Justia Labor & Employment Law Opinion Summaries

A group of building engineers and craftsmen represented by a union worked at several stores operated by a large retail company. After the company and the union failed to reach agreement on a new collective bargaining agreement, the union members voted to reject the company’s final offer and began a strike. The company’s final offer expired, and after three months on strike, the union ended the strike and made an unconditional offer for its members to return to work. The company then locked out the union members who reported for work, stating it would not reinstate them until a new agreement was in place. The union filed a charge with the National Labor Relations Board (NLRB), alleging that the lockout was an unfair labor practice.An Administrative Law Judge (ALJ) held a hearing and found that the company violated Sections 8(a)(1) and (3) of the National Labor Relations Act by locking out employees without providing a timely, clear, and complete offer setting forth the conditions necessary to avoid the lockout. The ALJ recommended reinstatement and make-whole relief for affected employees. The NLRB adopted the ALJ’s findings, modifying the remedy to include compensation for any direct or foreseeable pecuniary harms resulting from the lockout.The United States Court of Appeals for the Ninth Circuit reviewed petitions from both the union and the company, as well as the NLRB’s application for enforcement. The court held that it had jurisdiction, found substantial evidence supporting the NLRB’s conclusion that the lockout was unlawful, and determined that the NLRB did not abuse its discretion in fashioning remedies. The court enforced the NLRB’s order, holding that the company’s lockout violated the Act because employees were not clearly and fully informed of the conditions for reinstatement, and that the NLRB’s make-whole relief, as ordered, was within its authority. The court denied both the union’s and the company’s petitions for review and granted enforcement of the NLRB’s order. View "MACY'S INC. V. NATIONAL LABOR RELATIONS BOARD" on Justia Law

A former employee of an Oklahoma-based aviation training company alleged that his one-year employment contract was not renewed because he is a disabled veteran and because he complained to human resources about his supervisor’s disparaging comments regarding his disability. The employee, a Marine veteran with a high VA disability rating, worked as a Loadmaster Instructor in Kuwait. During his tenure, he disclosed his disability status for affirmative action purposes and later informed his supervisor and a co-worker when his rating increased. After this disclosure, his supervisor made inappropriate remarks about the disability system and the employee’s status, which led to a complaint and a subsequent reprimand of the supervisor. The employee’s FAA flight certificate expired shortly before his contract ended, and he received a negative performance appraisal from his immediate supervisor. The company’s higher management, who were responsible for contract renewal decisions, cited subpar job performance and the lapse of the flight certificate as reasons for not renewing the contract.The United States District Court for the Western District of Oklahoma granted summary judgment to the employer on all claims. The court found that the employee failed to present sufficient evidence that the stated reasons for non-renewal were pretextual under the Americans with Disabilities Act (ADA) or that the decision was motivated by discriminatory or retaliatory animus. The court also held that the Uniformed Services Employment and Reemployment Rights Act (USERRA) does not protect against discrimination based solely on disability status, but rather on military service itself.On appeal, the United States Court of Appeals for the Tenth Circuit affirmed the district court’s decision. The appellate court held that the employee did not create a triable issue of fact under the “cat’s paw” theory linking a supervisor’s alleged bias to the ultimate decisionmakers. The court also confirmed that USERRA does not extend to claims of discrimination based solely on disability status. View "Sellman v. Aviation Training Consulting" on Justia Law

The plaintiff, who worked for a bank that operated a branch inside a public high school, was terminated from her employment after she publicly criticized the local school district’s mask mandate on social media and at school events. The bank’s operation at the school was part of a partnership in which the bank provided funds and services to the school district. The plaintiff’s children attended schools in the district, and she was active in school-related activities. After a series of confrontations and a critical Facebook post about a school board member, the school superintendent communicated with the bank’s branch manager, expressing disapproval of the plaintiff’s conduct and requesting that she be barred from school property. The bank subsequently suspended and then fired the plaintiff, citing her conduct and the school’s ban.The United States District Court for the District of Minnesota granted summary judgment to all defendants, finding that the plaintiff’s First Amendment rights were not violated and that there was insufficient evidence of a conspiracy or tortious interference. The court applied the Pickering balancing test, treating the plaintiff as a government contractor, and found no actionable retaliation. It also found no evidence of a meeting of the minds between the bank and the school district, and held that the superintendent and other officials were entitled to qualified immunity.The United States Court of Appeals for the Eighth Circuit reversed in part and affirmed in part. The court held that the plaintiff was not a government employee or contractor for First Amendment purposes and was entitled to ordinary citizen protections. It found that there was sufficient evidence for a jury to decide whether the superintendent, the bank, and the branch manager retaliated against the plaintiff for protected speech, and whether the superintendent tortiously interfered with her employment. However, the court affirmed summary judgment for the school board chair and the school district, finding insufficient evidence of their direct involvement or policy liability. The case was remanded for further proceedings. View "McNeally v. HomeTown Bank" on Justia Law

Felicia Scroggins, a pro se plaintiff, brought claims against the City of Shreveport alleging race and sex discrimination, as well as retaliation, under Title VII. Her allegations included being incorrectly reprimanded for a safety incident, being compelled to undergo a fit-for-duty evaluation, and being disciplined for backing a fire engine into a fence. She also challenged the fairness of the bidding procedures for job assignments, claiming they were applied to her in a discriminatory manner.The United States District Court for the Western District of Louisiana reviewed the case. After Scroggins’s counsel withdrew, the district court granted her several extensions to find new counsel before ruling on the City’s motion for summary judgment. Ultimately, the district court granted summary judgment in favor of the City, finding that Scroggins failed to produce competent summary judgment evidence of pretext for her retaliation claims and that, although she established a prima facie case of discrimination, the City provided legitimate, nondiscriminatory reasons for its actions which she did not rebut.On appeal, the United States Court of Appeals for the Fifth Circuit considered Scroggins’s arguments that the district court erred by granting summary judgment before she could secure new counsel and by inadequately analyzing her claims under the McDonnell Douglas framework. The Fifth Circuit held that Scroggins forfeited her arguments by failing to cite relevant authority and failing to point to evidence in the record to support her claims. The court also found that the district court properly assumed adverse employment actions for purposes of the retaliation claims and correctly applied the McDonnell Douglas test to both discrimination and retaliation claims. The Fifth Circuit affirmed the district court’s grant of summary judgment in favor of the City. View "Scroggins v. City of Shreveport" on Justia Law

A former correctional officer with the Michigan Department of Corrections was terminated after a coworker accused him of making harassing and inappropriate comments. The officer, after being served with a misconduct charge and attending a disciplinary conference with his union representative, was formally terminated in July 2019. He challenged his termination through arbitration, which concluded in December 2020 with a decision upholding his dismissal. Nearly three years later, he filed a federal lawsuit against two department officials, alleging violations of his constitutional rights under 42 U.S.C. § 1983, specifically focusing on procedural due process.The United States District Court for the Western District of Michigan initially dismissed the officer’s first complaint without prejudice for lack of prosecution after he failed to respond to a motion to dismiss. When he refiled a similar complaint, the district court dismissed it again, this time on the grounds that the claim was untimely under Michigan’s three-year statute of limitations for personal injury actions and that, except for his procedural due process claim, he had forfeited his other constitutional arguments. The court also found that his procedural due process claim failed to state a claim upon which relief could be granted.On appeal, the United States Court of Appeals for the Sixth Circuit reviewed the dismissal de novo. The court held that the officer’s procedural due process claim accrued, at the latest, on the date of his post-termination arbitration hearing in December 2020, making his June 2024 complaint untimely. The court further held that Michigan law does not permit equitable tolling of the statute of limitations in this context and that the officer failed to plausibly allege inadequate process either before or after his termination. The Sixth Circuit affirmed the district court’s dismissal. View "Bozzo v. Nanasy" on Justia Law

Joseph Simone worked as a Transportation Security Officer (TSO) for the Transportation Security Administration (TSA) at Fort Lauderdale-Hollywood International Airport. He disclosed a heart condition when hired, which did not generally affect his job performance. In 2014, TSA determined Simone was no longer medically qualified and placed him on administrative leave, eventually removing him from federal service in 2015. Simone filed an administrative complaint alleging discrimination and retaliation under the Rehabilitation Act, which was denied by an Equal Employment Opportunity Commission administrative law judge and later on appeal. He then brought suit in federal district court against the Secretary of Homeland Security, asserting four claims under the Rehabilitation Act: disability discrimination, failure to accommodate, retaliation, and unlawful interference.The United States District Court for the Southern District of Florida granted the Secretary’s motion to dismiss. The court relied on the Eleventh Circuit’s prior decision in Castro v. Secretary of Homeland Security, which held that the Aviation and Transportation Security Act (ATSA) exempted TSA from the requirements of the Rehabilitation Act regarding the hiring of security screeners. The district court concluded that ATSA precluded Simone’s claims and rejected his argument that the Whistleblower Protection Enhancement Act (WPEA), enacted in 2012, abrogated Castro and allowed Rehabilitation Act claims against TSA.On appeal, the United States Court of Appeals for the Eleventh Circuit held that the WPEA abrogated Castro and extended Rehabilitation Act protections to TSA security screeners. The court found that the WPEA’s statutory language superseded ATSA’s exemption and allowed TSOs to bring claims under the Rehabilitation Act. The Eleventh Circuit vacated the district court’s dismissal and remanded the case for further proceedings to determine whether Simone satisfied administrative requirements to bring his claims. View "Simone v. Secretary of Homeland Security" on Justia Law

A company that provides employee management services hired an employee in California in September 2021. At the start of her employment, she completed onboarding documents that did not mention arbitration. About five months later, she was asked to sign additional documents, including an arbitration agreement, a voluntary dispute resolution policy, and a confidentiality and non-disclosure agreement (CND). The arbitration agreement required most employment-related disputes to be resolved through binding arbitration, with certain exceptions for claims related to confidential information. The CND allowed the company to bring certain claims in court and permitted the company to seek injunctive relief without posting a bond or proving actual damages. The employee later filed a lawsuit alleging various employment law violations.The Solano County Superior Court reviewed the company’s motion to compel arbitration. The company argued that the arbitration agreement was enforceable and, if any provision was found unenforceable, it should be severed. The employee opposed, arguing the agreement was unconscionable due to the manner in which it was presented and its one-sided terms. The trial court found the arbitration agreement to be both procedurally and substantively unconscionable, particularly because it forced the employee’s claims into arbitration while allowing the company’s likely claims to proceed in court, and because of a confidentiality provision that restricted informal discovery. The court denied the motion to compel arbitration and declined to sever the offending provisions, finding the agreement permeated by unconscionability.The California Court of Appeal, First Appellate District, Division Three, affirmed the trial court’s order. The appellate court held that the arbitration agreement and the CND, read together, were unconscionable due to lack of mutuality and an overly broad confidentiality provision. The court also found no abuse of discretion in the trial court’s refusal to sever the unconscionable terms and concluded that any error in denying a statement of decision was harmless. View "Gurganus v. IGS Solutions LLC" on Justia Law

A restaurant and bar in Pennsylvania employed bartenders and servers who participated in a tip pool, which was allegedly distributed in part to a salaried manager, contrary to federal and state wage laws. An employee who worked there from September 2021 to December 2022 filed suit in the United States District Court for the Eastern District of Pennsylvania, alleging violations of the Fair Labor Standards Act (FLSA) and the Pennsylvania Minimum Wage Act (PMWA). The claims centered on the manager’s alleged receipt of tip-pool funds intended for bartenders. The plaintiff sought damages and styled the case as a hybrid action: an FLSA collective action under § 216(b) and a Rule 23(b)(3) class action for the state law claim.The parties stipulated to conditional certification of an FLSA collective, and notice was sent to potential members, ten of whom opted in. After discovery, the parties reached a settlement agreement, proposing a Rule 23(b)(3) class settlement that would release wage-and-hour claims, including unasserted FLSA claims, for all class members who did not opt out. The District Court held a hearing focused on whether class members who had not opted into the FLSA collective could be required to release FLSA claims through the class settlement. The District Court denied preliminary approval, reasoning that § 216(b) prohibited such releases, and denied reconsideration, certifying the legal question for interlocutory appeal.The United States Court of Appeals for the Third Circuit reviewed the certified question de novo. It held that § 216(b) of the FLSA establishes only the mechanism for litigating FLSA claims, not the conditions for waiving them, and does not prohibit the release of unasserted FLSA claims in a Rule 23(b)(3) opt-out class settlement. The Court vacated the District Court’s order and remanded for a full fairness inquiry under Rule 23. View "Lundeen v. 10 West Ferry Street Operations LLC" on Justia Law

After Hurricane Harvey, three licensed insurance adjusters were assigned by an outsourcing company to process claims for a Texas state-created insurer. The adjusters were required to complete additional certification and follow specific procedures set by the insurer. Their contracts labeled them as independent contractors, but the assignments lasted between one and a half to two years, during which they worked exclusively for the insurer. The company set their work schedules, required timesheets, and provided necessary equipment, though the adjusters were responsible for some personal and professional expenses. A shift to remote work introduced new monitoring policies, but the company maintained control over work hours and approval for overtime.The United States District Court for the Southern District of Alabama reviewed cross-motions for summary judgment. Applying a six-factor test to determine employment status under the Fair Labor Standards Act (FLSA), the court found that four factors favored independent contractor status and two favored employee status, with one of the latter given little weight. The district court granted summary judgment to the defendants, concluding the adjusters were independent contractors and thus not entitled to FLSA overtime protections.The United States Court of Appeals for the Eleventh Circuit reviewed the case de novo. The appellate court found that, when viewing the facts in the light most favorable to the adjusters, five of the six factors favored employee status. The court held that a reasonable jury could find the adjusters were employees under the FLSA, as they were economically dependent on the companies, had little control over their work, and their services were integral to the business. The Eleventh Circuit reversed the district court’s summary judgment and remanded the case for further proceedings. View "Galarza v. One Call Claims, LLC" on Justia Law

A flight attendant employed by an airline and represented by a labor union was terminated after sending graphic anti-abortion images and messages to the union president and posting similar content on social media. The employee, a pro-life Christian and vocal opponent of the union, had previously resigned her union membership but remained subject to union fees. The union’s leadership had participated in the Women’s March, which the employee viewed as union-sponsored support for abortion, prompting her messages. The airline investigated and concluded that while some content was offensive, only certain images violated company policy. The employee was terminated for violating social media, bullying, and harassment policies.Following termination, the employee filed a grievance, which the union represented. The airline offered reinstatement contingent on a last-chance agreement, which the employee declined, leading to arbitration. The arbitrator found just cause for termination. The employee then sued both the airline and the union in the United States District Court for the Northern District of Texas, alleging violations of Title VII and the Railway Labor Act (RLA), among other claims. The district court dismissed some claims, allowed others to proceed, and after a jury trial, found in favor of the employee on several Title VII and RLA claims. The court awarded reinstatement, backpay, and issued a broad permanent injunction against the airline and union, later holding the airline in contempt for its compliance with the judgment.On appeal, the United States Court of Appeals for the Fifth Circuit reversed the judgment for the employee on her belief-based Title VII and RLA retaliation claims against the airline, remanding with instructions to enter judgment for the airline on those claims. The court affirmed the judgment against the airline on practice-based Title VII claims and affirmed all claims against the union. The court vacated the permanent injunction and contempt sanction, remanding for further proceedings, and granted the employee’s motion to remand appellate attorney’s fees to the district court. View "Carter v. Transport Workers Union of America Local 556" on Justia Law