Justia Labor & Employment Law Opinion Summaries

The case involves Albert Collins, who was employed by the Kansas City Missouri Public School District. After the termination of his employment, Collins sued the school district, alleging racial discrimination and retaliation for participating in protected activities. The school district had fired Collins following an investigation into "attendance fraud," a scheme in which Collins admittedly took part. The three claims relevant in this case were racial discrimination during termination in violation of Title VII and 42 U.S.C. § 1983, retaliation for engaging in protected activities under Title VII and § 1983, and violation of a state law prohibiting public employers from retaliating against whistleblowers.The United States Court of Appeals for the Eighth Circuit affirmed the lower court's decision to grant summary judgment in favor of the school district. The court held that Collins failed to provide sufficient evidence for a reasonable jury to conclude that his termination was motivated by his race. He failed to demonstrate that a white employee engaged in the same fraudulent scheme was treated differently, failing to meet the "rigorous" requirement that the comparators must have dealt with the same supervisor, been subject to the same standards, and engaged in the same conduct.The court also found that Collins' retaliation claim failed for lack of evidence linking his termination to any protected conduct. His interviews about the attendance fraud scheme were not related to race, and he failed to demonstrate that another employee's claims, in which he acted as a witness, had anything to do with racial discrimination or retaliation.Regarding the whistleblower claim, the court held that a Missouri law excluding disclosures related to the employee's own violations applied to Collins. Since he failed to argue against the court's application of the statutory exclusion, his challenge to the court's grant of summary judgment on his whistleblower claim was deemed waived. View "Collins v. K.C. MO Public School District" on Justia Law

The United States Court of Appeals for the Fifth Circuit reviewed a case involving the Cenikor Foundation, a nonprofit drug rehabilitation center. The foundation had been sued by a group of its rehabilitation patients for alleged violations of the Fair Labor Standards Act (FLSA). The patients contended that they were effectively employees of the foundation, as they were required to work as part of their treatment program without receiving monetary compensation. The foundation contested the lawsuit and appealed a district court's decision to certify the case as a collective action under the FLSA.The Court of Appeals found that the district court had applied the incorrect legal standard in determining whether the patients were employees under the FLSA. Specifically, the court should have applied a test to determine who was the primary beneficiary of the work relationship, rather than a test typically used to distinguish employees from independent contractors.The appellate court remanded the case back to the district court to apply this primary beneficiary test and to consider the foundation's defense that any benefits provided to the patients offset any requirement to pay them a wage. The court emphasized that the question of whether the foundation's patients were employees under the FLSA was a threshold issue that needed to be resolved before the case could proceed as a collective action. View "Klick v. Cenikor Foundation" on Justia Law

In the case of Brett Lane v. the State of Alaska, Department of Family & Community Services, Office of Children’s Services, the Supreme Court of the State of Alaska affirmed the lower court's decision denying the Office of Children's Services's (OCS) post-trial motion for a new trial on liability. The court concluded that the weight of the evidence supported the jury's verdict on Lane's theories of retaliation. However, the court found an error in the jury instruction relating to noneconomic damages caused by a dangerous client, Wilson. As a result, the court vacated the damages judgment and remanded for a new trial solely on noneconomic damages. The court also remanded the matter back to the lower court for an evidentiary hearing on OCS's claim that the jury award duplicated workers’ compensation benefits that Lane received. The court held that OCS should be given the opportunity to prove that the jury award created an impermissible duplication of damages. View "State of Alaska v. Lane" on Justia Law

The United States Court of Appeals for the Tenth Circuit reviewed the dismissal of a case involving Charles Cline, who was terminated by Clinical Perfusion Systems, Inc. after a medical emergency led to an extended hospital stay. Cline brought forward disability discrimination claims under the Rehabilitation Act, the Affordable Care Act (ACA), and the Oklahoma AntiDiscrimination Act (OADA); and age discrimination claims under the OADA. The court concluded that Cline was unable to establish a disability discrimination claim as he failed to plausibly allege that he could perform his job functions with a reasonable accommodation by his employer. The court also disagreed with the district court's dismissal of Cline's age discrimination claim, arguing that Cline had sufficiently alleged that age was a but-for cause of his termination. Therefore, the court affirmed the dismissal of Cline's disability discrimination claims, reversed the dismissal of his age discrimination claim, and remanded the case for further proceedings. View "Cline v. Clinical Perfusion Systems" on Justia Law

This case involved the interpretation of two provisions of the Multiemployer Pension Plan Amendments Act (“MPPAA”), part of the Employee Retirement Income Security Act of 1974 (“ERISA”). The appellants, M&K Employee Solutions, LLC and Ohio Magnetics, Inc., were employers that had withdrawn from the IAM National Pension Fund, a multiemployer pension plan (“MPP”). The issues before the United States Court of Appeals for the District of Columbia Circuit were: (1) whether the Fund’s actuary could set actuarial assumptions for calculating the employers' withdrawal liability after the measurement date based on information available as of the measurement date; and (2) for M&K, whether it was entitled to the "free-look" exception which allows an employer to withdraw from a plan within a specified period after joining without incurring withdrawal liability.On the first issue, the court affirmed the district court's rulings that the actuary could set actuarial assumptions after the measurement date, as long as the assumptions were based on the information available as of that date. The court held that this interpretation aligned with the best estimate of the plan’s anticipated experience as of the measurement date and was consistent with the policy of the MPPAA to protect multiemployer pension plans and their beneficiaries.On the second issue, the court held that M&K was entitled to the free-look exception. The court found that M&K had partially withdrawn from the Fund during the 2017 plan year, had an obligation of fewer than five years at the time of its partial withdrawal, and therefore met the requirements of the free-look exception. View "Trustees of the IAM National Pension Fund v. Ohio Magnetics, Inc." on Justia Law

In this case, decided by the Supreme Court of Iowa, Justin Loew, an employee of Menard, Inc., appealed the district court's decision that denied his claim for workers' compensation benefits. Loew had previously received benefits for a 20% functional impairment to his lower back caused by a work-related injury in 2015, which had been calculated using the industrial method and resulted in a 30% reduction in his earning capacity. In 2018, Loew suffered a second work-related injury to his lumbar spine which increased his functional impairment to 28%. Under the 2017 changes to the workers' compensation law, Loew's compensation for this injury was to be based solely on his functional impairment, since he returned to work at the same or greater wages. However, the workers' compensation commissioner denied Loew any additional benefits for his second injury, reasoning that Menard was entitled to offset the prior payment based on reduced earning capacity against the new claim for functional impairment.The Supreme Court of Iowa disagreed with the commissioner's reasoning and reversed the district court's judgment. The court held that it was incorrect to offset compensation based on loss of earning capacity (from the first injury) against compensation based on functional impairment (from the second injury), as these are incommensurables. Further, the court found that the commissioner erred in interpreting Iowa Code section 85.34(7) to preclude compensation for Loew's new permanent partial disability, as this statute only limits an employer's liability for preexisting disabilities that have already been compensated. Loew was seeking compensation for a new permanent partial disability, not a preexisting one, hence Menard was liable for this new disability. The court remanded the case back to the commissioner for further proceedings consistent with its opinion. View "Loew v. Menard, Inc." on Justia Law

Marshall Sandlin, a laborer at Mid American Construction LLC, suffered an injury to his left foot during work. After an initial medical examination conducted by a physician chosen by Mid American's insurance carrier, Grinnell Mutual, Sandlin underwent another independent medical examination (IME) by a physician of his choosing. Sandlin sought reimbursement for the full cost of this second examination, as he believed the first examination's evaluation was too low.The Supreme Court of Iowa had to decide whether an amendment to Iowa Code section 85.39(2) in 2017 limited an employee's reimbursement for an IME to only the cost of the impairment rating or included the full cost of the examination. The court held that the employee is eligible for reimbursement of the reasonable cost of the full examination to determine the impairment rating, not merely the cost of the impairment rating itself. The court interpreted the term "examination" as used in the statute to include review of medical records, physical examination, testing, and written report.However, the court found that the commissioner's analysis of the physician's fee as reasonable was incomplete. While the commissioner considered the physician's written opinion about the reasonableness of his fee, the commissioner failed to analyze the typical fee charged for such an examination in the local area where the examination was conducted, as required by the 2017 amendment to the statute. Consequently, the court remanded the case for further fact-finding on the issue of the reasonableness of the fee based on the typical fee charged in the local area.Thus, the Supreme Court of Iowa affirmed in part and vacated in part the decision of the Court of Appeals and affirmed in part, reversed in part, and remanded the judgment of the District Court. View "Mid American Construction LLC v. Sandlin" on Justia Law

In the case before the Nebraska Supreme Court, Kathryn Wright was employed as a customer service agent for Southwest Airlines Co. (Southwest). In her volunteer role on a workplace social committee, she was found to have not kept adequate records of expenditures and to have spent committee funds for personal purposes. Consequently, Southwest terminated her employment. Wright then applied for unemployment insurance benefits, which were initially granted by the Nebraska Department of Labor (DOL) adjudicator. However, this decision was overturned by the DOL appeal tribunal, disqualifying her from receiving unemployment benefits for the week of the discharge and the 14 weeks thereafter. The district court affirmed this decision and Wright appealed.The Nebraska Supreme Court affirmed the district court's decision, holding that Wright had committed misconduct connected with her work under Neb. Rev. Stat. § 48-628.10 (Reissue 2021). The court found that Wright's failure to keep a ledger and maintain supporting documentation for all committee expenses was misconduct connected with her work, regardless of the fact that her work on the committee was volunteer and separate from her paid job duties. The court also disagreed with Wright's argument that the committee funds were not Southwest's but her coworkers'. The court reasoned that the funds were contributed to the committee organized, promoted, supported, and regulated by Southwest, which had an interest in ensuring that the funds were spent appropriately. Therefore, Wright's failure to follow the rules harmed Southwest and was misconduct connected with her work. View "Wright v. Southwest Airlines Co." on Justia Law

In the case before the Supreme Court of Alabama, David and Anna Roberson appealed from an order by the Jefferson Circuit Court that dismissed their indemnification claim against Drummond Company, Inc. ("Drummond"). David, a former vice president of Drummond, was convicted of bribery in federal court for approving payments that were part of an environmental public-relations campaign. After his conviction, Drummond continued to pay David's salary and benefits for a period, but later terminated his employment. The Robersons then sued Drummond and others, asserting multiple claims, including one for indemnification. They alleged that Drummond had directed David to make the payments that were later deemed to be bribes, and that he had incurred damages as a result, for which Drummond had a duty to indemnify him. The circuit court dismissed the indemnification claim, ruling that indemnification generally comes into play in a contractual arrangement, and the Robersons had neither produced nor alleged the existence of a contract or agreement establishing such a duty. The Robersons appealed this decision.The Supreme Court of Alabama affirmed the lower court's decision. The court found that the losses the Robersons sought to recover were not indemnifiable, as they were not judicially imposed liabilities to a third party or out-of-pocket expenses that David incurred in processing the invoices. The court also found that the Robersons failed to demonstrate they had sufficiently pleaded a claim for common-law indemnification. The court rejected the Robersons' argument that Drummond's resolution to pay David's salary and benefits constituted a contract for indemnification, stating that the obligation they alleged Drummond undertook was not a promise to indemnify David, but simply a promise not to fire him. Finally, the court found that the Robersons had failed to preserve their claim for court-ordered indemnification under the Alabama Business and Nonprofit Entity Code for appellate review, as they had not asserted this argument in the trial court. View "Roberson v. Drummond Company, Inc." on Justia Law

The case involves Nathan Jackson, a detention officer with the Los Angeles Police Department, who was suspended for 10 days due to several misconduct charges. These charges included reporting late for duty, reporting unfit for duty, leaving his post without authorization, and refusing to provide a doctor's note as directed. Jackson appealed his suspension to the Board of Civil Service Commissioners, which upheld the suspension. He then filed a petition for writ of administrative mandate in the Superior Court of Los Angeles County, asking the court to set aside his suspension and award him back pay.The superior court granted the petition in part, setting aside the suspension but upholding the findings on three of the four counts. The court also ordered the Board to reconsider whether the City's amendment of one of the counts after initial notice of proposed discipline prejudiced Jackson's defense and entitled him to back pay. The court also ordered the Board to reconsider the appropriate penalty.Jackson appealed the judgment, arguing that substantial evidence did not support the findings on any of the counts and that he was entitled to back pay as a matter of law. The Court of Appeal of the State of California, Second Appellate District, Division Seven, however, dismissed the appeal on the grounds that the superior court's judgment was not a final appealable judgment because it vacated the suspension and remanded the matter back to the Board for reconsideration, allowing Jackson an opportunity to challenge any ultimate adverse disciplinary action. View "Jackson v. Board of Civil Service Commissioners" on Justia Law