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The Great EEOC Roundup: March Edition

As always, there are some recent EEOC cases that jump out at me when I review recent developments on that front.  Below are a couple EEOC cases and settlements that stand out: PMT Corporation to Pay in Excess of $1 Million to Settle Age and Sex Discrimination Suit Earlier this month, it was announced that PMT Corporation would pay a little over $1 million to a class of job applicants who alleged the company engaged in a pattern of systematic hiring discrimination.  According to the facts alleged, PMT hired over 70 individuals as sales representatives between January 1, 2007 and late 2010, however, none were female or over 40 years old.  The suit claimed this was intentional and directed by PMT's owner and president.  This alleged conduct was in violation of Title VII of the Civil Rights Act of 1964 and the Age Discrimination in Employment Act.  Based upon the facts in this case, it was certainly an uphill climb for PMT to establish a lack of age and se...

Arbitration Plan Which Did Not Include a Savings Clause Prohibits Employer From Compelling Arbitration of Employee's Dispute

Nelson v. Watch House International, LLC - Fifth Circuit Court of Appeals Facts :  Michael Nelson ("Nelson") worked at Watch House International, LLC ("Watch House") from March 2010 until March 2014.  Upon being hired, Nelson was provided with an employee handbook which included an Arbitration Plan which set out, among other things, that any disputes that arose during the employment would be arbitrated.  Nelson alleged that during his time at Watch House, his coworkers harassed him based upon his religion and race.   He subsequently filed suit and alleged he was discharged from Watch House in violation of Title VII of the Civil Rights Act of 1964 and Chapter 21 of the Texas Labor Code.  Watch House moved to compel arbitration based upon the Arbitration Plan.  Nelson objected to the Arbitration Plan on the grounds that it was illusory because it did not include a savings clause in regard to existing claims and disputes and failed to require a...

Governmental Regulation Alone Does Not Create an Employer-Employee Relationship

Callahan v. City of Chicago - Seventh Circuit Court of Appeals Facts :  Between January 2009 and August 2011, Melissa Callahan ("Callahan") drove a taxi in Chicago.  Although Callahan did not own her own taxi or medallion (that authorizes the driver to operate a taxi in Chicago), she leased them.  According to Callahan, her net proceeds averaged less than the minimum wage.   Callahan brought an FLSA claim against the City of Chicago ("City") on the grounds that the City must make up the difference.  (For purposes of this analysis, we will look at her second reasoning why the City should be liable:  The City's regulations on taxi drivers were so extensive, the City must be treated as her employer. At the lower court level, summary judgment was granted in the City's favor as to Callahan's minimum wage claims on the grounds that the City was not her employer simply by acting as a regulator.   Holding :  The Court of Appeals b...

What I've Been Reading This Week

This week, I came across several articles in regard to minimum wage issues as well as a recent development on the equal pay front out of New Jersey.  In an election year when middle class issues are at the forefront, these are two hot button issues that will likely remain increasingly prevalent over the next few months. As always, below are a few articles that caught my eye this week. Supreme Court Nominee Merrick Garland Could Greatly Impact Labor & Employment Rulings Thanks to a loyal reader of the blog for passing this article along.  As the heading suggests, and as Allen Smith writes, United States Supreme Court nominee Merrick Garland has a history of making several employee friendly rulings when he has been confronted with labor & employment law cases on the D.C. Circuit Court of Appeals.  Of note, in the 22 cases he has authored that dealt with labor & employment issues, 18 of those rulings deferred to the decisions from the National Lab...

Time Spent Donning and Doffing Work Clothes is Compensable Time...In Wisconsin

United Food & Commercial Workers Union, Local 1473 v. Hormel Foods Corp. - Wisconsin Supreme Court Facts :  United Food & Commercial Workers Union, Local 1473 ("the Union") filed a class action on behalf of current and former Hormel employees who alleged that Hormel violated Wisconsin wage and hour law by failing to pay employees for the time spent donning and doffing required work clothing and equipment such as hard hats, eye wear, and sanitary footwear, among other items.  The 330 employees included in the class were involved in grinding and blanching meat, cooking, and then canning the product at a Hormel plant.  It was alleged that each employee spent nearly 5.7 minutes per day donning and doffing the clothing and equipment, which amounted to approximately 24 hours per year.  The Union argued that because this time was not included in the employees' compensation, the employees were working nearly 40 per week without being paid overtime.  A...

Could New York Be on the Verge of Approving a $15/Hour Minimum Wage Hike?

Readers might remember that New York Governor Andrew Cuomo has aggressively advocated for a $15/hour minimum wage rate for workers across the state.  ( Governor Cuomo Begins Bus Tour Across New York to Push for $15/Hour ).  This follows on the heals of SUNY workers getting a $15/hour minimum wage hike along with New York City fast food workers getting the same $15/hour rate .   However, to make a $15/hour wage rate a reality across the state, the New York legislature has to approve the bill that Governor Cuomo has pushed.  Apparently, New York Republican Senate Majority Leader John Flanagan has talked with Governor Cuomo about a compromise on the proposed $15/hour minimum wage legislation.  As a trade off, Governor Cuomo would stay on the sidelines for an upcoming special election to replace a New York state senator, in return for the $15/hour minimum wage legislation getting passed.   While much of this is tentative (and nothing has o...

Employer Can Lawfully Censure Employee Who Solicits Union Support in the Workplace

ConAgra Foods, Inc. v. NLRB - Eighth Circuit Court of Appeals Facts :  In August 2011, the United Food and Commercial Workers International Union, Local 75 ("Union") sought to organize workers at a ConAgra manufacturing plant in Ohio.  In early 2012, ConAgra posted a letter on a bulletin board at the plant that reminded workers that ConAgra had a policy in place that employees could not solicit union support or distribute union related materials during working time or in work areas.  In September 2012, an incident occurred between Janette Haines ("Haines"), a leading proponent of union organization, and Megan Courtaway ("Courtaway") and Andrea Schipper ("Schipper").  The relevant facts were disputed with Haines stating she talked with Courtaway and Schipper on several occasions in the bathroom in regard to singing union authorization cards.  Courtaway said that Haines had actually approached them on the production floor and Schipper overh...