Justia Labor & Employment Law Opinion Summaries

Lam began working at Springs as its senior manager of global trade in 2019. She learned that three of Springs’s manufacturing facilities in Mexico were inaccurately tracking import and export inventories because computer systems were not properly integrated. While attempting to resolve the issue, Lam came to believe that a product Springs imported (cellular fabric blankets) originated in China and not, as the supplier insisted, in Taiwan and Malaysia. Fabrics originating in China were subject to a 25 percent tariff. She claims that she repeatedly stated that the company would need to pay higher tariffs, was “angrily berated,” and was told to continue classifying the fabrics as Taiwanese and Malaysian. She was placed on a performance improvement plan that cited her failure to adequately address the inventory problem, her failure to supplement tariff concerns with a “risk assessment,” a “solution,” or a “process change,” her reliance on outside consultants; and her inability to communicate concisely.Law was ultimately fired and sued, alleging that Springs retaliated against her, in violation of the False Claims Act, over her opinion that the company owed the 25 percent tariff, 31 U.S.C. 3730(h). The Seventh Circuit affirmed summary judgment in favor of Springs. Springs’s conduct falls short of “harassment” under section 3730(h)(1); Lam has not established a connection between the tariff violations she reported and the decision to fire her. View "Lam-Quang-Vinh v. Springs Window Fashions, LLC" on Justia Law

The Supreme Court reversed the judgment of the circuit court against Northern Rental Corporation and Steve Willis in this action stemming from the alleged breach of a lease agreement, holding that the circuit court erred in determining damages.In 2019, Northern and Willis defaulted on their lease agreement with Peska Properties, Inc. Peska Properties subsequently entered into a lease with Mills Aftermarket Accessories, Inc. to fill Willis/Northern's remaining lease term plus an additional term. Thereafter, Peska Properties brought this action against Willis/Northern requesting unpaid rent, repayment of Northern's build-out loan, payment of Mills's build-out costs, and attorney fees. The circuit court determined that Willis/Northern owed Peska Properties $68,730. The Supreme Court reversed, holding that the circuit court's award was an error of law because it failed to meet the goal of a damage award. On remand, the court was directed to recalculate the build-out allowance damages. View "Peska Properties, Inc. v. Northern Rental Corp." on Justia Law

The Supreme Court affirmed in part and reversed in part the judgment of the circuit court affirming the decision of the Department of Labor of Regulation granting Employer/Insurer's motion for summary judgment regarding medical expenses Claimant incurred while being treated by Dr. Donald Corenman, holding that the circuit court erred in part.Employer and Insurer denied coverage for the medical expenses Claimant incurred by being treated for her back injury by Dr. Corenman. Claimant filed a petition for hearing with the Department, which granted summary judgment for Employer/Insurer as to these medical expenses. The circuit court affirmed. Claimant appealed, and Employer/Insurer filed a notice of review regarding an earlier Department ruling. The Supreme Court reversed in part, holding that the Department erred in granting summary judgment denying compensation for Dr. Corenman's medical services. View "Dittman v. Rapid City School District" on Justia Law

The Supreme Court affirmed the decision of the court of appeals declining to extend the holding in Livingood v. Transfreight, LLC, 467 S.W.3d 249 (Ky. 2015) to Ky. Rev. Stat. 342.730(1)(c)1, otherwise known as the three-multiplier, holding that this Court declines to extend Livingood to the three-multiplier.At issue was whether the holding in Livingood "that the legislature did not intend to reward an employee's wrongdoing with a double benefit" should be extended to preclude application of the three-multiplier when a claimant has been terminated for misconduct. Claimant in this case was allegedly fired for filing false information on a company report. The ALJ found that Claimant retained a permanent impairment due to a work injury and that this case justified application of the three-multiplier. The Workers' Compensation Board affirmed, determining that Livingood did not apply to the three-multiplier. The court of appeals affirmed. The Supreme Court affirmed, holding that nothing in the statue or the facts below requires extension of Livingood to section 342.730(1)(c)1. View "Tractor Supply v. Wells" on Justia Law

The Supreme Court reversed the opinion of the court of appeals that affirmed the decision of the Workers' Compensation Board (Board) and the Administrative Law Judge in this workers' compensation case, holding that a physician that is not licensed in Kentucky does not meet the definition of "physician" under Ky. Rev. Stat. 342.0011(32).Claimant sustained a work-related injury to his left knee and sought benefits. Dr. Craig Roberts conducted an independent medical examination and assessed a six percent whole person impairment rating, reasoning that an additional two percent rating for pain was appropriate. Claimant's employer, however, filed a report by a Dr. Christopher Brigham that believed an additional two percent impairment rating for pain was inappropriate. The ALJ found Dr. Brigham's opinion to be more credible and did not award Claimant an additional two percent impairment rating for pain. The Supreme Court reversed, holding that Dr. Brigham was not a "physician" as defined by section 342.0011(32), and therefore, his report was inadmissible. View "Toler v. Oldham County Fiscal Court" on Justia Law

Plaintiff, a former FBI special agent, asked a federal district court to order the FBI to issue him a top-secret clearance and reinstate his employment. He also sought damages against FBI officials for revoking his clearance and suspending him, for preventing him from taking other employment while suspended, and for delaying the release of letters that Plaintiff says contain his protected speech. The district court dismissed those claims. It concluded that Plaintiff has no cause of action against the officers in their individual capacities. And it reasoned that its subject matter jurisdiction does not include the power to order the FBI to reinstate his security clearance.   The Fifth Circuit affirmed, holding that Plaintiff’s claims must be dismissed. His claims seeking to reverse his suspension and termination fall outside the district court’s subject-matter jurisdiction. And he has no cause of action to bring the remaining individual capacity claims. The court explained that the Supreme Court has twice rejected federal employees’ attempts to sidestep the Civil Service Reform Act (“CSRA’s”) remedial scheme. The court found that just as the CSRA precludes extra-statutory review of “adverse actions” defined by Section 7712, it precludes extra-statutory review of ancillary constitutional claims brought as a “vehicle by which [plaintiffs] seek to reverse” those adverse actions. View "Zummer v. Sallet" on Justia Law

Plaintiffs filed a class action complaint against their former employer, US Well Services, Inc. (“US Well”) for allegedly violating the WARN Act by terminating them without advance notice. The WARN Act requires covered employers to give affected employees sixty days’ notice before a plant closing or mass layoff. 29 U.S.C. Section 2102(a). The Act provides three exceptions to the notice requirement—including the natural-disaster exception, under which no notice is required.   The parties cross-moved for summary judgment. US Well argued that COVID-19 was a natural disaster under the WARN Act, and consequently, that it was exempt from the WARN Act’s notice requirement pursuant to the natural-disaster exception. Plaintiffs countered that COVID-19 was not a natural disaster and was not a direct cause of their layoffs.   Plaintiffs filed an interlocutory appeal seeking reversal of the district court’s order denying their motions for summary judgment and reconsideration. In its order denying Plaintiffs’ motions, the district court certified two questions for interlocutory appeal: (1) Does COVID-19 qualify as a natural disaster under the Worker Adjustment and Retraining Notification Act’s (“WARN Act” or “the Act”) natural-disaster exception, 29 U.S.C. Section 2102(b)(2)(B)?; (2) Does the WARN Act’s natural-disaster exception, 29 U.S.C. Section 2102(b)(2)(B), incorporate but-for or proximate causation?   The Fifth Circuit held that the COVID-19 pandemic is not a natural disaster under the WARN Act and that the natural-disaster exception incorporates proximate causation. The court explained that based on the DOL regulation’s “direct result” requirement and binding precedent equating direct cause with proximate cause, the court held that the WARN Act’s natural-disaster exception incorporates proximate causation. View "Easom v. US Well Services" on Justia Law

California’s Labor Code Private Attorneys General Act (PAGA) authorizes any “aggrieved employee” to initiate an action against a former employer on behalf of himself and other current or former employees to obtain civil penalties that previously could have been recovered only by California’s Labor and Workforce Development Agency. California precedent holds that a PAGA suit is a “representative action” in which the plaintiff sues as an “agent or proxy” of the state. Moriana filed a PAGA action against her former employer, Viking, alleging multiple violations with respect to herself and other employees. Moriana’s employment contract contained a mandatory arbitration agreement with a “Class Action Waiver,” providing that the parties could not bring any class, collective, or representative action under PAGA, and a severability clause. California courts denied Viking’s motion to compel arbitration.The Supreme Court reversed. The Federal Arbitration Act, 9 U.S.C. 1 (FAA), preempts California precedent that precludes division of PAGA actions into individual and non-individual claims through an agreement to arbitrate. Viking was entitled to compel arbitration of Moriana’s individual claim. Moriana would then lack standing to maintain her non-individual claims in court.A PAGA action asserting multiple violations under California’s Labor Code affecting a range of different employees does not constitute “a single claim.” Nothing in the FAA establishes a categorical rule mandating enforcement of waivers of standing to assert claims on behalf of absent principals. PAGA’s built-in mechanism of claim joinder is in conflict with the FAA. State law cannot condition the enforceability of an agreement to arbitrate on the availability of a procedural mechanism that would permit a party to expand the scope of the anticipated arbitration by introducing claims that the parties did not jointly agree to arbitrate. View "Viking River Cruises, Inc. v. Moriana" on Justia Law

Plaintiff-appellant Jayen Patel, M.D. brought a tort claim for wrongful termination against defendant-appellee Tulsa Pain Consultants, Inc. (TPC). The trial court found Patel was not an at-will employee and entered a directed verdict in favor of TPC. Patel appealed, and the Court of Civil Appeals affirmed. TPC moved for appeal-related attorney fees, which the Court of Civil Appeals denied. The Oklahoma Supreme Court granted certiorari to determine whether TPC had a contractual right to recover attorney fees as the prevailing party in Patel's wrongful termination claim. After review, the Supreme Court found that the specific language in the parties' employment agreement authorized attorney fees in this case. View "Patel v. Tulsa Pain Consultants" on Justia Law

Plaintiff a former part-time employee of the City of Cedar Falls, brought an action against the City of Cedar Falls and certain city officials after her 2018 termination, alleging interference with and retaliation for the exercise of her rights under the Family and Medical Leave Act (FMLA) and claims of age discrimination, disability discrimination, hostile work environment, and retaliation under the Iowa Civil Rights Act (ICRA). The district court granted summary judgment in favor of Defendants on all of Plaintiff’s claims, and she appealed.
The Eighth Circuit affirmed. The court explained that it need not consider the substantive elements of the claim because Plaintiff has failed to demonstrate that she sustained any recoverable damages and it is undisputed that she did not seek any form of equitable relief.   Second, as to the retaliation claim, the court applied the McDonnell Douglas burden-shifting framework, which requires a plaintiff to make a prima facie showing of retaliation before the burden shifts back to the employer to offer a legitimate, non-discriminatory reason for its actions. Here, Plaintiff has failed to put forth any evidence of the kind that would demonstrate pretext. She offered nothing more than disagreement with the statements contained in the disciplinary reports. In the absence of any factual record demonstrating that these documented performance deficiencies were inaccurate, Plaintiff has failed to meet her burden of demonstrating pretext. Finally, Plaintiff has failed to show that the final three disciplinary reports were part of the same unlawful employment practice—harassment based on her age and disability. View "Michelle Brandt v. City of Cedar Falls" on Justia Law