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Showing posts from August, 2016

Transfer of Work to Mexico Was Unlawful Retaliation for Strike By Workers

Amglo Kemlite Laboratories, Inc. v. NLRB - Seventh Circuit Court of Appeals Facts :  Amglo makes specialty lights, often for those on airplane wings.  Before Amglo's President, Izabella Christian ("Christian"), visited an Illinois facility, several employees complained about low wages.  During her visit, Christian indicated wages would not go up.  The next morning, nearly all of the plant's 94 employees went on strike to protest the low wages.  The plant manager, Anna Czajkowska ("Czajkowska"), told the employees to go back to work or go home.  When pushed on the matter, Czajkowska produced resignation forms and said that if they did not like their wages, they could quit.  Christian then mentioned that companies can move production to China and Mexico (where Amglo already had plants).  The employees subsequently made a written demand for guaranteed annual raises but heard nothing in response.   Over subsequent days, the strike continued.  However,

Updated: Judge Issues An Injunction to Halt West Virginia Right to Work Law

Earlier this month, a judge in West Virginia issued an injunction which halted the implementation of right to work in the state.  Readers might remember that after West Virginia became the 20th right to work state this year, several labor unions filed suit to block the implementation of this law .  At this time, the law which went into effect on July 1, has been halted. At the hearing, representatives of the unions argued against the right to work law and cited a projected loss of 20% of union workers, lower income rates, and an increase in fatal accidents as a direct result of the law.  On the other side, the argument was made that there was no evidence that these trends would carry over into West Virginia.   In any event, the judge said representatives of the unions had done enough to prove the right to work law could harm workers.  Therefore, the judge found an injunction to be proper.  I think it goes without saying that this dispute is far from over.  This has been one

What I've Been Reading This Week

The past few weeks have seen quite a few developments not only with minimum wage issues, but also with labor disputes across the country.  In particular, minimum wage and right to work have been two of the hot topics this year.  As a result, I think two recent developments out of Minnesota and South Dakota are appropriate to lead off this post. As always, below are a couple articles that caught my eye this week. Minnesota Supreme Court to Hear $15/Hour Minimum Wage Ballot Dispute Following Hennepin County Judge Susan Robiner recently ruling that the $15/hour minimum wage measure should appear on the November ballot , an appeal has been taken up to the Minnesota Supreme Court.  At this point, the Supreme Court is to hear the issue at the start of next week...given the tight turnaround to actually get this measure on the November ballot, if the Court should so order.  This is one of the more heavily litigated minimum wage disputes that I can recall in recent memory.  Regardles

NLRB: Graduate Research and Teaching Students Can Unionize

Columbia University - NLRB Facts :  A group of Columbia University graduate students sought to join a union and collectively bargain with the University.  Note, the students joined with the United Auto Workers to push for a union on campus. Finding :  The NLRB began its analysis with a nod to the fact that the primary question to be decided was whether graduate students who perform services at a university in connection with their studies are statutory employees within the meaning of the National Labor Relations Act ("Act").  In this instance, the Board pointed out that the Act does not offer a definition of "employee" itself, but "employee" has been broadly construed.  The Board then turned to several prior decisions which had a direct impact on this analysis:  a 1999 decision in Boston Medical Center which held that interns, residents, and clinical fellows at a teaching hospital were statutory employees entitled to engage in collective bargaini

Breaking: Judge Orders $15/Hour Mimimum Wage Measure Be Placed on November Ballot

Yesterday, Hennepin County Judge Susan Robiner issued an opinion in which she overruled the Minneapolis City Council who earlier this month had voted against placing a $15/hour minimum wage measure on the November ballot .  Readers might remember that the City Attorney, Susan Segal, had previously issued an advisory legal opinion in which she stated that only a limited number of issues could be considered charter amendments.  Consequently, other questions (such as the $15/hour minimum wage issue) required a vote by the City Council.  As a result, the City Council voted against placing the minimum wage measure on the ballot. However, Judge Robiner disagreed with this reasoning and wrote in her opinion that the City Council's interpretation of the language in its own charter was too narrow.  According to the Judge, a minimum wage increase would amount to a matter of general health and welfare of the city and therefore should be considered part of the charter. At this point

Prompt Investigation By Employer Can Defeat Sexual Harassment Claim

Equal Employment Opportunity Commission v. Autozone, Inc. and Autozoners, LLC - United States District Court for the Western District of Tennessee, Western Division Facts :  The Equal Employment Opportunity Commission ("EEOC") filed suit against Autozone on behalf of Lakindal Smith ("Smith"), Cherrelle Willet ("Willett"), and Robyn McEuen ("McEuen") on the grounds that Autozone had committed unlawful employment practices.  The EEOC alleged that Gustavus Townsel ("Townsel"), store manager where Smith, Willett, and McEuen worked, created a hostile work environment by engaging in "lewd and obscene" behavior and that Autozone failed to take prompt and appropriate remedial measures.  The employees apparently complained about Townsel's conduct to a District Manager and Human Resources Manager.  The Human Resources manager conducted interviews with the employees and investigated the complained of conduct.  Townsel was subs

What I've Been Reading This Week

Quite a busy week on the road which kept me out of town for a majority of the work week.  Even with trips all over Texas, I was able to read through some great articles and narrow it down to a couple that I think readers of this blog will enjoy. As always, below are a couple articles that caught my eye this week. Federal Court Writes That Employers Could Lawfully Engage in Employment Discrimination A recent ruling from a federal court in Michigan stipulated that based upon the United States Supreme Court's decision in Hobby Lobby , employers could lawfully engage in some forms of employment discrimination.  As Josh Gerstein over at Politico writes, this federal court wrote in its opinion that the sincerely held religious beliefs of a closely held corporation must be respected unless the government could show a need to advance a compelling interest.  Very interesting opinion. More Pro Employee NLRB Rulings By the End of August? A Strong Possibility Dan

One to Keep An Eye On: Fair Employment Protection Act of 2016

As with many employment and labor law related cases (and bills) being litigated around the country, there are always a few that stand out.  This is one to keep an eye on. On June 23, Wisconsin Senator Tammy Baldwin introduced the Fair Employment Protection Act of 2016 ("FEPA") which would amend Title VII of the Civil Rights Act of 1964.  This legislation is in response to the Untied States Supreme Court's ruling in Vance v. Ball State University .  That case held that an employee is a "supervisor", for purposes of vicarious liability under Title VII, only if he/she is empowered by the employer to take tangible employment actions against the victim.  FEPA seeks to expand the definition of "supervisor" to include those individuals that have authority to take tangible employment actions or employees with the authority to control their subordinates' daily work. Some might remember that a version of this bill failed to pass back in 2014.  I h

Employer's Legitimate, Non-Discriminatory Reason for Termination of Employee Defeats Title VII Discrimination Claim

Maahnchooch Ghogomu v. Delta Airlines Global Services LLC - Tenth Circuit Court of Appeals Facts :  Maahnchooch Ghogomu ("Ghogomu") worked for Delta Airlines ("Delta") at the Tulsa International Airport.  Before every Delta flight is pushed back from the gate, a "final walk around" of the plane is to occur by a Delta employee.  Certain things are to be checked, such as making sure the fuel-panel door is secure.  When a flight left Tulsa for Detroit, no final walk around was apparently conducted.  As a result, a fuel-panel door was left open which resulted in damage to the airplane.  Delta subsequently investigated and found that Ghogomu was the employee who was supposed to have conducted the final walk around.  Having already been warned that another infraction could result in his termination, Delta fired Ghogomu for failing to conduct the required final walk around. Ghogomu brought suit against Delta on the grounds that he had been discriminat

What I've Been Reading This Week

I have been fortunate enough to be in the office the past few weeks and catch up on things.  In doing so, I have had a little more free time to read through some articles and cases.  In particular, the article on the impact of higher minimum wages in Australia gave a good insight into what might happen here in the U.S., should $15/hour become the prevailing minimum wage rate. As always, below are a couple articles that caught my eye this week. A Look at the Impact of Higher Hourly Wages in Australia Minimum wage is a hot button issue that has been prevalent across the country in recent months.  I know hardly a week goes by without me seeing a new development on the matter in a city or state.  Given the relatively higher hourly minimum wage rate in Australia (AUD $17.70...or about $11.16 in U.S. dollars), this is a well researched article from Quartz about the impact (both good and bad) that the higher hourly wage rate has on workers in the country.  Perhaps an indication

Updated: Minneapolis City Council Votes to Block Minimum Wage Proposal on November Ballot

As I had noted last week , the Minneapolis City Council was set to vote on whether to allow a minimum wage proposal on the November ballot which would raise minimum wage rates in the city to $15/hour by 2022.   I expected the measure would be defeated and result in the minimum wage proposal not making it on the ballot in November.  Turns out, I was right.  This past Friday, the Minneapolis City Council repeated the preliminary 10 - 2 vote and decided against putting the minimum wage proposal on the ballot in the fall.  Note, the Council seemed to suggest the advisory legal opinion written by City Attorney Susan Segal had an impact on the ultimate decision. With that being said, I do not think this is the last we have heard of this matter.  I would expect that a lawsuit will likely be filed over the matter and things will continue to play out.  Stay tuned. For additional information:  http://www.startribune.com/minneapolis-council-formally-votes-to-block-minimum-wage-poli

ERISA "Church Plan" Exemption Found to NOT Exist When Pension Plan Had Not Been Originally Established By a Church

Rollins v. Dignity Health - Ninth Circuit Court of Appeals Facts :  In the 1980's, the Sisters of Mercy Congregations established nonprofit hospital systems.  In 1986, the two systems were merged to form Catholic Healthcare West ("CHW").  Employees in the CHW system received pension benefits.  Starla Rollins ("Rollins") worked as a billing coordinator for San Bernardino Community Hospital which became affiliated with CHW and had adopted the pension plan.  Rollins filed a putative class action on the grounds that Dignity Health did not qualify for a "church exemption" under the Employee's Retirement Income Security Act ("ERISA") and therefore had improperly maintained its pension plan in violation of ERISA.  Dignity Health acknowledged the plan did not comply with ERISA but stated that plan did not need to because it qualified for the "church plan" exemption.  The district court held that Dignity Health's pension p

New Law for 2016: Massachuesetts' Equal Pay Law

A week or so ago, Massachusetts Governor Charlie Baker signed into law a bill that updates Massachusetts' Equal Pay Law.  The bill prohibits discrimination on the basis of gender in the payment of wages for comparable work "unless the variation is based upon a mitigating factor" such as seniority, education, training, experience, etc.   In addition, the bill will now prohibit businesses from asking a job applicant to disclose their previous salary history.  Although employers will be allowed to inquire about previous salaries after making a job and compensation offer to the potential employee. This is a bill that will have a major impact on employers across the state.  It will be interesting to see if other states follow suit and pass similar legislation, in particular in regard to barring employers from asking an applicant about their salary history. For additional information:  http://www.nytimes.com/2016/08/03/business/dealbook/wage-gap-massachusetts-

What I've Been Reading This Week: Missouri Labor & Employment Law Edition

Over the past several years, I have written "What I've Been Reading" posts on a wide range of topics nearly every week.  Some posts have focused on minimum wage, right to work, labor law, and human resources matters, among other topics.  However, this is the first "What I've Been Reading" post that has focused on labor and employment law matters exclusively in one state.  This week, I came across several great articles on labor and employment law topics in Missouri that I think warrant a post dedicated to the issues that have come up in the state. As always, below are a couple articles that caught my eye this week. Right to Work Impacts Legislative Race in Missouri Right to work laws are a hot button issue across the country, especially in states where right to work laws have recently failed to become law .  Missouri is no exception as a race for the 23rd Senatorial District between three candidates has centered in large part upon each candidate

This Just In: Minneapolis City Council Meeting Over $15/Hour Minimum Wage Rate Gets Heated

Earlier today, a Minneapolis City Council's Committee of the Whole hearing got a bit contentious as the Council discussed whether to put a minimum wage proposal on the November ballot to raise the minimum wage rate to $15/hour by 2022.  A group in support of the ballot initiative had collected signatures on a petition over recent months, in support of a $15/hour minimum wage rate.   As the Committee discussed the issue, supporters of the $15/hour minimum wage rate that had packed into the Council's chambers started booing Committee members that spoke against a vote and subsequently started chanting "Let the people vote."  Throughout the session, these minimum wage advocates continually disrupted the proceedings with boos and chants, and at one point forced the Committee to adjourn briefly because of the disruptions.  The preliminary vote was 10 - 2 in support of keeping the minimum wage proposal off the November ballot.  While the Committee did not decide the

One to Keep An Eye On: Saint Peter's Healthcare System v. Kaplan & Advocate Health Care Network v. Stapleton

As with many labor and employment law related cases being litigated around the country, there are always a few that stand out.  This are two to keep an eye on. Note, I normally reserve "One to Keep An Eye On" posts for a single case, piece of legislation, or emerging labor and employment law matter.  However, given that these two cases from the Third and Seventh Circuits deal with identical issues, I think it is appropriate to make this a joint post. Saint Peter's Healthcare System v. Kaplan Facts :  Since 1974, Congress has exempted "church plans" from the requirements of the Employee Retirement Income Security Act of 1974 ("ERISA").  According to Congressional notes, ERISA regulation of church plans would represent "an unjustified invasion of the confidential relationship that is believed to be appropriate with regard to churches and their religious activities."  ERISA defined an exempt "church plan" as "(i) a pla

Nevada Supreme Court Holds It is Not the Role of the Judiciary to "Blue Pencil" a Noncompete Agreement to Make it Enforceable

Golden Road Motor Inn Inc. v. Islam - Nevada Supreme Court Facts :  Casino host Sumona Islam ("Islam") entered into agreements with her employer Atlantis Casino Resort Spa ("Atlantis") to refrain from employment association or service with any other gaming establishment within 150 miles of Atlantis for one year following the end of her employment.  Another agreement restricted Islam from sharing confidential information, disseminating intellectual property, and downloading or uploading information without authorization.  During her time at Atlantis, Islam altered and concealed the contact information for 87 players in Atlantis' electronic database, hand copied players' names, contact information, and other proprietary information.  Islam ultimately left her position with Atlantis and went to work for another gaming establishment.  Although Islam was instructed not to bring anything from Atlantis, Islam used certain player information that she had copi