Justia Labor & Employment Law Opinion Summaries

Nabors Corporate Services, Inc. (Nabors) performed oil well plug and abandonment work for the City of Long Beach (the City) between 2012 and 2014. The City had contracted with Tidelands Oil Production Company (Tidelands) for services on the Gerald Desmond Bridge Replacement Project, and Tidelands subcontracted the work to Nabors. The City and Tidelands had concluded that the work was not subject to prevailing wage laws, and Nabors was not informed otherwise during the bid process. After completing the work, Nabors faced a class action from its employees for unpaid prevailing wages, which led to arbitration awards and federal court judgments against Nabors.The Superior Court of Los Angeles County sustained demurrers by the City and Tidelands, dismissing Nabors’s claims for indemnity under Labor Code sections 1781 and 1784. The court ruled that section 1784 could not be applied retroactively to Tidelands and that the arbitration awards confirmed by the federal court did not qualify as court decisions under section 1781.The California Court of Appeal, Second Appellate District, Division Five, reviewed the case. The court affirmed the dismissal of the section 1784 claim against Tidelands, agreeing that the statute could not be applied retroactively. However, the court reversed the dismissal of the section 1781 claim against the City, holding that the federal court’s confirmation of arbitration awards did qualify as court decisions classifying the work as public work. The case was remanded with instructions to enter a new order overruling the City’s demurrer to the section 1781 cause of action. Nabors was awarded costs on appeal against the City, while Tidelands was awarded costs on appeal against Nabors. View "Nabors Corporate Services, Inc. v. City of Long Beach" on Justia Law

Prestige Home Care Agency, operated by Nursing Home Care Management Inc., did not compensate its employees for travel time between clients' homes. The U.S. Department of Labor (DOL) sued Prestige for this and other violations of the Fair Labor Standards Act (FLSA). The District Court found Prestige's actions to be willful violations of the FLSA and granted summary judgment in favor of the DOL. Prestige appealed the summary judgment, the exclusion of its expert witness, and the denial of its motion for sanctions against the DOL.The District Court for the Eastern District of Pennsylvania excluded Prestige’s expert witness, denied Prestige’s motion for sanctions, and granted summary judgment for the DOL on all claims. The court found that Prestige willfully violated the FLSA by not compensating for travel time, failing to pay for short breaks, improperly compensating overtime, and not keeping accurate records.The United States Court of Appeals for the Third Circuit reviewed the case. The court held that travel time between job sites during the workday is compensable under the FLSA. It affirmed the District Court’s finding that Prestige violated the FLSA’s recordkeeping requirements and acted willfully in its violations, extending the statute of limitations to three years. The court also upheld the District Court’s calculation of back wages and liquidated damages, finding the DOL’s estimates sufficient given Prestige’s inadequate records.The Third Circuit found no abuse of discretion in the District Court’s exclusion of Prestige’s expert witness, who made several legal errors in his report. The court also upheld the denial of sanctions against the DOL, as the documents in question were already in Prestige’s possession and had little impact on the case. The Third Circuit affirmed the District Court’s judgment in all respects. View "Secretary United States Department of Labor v. Nursing Home Care Management Inc." on Justia Law

A financial advisor, employed by Principal Securities, Inc., was terminated for failing to obtain a second client consent when rebalancing accounts using a new trading system. The advisor argued that the termination report filed by Principal with the Financial Industry Regulatory Authority (FINRA) was misleading and initiated arbitration to seek changes to the report. The arbitrator ruled in favor of the advisor, recommending changes to the termination report to reflect that the advisor's failure was due to a lack of training and that the advisor was encouraged not to resign during the investigation.The Iowa District Court for Polk County vacated the arbitration award, finding it unsupported by substantial evidence. The advisor appealed, and the case was transferred to the Iowa Court of Appeals. A divided panel of the Court of Appeals affirmed the district court's decision, with the majority agreeing that the information provided by Principal was not defamatory or misleading. The dissenting judge believed that substantial evidence supported the arbitration award.The Iowa Supreme Court reviewed the case and applied a highly deferential standard of review. The court concluded that substantial evidence supported the arbitrator's determination that the termination report was misleading and that the recommended changes were justified. The court vacated the decision of the Court of Appeals, reversed the district court's judgment, and remanded the case with instructions to confirm the arbitration award. View "Principal Securities, Inc. v. Gelbman" on Justia Law

Armando Guevara worked as a domestic service employee for Robert and Maria Zamora for over a decade, performing various tasks such as cleaning, car maintenance, and grocery shopping. Occasionally, he also provided services for the Zamoras' businesses, Lafise Corporation and Latin American Financial Services, Inc. (LAFS). Guevara was paid $1,365.88 biweekly, but there was no written employment agreement, and the parties disagreed on whether this amount represented a salary or an hourly wage. The Zamoras claimed they paid him an hourly rate with overtime, while Guevara asserted he was paid a salary without proper overtime compensation.Guevara filed a putative class action against the Zamoras, Lafise, and LAFS for unpaid overtime wages under the Fair Labor Standards Act (FLSA). The United States District Court for the Southern District of Florida granted summary judgment in favor of the defendants, finding that Guevara was not covered by the FLSA through either "enterprise coverage" or "individual coverage." The court also found that Guevara was fully compensated for all his overtime work hours based on the Zamoras' testimony and calculations.The United States Court of Appeals for the Eleventh Circuit reviewed the case and found that the district court erred in granting summary judgment. The appellate court determined that there was a genuine dispute regarding Guevara's regular hourly rate and, therefore, his overtime rate. The court noted that the Zamoras did not maintain accurate records, and the evidence presented created a genuine issue of fact that should be determined by a jury. The appellate court also vacated the district court's ruling on whether Lafise was a joint employer, as the lower court failed to provide sufficient reasoning and did not address the relevant factors. The case was remanded for further proceedings consistent with the appellate court's opinion. View "Guevara v. Lafise Corp." on Justia Law

A national news reporter employed by a prominent newspaper sued her employer and six of its editors in Superior Court, alleging violations of the D.C. Human Rights Act and the common law tort of negligent infliction of emotional distress. She claimed that the defendants discriminated against her based on her status as a sexual assault victim and her gender, took adverse employment actions against her, subjected her to a hostile work environment, and retaliated against her for protesting their discriminatory actions.The defendants moved to dismiss the complaint under Superior Court Civil Rule 12(b)(6) for failure to state a claim and filed a special motion to dismiss under the D.C. Anti-SLAPP Act, arguing that the claims arose from acts in furtherance of the right of advocacy on issues of public interest. The Superior Court denied the special motion to dismiss, finding that the claims did not arise from speech protected by the Anti-SLAPP Act, but granted the Rule 12(b)(6) motion, concluding that the complaint failed to plausibly allege unlawful discrimination or retaliation.The District of Columbia Court of Appeals reviewed the case and affirmed the denial of the special motion to dismiss, agreeing that the Anti-SLAPP Act did not apply. The court reversed the dismissal of the counts alleging adverse action discrimination, finding that the complaint plausibly alleged that the defendants took certain adverse employment actions against the reporter in violation of the Human Rights Act. However, the court affirmed the dismissal of the hostile work environment and retaliation claims, concluding that the allegations did not meet the necessary legal standards. The court also noted that it was premature to decide whether the defendants' actions were protected by the First Amendment, leaving that issue open for further proceedings. View "Sonmez v. WP Company, LLC" on Justia Law

A registered nurse, Alexandra Melino, sued her former employer, Boston Medical Center (BMC), alleging violations of Title VII of the Civil Rights Act and Massachusetts General Laws by denying her request for a religious exemption from BMC's COVID-19 vaccination mandate. Melino's primary duties involved direct patient care in critical units. During the pandemic, BMC converted several units to COVID-19 units and faced significant staffing challenges due to the virus. BMC implemented a vaccination policy based on CDC recommendations to mitigate the risk of COVID-19 transmission among staff and patients.The United States District Court for the District of Massachusetts granted summary judgment to BMC, holding that Melino's requested exemption would impose undue hardship on the hospital. The court found that Melino could not work remotely, could not work in-person unvaccinated without risking patient safety, and that any feasible accommodation would impose substantial costs on BMC. Melino's motion to strike portions of an affidavit submitted by BMC was also denied due to her failure to comply with local procedural rules.The United States Court of Appeals for the First Circuit reviewed the case de novo. The court affirmed the district court's decision, agreeing that BMC had demonstrated undue hardship by showing that allowing Melino to work unvaccinated would increase the risk of COVID-19 transmission. The court noted that Melino did not provide any medical evidence to contradict BMC's reliance on CDC recommendations. Additionally, Melino's argument that BMC should have considered alternative accommodations was waived as it was not raised in the lower court. The court upheld the district court's rulings, affirming the grant of summary judgment in favor of BMC. View "Melino v. Boston Medical Center" on Justia Law

Dr. Jabeen N. Abutalib, a physician with the Veterans Health Administration (VHA), sought corrective action from the Merit Systems Protection Board (MSPB) for alleged retaliatory personnel actions following her Equal Employment Opportunity (EEO) complaint. Dr. Abutalib claimed that her EEO complaint, which was settled in January 2020, led to adverse actions including a reduction in pay and reassignment. She filed a whistleblower complaint with the Office of Special Counsel (OSC) and subsequently appealed to the MSPB.The MSPB dismissed Dr. Abutalib’s appeal for lack of jurisdiction, stating that she failed to make a nonfrivolous showing of whistleblowing or other protected activity. The administrative judge noted that as a VHA physician, Dr. Abutalib could not appeal adverse agency actions under chapter 75 of title 5. Additionally, the judge found that her claims of retaliation for filing an EEO complaint did not constitute whistleblowing under 5 U.S.C. § 2302(b)(8) or protected activity under § 2302(b)(9)(A)(i).The United States Court of Appeals for the Federal Circuit reviewed the case and affirmed the MSPB’s decision. The court held that Dr. Abutalib did not present her argument regarding the settlement agreement as evidence of whistleblowing to the administrative judge, and thus could not raise it for the first time on appeal. Furthermore, the court found that the matters addressed in the settlement agreement were not the subjects of her OSC complaint, indicating a failure to exhaust administrative remedies. The court concluded that Dr. Abutalib did not make a nonfrivolous showing of a qualifying whistleblowing disclosure and upheld the MSPB’s dismissal of her appeal. View "ABUTALIB v. MSPB " on Justia Law

Caroline Retzios was terminated by Epic Systems Corporation after she refused to be vaccinated against COVID-19, citing religious objections. She filed a lawsuit under Title VII of the Civil Rights Act of 1964, claiming that Epic was required to accommodate her religious beliefs. Epic requested the district court to compel arbitration based on an agreement Retzios had signed, which the court granted, subsequently dismissing the suit.The United States District Court for the Northern District of Illinois dismissed the case after referring it to arbitration, despite Epic's request for a stay. According to the Federal Arbitration Act, a stay should have been issued instead of a dismissal when arbitration is requested. This dismissal allowed Retzios to appeal the decision.The United States Court of Appeals for the Seventh Circuit reviewed the case and determined that the district court erred in dismissing the suit instead of staying it. However, the appellate court proceeded with the case due to the district court's actions. The appellate court found that Retzios's claims fell within the scope of the arbitration agreement she had signed with Epic. The court rejected Retzios's arguments against the enforceability of the arbitration agreement, including her claims of promissory estoppel and waiver. The court also found her objections to arbitration to be frivolous and granted Epic's motion for sanctions, directing Retzios to reimburse Epic for its legal expenses incurred on appeal. The decision of the district court was affirmed, with sanctions imposed on Retzios. View "Retzios v Epic Systems Corp." on Justia Law

Rodney Martin worked for B.F. Goodrich Company from 1966 to 2012 and was exposed to vinyl chloride monomer until 1974. He was diagnosed with angiosarcoma of the liver in December 2019 and died in July 2020. His widow, Candice Martin, filed a civil action in November 2021, alleging that Rodney’s occupational exposure caused his illness and death. She invoked the exception in section 1.1 of the Workers’ Occupational Diseases Act to avoid its exclusivity provisions.PolyOne filed a motion to dismiss for lack of personal jurisdiction, and Goodrich filed a motion to dismiss under the exclusivity provisions, arguing that section 1.1 did not apply and that using it would infringe on their due process rights. The district court denied these motions and certified two questions for interlocutory appeal to the United States Court of Appeals for the Seventh Circuit, which then certified three related questions to the Illinois Supreme Court.The Illinois Supreme Court reviewed the case and answered the certified questions. The court held that section 1(f) of the Workers’ Occupational Diseases Act is a period of repose for purposes of section 1.1. The court also determined that section 1.1 applies prospectively under section 4 of the Statute on Statutes, meaning it applies to new actions filed after the amendment was enacted. Finally, the court found that applying section 1.1 prospectively does not violate Illinois’s due process guarantee, as defendants did not have a vested right in an exclusivity defense before the employee’s injury was discovered. View "Martin v. Goodrich Corp." on Justia Law

The plaintiffs, Carmen Mercado and Jorge Lopez, filed a class action complaint against their former employer, S&C Electric Company, in the circuit court of Cook County. They alleged that S&C underpaid their overtime wages by excluding certain performance bonuses from the "regular rate" of pay used to calculate overtime. S&C argued that the bonuses were statutorily excluded from the regular rate of pay and that they had made adjusted payments to cover any alleged unpaid wages.The circuit court granted S&C's motion to dismiss the complaint with prejudice, finding that the adjusted payments satisfied the alleged underpayment. The appellate court affirmed the circuit court's judgment, agreeing that the bonuses were properly excluded from the regular rate of pay and that the adjusted payments fully compensated the plaintiffs.The Supreme Court of Illinois reviewed the case and reversed the lower courts' judgments. The court held that the performance bonuses should have been included in the regular rate of pay for calculating overtime wages. The court found that the bonuses were not gifts but compensation for services performed, and thus did not fall under the exclusion in section 210.410(a) of the regulations. Additionally, the court held that the adjusted payments did not fully compensate the plaintiffs for their statutory damages, including treble damages, monthly interest, and attorney fees, as required by section 12(a) of the Minimum Wage Law.The Supreme Court of Illinois remanded the case to the circuit court for further proceedings consistent with its opinion. View "Mercado v. S&C Electric Co." on Justia Law