Justia Labor & Employment Law Opinion Summaries

Deborah Hemstead filed a workers' compensation claim against her employer, United Indian Health Services, Inc. (United Indian). United Indian argued that it was entitled to tribal sovereign immunity and thus not subject to the state workers' compensation system. The administrative law judge (ALJ) rejected this claim, applying the five-factor "arm of the tribe" test from People v. Miami Nation Enterprises, and found that United Indian did not qualify for sovereign immunity. The ALJ's decision was based on factors such as United Indian's creation under state law, lack of explicit tribal intent to share immunity, and the financial relationship between United Indian and the tribes.The Workers' Compensation Appeals Board (Board) denied United Indian's request for reconsideration, adopting the ALJ's findings. The Board found no abuse of discretion in the ALJ's rejection of United Indian's claim of sovereign immunity.The California Court of Appeal, First Appellate District, Division Five, reviewed the case de novo. The court concluded that the Board and ALJ erred in denying sovereign immunity to United Indian. The court found that United Indian's method of creation, purpose, tribal control, and financial relationship with the tribes all weighed in favor of granting sovereign immunity. The court noted that United Indian was created by several tribes to provide healthcare services under the Indian Self-Determination and Education Assistance Act, which promotes tribal self-governance and self-sufficiency. The court held that United Indian is entitled to sovereign immunity and reversed the Board's decision, remanding the matter for further proceedings consistent with this opinion. View "United Indian Health etc. v. Workers' Comp. Appeals Bd." on Justia Law

Plaintiff, Ann Gima, was employed by the City and County of Honolulu's Department of Budget and Fiscal Services (BFS) for over twenty years. After being promoted to Real Property Technical Officer (RPTO) in 2012, Gima alleged that her supervisor, Robert Magota, began verbally harassing her, leading to her diagnosis of major depressive disorder and anxiety disorder. Gima was placed on workers' compensation leave intermittently from 2014 to 2018. In November 2017, she requested a reasonable accommodation to work under a different supervisor, which was denied. Magota retired in December 2017, and Gima returned to work in February 2018 under a new supervisor, Steven Takara. Shortly after, she received a substandard performance evaluation and was demoted.Gima filed claims with the Hawai‘i Civil Rights Commission (HCRC) for disability discrimination and retaliation and subsequently filed a lawsuit in the Circuit Court of the First Circuit. The circuit court granted summary judgment in favor of the City, concluding that Gima failed to establish a prima facie case of disability discrimination or retaliation and that her request for an alternate supervisor was unreasonable as a matter of law.The Supreme Court of the State of Hawai‘i reviewed the case. The court held that Gima established a prima facie case of disability discrimination, as she demonstrated she had a disability, was qualified for her position, and was demoted because of her disability. The court found a genuine issue of material fact regarding whether the City’s reasons for her negative evaluation and demotion were pretextual. The court also held that Gima’s request for an alternate supervisor was not unreasonable as a matter of law and that there was a genuine issue of material fact as to whether the City could have assigned her a different supervisor.However, the court concluded that the City engaged in an interactive process to accommodate Gima by offering her a position in another department, which she declined after Magota retired. The court also found that Gima established a prima facie case of retaliation, as she engaged in protected activities, suffered adverse employment actions, and demonstrated a causal connection between the two. The court affirmed in part and vacated in part the circuit court’s order, remanding the case for further proceedings. View "Gima v. City and County of Honolulu" on Justia Law

Employees of United Airlines, including pilots, flight attendants, and other staff, challenged the company's COVID-19 vaccination mandate and masking requirement issued in 2021. United required employees to either get vaccinated or apply for religious or medical exemptions by specific deadlines. Plaintiffs alleged that despite submitting or attempting to submit exemption requests, they were either fired, placed on unpaid leave, or subjected to a hostile work environment.The United States District Court for the Northern District of Illinois dismissed the plaintiffs' claims with prejudice, finding that they had not stated any viable claim for relief despite having sufficient opportunities to do so. The court addressed each of the plaintiffs' twelve claims, noting that many were forfeited due to the plaintiffs' failure to respond to substantive arguments. The court also found deficiencies in the proposed amended complaints and ultimately dismissed the action with prejudice after determining that further amendments would be futile.The United States Court of Appeals for the Seventh Circuit reviewed the case and affirmed the district court's decision. The appellate court agreed that the plaintiffs' claims were either improperly preserved or inadequately pled. The court found that the plaintiffs had forfeited their FDCA, invasion of privacy, and negligence claims by failing to address the district court's findings of forfeiture. The court also upheld the dismissal of the Illinois Whistleblower Act claim, as the plaintiffs did not show how receiving a COVID-19 vaccine would violate federal regulations. Additionally, the court affirmed the dismissal of the Title VII claims due to the plaintiffs' failure to obtain right-to-sue letters from the EEOC, which is a prerequisite for such lawsuits. The appellate court concluded that the district court did not err in denying further opportunities to amend the complaint. View "Anderson v. United Airlines" on Justia Law

Jessica Hines, a dancer, sued National Entertainment Group, LLC (NEG), an adult entertainment club, for failing to properly compensate its employees under various federal and state laws, including the Fair Labor Standards Act and Ohio wage laws. Hines had signed three separate Lease Agreement Waivers with NEG, each containing an arbitration provision. NEG moved to dismiss the suit or stay the proceedings pending arbitration, arguing that Hines had agreed to arbitrate any disputes.The United States District Court for the Southern District of Ohio denied NEG’s motion to dismiss, finding that Hines had plausibly alleged sufficient facts to support standing. The court also denied NEG’s motion to stay the proceedings pending arbitration, concluding that the arbitration provision was both procedurally and substantively unconscionable, and thus unenforceable.The United States Court of Appeals for the Sixth Circuit reviewed the case and vacated the district court’s denial of NEG’s motion to stay. The appellate court held that the arbitration provision was neither procedurally nor substantively unconscionable. The court found that Hines had reasonable opportunity to understand the plain terms of the arbitration clause, which were not hidden in fine print. The court also determined that the arbitration agreement was supported by adequate consideration and that any inconvenience or potential inconsistency caused by separate actions was not a legitimate basis for overriding the arbitration agreement.The Sixth Circuit remanded the case for the district court to consider the remaining factors under Stout v. J.D. Byrider, which include whether the claims fall within the scope of the arbitration agreement, whether Congress intended the federal claims to be arbitrable, and whether to stay the case pending arbitration if some but not all claims are subject to arbitration. View "Hines v. National Entertainment Group" on Justia Law

Nakul Karkare, a surgeon affiliated with AA Medical, P.C., brought an action against the International Association of Bridge, Structural, Ornamental & Reinforcing Iron Workers Local 580 (the Union) to recover unpaid benefits under section 502(a)(1)(B) of the Employee Retirement Income Security Act of 1974 (ERISA). Karkare, holding a power of attorney for Patient JN, claimed the Union failed to fully reimburse AA Medical for surgical services provided to Patient JN, a beneficiary under the Union’s self-funded insurance plan. The Union reimbursed only $1,095.92 of the $153,579.94 billed by AA Medical.The United States District Court for the Eastern District of New York dismissed the complaint sua sponte, concluding that a power of attorney did not permit Karkare to maintain an ERISA cause of action on behalf of Patient JN, as it was distinct from an assignment of claim. Karkare did not provide proof of a valid assignment but argued that the power of attorney was sufficient. The district court disagreed and dismissed the complaint, later denying Karkare’s motion for reconsideration.The United States Court of Appeals for the Second Circuit reviewed the case and concluded that Karkare lacked standing under Article III of the United States Constitution to bring the action. The court determined that Karkare was suing in his own name and not on behalf of Patient JN, despite holding a power of attorney. The court held that a power of attorney does not confer Article III standing to file suit in the attorney-in-fact’s own name. However, the court remanded the case to the district court to consider whether Patient JN should be permitted to be substituted into the action pursuant to Federal Rule of Civil Procedure 17. The judgment was affirmed in part, vacated in part, and remanded for further proceedings. View "Karkare v. International Ass'n of Bridge, Structural, Ornamental & Reinforcing" on Justia Law

Caitlin Workman, a maintenance trainee at a coal mine, was injured on November 8, 2021, when a chain under tension snapped and struck her right upper extremity. She was diagnosed with a right shoulder contusion and back laceration. Following the injury, she experienced increased pain, weakness in her right arm, grip strength deficit, and a noticeable tremor. Despite conflicting medical evidence, the claim administrator determined that she had reached maximum medical improvement (MMI) and suspended her temporary total disability (TTD) benefits. The Workers’ Compensation Board of Review affirmed this decision.The Intermediate Court of Appeals (ICA) also affirmed the Board’s decision, concluding that the Board was not clearly wrong in finding that Ms. Workman had reached MMI and that her continuing symptoms were unrelated to the compensable injury. The ICA relied on the opinion of Dr. Mukkamala, who conducted an independent medical evaluation and found no need for further diagnostic studies or treatment.The Supreme Court of Appeals of West Virginia reviewed the case and found that the Board failed to properly weigh the medical evidence as required by West Virginia Code § 23-4-1g(a). The Court noted that the Board did not adequately explain why it favored Dr. Mukkamala’s opinion over the medical evidence provided by Ms. Workman’s treating physicians, who indicated that her symptoms were related to the compensable injury and that she had not reached MMI. The Court also found that the Board’s conclusion that Ms. Workman’s symptoms were unrelated to the compensable injury was clearly wrong.The Supreme Court of Appeals reversed the ICA’s decision and remanded the case to the Board of Review with directions to award Ms. Workman TTD benefits from November 9, 2021, through April 9, 2022, and to authorize additional testing and treatment as supported by proper medical evidence. View "Workman v. ACNR Resources, Inc." on Justia Law

Monroe Operations, LLC, doing business as Newport Healthcare, hired Karla Velarde as a care coordinator and required her to sign an arbitration agreement as a condition of employment. Velarde was later terminated and filed a lawsuit alleging discrimination, retaliation, and violation of whistleblower protections. Newport Healthcare and its director of residential services, Amanda Seymour, filed a motion to compel arbitration, which the trial court denied. The court found that Velarde was pressured to sign the agreement, which she did not want to do, and that the agreement unlawfully prohibited her from seeking judicial review of an arbitration award.The Superior Court of Orange County ruled that the arbitration agreement was procedurally unconscionable because it was presented as an adhesive contract buried among 31 documents that Velarde had to sign quickly while an HR manager waited. Additionally, Newport Healthcare's HR manager made false representations about the nature and terms of the agreement, which contradicted the written terms, rendering the agreement substantively unconscionable. The court denied the motion to compel arbitration based on these findings.The California Court of Appeal, Fourth Appellate District, Division Three, reviewed the case and affirmed the trial court's decision. The appellate court found ample evidence of procedural unconscionability due to the pressure and misrepresentations made by Newport Healthcare. The court also found substantive unconscionability because the agreement did not conform to Velarde's reasonable expectations and placed her in a disadvantageous position. The appellate court concluded that the arbitration agreement was unenforceable and affirmed the order denying the motion to compel arbitration. View "Velarde v. Monroe Operations, LLC" on Justia Law

A custodian for a city police department sued the city and some of its employees, claiming she experienced sexual harassment and retaliation in violation of the Iowa Civil Rights Act (ICRA). The custodian alleged that a deputy chief made her uncomfortable with his behavior and comments, and that after she reported this, she faced retaliation from her administrative manager, who threatened her and her coworkers.The Iowa District Court for Linn County denied the defendants' motions for summary judgment on the custodian's claims of sexual harassment and retaliation, except for the claim of constructive discharge. The defendants then sought interlocutory review.The Iowa Supreme Court reviewed the case and found that the alleged harassment by the deputy chief was not sufficiently severe or pervasive to support an ICRA claim. The court also determined that the alleged acts of retaliation by the administrative manager did not amount to a materially adverse action as required for an ICRA claim. Consequently, the court reversed the district court's decision and remanded the case for dismissal of the custodian's claims. View "Rheeder v. Gray" on Justia Law

Richard Mooney sued his former employer, Roller Bearing Company of America (RBC), alleging violations of the Family and Medical Leave Act (FMLA) and the Washington Family and Medical Leave Act (WFMLA). Mooney claimed his termination was due to his age, depression, and decision to take leave under the FMLA, while RBC argued it was due to a reduction in force in response to the COVID-19 pandemic. Mooney filed the lawsuit in King County Superior Court, and RBC removed the case to federal court under federal question and diversity jurisdiction. The jury found RBC liable and awarded Mooney $160,000 in damages.The United States District Court for the Western District of Washington calculated prejudgment interest based on a fluctuating federal rate. Mooney appealed, arguing that the higher state rate should have applied. The district court concluded it had discretion to select the appropriate rate and chose the federal rate, finding it the most accurate way to compensate Mooney for the lost use of his wages.The United States Court of Appeals for the Ninth Circuit reviewed the case. The court held that when a judgment is based equally on both state and federal claims, the district court has discretion to select a proper prejudgment interest rate. The Ninth Circuit affirmed the district court's decision, agreeing that the fluctuating federal rate was appropriate given the circumstances, including Mooney's litigation strategy and the combined nature of the state and federal claims. The court found no error in the district court's application of the federal rate and affirmed the judgment. View "Mooney v. Roller Bearing Company of America" on Justia Law

Martin Misjuns, a Fire Captain and paramedic with the Lynchburg Fire Department, was terminated after posting offensive social media content targeting transgender individuals. Misjuns alleged that his termination was due to his political and religious views, which he expressed on his Facebook pages. He claimed that the City of Lynchburg and its officials conspired to violate his constitutional rights, leading to his firing.The United States District Court for the Western District of Virginia dismissed all of Misjuns' claims. The court found that the claims against the individual defendants in their official capacities were duplicative and dismissed them. The court also dismissed Misjuns' breach of contract, equal protection, conspiracy, and wrongful termination claims. The court partially dismissed his First Amendment claims but later dismissed them entirely.The United States Court of Appeals for the Fourth Circuit reviewed the case. The court affirmed the district court's dismissal of Misjuns' claims. The court held that Misjuns failed to establish Monell liability against the City of Lynchburg, as he did not adequately plead that a policy or custom caused the alleged constitutional violations. The court also found that the City's Employment Policies & Procedures handbook did not constitute a binding contract, thus dismissing the breach of contract claim. Additionally, the court upheld the dismissal of the conspiracy and wrongful termination claims against the individual defendants, as those claims were not asserted against the City and had been dismissed by agreement.The Fourth Circuit concluded that Misjuns did not sufficiently plead facts to state a claim for relief on any of his six claims, affirming the district court's decision. View "Misjuns v. City of Lynchburg" on Justia Law