Justia Labor & Employment Law Opinion Summaries

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

Trevor Murray worked as a research strategist at UBS, a securities firm. His job involved reporting on commercial mortgage-backed securities markets to current and future customers. Under SEC regulations, Murray was required to certify that his reports were produced independently and reflected his own views. When two leaders of the CMBS trading desk pressured him to make his reports more supportive of their business strategies, Murray told his supervisor about it. The supervisor told Murray not to alienate the trading desk and to write what the business line wanted. He eventually recommended that Murray be removed from his position, despite having recently given him a strong performance review. When the CMBS trading desk did not accept Murray as a transfer, he was fired.Murray argued that he was terminated in violation of the whistleblower protection provision in the Sarbanes-Oxley Act because UBS fired him in response to his internal reporting about fraud on shareholders. He prevailed at trial, but the Second Circuit Court of Appeals vacated the jury’s verdict and remanded for a new trial. It found that the whistleblower protection provision requires an employee to prove retaliatory intent, which a clarifying jury instruction had not properly indicated.The U.S. Supreme Court disagreed, instead agreeing with the Fifth and Ninth Circuits that the whistleblower protection provision does not impose this type of requirement. The Court acknowledged that a whistleblower must prove that his protected activity was a contributing factor in the adverse action against him, but it noted that the text of the statute does not include or refer to a requirement of proving retaliatory intent, which it treated as similar to “animus.” The Court noted that the statute contains a burden-shifting framework, requiring the whistleblower to show that their protected activity was a contributing factor in the adverse action, after which the employer must show that it would have taken the same action anyway. It found that a requirement of proving retaliatory intent would be incompatible with the burden-shifting framework. View "Murray v. UBS Securities, LLC" on Justia Law

In the Supreme Court of Wyoming, an appeal by Ronald Pinther, a former insurance agent, was dismissed. Pinther had worked for American National Property and Casualty Insurance Company (ANPAC) and American National Insurance Company (ANICO). He filed a lawsuit against ANPAC, ANICO, and another agent, Philip Maggard, claiming breach of contract, breach of good faith and fair dealing, fraudulent inducement, promissory estoppel, civil conspiracy, and age discrimination. The district court granted summary judgment in favor of ANPAC and Mr. Maggard. On appeal, the Supreme Court held that the district court had not erred in its decision. The court found that Mr. Pinther's breach of contract claim against ANPAC was governed by the Post-Termination Compensation Schedule outlined in the agent agreement. The court further held that Mr. Pinther's claim of a breach of an implied duty of good faith and fair dealing could not be maintained given the at-will nature of the agency contract. The court also dismissed Mr. Pinther's fraudulent inducement claim against ANPAC, noting that the recruiting brochure did not govern his agreement with ANPAC. The court further held that Mr. Pinther's claim for tortious interference with a contract against Mr. Maggard could not be maintained as the actions of Mr. Maggard, as an agent of ANPAC, were imputed to ANPAC. Lastly, the court held that Mr. Pinther's civil conspiracy claims against ANPAC and Mr. Maggard failed as the underlying tort claims did not survive summary judgment. View "Pinther v. American National Property and Casualty Insurance Company" on Justia Law

In the State of North Dakota, Dale Kringlie suffered a work-related injury to his right shoulder and wrist while using a concrete drill in April 2019. Workforce Safety and Insurance (WSI) accepted the claim and paid the associated medical expenses and disability benefits. WSI later issued a vocational rehabilitation plan for Kringlie, which he contested, asserting his inability to perform any of the jobs due to a neuropsychological condition. Kringlie sought the opinion of Dr. Swenson, who supported his claim. An Administrative Law Judge (ALJ) reversed WSI’s decision, basing his judgment heavily on Dr. Swenson's opinion. WSI appealed this decision to the district court, arguing that the ALJ erred by considering Kringlie’s functional limitations at the time of the vocational rehabilitation report issuance. The district court reversed the ALJ's decision, stating that WSI was only required to consider Kringlie's functional limitations at the time of his work-related injury. The Supreme Court of North Dakota affirmed the district court's decision, agreeing that the ALJ misapplied the law. The court held that the ALJ erred in considering Kringlie’s functional limitations at the time WSI issued the vocational rehabilitation report, rather than at the time of the work-related injury. Furthermore, the court ruled that the ALJ wrongfully relied on Dr. Swenson's opinion, which was not permitted under N.D.C.C. § 65-05-08.1. View "Workforce Safety and Insurance v. Kringlie" on Justia Law

Stephen Caudle, a truck driver for Hard Drive Express, Inc., sued his employer alleging that he was fired in retaliation for attempting to report unlawful employment practices. The case focuses on the Fair Labor Standards Act (FLSA) and Michigan Whistleblower Protection Act (WPA), with Caudle arguing that his firing was a response to his complaints about Hard Drive's failure to reimburse him for time and money spent on repairs. The district court granted summary judgement in favor of the employer, interpreting Caudle's complaints as related only to Hard Drive's paid-time-off policy, and therefore not protected under FLSA or WPA.The United States Court of Appeals for the Sixth Circuit reversed this decision, holding that there was a genuine factual dispute about whether Caudle's complaints were about vacation pay or the company's failure to compensate him for repairs. The court found that there was sufficient evidence to suggest that Caudle's complaints could have put the company on notice of potential violations of the FLSA, and therefore his firing could be seen as a violation of the anti-retaliation provisions of the FLSA and Michigan WPA. The court remanded the case for further proceedings. View "Caudle v. Hard Drive Express, Inc." on Justia Law

The case involves a group of former firefighters who retired from the city of Meriden and claimed damages from the city and the Meriden Municipal Pension Board for alleged breach of a collective bargaining agreement. The plaintiffs, who retired in 2015, claimed that they should have received an increase in their pension benefits based on a 2% wage increase that was awarded retroactively in an arbitration process after the plaintiffs had retired. The trial court ruled in favor of the plaintiffs, holding that the defendants had breached the collective bargaining agreement by failing to recalculate the plaintiffs' pension benefits based on the retroactive wage increase.On appeal, the Connecticut Supreme Court reversed the trial court's decision. The Supreme Court held that the defendants did not breach the collective bargaining agreement. This conclusion was based on the fact that the pension plan did not allow for the recalculation of pension benefits for retirees who voluntarily retired before the issuance of the arbitration award. The court noted that the pension plan only allowed for a retroactive adjustment of pension benefits for those who were forced to retire due to reaching the mandatory retirement age of 65. The court also held that the trial court did not lack subject matter jurisdiction to hear the case, rejecting the defendants' claim that the plaintiffs failed to exhaust their administrative remedies before filing the lawsuit. View "Stiegler v. Meriden" on Justia Law

The case involves a whistleblower-retaliation action brought by Tayo Daramola, a Canadian citizen, under the Sarbanes-Oxley and Dodd-Frank Acts. Daramola was employed by Oracle Canada, a subsidiary of Oracle America, and worked remotely from Canada. He alleged that Oracle America and its employees retaliated against him for reporting suspected fraud related to one of Oracle's software products.The United States Court of Appeals for the Ninth Circuit affirmed the district court's dismissal of Daramola's action. The court held that the whistleblower anti-retaliation provisions in the Sarbanes-Oxley and Dodd-Frank Acts do not apply outside the United States. The court applied a presumption against extraterritoriality and concluded that the presumption was not overcome because Congress did not affirmatively and unmistakably instruct that the provisions should apply to foreign conduct.The court further held that this case did not involve a permissible domestic application of the statutes, given that Daramaola was a Canadian working out of Canada for a Canadian subsidiary of a U.S. parent company. The court agreed with other circuits that the focus of the Sarbanes-Oxley anti-retaliation provision is on protecting employees from employment-related retaliation, and the locus of Daramola's employment relationship was in Canada. The court also concluded that Daramola did not allege sufficient domestic conduct in the United States in connection with his Dodd-Frank claim. The same reasoning disposed of Daramola’s California state law claims. View "DARAMOLA V. ORACLE AMERICA, INC." on Justia Law

In a dispute between ORP Surgical, LLC (ORP), and Howmedica Osteonics Corp., also known as Stryker, the United States Court of Appeals for the Tenth Circuit affirmed in part and reversed in part the district court's ruling. ORP and Stryker, both involved in medical device sales, had a successful business relationship under two sales contracts, the Joint Sales Representative Agreement (JSRA) and the Trauma Sales Representative Agreement (TSRA). The relationship soured when Stryker terminated the JSRA and hired one of ORP's sales representatives, and later, when ORP terminated the TSRA, Stryker hired a dozen of ORP's representatives. The district court ruled in favor of ORP, finding that Stryker breached the sales contracts and owed ORP damages, attorneys’ fees, sanctions, and costs. On appeal, Stryker challenged the rulings on the breach of contract claims, the attorneys’ fees award, and the nominal damages award. The Court of Appeals affirmed the district court’s holdings on the breach-of-contract claims but reversed its award of attorneys' fees under the indemnification provision. It also affirmed the award of nominal damages for Stryker's breach of the non-solicitation/non-diversion provision. The case was remanded for further proceedings. View "ORP Surgical v. Howmedica Osteonics Corp." on Justia Law