also brought state-law claims for defamation and age discrimination. Oakland County and Jen moved for summary judgment, which the district court granted.The United States District Court for the Eastern District of Michigan granted summary judgment in favor of Oakland County and Jen on all claims. Hieber appealed the decision.The United States Court of Appeals for the Sixth Circuit reviewed the case. The court reversed the district court’s grant of summary judgment to Oakland County and Jen, in his official capacity, on Hieber’s pretermination due-process claim, finding that there was a genuine dispute of material fact about whether Hieber received a meaningful opportunity to respond to the charges against him. The court affirmed the district court’s judgment on Hieber’s post-termination due-process claim, political-affiliation retaliation claim, age discrimination claims, and defamation claim. The court also affirmed the district court’s grant of qualified immunity to Jen in his individual capacity on the due-process claims.The main holding of the Sixth Circuit was that Hieber’s pretermination due-process rights may have been violated, warranting further proceedings on that claim. The court found that the investigatory interview and the pretermination hearing may not have provided Hieber with adequate notice of the charges and a meaningful opportunity to respond. The court remanded the case for further proceedings consistent with its opinion. View "Hieber v. Oakland County, Mich." on Justia Law

Several hair stylists filed a lawsuit against their employer, Lady Jane’s Haircuts for Men, alleging that they were underpaid due to being misclassified as independent contractors instead of employees. This misclassification, they argued, allowed the employer to avoid the Fair Labor Standards Act’s minimum-wage and overtime-pay requirements. The employer moved to dismiss the lawsuit, citing an arbitration agreement in the Independent Contractor Agreement, which required disputes to be resolved through the American Arbitration Association (AAA) under its Commercial Arbitration Rules.The United States District Court for the Eastern District of Michigan reviewed the case and found the arbitration agreement enforceable but severed the cost-shifting provision, which required the stylists to pay arbitration costs exceeding their yearly income. The court ruled that the arbitration would proceed under the less costly AAA employment rules and dismissed the lawsuit in favor of arbitration.The United States Court of Appeals for the Sixth Circuit reviewed the case and affirmed the district court’s decision. The appellate court held that the severability clause in the contract allowed the court to remove the cost-shifting provision while enforcing the rest of the arbitration agreement. The court found that the term “provision” in the severability clause referred to individual clauses within the contract, not entire sections. The court also rejected the stylists’ arguments that the district court had impermissibly reformed the contract and that the arbitration agreement should be unenforceable for equitable reasons. The court concluded that the district court correctly severed the cost-shifting provision and enforced the arbitration agreement under the AAA’s employment rules. View "Gavin v. Lady Jane's Haircuts for Men" on Justia Law

Kassandra Memmer sued her former employer, United Wholesale Mortgage (UWM), alleging discrimination and sexual harassment during her employment. UWM moved to dismiss the lawsuit and compel arbitration based on the employment agreement. Memmer argued that the arbitration agreement was invalid and that she had the right to go to court under the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (EFAA).The United States District Court for the Eastern District of Michigan granted UWM's motion to dismiss and compel arbitration, concluding that the parties had a valid arbitration agreement. The court did not address Memmer's argument regarding the applicability of EFAA. Memmer appealed the decision, asserting that EFAA should apply to her case.The United States Court of Appeals for the Sixth Circuit reviewed the case and concluded that EFAA applies to claims that accrue after its enactment date and to disputes that arise after that date. The court determined that the district court had not applied the correct interpretation of EFAA. The Sixth Circuit reversed the district court's decision and remanded the case for further proceedings to determine when the dispute between Memmer and UWM arose and whether EFAA applies to her claims. View "Memmer v. United Wholesale Mortgage, LLC" on Justia Law

Plaintiffs, thirty-eight current and former engineers employed by FCA US LLC (FCA), were transferred from the Chrysler Technical Center to the Trenton Engine Complex in 2011. They alleged that this transfer violated the collective bargaining agreement (CBA) and filed grievances with the International Union, United Automobile, Aerospace and Agricultural Implement Workers of America (UAW). These grievances were denied, and Plaintiffs later discovered a bribery scheme between FCA and UAW officials, which they claimed influenced the handling of their grievances.The United States District Court for the Eastern District of Michigan denied Plaintiffs' motion to remand their state-law claims to state court, finding that the claims were completely preempted by Section 301 of the Labor Management Relations Act (LMRA). The court held that the claims required interpretation of the CBA and were thus preempted. Plaintiffs then stipulated to the dismissal of their complaint but reserved the right to appeal the remand decision.The United States Court of Appeals for the Sixth Circuit reviewed the case and affirmed the district court's decision. The appellate court held that Plaintiffs' state-law claims for fraud, breach of fiduciary duty, and civil conspiracy were completely preempted by Section 301 of the LMRA. The court reasoned that the claims were based on rights created by the CBA and required interpretation of its terms. Consequently, the claims had to be heard in federal court. The court also rejected Plaintiffs' arguments for remand based on Michigan criminal laws and Section 9(a) of the National Labor Relations Act (NLRA). View "Baltrusaitis v. UAW" on Justia Law

Lynwood Pickens worked for Hamilton-Ryker IT Solutions from 2018 to 2019, inspecting pipes at a natural-gas export terminal in Texas. He was paid $100 per hour but was guaranteed a weekly salary of $800, equivalent to eight hours of work. For any hours worked beyond the initial eight, he received additional hourly compensation. Pickens regularly worked over 50 hours per week but did not receive overtime pay, as Hamilton-Ryker classified him as a salaried employee exempt from the Fair Labor Standards Act (FLSA).Pickens sued Hamilton-Ryker in 2020, claiming he was a non-exempt hourly worker entitled to overtime pay. Fourteen coworkers joined the lawsuit. Both parties moved for summary judgment. The United States District Court for the Middle District of Tennessee granted summary judgment to Hamilton-Ryker, classifying Pickens as a salaried employee under the FLSA and dismissing the claims of his coworkers for not being "similarly situated."The United States Court of Appeals for the Sixth Circuit reviewed the case. The court held that Pickens was not paid on a salary basis as defined by the FLSA regulations. The court emphasized that a true salary must cover a regular workweek, not just a portion of it. Since Pickens' guaranteed pay only covered eight hours, not his usual 52-hour workweek, he did not meet the salary basis test. The court reversed the district court's decision and remanded the case for further proceedings, leaving the determination of the collective action status and the claims of Pickens' coworkers to the district court. View "Pickens v. Hamilton-Ryker IT Solutions" on Justia Law

Kirstyn Paige Bashaw was employed as the Director of Social Services at Majestic Care of Whitehall, a skilled nursing home and residential facility in Ohio, from November 2021 until her termination in March 2022. Her role involved managing the Social Service department and attending daily meetings. During her tenure, Bashaw was frequently late or absent without authorization, and she raised concerns about resident care and alleged inappropriate behavior by her manager, Edward Beatrice. Bashaw also secretly recorded work meetings and discussed her intention to leave the job with a Human Resources representative.The United States District Court for the Southern District of Ohio granted summary judgment in favor of Majestic Care, finding that the company had provided three non-pretextual reasons for Bashaw’s termination: her surreptitious recording of work meetings, her attendance issues, and her expressed desire to leave the job. The court did not find it necessary to resolve whether a fourth reason, related to a resident's readmission, was pretextual.The United States Court of Appeals for the Sixth Circuit reviewed the case and affirmed the district court’s decision. The appellate court held that Majestic Care had legitimate, non-pretextual reasons for terminating Bashaw. Specifically, the court found that Bashaw’s secret recordings undermined trust and posed legal risks, her attendance issues were valid grounds for termination, and Majestic Care reasonably believed she no longer wished to work there. The court concluded that these reasons were sufficient to defeat Bashaw’s retaliation claim under Title VII and Ohio law. View "Bashaw v. Majestic Care of Whitehall" on Justia Law

Larry Smith worked for Newport Utilities for many years, primarily repairing downed powerlines during weather emergencies. He began experiencing seizures, which led to two on-the-job incidents within months. Newport Utilities placed him on leave and later forced him to retire. Smith sued under the Americans with Disabilities Act (ADA), claiming discrimination based on his disability.The United States District Court for the Eastern District of Tennessee granted summary judgment to Newport Utilities, finding that Smith posed a safety threat in his position and that the company could not reasonably accommodate him.The United States Court of Appeals for the Sixth Circuit reviewed the case. The court held that Smith posed a direct threat of harm to himself and others due to his seizures, which could not be eliminated by reasonable accommodation. The court found that the essential functions of Smith's job as a bucket foreman included working extended hours and being on standby, which Smith could not perform safely. The court also determined that Newport Utilities had investigated potential alternative positions for Smith, but he did not qualify for any of them. The court affirmed the district court's grant of summary judgment to Newport Utilities. View "Smith v. Newport Utilities" on Justia Law

Derek Kramer, the plaintiff, joined American Electric Power Service Corporation (AEP) in 2018 and later participated in the AEP Executive Severance Plan. In 2020, AEP terminated Kramer’s employment due to his executive assistant’s misuse of a company credit card and Kramer’s alleged interference with an investigation into his company-issued cell phone. Kramer applied for severance benefits under the Plan, but AEP denied his claim, citing termination for cause. Kramer appealed the decision, but the Plan’s appeal committee upheld the denial.Kramer then filed an ERISA action in the United States District Court for the Southern District of Ohio, seeking benefits and alleging interference. He also demanded a jury trial. The district court struck his jury demand, limited discovery to procedural claims, and denied his motion to compel the production of documents protected by attorney-client privilege. The court ultimately granted judgment in favor of AEP and the Plan, finding that the denial of benefits was not arbitrary and capricious.The United States Court of Appeals for the Sixth Circuit reviewed the case. The court affirmed the district court’s rulings, holding that the Plan was a top-hat plan exempt from ERISA’s fiduciary requirements, thus the fiduciary exception to attorney-client privilege did not apply. The court also upheld the district court’s decision to strike Kramer’s jury demand, citing precedent that ERISA denial-of-benefits claims are equitable in nature and not subject to jury trials. Finally, the court found that the district court correctly applied the arbitrary-and-capricious standard in reviewing the denial of benefits and that the decision was supported by substantial evidence. The Sixth Circuit affirmed the district court’s judgment in favor of AEP and the Plan. View "Kramer v. American Electric Power Service Corp. Executive Severance Plan" on Justia Law

The National Labor Relations Board sought enforcement of its Order finding that AEI violated the National Labor Relations Act by barring employees from pursuing class-action litigation or collective arbitration of work-related claims and by forbidding an AEI technician from discussing a proposed compensation change with his coworkers and by firing that technician for discussing the proposed change and complaining to management about it. AEI employees sign an agreement that “Disputes … relating to your employment” must, at the election of the employee or the company, be resolved “exclusively through binding arbitration” and that “you and AEI also agree that a claim may not be arbitrated as a class action, also called ‘representative’ or ‘collective’ actions, and that a claim may not otherwise be consolidated or joined with the claims of others.” AEI’s employee handbook prohibits “[u]nauthorized disclosure of business secrets or confidential business or customer information, including any compensation or employee salary information.” The Sixth Circuit enforced the order. An arbitration provision requiring employees covered by the Act individually to arbitrate all employment-related claims is not enforceable. The evidence was adequate to support the ALJ’s factual findings and conclusion that DeCommer was fired for engaging in protected, concerted activity View "National Labor Relations Board v. Alternative Entertainment, Inc." on Justia Law

Ridgeway was employed as a Stryker sales representative from 2001-2013. Stryker’s faxed employment offer stated Ridgeway’s employment was contingent on his signing and returning an offer letter, a form non-compete agreement, and a code of conduct. From 2000-2005, Stryker used the same form non-compete agreement with all employees, which included a one-year non-compete clause, a customer non-solicit clause, an employee non-solicit clause, and a Michigan choice-of-law clause and a Michigan forum-selection clause. Ridgeway signed and returned the documents. Despite becoming one of Stryker’s top performers, in 2013, Ridgeway considered working for Stryker’s competitor, Biomet. Ridgeway claims that Stryker indicated that he was not covered under a non-compete agreement. Stryker terminated his employment and Ridgeway began working for Biomet within his former Stryker Louisiana-based sales territories. Stryker filed suit. The district court denied Ridgeway’s motion to dismiss based on the forum-selection clause in the non-compete agreement. Biomet terminated Ridgeway for fear of liability. A jury returned a verdict in favor of Stryker on its breach-of-contract, breach-of-fiduciary-duty, and misappropriation-of-trade-secrets claims and awarded damages in the amount of $745,195. The Sixth Circuit affirmed, rejecting Ridgeway’s challenges to the authenticity of the agreement and to the choice of law provision. View "Stone Surgical LLC v. Stryker Corp." on Justia Law