Justia Labor & Employment Law Opinion Summaries

Plaintiffs, a group of tipped employees at Nusret, filed suit under the Fair Labor Standards Act (FLSA), challenging Nusret's compensation scheme. Plaintiffs alleged that from November 1, 2017, through January 18, 2019, the restaurant paid them less than the required federal minimum and overtime wages and forced them to participate in an illegal tip pool with non-tipped employees.The Eleventh Circuit concluded that Nusret's mandatory 18% "service charge" is not a tip under the FLSA and associated regulations and could lawfully be used to offset Nusret's wage obligations under the FLSA. The court agreed with the district court that the mandatory service charge was a bona fide service charge and not a tip because it was a compulsory charge for service, and the decision to pay it—and the amount to pay—were not determined solely by the customer. The court declined to reach the merits of plaintiffs' remaining arguments and affirmed the district court's award of summary judgment in favor of Nusret. View "Compere v. Nusret Miami, LLC" on Justia Law

The Ninth Circuit affirmed the district court's dismissal of plaintiff's wrongful termination suit as preempted by the National Labor Relations Act (NLRA). Plaintiff's claims stemmed from allegations that UtiliQuest promised him that if he convinced all of his fellow employees to "sign away" their union rights, they would each receive a ten percent raise. However, plaintiff ended up being the only one with the raise. After confronting UtiliQuest of the breach in promise, he was terminated. Plaintiff alleged several California state law claims relating to his termination.The panel concluded that plaintiff's arguments are subject to Garmen preemption, concluding that the risk of interference with the Board's jurisdiction was sufficient to outweigh the state's interest in plaintiff's claims; the Board could consider plaintiff's advocacy for his fellow coworkers as concerted activity; and the Board could arguably consider plaintiff as an employee, rather than a supervisor. The panel also concluded that plaintiff's wage and hour claims were subject to claim preclusion in light of the California Superior Court's settlement judgment, which was entitled to full faith and credit. View "Moreno v. UtiliQuest, LLC" on Justia Law

The Supreme Court affirmed the decision of a panel of the court of appeals affirming the judgment of the district court granting summary judgment to the Kansas Workers Compensation Fund on the Fund's collateral action against Trademark, Inc., holding that there was no error.After Juan Medina received a workplace injury he sought compensation from his direct employer under the Kansas Workers Compensation Act, Kan. Stat. Ann. 44-501 et seq. Because the employer did not carry workers compensation insurance, Medina impleaded the Fund to obtain benefits. Thereafter, an ALJ awarded compensation to Medina, and the Fund paid Medina benefits. The Fund then filed this action under Kan. Stat. Ann. 44-532a against Trademark, the general contractor for whom Medina's employer was acting as a subcontractor at the time of the injury. The district court granted summary judgment to the Fund and denied attorney fees. The court of appeals panel affirmed. The Supreme Court affirmed, holding (1) the lower courts correctly interpreted section 44-532a as allowing the Fund to pursue an action against Trademark; but (2) the Fund was not entitled to attorney fees. View "Schmidt v. Trademark, Inc." on Justia Law

Plaintiff was a Syrian national living in California as a legal permanent resident and is now a U.S. citizen. She is not and has never been a Kuwaiti national. In 2014, Plaintiff entered into a written employment contract with the Consulate to work as a secretary. Plaintiff alleges that the Consulate created a hostile work environment by harassing, discriminating, and retaliating against her on the basis of her gender, religion, and Syrian national origin, violated various wage and hour laws, and breached her employment contract. Claiming that she was constructively terminated from her employment, she filed suit.The Ninth Circuit affirmed the district court’s denial of the Consulate’s motion to dismiss. The commercial activity exception to the Foreign Sovereign Immunities Act, 28 U.S.C. 1605(a)(2), applied. The employment of diplomatic, civil service, or military personnel is governmental and the employment of other personnel is commercial unless the foreign state shows that the employee’s duties included “powers peculiar to sovereigns.” The district court properly exercised its discretion in finding that Plaintiff, who was employed as an administrative assistant, was not a civil servant and that her duties did not include “powers peculiar to sovereigns.” View "Mohammad v. General Consulate of the State of Kuwait in Los Angeles" on Justia Law

The First Circuit affirmed the order of the district court granting summary judgment in favor of Defendant, his former employer, and dismissing Plaintiff's complaint alleging that Defendant terminated his employment because of his age and because he received a liver transplant, holding that the district court did not err.Plaintiff filed a complaint alleging disability discrimination under the Americans With Disabilities Act (ADA) and age discrimination under the Age Discrimination in Employment Act (ADEA). The district court granted summary judgment for Defendant and dismissed the complaint. The First Circuit affirmed, holding that the evidence on the record did not support either Plaintiff's ADA claim or his ADEA claim. View "Lahens v. AT&T Mobility Puerto Rico, Inc." on Justia Law

The Court of Appeal held that the predominant relationship between a medical resident and a hospital residency program is an employee-employer relationship, and so the rule of academic deference does not apply to the jury's determination whether the resident was terminated for discriminatory or retaliatory reasons. In this case, plaintiff presented credible evidence of gender discrimination and retaliation by SMMC, and there is a reasonable probability that, in the absence of the erroneous jury instruction, she would have obtained a more favorable verdict. Accordingly, the court reversed and remanded for a new trial. View "Khoiny v. Dignity Health" on Justia Law

The Ninth Circuit certified to the Supreme Court of California the following question: Does California’s Fair Employment and Housing Act, which defines “employer” to include “any person acting as an agent of an employer,” Cal. Gov’t Code 12926(d), permit a business entity acting as an agent of an employer to be held directly liable for employment discrimination? View "Raines v. U.S. Healthworks Medical Group" on Justia Law

The Supreme Court dismissed this appeal from the decision of the Labor and Industrial Relations Commission (Commission) reversing the administrative law judge's award and denying Claimant permanent total disability benefits, holding that Claimant's brief preserved nothing for appellate review because it failed to comply with the mandatory and straightforward rules governing the contents of an appellant's briefs.After the Commission denied Claimant's claim, Claimant appealed. The Supreme Court dismissed the appeal, holding that each of Claimant's points on appeal was defective because each point relied on wholly failed to follow the simple template provided in Rule 84.04. View "Lexow v. Boeing Co." on Justia Law

Paschall and Ragland worked as machine operators. During their employment, they experienced what they believed to be instances of sexual and racial harassment. A year after their employment ended, Paschall and Ragland sued their former employer. Paschall alleged that she was subjected to a hostile work environment based on her sex (Title VII of the Civil Rights Act of 1964, 42 U.S.C. 2000e-1-17), and based on her race, (Title VII and 42 U.S.C. 1981). Ragland alleged that he was subjected to a hostile work environment based on his race.The Seventh Circuit affirmed summary judgment in favor of the employer. Paschall and Ragland did not produce sufficient evidence from which a reasonable fact-finder could conclude that they satisfied all the elements of their claims. When a coworker is a harasser, the employer is liable only when the employee shows that the employer was negligent either in discovering or remedying the harassment. Here, the employer was not negligent in discovering or remedying the alleged harassment. View "Paschall v. Tube Processing Corp" on Justia Law

The Ninth Circuit affirmed the district court's order denying transfer under 28 U.S.C. 1404(a) and affirmed the grant of partial summary judgment to DePuy and Plaintiff Waber. Waber was hired by HOC and signed an employment contract with HOC's parent company, Stryker, which included restrictive one-year non-compete clause and forum-selection and choice-of-law clauses requiring adjudication of contract disputes in New Jersey.The panel concluded that, as the actual employer that participated in the proceedings to enforce its parent corporation’s forum-selection clause, HOC has a right to appeal the adverse decision of the district court on that issue. Furthermore, HOC properly became a party to this litigation in the district court case, albeit after the district court denied the motion to transfer. Accordingly, the panel has jurisdiction to hear HOC's appeal under 28 U.S.C. 1201. The panel held that the state law applicable here, Cal. Labor Code 925(b), which grants employees the option to void a forum-selection clause under a limited set of circumstances, determined the threshold question of whether Waber's contract contained a valid forum-selection clause. In this case, Waber satisfied all the prerequisites of section 925 and effectively voided the forum-selection clause under section 925(b). Finally, HOC presents no persuasive reason for the panel to overturn the district court's ruling of partial summary judgment in favor of DePuy and Waber that the forum-selection, non-compete and non-solicitation clauses were void under California law. View "DePuy Synthes Sales, Inc. v. Howmedica Osteonics Corp." on Justia Law