Justia Government & Administrative Law Opinion Summaries
Articles Posted in Labor & Employment Law
Providence Corp. Development v. Buma
The Supreme Court affirmed the order of the district court concluding that an appeals officer erred in denying benefits to the widow and child of an employee who died while on a work trip, holding that there is no requirement that an employee's activities be foreseeable to his employer in order for the employee to recover workers' compensation benefits.Jason Buma died when he traveled from Nevada to Texas for a work conference and had an accident one evening while riding an ATV around a ranch owned by his coworker. Plaintiffs, Buma's wife and child, requested workers' compensation benefits, but the request was denied. An appeals officer upheld the denial. The Supreme Court reversed, concluding that the appeals officer failed to apply the traveling employee rule. On remand, the appeals officer again denied benefits on the grounds that there was no evidence in the record that Jason's employer could have foreseen that Jason would be riding ATVs. The district court granted Plaintiffs' petition for judicial review. The Supreme Court affirmed, holding that the appeals officer misinterpreted this Court's decision in Buma I and that this Court did not impose a requirement that an employee's activities need be foreseeable to his employer in order for the employee to recover workers' compensation benefits. View "Providence Corp. Development v. Buma" on Justia Law
Financial Oversight & Management Bd. v. Vazquez-Velazquez Group
The First Circuit affirmed the determination of the Title III court, during the course of its confirmation of the Modified Fifth Amended Title III Plan of Adjustment (Plan) for the Puerto Rico Highways and Transportation Authority (PRHTA), that the Vazquez-Valezquez Group's claims for additional compensation made in a separate federal lawsuit were dischargeable, holding that there was no error.The Group, which was composed of sixty-nine current and former PRHTA employees who received extra compensation under PRHTA Regulation 12-2017, with which the PRHTA later broke. At issue was the Group's objection to the Title III court's determination that the Group's claims for additional compensation were dischargeable under the Plan. After the Title III court entered an order and judgment confirming the plan the Group appealed, arguing that its members' claims were nondischargeable. The First Circuit affirmed, holding that the claims for additional compensation were not exempt from discharge. View "Financial Oversight & Management Bd. v. Vazquez-Velazquez Group" on Justia Law
Thai v. International Business Machines Corp.
Thai was an IBM employee. To accomplish his duties, he required, among other things, internet access, telephone service, a telephone headset, and a computer and accessories. On March 19, 2020, Governor Newsom signed the COVID-19 “stay home” order. IBM directed Thai and thousands of his coworkers to continue performing their regular job duties from home. Thai and his coworkers personally paid for the services and equipment necessary to do their jobs while working from home. IBM never reimbursed its employees for these expenses.The court of appeal reversed the dismissal of a complaint under California’s Private Attorneys General Act (PAGA; Labor Code 2699). Section 2802(a)) requires an employer to reimburse an employee “for all necessary expenditures . . . incurred by the employee in direct consequence of the discharge of his or her duties.” The trial court’s conclusion that the Governor’s order was an intervening cause of the work-from-home expenses that absolved IBM of liability under section 2802 is inconsistent with the statutory language. The work-from-home expenses were inherent to IBM’s business and the work performed was for the benefit of IBM. View "Thai v. International Business Machines Corp." on Justia Law
Bundy v. NuStar GP LLC, et al.
At issue in this case was whether the Oregon legislature intended to create an exception to ORS 656.018, the so-called “exclusive remedy” provision of the Workers’ Compensation Law, for injured workers whose claims have been deemed noncompensable on “major contributing cause” grounds. While employed by defendant Shore Terminals, LLC as a terminal operator, plaintiff Danny Bundy was assigned to stay and monitor the air quality from malfunctioning machinery without being given safety equipment, and he was exposed to dangerous levels of diesel, gasoline and ethanol fumes. After that incident, defendant initially accepted a workers’ compensation claim for "non-disabling exposure to gasoline vapors." Later, plaintiff asked defendant to accept and pay compensation for additional conditions arising out of the same incident, including "somatization disorder" and "undifferentiated somatoform disorder." Defendant specified that it was treating each of plaintiff’s subsequent requests as a "consequential condition claim" and was denying those claims on the basis that plaintiff’s work exposure was not the major contributing cause of the subsequent conditions. Plaintiff challenged those denials through the workers’ compensation system, but he was unable to establish that the work incident was the major contributing cause of his somatoform disorders. The Workers’ Compensation Board ultimately issued a final order determining that the disorders were not compensable conditions because plaintiff failed to establish that his work-related incident was the major contributing cause. Plaintiff acknowledged that the Workers’ Compensation Law generally immunized covered employers against civil liability for injuries arising out of a worker’s employment. Plaintiff argued, however, that his case fell within a statutory exception to that rule and that the trial court and Court of Appeals, both of which ruled in defendant’s favor on that legal question, erred in concluding otherwise. The Oregon Supreme Court concluded that plaintiff’s statutory argument failed, and that the trial court and Court of Appeals therefore did not err. View "Bundy v. NuStar GP LLC, et al." on Justia Law
Williams v. Bureau of Prisons
Williams was a Beaumont, Texas federal corrections officer beginning March 4, 2018. In 2016, Williams met Hayes. The two were engaged and had a child in September 2018. Hayes had been in Bureau of Prisons (BOP) custody from 2005-2013, including at FCC-Beaumont. He was on supervised release until July 15, 2018. Williams knew Hayes had been incarcerated but was unaware he had been in federal custody. In May 2019, after learning of the relationship, BOP placed Williams on administrative reassignment. Under the Standards of Employee Conduct, employees may not “become emotionally, physically, sexually, or financially involved with inmates, [or] former inmates.” If employees engage in improper contact, they must report the contact. A “former inmate” is an inmate for whom less than one year has elapsed since release from BOP custody or federal court supervision. Hayes met this definition until July 15, 2019. Williams learned, on June 3, 2019, that Hayes had been incarcerated in federal prison. She reported her relationship the next day. BOP issued a notice of proposed removal. The warden sustained the charges and removed Williams.An arbitrator sustained the charge of improper contact but did not sustain the charge of failure to report and upheld the removal, finding that the warden considered the relevant "Douglas" factors and exercised his discretion “within tolerable limits of reasonableness.” The Federal Circuit vacated. The arbitrator failed to independently analyze the appropriateness of alternative sanctions and accepted for sanctions purposes the warden’s fact findings which the arbitrator had rejected. View "Williams v. Bureau of Prisons" on Justia Law
Hacker v. Fabe
The trial court granted a motion by the Labor Commissioner to amend a judgment to add Plaintiff as an alter ego judgment debtor. Plaintiff appealed. He contends there was “virtually no evidence” he commingled his assets or operations with those of the judgment debtor; the original judgment was not renewed during the 10-year limitation period; the doctrine of laches bars the alter ego motion; and the denial of an earlier alter ego motion barred the current motion under res judicata principles.
The Second Appellate District affirmed finding no error in the court’s decision to add Plaintiff as an alter ego judgment debtor. The court reasoned that as the trial court observed, “no single factor is determinative, and instead, a Court must examine all the circumstances to determine whether to apply the [alter ego] doctrine.” The court cited Plaintiff’s complete control over Cahuenga, his control of the litigation, his sharing of attorneys, his transfer of the company, and his destruction of relevant records of assets. Further, the court explained that Plaintiff contended in the trial court that the motion to amend the judgment was barred by the doctrine of laches. The trial court implicitly concluded Plaintiff did not carry his burden of proof on that point when it granted the Commissioner’s motion. The evidence does not compel a finding in Plaintiff’s favor as a matter of law. View "Hacker v. Fabe" on Justia Law
Greatwide Dedicated Transport II, LLC v. United States Department of Labor
While Respondent was employed as a truck driver at Greatwide Dedicated Transport II, LLC (“Greatwide”), he witnessed certain drivers receive additional driving assignments in violation of 49 C.F.R. Section 395.3, which regulates the maximum driving time for property-carrying vehicles. After collecting evidence related to the violations, Respondent submitted anonymous letters to management reporting his findings. Soon thereafter, Respondent revealed to management personnel that he was the author of the letters. The following month, Respondent was assigned to deliver two trailers filled with merchandise to two Nordstrom store locations in Manhattan, New York and Paramus, New Jersey. However, when Respondent returned from this assignment, he was suspended for—what Greatwide claimed to be—violations of company policy. Greatwide subsequently terminated and dismissed Respondent without a more explicit explanation. Respondent promptly filed a whistleblower complaint with the U.S. Department of Labor’s (“DOL”) Occupational Safety and Health Administration (“OSHA”). Following several lengthy delays, the Administrative Law Judge (“ALJ”) ruled in Respondent’s favor, ordering Greatwide to pay both back pay and emotional distress damages. The Administrative Review Board (“ARB”) affirmed.
The Fourth Circuit affirmed. The court concluded that substantial evidence supports the ARB’s conclusion that Respondent engaged in protected activity, that his activity was a contributing factor in his termination, and that Greatwide failed to prove by clear and convincing evidence that Respondent would have been terminated absent his protected conduct. Nor was Greatwide prejudiced by the proceeding’s delays. Finally, the court declined to enforce the alleged settlement agreement because the company failed to challenge the ALJ’s decision before the ARB. View "Greatwide Dedicated Transport II, LLC v. United States Department of Labor" on Justia Law
Mahmutovic v. Washington County Mental Health Services, Inc.
Claimant Semir Mahmutovic appealed a Vermont Department of Labor decision concluding that claimant’s prior employer was not obligated to reimburse claimant for lost wages under 21 V.S.A. § 640(c), and that the statute was not unconstitutional as applied to claimant. The Vermont Supreme Court determined that claimant conceded that the Commissioner properly interpreted § 640(c), and further concluded that claimant did not have standing to challenge the constitutionality of § 640(c). View "Mahmutovic v. Washington County Mental Health Services, Inc." on Justia Law
Alaska Airlines v. Dep’t of Labor & Indus.
Alaska Airlines’ (AA’s) Collective Bargaining Agreement with its flight attendants required those flight attendants to schedule vacation days in advance. The Department of Labor & Industries (L&I) argued that RCW 49.12.270 displaced the CBA’s mandatory advance scheduling requirement term without explicitly saying so. AA argued that it did not. The Washington Supreme Court agreed with AA: "It takes more to displace a mandatory CBA term than RCW 49.12.270 contains. In fact, RCW 49.12.270 explicitly preserves non-choice-of-leave terms of the CBA and RCW 49.12.290 bars interpreting RCW 49.12.270 to 'reduce any provision in a [CBA].'" The Court therefore held that RCW 49.12.270 did not displace the advance scheduling requirement of the CBA. View "Alaska Airlines v. Dep't of Labor & Indus." on Justia Law
Mestek v. Lac Courte Oreilles Community Health Center
The Lac Courte Oreilles Band of Lake Superior Chippewa Indians is a federally recognized tribe in northwestern Wisconsin. In 2013 the Tribe’s Community Health Center hired Mestek as the Director of Health Information. In 2017 the Health Center implemented a new electronic health records system. Mestek soon raised questions about how the new system operated, expressing concern to management that the Center was improperly billing Medicare and Medicaid. An eventual external audit of the Center’s billing practices uncovered several problems. After receiving the audit results in 2018, Bae, the head of the Health Center, called Mestek into her office to ask if she was “loyal.” Mestek answered yes, but persisted in her efforts to uncover billing irregularities. A month later, Mestek learned that she was being fired in a meeting with the Medical Director and the HR Director. Mestek sued the Health Center and six individuals (in both their personal and official capacities) under the False Claims Act’s anti-retaliation provision, 31 U.S.C. 3730(h). The district court dismissed.The Seventh Circuit affirmed. The doctrine of tribal sovereign immunity precluded Mestek from proceeding; the Health Center is an arm of the Tribe. The individual employee defendants also properly invoked the Tribe’s immunity because Mestek sued them in their official capacities. View "Mestek v. Lac Courte Oreilles Community Health Center" on Justia Law