Justia Government & Administrative Law Opinion Summaries
Articles Posted in Labor & Employment Law
Shumway v. IDOL
Amy Shumway was employed as a receptionist at Evans Chiropractic in Idaho. Her employment was terminated by Dr. John Hitchcock, one of the owners, for insubordination. Following her termination, Shumway applied for unemployment benefits. Her application was initially approved by an Appeals Examiner from the Idaho Department of Labor (IDOL) who found Shumway eligible for benefits despite her termination for insubordination. On appeal by Evans Chiropractic, the Industrial Commission affirmed the decision, but on different grounds. Evans Chiropractic then appealed to the Supreme Court of the State of Idaho.In the Supreme Court, Evans Chiropractic argued that Shumway should not be eligible for benefits because her employment was terminated for job-related misconduct, namely her refusal to meet with Dr. Hitchcock for discussions about her behavior at work. The Supreme Court agreed, finding that the Commission erred in its application of the law. The Court noted that the Commission had focused on Shumway's subjective reasons for not meeting with Hitchcock, rather than the employer's expectations. The Court found that Hitchcock directly communicated his expectation for Shumway to meet with him and that her refusal to do so constituted insubordination, which is a form of job-related misconduct. Therefore, the Supreme Court reversed the Commission’s decision and held that Shumway was ineligible for unemployment benefits as a matter of law. View "Shumway v. IDOL" on Justia Law
Nwauzor v. The GEO Grp., Inc.
The Supreme Court of the State of Washington held that detained workers at a privately owned and operated immigration detention center are considered "employees" under Washington's Minimum Wage Act (MWA), and are thus entitled to receive the state's minimum wage for their work. The court rejected arguments from the detention center operator, The GEO Group, that the detained workers should be exempt from the MWA because they resided and slept at their place of employment. The court also disagreed with GEO's claim that the MWA's government-institutions exemption applied to the detainees because the facility was operated under contract with the federal government. The court found the government-institutions exemption only applies to detainees in public, government-run institutions, and not in privately owned and operated facilities. Finally, the court ruled that a damages award to one party (a class of detainees) does not prevent another party (the State of Washington) from seeking equitable relief in the form of an unjust enrichment award. The case stemmed from lawsuits brought by the State and a class of detainees alleging that GEO's practice of paying detainees less than Washington's minimum wage violated the MWA. After a lower court ruled in favor of the plaintiffs, GEO appealed, leading to the certification of questions to the Washington Supreme Court.
View "Nwauzor v. The GEO Grp., Inc." on Justia Law
Department of Corrections v. Lynn
In this case, the Supreme Court of Pennsylvania was called upon to determine whether the ascension of an unclassified service employee to a classified service position with higher pay with the same public employer is a promotion under the Civil Service Reform Act (CSRA) and the Veterans’ Preference Act (VPA). The case arose when Ralph E. Lynn, a classified service employee, and Aaron Novotnak, an unclassified service employee, both veterans, applied for a classified service position with the Department of Corrections (DOC). The Office of Administration (OA) deemed the position a promotion for Lynn and did not apply veterans’ preference, while it deemed the position an appointment for Novotnak and applied veterans’ preference. The DOC selected Novotnak for the position, and Lynn appealed to the State Civil Service Commission.The Supreme Court of Pennsylvania held that the ascension of an unclassified service employee to a classified service position with higher pay with the same public employer is not a promotion under the CSRA and the VPA, but rather an appointment. Therefore, it is not discriminatory under section 2704 of the CSRA to award a veterans’ preference to an unclassified service employee seeking an appointment but not to a classified service employee seeking a promotion. The court affirmed the order of the Commonwealth Court in part and reversed in part. The court ruled that Lynn was not entitled to veterans’ preference as he was seeking a promotion, not an appointment. However, Lynn will remain in his position due to a separate issue of technical discrimination that was not reviewed by the court. View "Department of Corrections v. Lynn" on Justia Law
Zurich Am. Ins. Co. v. Workers’ Comp. App. Bd.
The Zurich American Insurance Company sought a writ of mandate against the Workers’ Compensation Appeals Board (WCAB) and the California Insurance Guarantee Association (CIGA), in the Court of Appeal of the State of California. The issue at hand involved the interpretation of Labor Code section 5909, which states that if the WCAB does not act on a party’s petition for reconsideration of a decision by the workers’ compensation judge within 60 days, the petition is “deemed to have been denied.” CIGA filed a petition for reconsideration more than nine months past the filing date. The WCAB justified its late decision on the basis of an “administrative irregularity” that delayed CIGA’s petition. Zurich argued that the petition had already been denied by operation of law under section 5909. The Court of Appeal agreed with Zurich and held that the language and purpose of section 5909 showed a clear legislative intent to terminate the WCAB’s jurisdiction to consider a petition for reconsideration after the 60 days have passed. As a result, decisions on the petition made after that date are void as they exceed the agency’s jurisdiction. The Court of Appeal granted the writ of mandate, directing the WCAB to rescind its order granting CIGA’s petition for reconsideration and dismissing Zurich as a party defendant from the proceeding. View "Zurich Am. Ins. Co. v. Workers' Comp. App. Bd." on Justia Law
Palomar Health v. Nat. Nurses United
This case is a labor dispute between Palomar Health, a public healthcare district, and unions representing nurses and healthcare workers employed by Palomar Health. In 2021, during negotiations to renew their collective bargaining agreements, union organizers began a leafletting campaign outside Palomar Health’s main hospital and sought to meet with employees inside the hospital. Palomar Health responded by filing a complaint for trespass and unlawful picketing in San Diego Superior Court, seeking to ban the organizers from their facilities. The unions filed an unfair practice charge with the Public Employment Relations Board (PERB), asserting Palomar Health’s attempts to ban their representatives and the civil lawsuit violated the unions’ rights under the Meyers-Milias-Brown Act. The trial court overruled the unions’ demurrer and denied their motion to strike, maintaining jurisdiction of the state law claims. On appeal, the unions argued that the trial court lacked jurisdiction over the dispute as their activities were arguably protected by the Meyers-Milias-Brown Act and that jurisdiction fell exclusively under PERB. The Court of Appeal, Fourth Appellate District Division One State of California, agreed with the unions, finding that Palomar Health’s claims were preempted and therefore, the trial court lacked jurisdiction over the dispute. The trial court’s order overruling the demurrer was reversed and the matter was remanded with directions to enter an order sustaining the demurrer without leave to amend, and to dismiss the case on the grounds that it is subject to the exclusive jurisdiction of PERB.
View "Palomar Health v. Nat. Nurses United" on Justia Law
Miske v. DNRC
In the case heard by the Supreme Court of the State of Montana, Caryn Miske, the plaintiff and appellant, was appealing a district court decision that granted the Department of Natural Resources and Conservation (DNRC) summary judgment on all of her claims that arose from her termination by the DNRC from the Flathead Basin Commission.The primary facts of the case involve Miske's employment as the Executive Director of the Flathead Basin Commission, a body established by the 1983 Legislature to protect the environment of Flathead Lake and its tributaries. The Commission is administratively attached to the DNRC, a relationship that Miske argued allowed the Commission independent authority over staffing decisions. However, the DNRC contended that the Commission and DNRC share concurrent authority over staffing decisions.The court affirmed the district court's grant of summary judgment to the DNRC on all of Miske's claims. It held that, based on the plain language and structure of the relevant statutes, the DNRC and the Commission have concurrent authority over staffing decisions, and therefore, Miske was a DNRC employee.The court also ruled that the DNRC didn't commit intentional interference with contractual relations as it wasn't a stranger to Miske's relationship with the Commission. Additionally, the court found that Miske's lobbying efforts on behalf of the Commission were made in her capacity as a DNRC employee and thus were not protected political speech. Lastly, the court held that the DNRC had good cause to terminate Miske due to her repeated failures to provide the DNRC with state-issued credit card statements, which constituted a legitimate business reason for her termination. View "Miske v. DNRC" on Justia Law
Watson v. FWP
In the case before the Supreme Court of the State of Montana, the petitioner, Jay Watson, filed a grievance against his employer, the Montana Department of Fish, Wildlife and Parks (FWP or agency), claiming he was underpaid for six years due to an agency error in implementing a new pay system. The Thirteenth Judicial District Court, Yellowstone County, ruled in favor of Watson and reversed the Final Agency Decision issued by the Board of Personnel Appeals (BOPA or Board). The court also awarded attorney fees to Watson. FWP appealed this decision to the Supreme Court of the State of Montana.The Supreme Court held that the District Court did not err in reversing BOPA’s decision. The court found that BOPA incorrectly applied the Montana Wage Payment Act (MWPA) to Watson's grievance, which was pursued under the agency's grievance process. The court found that the MWPA provides a process independent from the agency grievance process and its restrictions and benefits do not apply to Watson's claim. As such, the MWPA's three-year limitation does not apply to Watson’s claim, and the court affirmed the District Court’s reinstatement of the Hearing Officer’s pay determination.However, the Supreme Court held that the District Court erred in awarding attorney fees to Watson. The court noted that Montana follows the “American Rule” regarding fee awards, which provides that “absent statutory or contractual authority, attorney’s fees will not be awarded to the prevailing party in a lawsuit.” There was no contractual or statutory authority providing for attorney fee awards for prevailing parties in this case, and the court found that this case was not frivolous litigation or litigated inappropriately by FWP. Therefore, an exception to the generally applicable American Rule was not established. The court reversed the attorney fee award and remanded for entry of an amended judgment. View "Watson v. FWP" on Justia Law
Matter of Lazalee v Wegman’s Food Mkts., Inc.
In 2018, a worker, Thomas Lazalee, filed a claim for benefits after suffering a right thumb injury and carpal tunnel syndrome, for which he underwent surgery. His employer, Wegman's Food Markets, Inc., did not challenge the claim and compensated Lazalee at the temporary total disability rate. In 2019, Lazalee was diagnosed with similar injuries to his left hand, and again, Wegman's compensated him at the temporary total disability rate. Lazalee then requested a hearing to amend the previous award to include these additional injuries.At the hearing, Wegman's accepted liability but sought to cross-examine Lazalee's doctor regarding the degree of impairment during Lazalee's most recent period out of work. The Workers' Compensation Law Judge (WCLJ) denied this request, ruling that Lazalee's 11.2-week absence was not excessive. This decision was affirmed by the Workers' Compensation Board and the Appellate Division, with the latter finding that Wegman's request to cross-examine the doctor was disingenuous because it came after Wegman's had already paid Lazalee at the total disability rate until his return to work, and was based solely on the employer's counsel's interpretation of the medical reports without any credible medical evidence to the contrary.However, the New York Court of Appeals reversed these decisions, holding that under the rules of the Workers' Compensation Board, if an employer wishes to cross-examine an attending physician whose report is on file, the referee must grant an adjournment for such purpose. The court found that the WCLJ did not have the discretion to deny Wegman's request for cross-examination made at the hearing before the WCLJ had rendered a decision on the merits. The case was remitted to the Appellate Division with instructions to remand to the Workers' Compensation Board for further proceedings in accordance with the Court of Appeals' opinion. View "Matter of Lazalee v Wegman's Food Mkts., Inc." on Justia Law
CANTWELL v. FLEX-N-GATE
Kevin Cantwell worked for Flex-N-Gate for 28 years during which he sustained numerous work-related injuries. He was awarded permanent partial disability (PPD) benefits for these injuries under the law as it existed before February 1, 2014, referred to as Title 85. After this date, workers' compensation claims were governed by a new law, Title 85A, under the Administrative Workers' Compensation Act (AWCA). Cantwell sustained three more injuries after the enactment of AWCA and was again awarded PPD benefits. However, the Workers' Compensation Commission denied payment of these benefits based on their interpretation of Section 46(H) of the AWCA, which limited the total weeks of PPD benefits to 350.The Supreme Court of the State of Oklahoma, in this case, disagreed with the Commission's interpretation. The court determined that the 100% limitation on PPD benefits under Section 45(C)(1) of the AWCA controls over the number of weeks when awarding compensation for PPD. This is particularly applicable where a claimant has compensable awards for job-related injuries that occurred both before and after February 1, 2014. The court vacated the Commission's order in each case and remanded the cases for further proceedings consistent with this opinion. View "CANTWELL v. FLEX-N-GATE" on Justia Law
Strategic Technology Institute v. NLRB
The case involves Strategic Technology Institute, Inc. ("STI") and the National Labor Relations Board. STI had a contract to maintain engines and propellers for the U.S. Air Force from August 2017 until July 2020. During this time, STI's employees at a Little Rock facility began discussing unionizing. In response to this, Tyler Boyd of STI fired 17 employees — three on September 27, 2019, and fourteen on October 9, 2019. The administrative law judge and the Board found that these terminations violated subsections 8(a)(1) and (3) of the National Labor Relations Act, which prohibits employers from interfering with, restraining, or coercing employees in their right to engage in union activities and from discriminating in regard to hire or tenure of employment to encourage or discourage membership in any labor organization.STI petitioned for a review of the Board's order, and the United States Court of Appeals for the Eighth Circuit granted the petition, vacated the order, and remanded the case. The court found that there was no substantial evidence to support the Board's finding that the terminations were motivated by anti-union animus. The court noted that the only evidence of STI's knowledge of the union activities were two phone calls informing Tyler Boyd that the employees were considering unionizing and the timing of the firings. The court held that this was not sufficient to establish that STI acted with an anti-union motive when it terminated the employees. The court also found that the Board's reliance on the "small plant doctrine" to infer employer knowledge of union activity was not applicable in this case since there was no other evidence indicating a likelihood that Boyd knew of the union activities. Furthermore, the court held that the Board erred in finding that STI's reasons for the firings were pretextual because they were based on legitimate factors such as performance, attendance, and interpersonal skills. The court concluded that the General Counsel failed to meet its burden of providing substantial evidence that STI harbored anti-union animus and that the terminations were motivated by animus. Consequently, the court vacated the Board's order and remanded the case for proceedings consistent with its opinion. View "Strategic Technology Institute v. NLRB" on Justia Law