Justia Labor & Employment Law Opinion Summaries

The case involves an employee, Massiel Hernandez, and her employer, Sohnen Enterprises. Hernandez signed an arbitration agreement with Sohnen, which stated that any disputes would be governed by the Federal Arbitration Act (FAA). When Hernandez filed a complaint against Sohnen for disability discrimination and Labor Code violations, the parties agreed to arbitrate. However, Sohnen failed to pay the arbitration fees within 30 days of the due date. Hernandez then filed a motion to withdraw from arbitration and litigate in state court, as permitted under California Code of Civil Procedure section 1281.97. The trial court granted the motion, finding that Sohnen had breached the arbitration agreement.Sohnen appealed, arguing that the FAA, not California law, governed the arbitration agreement and preempted section 1281.97. The Court of Appeal of the State of California, Second Appellate District, Division Five, agreed with Sohnen. The court found that the arbitration agreement was governed by the FAA, including both its substantive and procedural provisions. As a result, the procedures of section 1281.97 did not apply, and the trial court's order was reversed. The court also held that even if section 1281.97 did apply, it would still reverse the order because the FAA preempts the provisions of section 1281.97 that mandate findings of breach and waiver when an agreement falls within the scope of the FAA and does not expressly adopt California arbitration laws. View "Hernandez v. Sohnen Enterprises" on Justia Law

The case revolves around Susan Seago, a former paraprofessional who became a teacher in 2017. As a paraprofessional, she was a member of the Public Employees’ Retirement System (PERS), but upon becoming a teacher, she was required to join the Teachers’ Pension and Annuity Fund (TPAF). Seago attempted to transfer her PERS credits and contributions to her new TPAF account by filling out an "Application for Interfund Transfer" and sending it to her employer, the Edison Township Board of Education (Edison BOE), for completion. However, the Edison BOE failed to complete its portion of the application and submit it on time, resulting in the expiration of Seago's PERS account.The Edison BOE challenged the denial of Seago's interfund transfer application, admitting its mistake in not submitting the application on time. However, the TPAF Board denied the interfund transfer request, and the Appellate Division affirmed this decision. The case was then brought before the Supreme Court of New Jersey.The Supreme Court of New Jersey held that the TPAF Board acted arbitrarily, capriciously, and unreasonably when it denied Seago’s interfund transfer application. The court found that Seago had acted in good faith and had taken reasonable steps to ensure that her interfund transfer application was filed. The court also noted that Seago would suffer significant harm from the denial of her interfund transfer application, as she would lose her "Tier 1" membership status and would have to wait an additional five years to retire, ultimately receiving a lower monthly pension allowance. The court concluded that under the unique facts of this case, equity required that the TPAF Board grant Seago’s interfund transfer application. The court reversed the decision of the Appellate Division and instructed the TPAF Board to grant Seago's application for an interfund transfer as if her application had initially been timely filed. View "Seago v. Board of Trustees, Teachers' Pension and Annuity Fund" on Justia Law

The case revolves around Yvonne Craddock, an African American woman who was terminated from her employment at FedEx Corporate Services following a workplace altercation. Craddock alleged that her termination was racially motivated, in violation of Title VII of the Civil Rights Act of 1964. The case was presented to a jury, which concluded that FedEx's reason for termination was pretextual, but that Craddock had failed to demonstrate that FedEx intentionally discriminated against her because of her race. Craddock appealed, arguing that the district court had made several errors, including forcing her to bifurcate the liability and damages portions of her trial and excluding testimony and evidence pertaining to events post-termination.The district court had granted FedEx’s motion to dismiss Craddock’s libel claim, Family Medical Leave Act claim, 42 U.S.C. § 1981 claim, and spoliation claim, but denied dismissal of her Title VII claims. After discovery, the court granted FedEx’s motion for summary judgment on Craddock’s Title VII claims. The case was then taken to the United States Court of Appeals for the Sixth Circuit.The Court of Appeals held that the district court did not abuse its discretion regarding the claims raised by Craddock, and affirmed the jury’s verdict. The court found that the district court's decision to bifurcate the trial was not an abuse of discretion, and that the court's exclusion of testimony and exhibits postdating the termination was not erroneous. The court also found no error in the district court's trial rulings and case management decisions, and concluded that the jury verdict form was not plainly erroneous. The court further held that the cumulative effect of the alleged errors did not deprive Craddock of a trial consistent with constitutional guarantees of due process. View "Craddock v. FedEx Corporate Services, Inc." on Justia Law

The case revolves around the Employees Retirement System of the Government of the Commonwealth of Puerto Rico (ERS), which was established in 1951 as the Commonwealth's pension program for public employees. The appellants are seven individual beneficiaries of pensions paid by ERS. They had been litigating claims against UBS Financial Services Inc. (UBS) in the Commonwealth Court of First Instance related to UBS's role in issuing ERS pension funding bonds in 2008. Meanwhile, in January 2022, as part of its broad authority to promulgate orders necessary to carry out the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA), the district court confirmed the Modified Eighth Amended Title III Joint Plan of Adjustment (the Plan).The district court had previously confirmed the Plan, which implemented several changes related to ERS and its pension plan payments to retired Commonwealth employees. The Plan replaced the Committee with the Avoidance Action Trustee as the plaintiff with exclusive power to prosecute the Underwriter Action and recover damages that ERS incurred. The Plan also ordered the immediate dissolution of ERS.UBS filed a motion to enforce the Plan, requesting that the district court enjoin the ERS Beneficiaries from pursuing the Commonwealth Action. The district court granted UBS's motion and enjoined the ERS Beneficiaries from pursuing the Commonwealth Action. The district court concluded that the ERS Beneficiaries' Commonwealth Action claims were rooted in a generalized injury and were derivative of ERS's right to recover on its own behalf. The district court further rejected the ERS Beneficiaries' arguments that they were entitled to recover for non-derivative general tort claims against UBS under various Commonwealth statutes.The United States Court of Appeals for the First Circuit affirmed the district court's decision, concluding that the ERS Beneficiaries sought to raise derivative claims that belong exclusively to the Trustee or the Commonwealth. The court held that continued litigation of the FAC's derivative claims violates the terms of the Plan and PROMESA. View "UBS Financial Services Inc. v. Estate of Jose Nazario Serrano" on Justia Law

The case involves Douglas Milczak, a long-term employee of General Motors (GM), who alleged that he was subjected to age-based harassment by his managers and subordinates, with the aim of pushing him into early retirement. Milczak claimed that this harassment violated the Age Discrimination in Employment Act. After enduring several years of alleged degradation, he filed an action against GM. GM moved for summary judgment, arguing that the record did not support any of his claims. The district court granted the motion.The United States Court of Appeals for the Sixth Circuit affirmed the district court's decision. The court found that Milczak failed to establish a prima facie case of age discrimination. While the court acknowledged that Milczak had experienced offensive comments from his manager, it found that these comments did not constitute age-based harassment that was severe or pervasive enough to create a hostile work environment. The court also found that Milczak failed to show that GM's personnel actions were based on his age or that similarly situated younger employees were treated more favorably. Finally, the court found that Milczak failed to establish a prima facie case of retaliation, as he could not demonstrate a causal connection between his protected activities and the adverse actions taken by GM. View "Milczak v. General Motors, LLC" on Justia Law

In September 2021, John Sandy Campbell filed a lawsuit against her former employer, the Los Angeles Unified School District, alleging racial discrimination and retaliation for whistleblowing. These allegations were in violation of Labor Code sections 1102.5 and 1106 and Government Code section 12940 (the Fair Employment and Housing Act). The District demurred, arguing that Campbell had not complied with the Government Code’s claim presentation requirement and that the statute of limitations barred her cause of action under the Act. The trial court sustained the District's demurrer without leave to amend, citing Le Mere v. Los Angeles Unified School District and Government Code section 12965, subdivision (c)(1)(C).The Court of Appeal of the State of California Second Appellate District Division Eight reviewed the trial court's ruling independently and applied the standard for demurrers. The court agreed with the trial court, stating that a plaintiff suing a public entity for damages must timely present a written claim to the entity before filing suit. Campbell had not demonstrated that she substantially complied with the claim presentation requirement. Furthermore, Campbell's amended complaint did not plead compliance with the claim presentation requirement.Additionally, Campbell's claim for violation of the Act was time-barred. The Department of Fair Employment and Housing had provided Campbell a Right to Sue notice dated October 9, 2018, giving her one year to file a civil action. Campbell did not sue until September 2021, making her suit untimely. The court also rejected Campbell's argument that the discovery rule saved her lawsuit. The court affirmed the judgment and order sustaining the demurrer without leave to amend and awarded costs to the respondent. View "Campbell v. L.A. Unified School Dist." on Justia Law

The case involves two American Airlines pilots, James P. Scanlan and Carla Riner, who sued their employer for failing to pay them and provide certain benefits while they were on short-term military leave. They claimed that the airline violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA), which provides employees on military leave the right to receive the same employment benefits as other similarly situated employees. They also claimed that the airline breached their profit-sharing plan by failing to account for imputed earnings during periods of military leave.The District Court granted summary judgment for the airline on all claims. It held that the pilots could not prevail on their USERRA claims because short-term military leave is not comparable to jury-duty or bereavement leave when comparing duration, frequency, control, and purpose. It also concluded that, under Texas law, the profit-sharing plan unambiguously excludes imputed income from periods of military leave.The United States Court of Appeals for the Third Circuit affirmed the judgment for the airline on the breach of contract claim. However, it reversed the judgment for the airline on the USERRA claims, stating that a reasonable jury could find that short-term military leave is comparable to jury-duty leave or bereavement leave based on the three factors mentioned in the implementing regulation, and any other factors it may consider. The case was remanded for further proceedings on the USERRA claims. View "Scanlan v. American Airlines Group Inc." on Justia Law

The Trustees of the New York State Nurses Association Pension Plan (the Trustees) and White Oak Global Advisors, LLC (White Oak) entered into an investment management agreement, which included an arbitration clause. The Trustees later brought several fiduciary duty claims against White Oak under the Employee Retirement Income Security Act (ERISA), which were resolved through arbitration. The arbitrator issued an award in favor of the Trustees, which the Trustees sought to confirm in the United States District Court for the Southern District of New York.White Oak appealed the confirmation, arguing that the district court lacked jurisdiction and that the court erroneously interpreted the award. The United States Court of Appeals for the Second Circuit affirmed the district court's jurisdiction, finding that the Trustees' petition to confirm the award was cognizable under ERISA § 502(a)(3). The court also affirmed the district court's interpretation of the award regarding the disgorgement of pre-award interest and the "Day One" fees. However, the court vacated and remanded the district court's confirmation of the disgorgement of White Oak's "profits," finding the award too ambiguous to enforce. The court also vacated and remanded the district court's order for White Oak to pay the Trustees' attorneys' fees and costs, finding the district court's findings insufficiently specific. View "Trustees of the NYSNAPP v. White Oak Glob. Adv." on Justia Law

The case revolves around an incident that occurred on June 30, 2017, when Henry Bello, a former employee of Bronx-Lebanon Hospital (BLH), entered the hospital armed with a rifle and opened fire, killing one doctor and wounding five members of the medical staff, including Justin Timperio, a first-year resident. Bello and Timperio were strangers prior to the shooting; they never worked at BLH at the same time and had no other prior contact. Following the incident, BLH notified the Workers' Compensation Board (WCB) of Timperio's injuries. Timperio also filed a negligence action in federal court against BLH and the store that sold Bello the rifle.The Workers' Compensation Law Judge (WCLJ) determined that Timperio's injuries were compensable under the Workers' Compensation Law (WCL). Timperio appealed to the WCB, which affirmed the decision. However, the Appellate Division reversed the decision, holding that the lack of record evidence establishing any employment-related animus was sufficient to rebut the presumption in WCL § 21 (1) and concluded that the claim was therefore not compensable.The New York Court of Appeals reversed the decision of the Appellate Division. The court clarified the operation of the rebuttable presumption set forth in Workers' Compensation Law § 21 (1), which provides that when an injury arises in the course of a worker's employment, it is presumed to arise out of that worker's employment and therefore is compensable, absent substantial evidence to the contrary. The court held that in cases involving assaults that occur at work, a lack of evidence as to the motivation for the assault does not rebut that presumption. The court concluded that the presumption applied and was unrebutted in this case, and the Appellate Division's contrary conclusion was error. Therefore, the order of the Appellate Division was reversed, and the decision of the Workers' Compensation Board was reinstated. View "In re Timperio v Bronx-Lebanon Hospital" on Justia Law

Isabel Garcia, an employee of RAC Acceptance East, LLC (RAC), filed a lawsuit against RAC, Stoneledge Furniture LLC (Stoneledge), and Inderjit Singh, alleging ten claims related to sexual harassment. RAC, Stoneledge, and Singh sought to compel arbitration based on an arbitration agreement they claimed Garcia electronically signed during her employment onboarding process. Garcia denied signing the agreement and argued that RAC failed to prove she executed the agreement.The trial court denied the petitions to compel arbitration. It found that while RAC had initially shown an agreement to arbitrate by providing the agreement, Garcia's denial of signing the agreement shifted the burden back to RAC to prove by a preponderance of the evidence that her electronic signature was authentic. The court found that RAC failed to meet this burden as the declaration provided by RAC did not present sufficient details of the onboarding process to establish how Garcia must have signed the agreement. The court also found that the agreement did not have the appearance of an electronically signed document created in Taleo, the third-party electronic workforce management platform used by RAC.On appeal, the Court of Appeal of the State of California First Appellate District Division Three affirmed the trial court's decision. The appellate court found that the trial court did not err in deciding whether any agreement to arbitrate existed in the first place, rather than delegating that decision to an arbitrator. The appellate court also found that RAC failed to prove the existence of the arbitration agreement. The court concluded that RAC's evidence did not show that only Garcia could have placed the electronic signature on the arbitration agreement. The court also found that the trial court did not abuse its discretion in denying RAC’s request for an evidentiary hearing. View "Garcia v. Stoneledge Furniture LLC" on Justia Law