Justia Labor & Employment Law Opinion Summaries
Articles Posted in US Court of Appeals for the Third Circuit
Hargrove v. Sleepys LLC
The plaintiffs, who performed mattress deliveries for Sleepy's, signed Independent Driver Agreements, providing that the relationship was “non-exclusive.” Some drivers signed on their own behalf; others signed on behalf of their corporate entity (carrier). Individual drivers were required to form business entities, even if the business consisted of one driver and one truck. Sleepy’s did not pay wages to a carrier’s owners or workers. It paid each carrier for all the deliveries the carrier performed. An employee misclassification suit, seeking class certification, alleged that Sleepy’s misclassified the individual drivers as independent contractors and violated New Jersey law by making certain deductions and failing to pay overtime.The Third Circuit reversed the denial of certification of a proposed class of drivers who performed Sleepy's deliveries on a full-time basis using one truck. In addition to the Federal Rule of Civil Procedure 23 class action requirements, the Third Circuit requires that a Rule 23(b)(3) class be “currently and readily ascertainable.” Plaintiffs must show that the class is defined with reference to objective criteria and there is a reliable and administratively feasible mechanism for determining whether putative class members fall within the definition. The district court essentially demanded that the plaintiffs identify the class members at the certification stage and focused on gaps in Sleepy's records. Where an employer’s lack of records makes it more difficult to ascertain members of an otherwise objectively verifiable class, the employees who make up that class should not bear the cost of the employer’s faulty record-keeping. View "Hargrove v. Sleepys LLC" on Justia Law
Diamond v. Pennsylvania State Education Association
In reliance on a Pennsylvania statute and the Supreme Court’s 1977 “Abood” decision, the unions collected “fair-share fees” from the plaintiffs over the plaintiffs’ objections. The plaintiffs did not join the unions but were represented by the unions, which served as the exclusive bargaining agents for their bargaining units. In 2018, the Supreme Court overruled Abood in Janus v. AFSCME, holding that state legislation condoning public-sector fair-share fees was unconstitutional.The plaintiffs filed 42 U.S.C. 1983 lawsuits seeking reimbursement of the sums they were required to pay. The district courts, joining a consensus of federal courts across the country, dismissed the claims for monetary relief, ruling that because the unions collected the fair-share fees in good faith reliance on a governing state statute and Supreme Court precedent, they are entitled to, and have successfully made out, a good faith defense to monetary liability under section 1983. The Third Circuit affirmed. The good faith defense to section 1983 liability is “narrow” and “only rarely will a party successfully claim to have relied substantially and in good faith on both a state statute and unambiguous Supreme Court precedent validating that statute.” View "Diamond v. Pennsylvania State Education Association" on Justia Law
Starnes v. Butler County Court of Common Pleas
In 2004, Starnes, an Allegheny County Probation Officer, met Doerr, the President Judge of the Butler County Court. Doerr repeatedly called Starnes to ask her to meet him at his chambers. Starnes eventually visited his chambers after hours. Doerr insisted on having sex, telling Starnes that it would be a ‘business relationship.’” Doerr exercised authority over hiring probation officers. Starnes wished to return to Butler, her hometown; Doerr made sure she was hired. After Starnes started working in Butler County, Doerr began summoning her to his chambers for sexual relations. After their sexual relationship ended in 2009, Doerr continued asking her to film herself performing sexual acts, flirting with her from the bench, and threatening to "help her return to her previous job.” In 2010, Starnes began dating the man she later married, another Probation Officer. He was harassed and pushed into retirement. Starnes was denied her own office, overtime, training, and other opportunities she alleges her male counterparts had. Within days of telling her supervisors of her intention to file EEOC charges, Starnes was placed on a “performance improvement plan.” Weeks earlier, Starnes had received a positive evaluation with no noted performance issues.The Third Circuit held that accepting her allegations as true, Starnes stated plausible claims for sex discrimination in violation of the Equal Protection Clause, a hostile work environment under 42 U.S.C. 1983, and that Doerr violated her First Amendment freedom of expression and right to petition the government. Because the law is clearly established that this conduct is actionable discrimination, the district court did not err in denying Doerr qualified immunity. The court reversed the denial of qualified immunity on Starnes’s intimate association claim. View "Starnes v. Butler County Court of Common Pleas" on Justia Law
Hartnett v. Pennsylvania State Education Association
Some public-sector employees join their local unions; others do not. If a collective-bargaining agreement contains an “agency-fee” provision, both union members and nonmembers must pay a portion of union dues. A Pennsylvania statute authorizes such a “fair share fee” arrangement, 71 Pa. Stat. 575(b). Nonmembers pay only the amount spent on the union’s collective-bargaining activities and do not subsidize political activity. In 2018, the Supreme Court decided Janus v. AFSCME, holding that forcing nonmembers to pay agency fees violates the First Amendment, striking down an Illinois statute. Janus said nothing about Pennsylvania law but its holding was clear.Public-school teachers who had to pay agency fees under Pennsylvania law sued, seeking a declaration that the agency-fee provisions in their collective-bargaining agreements, and the Pennsylvania statutes authorizing them, were unconstitutional. When the Supreme Court issued its Janus decision, the Pennsylvania State Education Association instructed public schools to stop deducting agency fees from teachers’ paychecks and set up refund procedures. Pennsylvania’s Department of Labor and its Attorney General notified public-sector employers that they could no longer collect agency fees. The district court dismissed, noting the change in the law and the unions’ compliance with it. The Third Circuit affirmed, finding the case moot. The teachers no longer face any harm. Just because a statute may be unconstitutional does not mean that a federal court may declare it so; without any real dispute over the statute’s scope or enforceability. View "Hartnett v. Pennsylvania State Education Association" on Justia Law
Ehnert v. Washington Penn Plastic Co Inc.
Ehnert was placed at WPP by Staffmark as a temporary general laborer. It was understood that Ehnert would be considered for hire as a WPP employee. Ehnert suffered from various medical conditions but never requested accommodations. On May 23, 2012—the last day of his work placement—Ehnert was informed that he would not be hired by WPP. Ehnert completed applied for social security disability insurance (SSDI) benefits, representing that he had been unable to work due to a “disabling condition” since May 21, 2012. An ALJ granted Ehnert benefits. Ehnert then sued WPP and Staffmark, alleging discrimination on the basis of disability and age, under the Americans with Disabilities Act, the Pennsylvania Human Relations Act, and the Age Discrimination in Employment Act.The Third Circuit affirmed summary judgment for the defendants. Ehnert was unable to establish a prima facie case of discrimination because a necessary element was lacking for his ADA and PHRA claims--that he was otherwise qualified to perform the essential functions of the job as of the date WPP informed him that he would not be hired. Ehnert’s statements regarding his disability for SSDI purposes preclude his subsequent claim that, for the purposes of the ADA and the PHRA, he was “qualified” for the position; Ehnert failed to advance a reasonable explanation that reconciles those positions. View "Ehnert v. Washington Penn Plastic Co Inc." on Justia Law
Eshleman v. Patrick Industries Inc
Eshleman started working as a Patrick truck driver in 2013. In 2015, Eshleman took medical leave to undergo surgery to remove a nodule from his lung. After two months of medical leave, Eshleman returned to work without restrictions. Six weeks later, Eshleman suffered a severe respiratory infection from January 27-31, 2016 (spanning a weekend). His supervisor approved two vacation days. With his physician’s approval, Eshleman returned to work in his full capacity on February 1. At the end of his second day back, Patrick fired him. The Superintendent cited “performance issues.” Eshleman reminded the Superintendent that his performance review from January 2016 had been excellent. Thereafter, the Superintendent claimed that Eshleman was fired because he had not called out sick during his leave for the respiratory infection. Later, Eshleman learned that the reason for termination had been changed again; Patrick was claiming he had been fired for “behavioral issues.”Eshleman sued, alleging that he was fired because he was regarded as disabled, in violation of the Americans with Disabilities Act and that the shifting reasons for his termination were a pretext for illegal disability discrimination. The district court dismissed, holding that the ADA did not cover Eshleman’s “regarded as” claim because his impairment lasted less than six months and was “transitory and minor.” The Third Circuit reversed. The district court did not conduct an independent analysis into whether Eshleman’s impairment was minor, apart from whether it was transitory. View "Eshleman v. Patrick Industries Inc" on Justia Law
Darrington v. Milton Hershey School
MHS, a private, non-denominational school, hired the Darringtons as full-time houseparents for student housing. The Union represents full-time MHS houseparents. The collective bargaining agreement arbitration provision covers “any dispute arising out of [its] terms and conditions,” including the “discipline or discharge” of Union members. A grievance includes “any dispute alleging discrimination against any [Union members].” The Union, on behalf of itself and any allegedly aggrieved Union members, waived any right to a private lawsuit alleging employment discrimination regarding matters encompassed within the grievance procedure. If aggrieved Union members are unsatisfied with the resolution of their disputes after discussions with MHS officials, “the Union [may seek] further consideration” by submitting the grievance to arbitration on their behalf.The Darringtons filed unsuccessful reports with the local state agency for children and youth services, concerning MHS's mandatory religious programming. They then filed charges of discrimination with the EEOC and the Pennsylvania Human Relations Commission alleging discrimination based on religion. Two months later, MHS fired the Darringtons, who filed additional charges. After receiving right-to-sue letters, the Darringtons filed a complaint, alleging discrimination and retaliation, Title VII, 42 U.S.C. 2000e. The district court denied MHS’s motion to compel arbitration. The Third Circuit reversed. The CBA clearly and unmistakably waives a judicial forum for the statutory discrimination claims. View "Darrington v. Milton Hershey School" on Justia Law
Ali v. Woodbridge Township School District
Ali, a non-practicing Muslim of Egyptian descent, was a non-tenured high school teacher. His supervisor received complaints about Ali’s instruction on the Holocaust. One English teacher reported that her students were questioning historical accounts of the Holocaust, opining that Hitler didn’t hate the Jews and that the death counts were exaggerated. Students’ written assignments confirmed those accounts. Ali also presented a lesson on the September 11 terrorist attacks, requiring students to read online articles translated by the Middle Eastern Media Research Institute (MEMRI). Ali posted links to the articles on a school-sponsored website: “U.S. Planned, Carried Out 9/11 Attacks—But Blames Others” and “U.S. Planning 9/11 Style Attack Using ISIS in Early 2015.” The MEMRI articles also contained links to other articles, such as “The Jews are Like a Cancer, Woe to the World if they Become Strong.” A reporter questioned Principal Lottman and Superintendent Zega. Lottman directed Ali to remove the MEMRI links from the school’s website. The following morning, Ali met with Zega and Lottman; his employment was terminated.Ali sued under New Jersey law and 42 U.S.C. 1981, claiming that Lottman referred to him as “Mufasa,” asked Ali if “they had computers in Egypt,” and remarked on his ethnicity during the meetings that resulted in Ali’s termination. He alleged discrimination, hostile work environment, free speech and academic freedom violations, and defamation. The Third Circuit affirmed summary judgment in favor of the defendants. Ali cannot show that his termination for teaching anti-Semitic views was a pretext for discrimination. View "Ali v. Woodbridge Township School District" on Justia Law
Razak v. Uber Technologies Inc
Plaintiffs, drivers who use Uber’s mobile phone application to provide limousine services (UberBLACK) in Philadelphia, claimed violations of the Fair Labor Standards Act (FLSA), 29 U.S.C. 201, and Pennsylvania laws. Plaintiffs each own and operate independent transportation companies (ITCs) as required to drive for UberBLACK. Each ITC’s agreement with Uber includes a Software License and outlines the relationships between ITCs, Uber riders, Uber, and Uber drivers. It describes driver requirements, vehicle requirements, financial terms, and contains an arbitration clause. A mandatory agreement between the ITC and the for-hire driver allows a driver to receive services through Uber’s app and outlines driver requirements, insurance requirements, dispute resolution. Some UberBLACK providers operate under Uber’s Philadelphia certificate of convenience; others hold their own certificates; approximately 75% of UberBLACK drivers use Uber’s automobile insurance. Plaintiffs claim that they are employees and allege that time spent online on the Uber App qualifies as FLSA compensable time. Uber argued that Plaintiffs are not restricted from working for other companies, pay their own expenses, can engage workers for their own ITCs, can use UberBLACK as little or as much as they want, and have no restrictions on personal activities while online.The Third Circuit vacated summary judgment. A reasonable fact-finder could rule in favor of Plaintiffs. Disputed facts include whether Plaintiffs are operating within Uber’s system and under Uber’s rules; whether Plaintiffs or their corporations contracted directly with Uber; and whether Uber exercises control over drivers. View "Razak v. Uber Technologies Inc" on Justia Law
Greater Philadelphia Chamber Commerce v. City of Philadelphia
Philadelphia enacted an ordinance to address the disparity in the pay of women and minorities: the “Inquiry Provision” prohibits an employer from asking about a prospective employee’s wage history and the “Reliance Provision” prohibits an employer from relying on wage history in setting or negotiating a prospective employee’s wage. The Chamber of Commerce filed suit, alleging that both provisions infringed on the freedom of speech of the Chamber and its members. The Chamber concedes that the pay gap exists and that the city has a substantial governmental interest in addressing it but argues that the city passed the Ordinance “with only the barest of legislative records” and did not present sufficient evidence to establish that the Ordinance would satisfy the city’s objective.. The district court agreed that the Inquiry Provision violated the First Amendment speech rights of employers and invalidated it but concluded that the Reliance Provision did not impact speech.The Third Circuit reversed in part. The district court’s analysis applied a much higher standard than required. The Supreme Court has not demanded legislative certainty or empirical proof that legislation would achieve the stated interest even when applying strict scrutiny. Courts need only determine whether the legislature “has drawn reasonable inferences based on substantial evidence.” The Supreme Court has even “permitted litigants to justify [analogous] speech restrictions by reference to studies and anecdotes pertaining to different locales altogether, or even, in a case applying strict scrutiny, to justify restrictions based solely on history, consensus, and ‘simple common sense.’” View "Greater Philadelphia Chamber Commerce v. City of Philadelphia" on Justia Law