Justia Labor & Employment Law Opinion Summaries

Articles Posted in US Court of Appeals for the Ninth Circuit
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Plaintiff was a Syrian national living in California as a legal permanent resident and is now a U.S. citizen. She is not and has never been a Kuwaiti national. In 2014, Plaintiff entered into a written employment contract with the Consulate to work as a secretary. Plaintiff alleges that the Consulate created a hostile work environment by harassing, discriminating, and retaliating against her on the basis of her gender, religion, and Syrian national origin, violated various wage and hour laws, and breached her employment contract. Claiming that she was constructively terminated from her employment, she filed suit.The Ninth Circuit affirmed the district court’s denial of the Consulate’s motion to dismiss. The commercial activity exception to the Foreign Sovereign Immunities Act, 28 U.S.C. 1605(a)(2), applied. The employment of diplomatic, civil service, or military personnel is governmental and the employment of other personnel is commercial unless the foreign state shows that the employee’s duties included “powers peculiar to sovereigns.” The district court properly exercised its discretion in finding that Plaintiff, who was employed as an administrative assistant, was not a civil servant and that her duties did not include “powers peculiar to sovereigns.” View "Mohammad v. General Consulate of the State of Kuwait in Los Angeles" on Justia Law

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The Ninth Circuit certified to the Supreme Court of California the following question: Does California’s Fair Employment and Housing Act, which defines “employer” to include “any person acting as an agent of an employer,” Cal. Gov’t Code 12926(d), permit a business entity acting as an agent of an employer to be held directly liable for employment discrimination? View "Raines v. U.S. Healthworks Medical Group" on Justia Law

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The Ninth Circuit affirmed the district court's order denying transfer under 28 U.S.C. 1404(a) and affirmed the grant of partial summary judgment to DePuy and Plaintiff Waber. Waber was hired by HOC and signed an employment contract with HOC's parent company, Stryker, which included restrictive one-year non-compete clause and forum-selection and choice-of-law clauses requiring adjudication of contract disputes in New Jersey.The panel concluded that, as the actual employer that participated in the proceedings to enforce its parent corporation’s forum-selection clause, HOC has a right to appeal the adverse decision of the district court on that issue. Furthermore, HOC properly became a party to this litigation in the district court case, albeit after the district court denied the motion to transfer. Accordingly, the panel has jurisdiction to hear HOC's appeal under 28 U.S.C. 1201. The panel held that the state law applicable here, Cal. Labor Code 925(b), which grants employees the option to void a forum-selection clause under a limited set of circumstances, determined the threshold question of whether Waber's contract contained a valid forum-selection clause. In this case, Waber satisfied all the prerequisites of section 925 and effectively voided the forum-selection clause under section 925(b). Finally, HOC presents no persuasive reason for the panel to overturn the district court's ruling of partial summary judgment in favor of DePuy and Waber that the forum-selection, non-compete and non-solicitation clauses were void under California law. View "DePuy Synthes Sales, Inc. v. Howmedica Osteonics Corp." on Justia Law

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In response to the Port of Portland continuing to assign refer work to members of a particular union after leasing Terminal 6 to ICTSI. ILWU engaged in high-profile work stoppages and other coercive activity at Terminal 6. Ocean-going cargo traffic ceased for more than a year. ILWU’s actions forced ICTSI to buy back the remainder of its lease and leave Terminal 6. ICTSI filed charges against ILWU with the NLRB. The ALJ found that because the dispute was between ILWU and the Port, ILWU violated 29 U.S.C. 158(b)(4)(B), prohibiting unions from interfering with secondary employers (ICTSI). A jury awarded ICTSI more than $93.5 million. The court conditioned its post-trial rulings on ICTSI accepting remittitur of damages. ICTSI declined The district court certified its post-trial order for interlocutory appeal under 28 U.S.C. 1292(b).The Ninth Circuit dismissed the appeal for lack of jurisdiction. A court of appeals may assert jurisdiction over an interlocutory appeal under section 1292(b) if the district court determines that the order rests on a controlling question of law, there are substantial grounds for differences of opinion as to that question, and an immediate resolution may materially advance the termination of the litigation. The court of appeals enjoys broad discretion to refuse to accept it. The question on which ILWU relied was not a question of law; the parties’ dispute about whether ICTSI became a primary employer under the circumstances was a question of fact. View "ICTSI Oregon, Inc. v. International Longshore and Warehouse Union" on Justia Law

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Charter fired Smith in 2018. Smith filed a federal diversity action under Montana’s wrongful-discharge statute, alleging that Charter lacked “good cause” to fire him, Mont. Code 39-2- 904(1)(b). The district court granted Charter summary judgmentThe Ninth Circuit held that the disposition of the appeal turns on a question of Montana law: whether a defendant in a wrongful-discharge action may establish good cause for the dismissal on grounds that were not set forth in the employee’s termination letter. The Montana Supreme Court held in 1995 (Galbreath), that an employer could not rely on such additional grounds, but some courts have concluded that later statutory amendments superseded Galbreath’s rule. The court certified to the Supreme Court of Montana the question: Whether, in an action for wrongful discharge pursuant to Montana Code section 39-2-904, an employer may defend a termination solely for the reasons given in a discharge letter, as the court held in Galbreath, or whether the 1999 statutory amendments have superseded the Galbreath rule. View "Smith v. Charter Communications, Inc." on Justia Law

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After attempting without success to raise her concerns about unsafe medical practices with her employer (ENTA), Armstrong filed a complaint with the Nevada Occupational Safety and Health Administration (NOSHA). Armstrong alleges that ENTA retaliated against her, leading her to file a second complaint. When Armstrong withdrew her complaint before ENTA learned of it, fearing further retaliation, NOSHA notified ENTA about the complaint. More retaliation followed. When she filed a third whistleblowing complaint, NOSHA ended the investigation. ENTA fired Armstrong.The Ninth Circuit reversed the dismissal of Armstrong’s 42 U.S.C. 1983 procedural due process claim. Although Armstrong was an at-will employee, Nevada's whistleblower protections can support a property interest in continued employment. Armstrong might be able to plausibly allege a relationship between Nevada officials and her termination sufficient to sustain a “direct participation” or “setting in motion” theory. Armstrong had a property right in the investigation of her complaint; she plausibly alleged that the process she received was essentially nonexistent. Armstrong did not sufficiently allege a substantive due process claim based on a liberty interest. Armstrong did not plausibly allege that the defendants’ actions entirely precluded Armstrong’s ability to work as a human resources professional elsewhere. The court erred in dismissing a negligent infliction of emotional distress claim. View "Armstrong v. Reynolds" on Justia Law

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In a putative class action by Domino’s drivers, asserting violations of various California labor laws, the district court denied a motion to compel arbitration based on its finding that the drivers were a “class of workers engaged in foreign or interstate commerce,” and were exempt from the Federal Arbitration Act (FAA), notwithstanding their contracts with Domino’s, which provided claims between the parties be submitted to arbitration under the FAA. The exemption applies if the class of workers is engaged in a “single, unbroken stream of interstate commerce” that renders interstate commerce a “central part” of their job description.The Ninth Circuit affirmed, rejecting Domino’s argument that the drivers who delivered goods to individual Domino’s franchisees in California were not engaged in interstate commerce because the franchisees, all located in California, placed orders with the supply center in the state, and the goods delivered were not in the same form in which they arrived at the supply center. Domino’s was directly involved in the procurement and delivery of interstate goods, was involved in the process from the beginning to the ultimate delivery of the goods, and its business included not just the selling of goods, but also the delivery of those goods. The transportation of interstate goods on the final leg of their journey by the Domino’s drivers satisfied the requirements of the residual clause. View "Carmona v. Domino's Pizza, LLC" on Justia Law

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The Ninth Circuit certified to the Supreme Court of Oregon the following question: Under Oregon law, is time that employees spend on the employer's premises waiting for and undergoing mandatory security screenings compensable? View "Buero v. Amazon.com Services, Inc." on Justia Law

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Fried worked as a manicurist, 2005-2017. Fried complained about female manicurists receiving most of the appointments and that other male manicurists also complained. In 2017, Fried became frustrated and threw a pencil at a computer because customers were requesting female manicurists more often than male manicurists. His manager disciplined him and commented that he might want to find other work. He alleges that his coworkers and customers made harassing comments and that he was told to finish a pedicure for a male customer who had solicited him for sex. Fried filed suit under Title VII, 42 U.S.C. 2000e, alleging sex discrimination, retaliation, and hostile environment.The Ninth Circuit reversed the summary judgment against Fried. A reasonable factfinder could decide that Fried’s employer created a hostile work environment. An employer can create a hostile work environment by failing to take immediate and corrective action in response to a coworker’s or third party’s sexual harassment or racial discrimination that the employer knew or should have known about. While comments made by a manager and coworkers on two occasions were insufficiently severe or pervasive to support a hostile work environment claim, an employer’s response to unwelcome sexual advances toward an employee can independently create a hostile work environment. Fried’s manager failed to take immediate corrective action and also directed Fried to return to the customer and complete his pedicure. The district court should reconsider the cumulative effect of the coworkers’ comments. View "Fried v. Wynn Las Vegas, LLC" on Justia Law

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Elkhorn is a farm labor contractor for a California-based vegetable grower. As part of Elkhorn’s orientation for incoming employees, Martinez-Gonzalez signed employment paperwork that included arbitration agreements. The district court held that the arbitration agreements resulted from undue influence and economic duress and were invalid and unenforceable.The Ninth Circuit reversed and remanded for determination of whether Martinez-Gonzalez’s allegation of federal and state labor and wage law violations fell within the scope of the arbitration agreements. Under California law, the doctrine of economic duress did not render the arbitration agreements unenforceable because Elkhorn did not commit a wrongful act and reasonable alternatives were available to Martinez-Gonzalez. Martinez-Gonzalez made the journey from Mexico to California, where he was dependent on Elkhorn housing and had already started work but, while “not ideal,” those circumstances did not constitute a “wrongful act” under California law. No one at Elkhorn told Martinez-Gonzalez that refusing to sign the agreements was a cause for termination. It was clearly erroneous for the district court to conclude that MartinezGonzalez lacked a reasonable alternative. The timing and place of the orientation did not show that Martinez-Gonzalez’s will was overborne; the lack of time to consult with attorneys or read the agreements did not improperly induce his signatures. Elkhorn’s representatives’ instructions to sign the agreements quickly were not insistent demands. View "Martinez-Gonzalez v. Elkhorn Packing Co. LLC" on Justia Law