Justia Labor & Employment Law Opinion Summaries

Douglas Waite appealed an Idaho Industrial Commission (“Commission”) decision requiring him to repay unemployment benefits he received, along with interest and penalties. Waite claimed the Commission’s determination that he willfully misstated a material fact for the purpose of obtaining unemployment benefits was not supported by substantial and competent evidence and was incorrect as a matter of law. Additionally, Waite argued the Commission erred when it concluded that Idaho Code section 72-1366(12) required him to repay the unemployment benefits he received. Finding no reversible error, the Idaho Supreme Court affirmed the Commission’s decision and order. View "Waite v. Moto One KTM, LLC" on Justia Law

The Court of Appeal exercised its discretion to construe Western Bagel's appeal as a petition for writ of mandate and granted the petition, directing the trial court to enter a new order compelling the parties to arbitrate their dispute via binding arbitration in accordance with the terms of their arbitration agreement.In this case, the trial court found that the Federal Arbitration Act (FAA) governs the parties' arbitration agreement, concluded that the inconsistency between the Spanish and English severability clauses creates an ambiguity regarding whether the parties consented to binding or nonbinding arbitration, resolved this ambiguity against Western Bagel pursuant to the constructive canon of contra proferentem, and ordered the parties to arbitrate their dispute on a nonbinding basis.Upon reaching the merits of Western Bagel's writ petition, the court concluded that the FAA preempted the trial court's use of contra proferentem. Assuming arguendo there is an ambiguity regarding whether the parties consented to binding or nonbinding arbitration, the court employed the FAA's default rule that any ambiguities about the scope of an arbitration agreement must be resolved in favor of arbitration as envisioned by the FAA, a fundamental attribute of which is a binding arbitral proceeding. View "Western Bagel Co., Inc. v. Superior Court" on Justia Law

Smith worked for PTI, a company that transports railroad crews to and from their workplaces. Believing that her position was misclassified under the Fair Labor Standards Act and that she was not receiving proper overtime wages, she filed a collective action 29 U.S.C. 216(b). Unlike a class action under FRCP 23(b)(3), an FLSA collective action requires group members to affirmatively opt-in to participate. Her suit was within the two-year limitation period. The district court’s docket sheet shows numerous putative group members consenting to opt-in.PTI noted that Smith had not filed anything except her complaint indicating that she herself wished to participate in the group action. The court held that Smith’s group action could not “commence” until such consent was filed, 29 U.S.C. 256, but the limitations periods had run. The court concluded that Smith’s complaint also failed to allege timely individual claims, and dismissed the case. Smith’s appeal concerned only her individual action. The Seventh Circuit vacated. The court erred by refusing to allow Smith to proceed on her individual claims. Read in the light most favorable to Smith, the complaint contained sufficient factual allegations related to her individual claims to put PTI on notice that she intended to sue it both in an individual and a representative capacity. She explicitly stated as much in the caption. View "Smith v. Professional Transportation,Inc." on Justia Law

In 2011, the Borough of Carteret and the Firefighters Mutual Benevolent Association, Local 67 (FMBA) executed a collectively negotiated agreement (CNA) governing the terms and conditions of employment for the Borough’s firefighters. As of 2013, the Borough employed four captains and generally staffed each shift with one captain, who was charged with managing subordinate firefighters also on duty. Under the CNA, if no captains were scheduled to work a particular shift, the senior firefighter on duty would assume the captain’s responsibilities and be compensated at the captain’s rate of pay. Almost two years after the CNA went into effect, the Borough created a new position -- fire lieutenant -- falling between captain and firefighter in the chain of command. After the creation of the lieutenant position, if no captains were scheduled for a given shift, the lieutenant on duty would assume the captain’s responsibilities. In those instances, however, the Borough paid lieutenants their regular salary, not the higher rate an acting captain would have been paid. In 2017, the FMBA filed a grievance alleging that the Borough’s failure to pay lieutenants at the rate of an acting captain when a lieutenant assumed a captain’s responsibilities violated the terms of the CNA. An arbitrator sided with the FMBA. The Chancery Division upheld the award, but the Appellate Division reversed, finding that the difference between the Civil Service Commission’s job descriptions for firefighters and fire lieutenants created uncertainty as to Section 5 of the CNA's application to lieutenants. The New Jersey Supreme Court reversed, finding the arbitrator’s award was supported by a reasonably debatable interpretation of the disputed provision, and therefore, the award should have been upheld on appeal. View "Borough of Carteret v. Firefighters Mutual Benevolent Association, Local 67" on Justia Law

The Supreme Court vacated the order of the compensation court requiring Defendants to modify an existing home or potentially build a unit to meet the accessibility requirements of Allen Michael Lewis, holding that the compensation court's order did not provide a meaningful basis for appellate review.Lewis was injured in the course of his employment with MBC, resulting in the amputation of his left leg. Because of his restrictions, Lewis sought modification of his rental property from MBC and filed a motion to compel that would direct MBC to build the accessible house for his use. The compensation court found that Lewis' proposed house was not reasonable and necessary but directed MBC either to find an existing home to which modifications could be made or, alternatively, to provide housing for Lewis by either building or purchasing an accessible home for him. The Supreme Court vacated the order below, holding (1) the compensation court's order was confusing and the undertakings of each party were unclear; and (2) this case is remanded for the compensation court to enter an order in compliance with Workers' Comp. Ct. R. Of Proc. 11. View "Lewis v. MBC Construction Co." on Justia Law

The plaintiffs, pilot instructors for United Airlines, filed a class action against the Air Line Pilots Association, International (ALPA), their recognized agent for the purpose of collective bargaining, alleging that ALPA had violated its duty of fair representation under the Railway Labor Act, 45 U.S.C. 151, by adopting a retroactive pay provision that discriminated against pilot instructors.The Seventh Circuit affirmed the dismissal of the suit. To establish a violation of the duty of fair representation, the plaintiffs were required to provide evidence from which a jury could conclude that ALPA’s sole motive in adopting the retroactive pay provision was an illicit one. While the record, viewed in the light most favorable to the plaintiffs, could be read to support the proposition that ALPA’s adoption of the formula was motivated in part by animus toward the pilot instructor minority, the question is whether the evidence establishes that ALPA was motivated solely by a desire to discriminate against pilot instructors. There was evidence that some of the motivation for adopting the formula was a desire for a simple formula that could be easily defended. View "Bishop v. Air Line Pilots Association, International" on Justia Law

The Supreme Court held that "regular rate of compensation" under Cal. Lab. Code 226.7(c), like "regular rate of pay" under Cal. Lab. Code 510(a), encompasses all nondiscretionary payments, such that the calculation of premium pay for a noncompliant meal, rest, or recovery period, like the calculation of overtime pay, must account for not only hourly wages but also for nondiscretionary payments for work performed by the employee.Plaintiff, who was employed by Defendant as a bartender, filed a class action suit alleging that Defendant, by omitting nondiscretionary incentive payments from its calculation of premium pay, failed to pay her for noncompliant meal or rest breaks in accordance with her "regular rate of compensation," as required by section 226.7(c). The trial court granted summary adjudication for Defendant, concluding that "regular rate of compensation" in section 226.7(c) is not interchangeable with the term "regular rate of pay" under section 510(a), which governs overtime pay. The court of appeal affirmed. The Supreme Court reversed, holding that the term “regular rate of compensation” in section 226.7(c) has the same meaning as “regular rate of pay” in section 510(a) and therefore encompasses all nondiscretionary payments for work performed by the employee, not just hourly wages. View "Ferra v. Loews Hollywood Hotel, LLC" on Justia Law

The Eighth Circuit affirmed the district court's grant of summary judgment in favor of Cactus Farms in an action brought by plaintiff, alleging a violation of the overtime provisions of the Fair Labor Standards Act (FLSA). The court concluded that the district court did not err in finding that plaintiff was exempt from coverage under the FLSA because he was an agricultural employee. In this case, plaintiff's load assessments were on-the-farm practices "incident to or in conjunction with such farming operations" regardless of whether the assessment was for the transportation of pigs between farms or for their transportation from a farm to processing. View "Bills v. Cactus Family Farms, LLC" on Justia Law

The Supreme Court reversed the judgment of the district court granting a preliminary injunction sought by Best Home Health & Hospice, LLC (Best Home) to prohibit three registered nurses (collectively, the Nurses) who left Best Home's employ and began working for a competing company, from working for Best Home's competitor, holding that the district court abused its discretion.The Nurses in this case quit working for Best Home and went to work for one of Best Home's competitors. Best Home sued them for breach of the non-compete provision in their employment contracts and requested a preliminary injunction to prohibit them from working for its competitors. The district court enjoined the Nurses from working for Best Home's competitors. The Supreme Court reversed, holding (1) Best Home did not show it was likely to succeed in establishing that the non-compete provision was consistent with public policy, and therefore, the district court abused its discretion by enjoining the Nurses from working for Best Home's competitors; and (2) the district court abused its discretion in refusing to allow the Nurses to present evidence on how enforcement of the non-compete provision would harm the public interest. View "Brown v. Best Home Health & Hospice, LLC" on Justia Law

Logan, an African American man, was a Chicago Aviation Security Officer. In 2015, he applied for a promotion. He was not selected but was placed on a “Pre-Qualified Candidates” list for future vacancies. Two sergeant positions became available. Logan was second on the list. The city informed him that a city policy made internal candidates ineligible for promotion if they had been suspended for more than seven days in the previous 12 months. Logan had been suspended for more than seven days in the previous year.Logan alleges that he was wrongfully singled out for discipline. After his suspension, Logan complained about being bullied at work and about “discrimination against black officers.” After he filed a grievance, an arbitrator concluded that while Logan committed misconduct sufficient to warrant discipline, the length of his suspension was excessive. The arbitrator ordered Logan's promotion with back pay and benefits.Logan then filed suit, alleging discrimination on the basis of his race and gender and retaliation under Title VII, 42 U.S.C. 2000e. The Seventh Circuit affirmed summary judgment in favor of the defendants. Other than the fact that Logan is a member of a protected class, there is no evidence from which a reasonable juror could infer that his race caused him to be disciplined. Logan failed to show that his belief that he was opposing an unlawful employment practice was objectively reasonable. View "Logan v. City of Chicago" on Justia Law