Arbitrator’s Award Given Preclusive Effect in Racial Discrimination Case

In Wade v. Ports America Management Corp., the California Court of Appeal, Second Appellate District held that an arbitration award, pursuant to a collective bargaining agreement, had res judicata effect on a plaintiff’s subsequent common law racial discrimination claim.

Wade, an African-American longshoreman, was laid off in September of 2008, even though he had more seniority than other employees who were retained. The effective collective bargaining agreement (CBA) required union members to submit any grievances related to their employment to binding arbitration. More ›

Jury Issue Exists over Employment Termination Following Funeral Attendance Overseas

In Adeyeye v. Heartland Sweeteners, LLC, (7th Cir. July 31, 2013), the Seventh Circuit reversed a summary judgment that a trial court granted in favor of the employer. Title VII of the Civil Rights Act of 1964 bars employment discrimination on the basis of religion. As a result, employers must reasonably accommodate employees who make requests to partake in religious practices or acts (Slip op. at 1-2). In this case, the employee sought several weeks of unpaid leave to attend his father's funeral overseas in Nigeria, and to lead the performance of the burial rites.  Id. at 2. The employee explained that his attendance at the funeral rites was "compulsory" and that if he did not show up to perform the rites, he and his family would sustain a spiritual death. Id. The employer denied the requests for unpaid leave. The employee attended the funeral ceremony in Nigeria and his employment was terminated upon his return appearance at his workplace. The trial court granted the employer summary judgment based on its finding that the employee's two letters failed to provide any notice of the religious character inherent in his requests for unpaid leave. Id. at 2. The Seventh Circuit disagreed and found the same letters and record adequately created disputed issues of material fact over whether the employer had notice of the religious matter associated with the request for leave, and whether the employee had a sincerely held religious belief, as well as over causation and the employer's claimed undue hardship. More ›

Eighth Circuit: Undocumented Restaurant Workers were Entitled to FLSA Protection

—In a decision issued on July 29, 2013, the Eighth Circuit Court of Appeals became the second federal circuit to find that the Fair Labor Standards Act’s minimum wage protections extend to undocumented workers, such that those workers can file wage claims and recover damages. Addressing the issue in the shadow of a 2002 U.S. Supreme Court decision that denied similar awards for back pay to undocumented workers under the National Labor Relations Act, the panel of Eighth Circuit judges refused to extend that case’s reasoning. “The FLSA does not allow employers to exploit any employee’s immigration status,” the judges concluded, “or to profit from hiring unauthorized aliens in violation of federal law.” More ›

It’s just Lunch Agrees to pay $900,000 to Settle Discrimination Suit

The dating service It’s Just Lunch USA, LLC (“It’s Just Lunch”) will pay $900,000 to settle a suit alleging that the company discriminated against men.

The announcement of the settlement comes just 10 days after the U.S. Equal Employment Opportunity Commission (“EEOC”) filed a complaint against the Hallendale Beach-based company in a Florida federal court. More ›

Retaliation Under Title VII must be Proven Under Traditional “But For” Causation Doctrine

Where a person seeks compensation for injury resulting from wrongful conduct, there must be a demonstrated connection between the wrong alleged and the injury — i.e., causation. The default rule, developed in connection with tort law, is that the plaintiff must show “the harm would not have occurred” in the absence of the wrongful conduct. This is also known as the “but for” causation standard. More ›

Surprise Announcement from Treasury Department Delays Employer ‘Pay or Play’ Mandate for One Year

On July 2, 2013, the Treasury Department announced a one-year delay in several aspects of the Affordable Care Act that were to become effective on January 1, 2014. Among those items that are delayed are various employer and insurer reporting requirements under sections 6055 and 6056 of the Act, as well as the penalties imposed on large employers for failing to offer coverage. More ›

U.S. Supreme Court Will Rule on Obama’s Recess Appointments

The fate of hundreds of mostly pro-union federal agency rulings now rests with the U.S. Supreme Court.

The Court this week agreed to take up Noel v. Canning, the case involving President Obama’s controversial recess appointments to the National Labor Relations Board (“NLRB”). As we have reported, the D.C. Circuit in January ruled that the President violated the Constitution by appointing a board majority pursuant to his recess appointments power, even though the Senate was technically in session. More ›

U.S. Supreme Court Upholds Arbitrator’s Decision Finding that Contract Provides for Class Arbitration

One U.S. Supreme Court decision has not received great attention from the media, but it may have considerable impact on how employers structure their relationships with employees. In this instance, the issue is what authority does an arbitrator have to interpret contractual terms so as to provide for class arbitration. Justice Kagan, without dissent, explained that the Court viewed arbitration clauses that provide for all civil actions to be arbitrated as giving arbitrators the authority to find a contractual basis to support class arbitration. More ›

Recently Issued Final Regulations Provide Clarification on Employee Wellness Programs

On May 29, 2013, the U.S. Department of Health and Human Services (HHS), U.S. Department of the Treasury (Treasury), and U.S. Department of Labor issued the final rule governing employee wellness programs under the Affordable Care Act (ACA). This rule is intended to provide comprehensive guidance as to the general requirements for wellness programs by restructuring the regulations proposed by the departments in November 2012. These regulations replace the wellness program provisions of paragraph (f) of the 2006 Health Insurance Portability and Accountability Act (HIPAA) nondiscrimination and wellness provisions jointly published by HHS and the Treasury and implement Section 2705 of the Public Health Service Act (PHS). As amended by the ACA, the PHS’ nondiscrimination and wellness provisions largely reflect the 2006 regulations and extend the HIPAA nondiscrimination protections to the individual market. The rule applies to group health insurance coverage for plan years starting on or after January 1, 2014. More ›

In Significant Title VII Harassment Decision, U.S. Supreme Court Limits Definition of “Supervisor”

An African-American female who served in a University's dining services division filed a complaint against the University alleging racial harassment and discrimination due to the actions of a white catering specialist who worked at the same location. The catering specialist did not direct the employee's day-to-day activities or have authority to hire, fire, demote or discipline the employee, but sometimes handed the employee her list of tasks and directed the employee in the kitchen. The employee alleged that the catering specialist was her supervisor and that the University was liable for the creation of a racially hostile work environment. More ›