Justia Labor & Employment Law Opinion Summaries

A special education teacher with a long and distinguished career in an Illinois public school district was involuntarily transferred from one elementary school to another at age 52. After the transfer, she alleged that she was subjected to a hostile work environment at her new school. She claimed that she was assigned a disproportionate number of challenging students, unfairly criticized, denied adequate classroom support, and intimidated by an administrator. She believed these actions were motivated by her age, although she acknowledged that no one made any explicit age-related remarks.After she filed a complaint under the Age Discrimination in Employment Act (ADEA), the United States District Court for the Central District of Illinois granted summary judgment in favor of the school district. The district court found that she had not produced evidence from which a reasonable juror could conclude that the alleged harassment was either objectively hostile or based on her age.On appeal, the United States Court of Appeals for the Seventh Circuit reviewed the grant of summary judgment de novo. The appellate court assumed, without definitively deciding, that hostile work environment claims are cognizable under the ADEA. However, it held that the teacher failed to present sufficient evidence that any of the conduct she experienced was motivated by age-based animus. The court found her assertions to be speculative and unsupported by direct or circumstantial evidence. As a result, the Seventh Circuit affirmed the district court’s judgment, holding that there was no reasonable basis to infer age-based workplace harassment under the ADEA. View "Blumenshine v. Bloomington School District No. 87" on Justia Law

A black employee of the United States Department of Veterans Affairs alleged that his supervisors failed to provide adequate training, assigned him tasks outside his job description, denied him the ability to work from home during the early COVID-19 pandemic while allowing a white employee to do so, and pressured him to write a false report about another black employee. He also described incidents where he was charged as absent without leave, received a negative performance appraisal, was suspended for workplace conduct, and was assigned to less desirable work shifts. The employee claimed these actions were motivated by racial discrimination and retaliation for prior protected activity.The United States District Court for the Western District of Missouri granted summary judgment in favor of the Secretary of Veterans Affairs. The district court found that the employee failed to establish that he suffered an adverse employment action based on race, that the alleged comparators were similarly situated, or that the employer’s stated reasons for its actions were pretextual. The court also concluded that the evidence did not support a claim of a racially hostile work environment or unlawful retaliation.The United States Court of Appeals for the Eighth Circuit reviewed the case de novo and affirmed the district court’s judgment. The appellate court held that the employee did not present sufficient evidence to create a genuine dispute of material fact regarding disparate treatment, hostile work environment, or retaliation under Title VII. Specifically, the court found that the negative performance appraisal and other alleged actions did not constitute adverse employment actions affecting the terms or conditions of employment, that there was no evidence of similarly situated comparators, and that the employer’s explanations were not shown to be pretextual. The court also determined that the alleged conduct was not severe or pervasive enough to establish a hostile work environment, and that the timing and evidence did not support a claim of retaliation. The district court’s grant of summary judgment was affirmed. View "Woods v. Collins" on Justia Law

A train conductor and other women working at a Nebraska railyard alleged that they were subjected to frequent sex-based harassment by coworkers and supervisors. The allegations included unwelcome sexual advances, derogatory comments about women’s abilities, sexually explicit jokes, persistent sexual graffiti in work areas, unsanitary restroom conditions intentionally created to harass women, and the display of sexually explicit images. The employer’s supervisors allegedly failed to address complaints, sometimes responding dismissively or with humor. The Equal Employment Opportunity Commission (EEOC) investigated these claims, found reasonable cause to believe that Title VII had been violated, and, after unsuccessful conciliation, filed suit on behalf of the named conductor and a group of similarly aggrieved women.The United States District Court for the District of Nebraska dismissed the EEOC’s claims on behalf of the group of women, holding that the EEOC failed to plead that the group suffered the same type of harassment as the named conductor and did not adequately specify the class size. The court later granted summary judgment to the employer on the individual claim, finding that the alleged harassment was not sufficiently severe or pervasive to constitute a hostile work environment under Title VII, and that conduct outside the statutory limitations period was not part of a continuing violation.The United States Court of Appeals for the Eighth Circuit reversed both the dismissal and the summary judgment. The appellate court held that the district court erred by imposing heightened pleading requirements not supported by law, and that the EEOC’s complaint plausibly alleged a hostile work environment for the group. The Eighth Circuit also found that there were genuine issues of material fact regarding the severity and pervasiveness of the harassment and whether pre- and post-limitations conduct formed a continuing violation. The case was remanded for further proceedings. View "EEOC v. BNSF Railway Company" on Justia Law

The appellant, a former Senior Vice President of Corporate Development at a pharmaceutical company, had a longstanding history of back and hip problems, leading him to stop working in 2014. He received long-term disability benefits under an insurance plan administered by USAble Life for several years. In 2019, USAble terminated his benefits, citing evidence of significant improvements in his physical condition, including weight loss, increased exercise, travel, and other activities inconsistent with total disability. The termination was based on updated medical records, surveillance, and reviews by independent physicians, despite continued support for disability from some of the appellant’s treating doctors.After the termination, the appellant pursued multiple rounds of internal appeals with USAble, submitting additional medical and vocational evidence. USAble obtained further independent medical reviews, which consistently concluded that the appellant was no longer disabled under the plan’s definition. The appellant then filed suit in the United States District Court for the District of Massachusetts, which granted summary judgment in favor of USAble, finding that the insurer’s decision was reasonable and supported by substantial evidence.On appeal, the United States Court of Appeals for the First Circuit reviewed the district court’s summary judgment ruling de novo but applied a deferential “arbitrary and capricious” standard to USAble’s benefits determination, as required under ERISA. The First Circuit held that USAble’s decision to terminate benefits was reasoned and supported by substantial evidence, that USAble properly applied the plan’s definition of disability, and that it adequately explained its disagreement with the appellant’s treating physicians. The court also found that any structural conflict of interest was sufficiently mitigated. Accordingly, the First Circuit affirmed the district court’s judgment in favor of USAble. View "Bernitz v. USAble Life" on Justia Law

A professor was hired by a university in 2014 as a tenure-track Assistant Professor with a starting salary at the lowest end of the pay scale for her department. Over the next several years, she was denied promotions, demoted to at-will status, and claims she was paid less than male colleagues. She alleges that these actions were motivated by sex discrimination and retaliation for her complaints, including derogatory statements allegedly made by a department chair about her gender and sexual orientation. She filed charges with the Equal Employment Opportunity Commission (EEOC) and, after leaving the university, brought suit alleging violations of federal and state anti-discrimination laws.The United States District Court for the District of Maryland granted summary judgment to the university and individual defendants on all claims. The court found that her Title VII claims regarding the 2019 and 2020 promotion denials were procedurally barred—one as untimely and the other for failure to exhaust administrative remedies. The court also found that the evidence did not support her claims of sex discrimination, wage discrimination, or retaliation, concluding that the university’s stated reasons for its actions were legitimate and not pretextual.The United States Court of Appeals for the Fourth Circuit reviewed the case de novo. It affirmed the district court’s ruling that the Title VII claims related to the 2019 and 2020 promotion denials were procedurally barred. However, it reversed the grant of summary judgment on the remaining claims, holding that genuine disputes of material fact existed regarding sex discrimination in the 2016 promotion denial, retaliation, and wage discrimination. The court also held that the procedural bars of Title VII did not apply to the plaintiff’s claims under Title IX, Section 1983, or Maryland state law for the 2019 and 2020 promotion denials. The case was remanded for further proceedings on those claims. View "Hollis v. Morgan State University" on Justia Law

NCR Corporation established five “top hat” retirement plans to provide supplemental life annuity benefits to senior executives. Each plan promised participants a fixed monthly payment for life, with language allowing NCR to terminate the plans so long as no action “adversely affected” any participant’s accrued benefits. In 2013, NCR terminated the plans and paid participants lump sums it claimed were actuarially equivalent to the promised annuities, using mortality tables, actuarial calculations, and a 5% discount rate. NCR knew that, statistically, about half of the participants would outlive the lump sums if they continued to withdraw the same monthly benefit, resulting in some participants receiving less than they would have under the original annuity.Participants filed a class-action lawsuit in the United States District Court for the Northern District of Georgia, alleging breach of contract and seeking either replacement annuities or sufficient cash to purchase equivalent annuities. The district court certified the class and granted summary judgment for the participants, finding that NCR’s lump-sum payments adversely affected the accrued benefits of at least some participants, in violation of the plan language. The court ordered NCR to pay the difference between the lump sums and the cost of replacement annuities, plus prejudgment and postjudgment interest.On appeal, the United States Court of Appeals for the Eleventh Circuit reviewed the district court’s summary judgment order de novo. The Eleventh Circuit held that the plan language was unambiguous and did not permit NCR to unilaterally replace life annuities with lump sums that reduced the value of accrued benefits for any participant. The court affirmed the district court’s judgment, including the remedy of requiring NCR to pay the cost of replacement annuities and awarding prejudgment interest. View "Hoak v. NCR Corp." on Justia Law

An employee at a meatpacking plant in Texas died after contracting COVID-19, allegedly from a coworker who continued working after testing positive. The decedent’s family sued the plant manager, the safety manager, and the coworker in Texas state court, claiming negligence and gross negligence due to unsafe working conditions and inadequate precautions against COVID-19. The complaint alleged that the employer, Tyson Foods, failed to protect employees, and that the managers were responsible for workplace safety. The coworker was accused of coming to work and failing to take precautions after testing positive.The defendants removed the case to the United States District Court for the Eastern District of Texas, arguing that the Texas-based managers were improperly joined to defeat diversity jurisdiction. The district court agreed, dismissed the claims against the managers with prejudice, and denied the plaintiffs’ motion to remand. Tyson Foods was later added as a defendant. The district court then dismissed the claims against Tyson on the grounds that they were preempted by the Poultry Products Inspection Act (PPIA), and dismissed the claims against the coworker for failure to state a claim, finding no individual duty to prevent the spread of disease under Texas law. The court denied leave to amend the complaint as futile and entered final judgment.The United States Court of Appeals for the Fifth Circuit reviewed the case. It affirmed the district court’s denial of the motion to remand and the dismissal of the coworker, holding that the managers were improperly joined and that Texas law does not impose an individual duty on coworkers to prevent the spread of disease. However, the Fifth Circuit reversed the dismissal of the claims against Tyson, holding that the PPIA does not preempt state law negligence claims based on workplace safety unrelated to food adulteration. The court vacated the denial of leave to amend and remanded for further proceedings. View "Williams v. Wingrove" on Justia Law

Two employees of a debt-collection firm, one of whom was out sick with COVID-19, collaborated to resolve an urgent licensing issue for their employer. The employee at home, unable to access her work computer, asked her colleague to log in using her credentials and retrieve a spreadsheet containing passwords for various company systems. The colleague, with express permission, accessed the computer and emailed the spreadsheet to the employee’s personal and work email accounts. Both actions violated the employer’s internal computer-use policies. Separately, the employee at home had, over several years, moved accounts into her workgroup to receive performance bonuses, believing she was eligible for them. Both employees also alleged persistent sexual harassment at work, which led to internal complaints, one employee’s resignation, and the other’s termination.After these events, the employer, National Recovery Agency (NRA), sued both employees in the United States District Court for the Middle District of Pennsylvania, alleging violations of the Computer Fraud and Abuse Act (CFAA), federal and state trade secrets laws, civil conspiracy, breach of fiduciary duty, and fraud. The employees counterclaimed for sexual harassment and related employment claims. On cross-motions for summary judgment, the District Court entered judgment for the employees on all claims brought by NRA, finding no violations of the CFAA or trade secrets laws, and stayed the employees’ harassment claims pending appeal.The United States Court of Appeals for the Third Circuit reviewed the case. It affirmed the District Court’s judgment in full. The Third Circuit held, first, that the CFAA does not criminalize violations of workplace computer-use policies by employees with authorized access, absent evidence of hacking or code-based circumvention. Second, it held that passwords protecting proprietary business information do not, by themselves, constitute trade secrets under federal or Pennsylvania law. The court also affirmed the dismissal of the state-law tort claims. View "NRA Group LLC v. Durenleau" on Justia Law

Four individuals who worked as drivers for a ride-sharing company alleged that the company misclassified them as independent contractors rather than employees, resulting in violations of federal and Illinois wage laws. The drivers claimed they were denied minimum wage, overtime pay, and reimbursement for business expenses. Each driver had entered into agreements with the company that included arbitration provisions, but these agreements also allowed drivers to opt out of arbitration within a specified period. One driver, Ken Zurek, opted out of the arbitration provision in a later agreement after not opting out of an earlier one.Before joining the federal lawsuit, Zurek had filed a separate case in Illinois state court, where the company sought to compel arbitration based on the earlier agreement. The state court found that Zurek’s opt-out from the later agreement meant he was not bound to arbitrate claims arising during the period covered by that agreement, even if he had not opted out of the earlier one. The state court did not decide whether Zurek had actually agreed to the earlier arbitration provision, finding it unnecessary for the resolution of the case. The parties later settled the state court case.In the United States District Court for the Northern District of Illinois, the company again moved to compel arbitration for all four drivers. The district court granted the motion for three drivers but denied it for Zurek, holding that the state court’s decision precluded relitigation of whether Zurek was bound by the earlier arbitration agreement. The United States Court of Appeals for the Seventh Circuit reviewed the case and affirmed the district court’s denial of the motion to compel arbitration as to Zurek, holding that issue preclusion applied because the state court had already decided the relevant issue. View "Agha v. Uber Technologies, Inc." on Justia Law

In 2023, the Maine Legislature enacted the Paid Family and Medical Leave (PFML) program, requiring employers to remit quarterly premiums into a state fund beginning January 1, 2025. The program allows covered individuals to take up to twelve weeks of leave for qualifying reasons, with benefits paid from the fund. Employers may apply to substitute an approved private plan that provides substantially equivalent benefits, which exempts them from further premium payments. The Maine Department of Labor adopted rules implementing the PFML program, including a provision that all employers must pay nonrefundable premiums for the first quarter of 2025, even if they later obtain approval for a private plan. Employers could begin applying for private plan approval after April 1, 2025, due to the time needed for insurers to develop compliant policies.The Maine State Chamber of Commerce and Bath Iron Works challenged the Department’s rule requiring nonrefundable premiums, arguing it conflicted with the PFML Act and constituted an unconstitutional taking under both the Maine and U.S. Constitutions. The Kennebec County Superior Court accepted a consented-to motion to report three legal questions to the Maine Supreme Judicial Court: whether the rule conflicted with the Act or was arbitrary and capricious, and whether it constituted a taking under state or federal law.The Maine Supreme Judicial Court accepted the report and held that the Department’s rules do not conflict with the PFML Act and are not arbitrary, capricious, or otherwise unlawful. The Court found that the statute unambiguously requires employers to remit premiums until a private plan is approved, and the rules reasonably implement the legislative intent. Additionally, the Court determined that the obligation to pay premiums does not constitute a cognizable taking of private property under either the Maine or U.S. Constitution. The Court answered all three reported questions in the negative and remanded the case for further proceedings. View "Maine State Chamber of Commerce v. Department of Labor" on Justia Law