Justia Labor & Employment Law Opinion Summaries

A group of plaintiffs, including several states and corporations, challenged a Department of Labor rule that allowed ERISA fiduciaries to consider environmental, social, and governance (ESG) factors when making investment decisions if those factors equally serve the financial interests of the plan. This rule was issued following an executive order by President Biden, which counteracted a previous Trump-era rule that prohibited considering non-pecuniary factors in investment decisions.The United States District Court for the Northern District of Texas upheld the Department of Labor's rule, relying on the Chevron deference doctrine, which allows courts to defer to a federal agency's interpretation of ambiguous statutory language. The district court concluded that the rule was not "manifestly contrary to the statute" after affording the Department the deference due under Chevron.The United States Court of Appeals for the Fifth Circuit reviewed the case. During the appeal, the Supreme Court decided Loper Bright Enterprises v. Raimondo, which overruled Chevron, thus eliminating the deference previously given to agency interpretations. Given this significant change in the legal landscape, the Fifth Circuit vacated the district court's judgment and remanded the case for reconsideration in light of the new Supreme Court decision. The appellate court emphasized the importance of allowing the district court to reassess the merits without the Chevron framework, ensuring that the lower court's independent judgment is applied to the statutory interpretation of ERISA. View "State of Utah v. Su" on Justia Law

A former transportation security officer (TSO) with the Transportation Security Administration (TSA) alleged that his termination was an act of retaliation under Title VII. The TSA terminated his employment for failing to cooperate in an investigation into whether he received illegal compensation for serving as a personal representative during internal agency investigations. The plaintiff argued that this reason was a pretext for retaliation due to his prior complaints to the TSA’s Equal Employment Office (EEO) about a hostile work environment and denial of Family Medical Leave Act (FMLA) leave.The United States District Court for the Central District of California granted summary judgment in favor of the Secretary of Homeland Security. The court found that the plaintiff had not provided sufficient evidence to show that the TSA’s stated reason for his termination was pretextual. The court noted that the temporal proximity between the plaintiff’s last EEO complaint and his termination (56 days) was not enough to establish pretext, especially given the concurrent timing of the plaintiff’s noncooperation with the investigation.The United States Court of Appeals for the Ninth Circuit affirmed the district court’s decision. The appellate court held that the 56-day gap between the plaintiff’s final EEO complaint and his termination was insufficient by itself to show pretext. The court also noted that the timing of the plaintiff’s noncooperation with the investigation supported the TSA’s stated reason for termination. Additionally, the court found that other circumstantial evidence presented by the plaintiff did not create a genuine issue of material fact regarding pretext. The court concluded that the TSA had a legitimate, non-retaliatory reason for terminating the plaintiff’s employment and affirmed the summary judgment. View "KAMA V. MAYORKAS" on Justia Law

Clyde O. Carter, Jr. filed a complaint under the Federal Rail Safety Act (FRSA) against BNSF Railway Company, alleging retaliation for reporting a work-related injury. Carter claimed that BNSF initiated disciplinary investigations and terminated him due to his injury report. Initially, an administrative law judge (ALJ) found in favor of Carter, and the Administrative Review Board (ARB) affirmed. However, the United States Court of Appeals for the Eighth Circuit vacated the ARB’s order and remanded the case for further proceedings.The Occupational Safety and Health Administration initially found no FRSA violation by BNSF. After Carter objected, the case was transferred to an ALJ, who ruled in Carter’s favor. The ARB affirmed, but the Eighth Circuit vacated this decision, citing errors in the ALJ’s causation theory and lack of substantial evidence supporting the ARB’s findings. On remand, a different ALJ found that Carter’s injury report was not a contributing factor in BNSF’s decisions to investigate and terminate him, attributing the actions to Carter’s dishonesty. The ARB affirmed this decision.The United States Court of Appeals for the Eighth Circuit reviewed the case and denied Carter’s petition for review. The court held that substantial evidence supported the ALJ’s findings that Carter’s injury report did not contribute to BNSF’s decision to terminate him. The court also found no procedural errors in the ALJ’s handling of the case on remand. Consequently, the court concluded that Carter failed to prove that his injury report was a contributing factor in his termination, and thus, BNSF was not liable under the FRSA. The petition for review was denied. View "Carter v. Secretary, Department of Labor" on Justia Law

Alexander Behrend, a Work Practice Apprentice (WPA) at the San Francisco Zen Center, filed an employment discrimination lawsuit under the Americans with Disabilities Act (ADA). Behrend, who lived and worked at the Center, performed various tasks including meditation, cleaning, cooking, and maintenance. He argued that his role was not ministerial because it involved mostly menial work and did not include teaching or leading the faith.The United States District Court for the Northern District of California granted summary judgment in favor of the San Francisco Zen Center. The court found that Behrend's role fell within the First Amendment’s ministerial exception, which exempts religious organizations from certain employment laws in relation to their ministers. The court determined that Behrend’s duties, although menial, were integral to the Center’s religious mission and practice.The United States Court of Appeals for the Ninth Circuit reviewed the case and affirmed the district court’s decision. The Ninth Circuit held that the ministerial exception applied to Behrend’s role as a WPA. The court emphasized that the exception is broad and includes roles that are essential to carrying out a religious organization’s mission, even if they do not involve teaching or leadership. The court concluded that Behrend’s work was a vital part of Zen training and practice, thus fitting within the ministerial exception. The court rejected Behrend’s argument that only those with key roles in preaching and transmitting the faith qualify for the exception, noting that precedent supports a broader application. The court affirmed the district court’s grant of summary judgment, upholding the application of the ministerial exception. View "BEHREND V. SAN FRANCISCO ZEN CENTER, INC." on Justia Law

Dean Dabbasi was terminated by his employer, Motiva Enterprises, in 2019. Dabbasi filed a lawsuit alleging age discrimination under the Age Discrimination in Employment Act (ADEA) and the Texas Commission on Human Rights Act (TCHRA), as well as disability discrimination under the Americans with Disabilities Act (ADA) and the TCHRA. He claimed that his termination was due to his age and a cardiac incident he experienced during a performance improvement plan (PIP) meeting. Motiva argued that Dabbasi was terminated for poor performance and attitude.The United States District Court for the Southern District of Texas granted summary judgment in favor of Motiva. The court found that Dabbasi's claims related to his transition to a different role and the failure to place him in a promised position were time-barred or not actionable. The court also held that Dabbasi failed to establish a prima facie case of age discrimination because he was not replaced by someone younger in his final position. Additionally, the court concluded that Dabbasi was not disabled at the time of his termination, as he returned to work without restrictions after his medical leave.The United States Court of Appeals for the Fifth Circuit reviewed the case. The court found that the district court erred in evaluating Dabbasi's age-discrimination claim in isolation rather than considering the totality of the evidence. The appellate court determined that there was sufficient circumstantial evidence to create a genuine dispute of material fact regarding whether Dabbasi was terminated because of his age. However, the court agreed with the district court that Dabbasi failed to establish a prima facie case of disability discrimination, as he was not disabled at the time of his termination.The Fifth Circuit affirmed the dismissal of Dabbasi's disability-discrimination claim but reversed the summary judgment on his age-discrimination claim, remanding it for further proceedings. View "Dabbasi v. Motiva Enterprises" on Justia Law

Jebari Craig, a black employee, worked for Wrought Washer Manufacturing, Inc. from 2010 until his termination in April 2019. Craig, who became the union president in 2018, filed a racial discrimination grievance against Wrought. He alleged that his termination was in retaliation for this grievance. The incident leading to his termination involved a disagreement with a supervisor and subsequent use of his cell phone on the shop floor, which violated company policy. Craig was suspended and later offered a "Last Chance Agreement" to return to work, which he refused to sign, leading to his termination.The United States District Court for the Eastern District of Wisconsin granted summary judgment to Wrought on Craig's claim that his termination was retaliatory. The court found that Craig had not established a prima facie case of retaliation for his written warning and allowed his claim regarding his suspension to proceed. However, it granted summary judgment on the termination claim, crediting Wrought's explanation that the "Last Chance Agreement" did not require Craig to relinquish his discrimination claims, contrary to Craig's later assertions.The United States Court of Appeals for the Seventh Circuit reviewed the case de novo. The court affirmed the district court's judgment, agreeing that Schaefer, Wrought's plant manager, was confused during his deposition about the terms of the "Last Chance Agreement" and the severance agreement. The court found that Craig's declaration, which contradicted his earlier statements, did not create a genuine issue of material fact. The court concluded that no reasonable litigant would have withheld the information Craig later provided, supporting the district court's decision to grant summary judgment to Wrought. View "Craig v. Wrought Washer Manufacturing, Inc." on Justia Law

A labor dispute arose between the City of Cleveland and the Ohio Patrolmen’s Benevolent Association (the union representing dispatch supervisors) over overtime scheduling. The dispute was submitted to arbitration, where the arbitrator denied the union's grievance. The union then sought to vacate the arbitration award by filing an application in the Cuyahoga County Common Pleas Court, serving the city but not the attorneys who represented the city in the arbitration.The Common Pleas Court initially denied the city's motion to dismiss the union's application, but later reversed its decision after the Eighth District Court of Appeals ruled in a different case that failure to serve the adverse party's counsel deprived the court of jurisdiction. Consequently, the Common Pleas Court dismissed the union's application and confirmed the arbitration award in favor of the city. The Eighth District affirmed this decision, citing two defects: the union's application was in the form of a pleading rather than a motion, and it failed to serve the city's arbitration counsel.The Supreme Court of Ohio reviewed the case and held that under R.C. 2711.13, a party seeking to vacate an arbitration award must serve either the adverse party or its counsel, not necessarily both. However, the court also held that the union's application did not meet the statutory requirements because it was filed as a pleading (a complaint) rather than a motion. The court emphasized that a motion must state with particularity the grounds for the requested order, which the union's filing failed to do. Thus, the Supreme Court of Ohio reversed the Eighth District's decision regarding the service requirement but affirmed the decision that the union's application did not meet the statutory form requirements, leaving the arbitration award in favor of the city intact. View "Ohio Patrolmen's Benevolent Assn. v. Cleveland" on Justia Law

Eight New Hampshire employers sought a writ of mandamus to compel the New Hampshire Department of Labor (DOL) to hold department-level hearings. These employers had their applications for reimbursement from the Special Fund for Second Injuries denied. The employers argued that they were entitled to a hearing under RSA 281-A:43, I(a). The DOL had denied their requests for such hearings, stating that the disputes were more appropriately heard by the Compensation Appeals Board (CAB).The employers initially appealed to the CAB and requested department-level hearings from the DOL. The DOL denied these requests, leading the employers to file a petition for original jurisdiction with the New Hampshire Supreme Court. The proceedings before the CAB were stayed pending the Supreme Court's decision.The New Hampshire Supreme Court reviewed whether the DOL is statutorily required to grant a request for a department-level hearing when an employer’s request for reimbursement from the Fund is denied. The court held that RSA 281-A:43, I(a) grants employers the right to a department-level hearing before an authorized representative of the commissioner when they have been denied reimbursement from the Fund. The court found that the statute's language supports the employers' right to such a hearing and that this interpretation aligns with the statutory scheme's purpose of encouraging employers to hire or retain employees with permanent impairments. Consequently, the court granted the petition for a writ of mandamus, compelling the DOL to hold the requested hearings. View "Petition of City of Manchester" on Justia Law

Nancy Vargas, a bus driver for the Santa Barbara Metropolitan Transit District, injured her foot at work in March 2018. She settled her claim against the district in December 2020, with a stipulated permanent disability of 26 percent. Vargas applied for subsequent injury benefits from the Subsequent Injuries Benefits Trust Fund (Fund), listing pre-existing disabilities and disclosing that she was receiving Social Security Disability Insurance (SSDI) payments. The Fund acknowledged her eligibility but sought to reduce her benefits by the amount of her SSDI payments, claiming these were for her pre-existing disabilities.The Workers’ Compensation Appeals Board (Board) determined that the Fund was not entitled to this reduction, as the Fund had not proven that Vargas’s SSDI payments were awarded for her pre-existing disabilities. The Board found that the evidence provided, including an award letter from the Social Security Administration, did not specify the basis of the SSDI benefits. The Fund’s petition for reconsideration was denied by the Board, which maintained that the Fund needed to show the SSDI payments were for pre-existing disabilities to claim a reduction.The California Court of Appeal, Second Appellate District, reviewed the case. The court affirmed the Board’s decision, holding that the Fund bears the burden of proving its entitlement to a reduction in benefits under section 4753 of the Labor Code. The court found that the Fund did not provide sufficient evidence to establish that Vargas’s SSDI payments were for her pre-existing disabilities. The court emphasized that the Fund must meet its burden of proof by a preponderance of the evidence and that the stipulated disability rating in Vargas’s settlement with her employer did not automatically entitle the Fund to a reduction in benefits. The Board’s order denying the Fund’s petition for reconsideration was affirmed. View "Subsequent Injuries Benefits Trust Fund v. Workers Comp. App. Bd." on Justia Law

A former employee sued her employer, Charter Communications, Inc., alleging discrimination, harassment, and retaliation under the Fair Employment and Housing Act (FEHA), as well as wrongful discharge. Charter moved to compel arbitration based on an agreement the employee had signed during the onboarding process. The employee opposed, arguing the arbitration agreement was procedurally and substantively unconscionable.The Los Angeles County Superior Court found the agreement to be a contract of adhesion and substantively unconscionable due to provisions that shortened the time for filing claims, allowed Charter to recover attorney fees contrary to FEHA, and imposed an interim fee award for compelling arbitration. The court refused to enforce the agreement, finding it permeated with unconscionability. The Second Appellate District, Division Four, affirmed, identifying additional unconscionable provisions and disagreeing with another appellate decision regarding interim fee awards.The Supreme Court of California reviewed the case and agreed that certain provisions of the arbitration agreement were substantively unconscionable, including the lack of mutuality in covered and excluded claims, the shortened limitations period for filing claims, and the potential for an unlawful award of attorney fees. The court clarified that the discovery limitations were not unconscionable, as the arbitrator had the authority to order additional discovery if necessary.The Supreme Court held that the agreement's unconscionable provisions could potentially be severed, and the matter was remanded for further consideration of whether the unconscionable provisions could be severed to enforce the remainder of the agreement. The court also concluded that the Court of Appeal’s decision did not violate the Federal Arbitration Act. View "Ramirez v. Charter Communications, Inc." on Justia Law