LexisNexis® Legal Newsroom
    Mealey's Labor & Employment - 8th Circuit: Purchase Agreement's Waiver Doesn't Eliminate WARN Act Claims

    ST. LOUIS - A trucking company that purchased another is liable for Worker Adjustment and Retraining Notification (WARN) Act violations despite a clause in the asset purchase agreement (APA) that stated that it had no liability, the Eighth Circuit U.S. Court of Appeals ruled July 5, finding that the transaction was actually a sale of business (Stuart R. Day, et al. v. Celadon Trucking Services, Inc., No. 15-1711, 8th Cir.; 2016 U.S. App. LEXIS 12365).

    Mealey's Labor & Employment - 6th Circuit Panel Affirms Dismissal Of Preemption Claims

    CINCINNATI - A Sixth Circuit U.S. Court of Appeals panel on July 1 affirmed dismissal of claims that a Michigan law is preempted by the Employee Retirement Income Security Act (Self-Insurance Institute of America Inc. v. Rick Snyder, et al., No. 12-2264, 6th Cir.; 2016 U.S. App. LEXIS 12142).

    Mealey's Labor & Employment - 7th Circuit Reinstates Postal Worker's Race Discrimination Claims

    CHICAGO - The Seventh Circuit U.S. Court of Appeals on June 28 vacated a trial court's summary judgment ruling in favor of the postmaster general, finding that a U.S. Postal Service (USPS) employee established a prima facie case of race and national origin discrimination (Yousef Ismail v. Megan J. Brennan, No. 15-2701, 7th Cir.; 2016 U.S. App. LEXIS 11753).

    Mealey's Labor & Employment - 4th Circuit Reinstates Worker's FMLA Rights Interference Claim

    RICHMOND, Va. - A former bank director who was fired following medical leave failed to prove retaliation or disability discrimination claims but may proceed with his claim that his employer interfered with his medical leave rights by providing him with a defective notice, a Fourth Circuit U.S. Court of Appeals panel ruled June 28 (John Vannoy v. The Federal Reserve Bank of Richmond, No. 14-2375, 4th Cir.; 2016 U.S. App. LEXIS 11774).

    Mealey's Labor & Employment - 4th Circuit Vacates Attorney Fee Award Against Employee Seeking Wages

    RICHMOND, Va. - A district court erred in concluding an employee suing her employer under the Fair Labor Standards Act (FLSA) owes attorney fees because her "conduct was not vexatious," opined a Fourth Circuit U.S. Court of Appeals panel on June 28 (Stella Andrews, et al. v. America's Living Centers, LLC, et al., No. 15-1658, 4th Cir.; 2016 U.S. App. LEXIS 11776).

    Mealey's Labor & Employment - Texas Federal Judge Says Hospital Makes Plausible Claim To Recover Benefits

    DALLAS - A Texas federal judge on June 28 granted in part and denied in part United HealthCare Services Inc.'s motion to dismiss claims that it either did not pay or underpaid claims for services provided by a Texas hospital to United subscribers (Texas General Hospital LP, et al. v. United HealthCare Services Inc., et al., No. 3:15-CV-02096, N.D. Texas, Dallas Div.; 2016 U.S. Dist. LEXIS 84082).

    Mealey's Labor & Employment - Employer Settles EEOC Sexual Orientation Bias Lawsuit For $202,200

    BALTIMORE - Pallet Cos., doing business as IFCO Systems NA Inc., will pay $202,200 and provide equitable relief to settle one of the Equal Employment Opportunity Commission's first lawsuits alleging gender discrimination based on sexual orientation, the EEOC announced June 28 (U.S. Equal Employment Opportunity Commission v. Pallet Companies d/b/a IFCO Systems NA, Inc., No. 16-595, D. Md.).

    Mealey's Labor & Employment - Judge Finds Borrower Failed To Respond, Dismisses FDCPA Claim

    DETROIT - After finding that a former property owner failed to respond to a notice of debt in a timely manner, a Michigan federal judge on June 28 granted a motion filed by a bank and loan servicer to dismiss his claim for violation of the Fair Debt Collection Practices Act (FDCPA) (Cornelious Moore v. Ocwen Loan Servicing LLC, et al., No. 15-cv-14294, E.D. Mich.; 2016 U.S. Dist. LEXIS 83400).

    Mealey's Labor & Employment - 7th Circuit Panel Remands Withdrawal Liability Case For Trial

    CHICAGO - A Seventh Circuit U.S. Court of Appeals panel on June 24 remanded for trial a case in which an auto mechanics' pension board claims that Full Circle Group Inc. (FCG) has withdrawal liability for fund contributions as a successor to an insolvent company (Board of Trustees of the Automobile Mechanics' Local No. 701 Union and Industry Pension Fund v. Full Circle Group Inc., et al., No. 15-2497, 7th Cir.; 2016 U.S. App. LEXIS 11600).

    Mealey's Labor & Employment - High Court Won't Review Ruling On ERISA Fiduciary's Liability

    WASHINGTON, D.C. - The U.S. Supreme Court on June 27 let stand a Sixth Circuit U.S. Court of Appeals divided opinion that rejected the breach of prudence claims asserted by participants in an employee stock ownership plan (ESOP) (Raymond M. Pfeil, et al. v. State Street Bank and Trust Company, No. 15-1199, U.S. Sup.).

    Mealey's Labor & Employment - U.S. High Court Denies Rehearing In Union Fees Dispute

    WASHINGTON, D.C. - The U.S. Supreme Court on June 28 denied rehearing in an appeal brought by teachers who objected to agency-fee requirements for non-union workers employed by public entities and sought to overturn the Supreme Court's decision in Abood v. Detroit Bd. of Ed. (431 U.S. 209 [1977]) (Rebecca Friedrichs, et al. v. California Teachers Association, et al., No. 14-915, U.S. Sup.).

    Mealey's Labor & Employment - U.S. Supreme Court Denies Certiorari In 2 Tribal Casino Labor Disputes

    WASHINGTON, D.C. - The U.S. Supreme Court on June 27 denied petitions for writ of certiorari filed by two Indian tribes appealing two Sixth Circuit U.S. Court of Appeals decisions in which divided panels enforced the National Labor Relations Board's jurisdiction over the tribes' casino operations (Little River Band of Ottawa Indians Tribal Government v. National Labor Relations Board, No. 15-1024; Soaring Eagle Casino and Resort v. National Labor Relations Board, No. 15-1034, U.S. Sup.).

    Mealey's Labor & Employment - Servers' Class Suit Over Nontipped Work, Credit Card Fees Is Dismissed

    CINCINNATI - An Ohio federal judge on June 21 dismissed a class complaint accusing a seafood and steakhouse of failing to properly compensate its workers for nontipped duties performed before and after closing and improperly deducting transaction fees from tips paid via credit cards (Chelsey Craig, et al. v. Landry's, Inc., et al., No. 16-277, S.D. Ohio; 2016 U.S. Dist. LEXIS 80489).

    Mealey's Labor & Employment - Colorado Federal Judge Certifies Class In Action Alleging Breach Of Duty

    DENVER - A Colorado federal judge on June 22 granted a motion for class certification and denied a defense motion to exclude expert testimony in a case alleging that Great-West Life & Annuity Insurance Co. breached its fiduciary duties under the Employee Retirement Income Security Act (John Teets v. Great-West Life & Annuity Insurance Co., No. 14-02330, D. Colo.).

    Mealey's Labor & Employment - Motion For Class Certification Denied In Servers' Tip-Skimming Suit

    CLEVELAND - An Ohio federal judge on June 20 denied a motion for class certification in a suit brought by servers who allege their employer failed to turn over to them the full amount of tips left by banquet customers, finding that the plaintiffs failed to provide an adequate class definition or meet the numerosity, commonality and predominance requirements (Carol Carter, et al. v. PJS of Parma, Inc., et al., No. 15-1545, N.D. Ohio; 2016 U.S. Dist. LEXIS 79747).

    Mealey's Labor & Employment - Florida Federal Judge OKs Preliminary Settlement Of Harvoni Drug Coverage Suit

    FORT PIERCE, Fla. - A Florida federal judge on June 21 approved an unopposed motion for preliminary approval of a settlement worth at least $126 million in an Employee Retirement Income Security Act class action against Blue Cross and Blue Shield of Florida Inc. on behalf of patients denied coverage for the prescription drug Harvoni (Eugene Oakes, et al. v. Blue Cross and Blue Shield of Florida Inc., No. 16-80028, SD. Fla.).

    Mealey's Labor & Employment - Dollar General To Face Claims In Tribal Court After Supreme Court Deadlocks

    WASHINGTON, D.C. - The U.S. Supreme Court on June 23 affirmed by an equally divided court a Fifth Circuit U.S. Court of Appeals' finding that retailer Dollar General Corp. can be sued in tribal court by an Indian youth who says he was sexually molested by the manager of a Dollar General store on tribal land because the company consented to the tribe's jurisdiction by hiring the youth as an intern (Dollar General Corp., et al. v. The Mississippi Band of Choctaw Indians, et al., No. 13-1496, U.S. Sup.).

    Mealey's Labor & Employment - 5th Circuit: EEOC Pattern Or Practice Claims Allowed Under 2 Sections Of Title VII

    NEW ORLEANS - A district court did not err when it ruled that the Equal Employment Opportunity Commission may proceed with its claims alleging a "pattern or practice" of discrimination by an employer in its hiring practices under Sections 706 and 707 of Title VII of the Civil Rights Act of 1964, the Fifth Circuit U.S. Court of Appeals ruled June 17, rejecting the employer's claim that such claims may be brought only for equitable relief and only under Section 707 (Equal Employment Opportunity Commission v. Bass Pro Outdoor World, L.L.C., et al., No. 15-20078, 5th Cir.; 2016 U.S. App. LEXIS 11031).

    Mealey's Labor & Employment - DOL Seeks Consolidation Of 3 Cases Challenging Its New Fiduciary Rule

    DALLAS - The U.S. Department of Labor (DOL) on June 17 filed an unopposed motion in Texas federal court to consolidate three cases challenging its new "fiduciary rule" (Chamber of Commerce of the United States of America, et al. v. Thomas E. Perez, Secretary of Labor, et al., No. 3:16-cv-1476, N.D. Texas).

    Mealey's Labor & Employment - 2nd Circuit Panel Says Company Had Cause To Fire, Deny Benefits

    NEW YORK - A Second Circuit U.S. Court of Appeals panel on June 16 upheld a New York federal judge's ruling that a company had cause to fire two employees who refused to answer questions about their possible involvement in an alleged criminal conspiracy (William W. Gilman, et al. v. Marsh & McLennan Companies Inc., et al., No. 15-0603, 2nd Cir.; 2016 U.S. App. LEXIS 10937).

    Mealey's Labor & Employment - U.S. High Court To Decide On Validity Of NLRB Acting General Counsel

    WASHINGTON, D.C. - The U.S. Supreme Court on June 20 granted a petition for writ of certiorari in an appeal of a District of Columbia Circuit U.S. Court of Appeals decision in which the appellate panel held that a former acting general counsel of the National Labor Relations Board (NLRB) served in violation of the Federal Vacancies Reform Act of 1998 (FVRA) (5 U.S. Code Section 3345, et seq.) for nearly two years and, as a result, the unfair labor practice complaint he issued against an ambulance company was unauthorized (National Labor Relations Board v. SW General, Inc., doing business as Southwest Ambulance, No. 15-1251, U.S. Sup.).

    Mealey's Labor & Employment - D.C. Circuit Partially Reinstates Former EPA Manager's Race Bias Claims

    WASHINGTON, D.C. - A District of Columbia Circuit U.S. Court of Appeals on June 14 partially reinstated a former Environmental Protection Agency manager's racial bias claims, finding that she produced sufficient evidence to proceed with her claim that she was suspended during her employment due to her race (Susan M. Morris v. Gina McCarthy, Administrator, U.S. Environmental Protection Agency, No. 14-5074, D.C. Cir.; 2016 U.S. App. LEXIS 10714).

    Mealey's Labor & Employment - Employee Awarded $352,083 In Sexual Orientation Bias, Harassment Verdict

    LOS ANGELES - In a two-phase special verdict filed June 13 and 14, a California state jury awarded an employee $352,083 on his claims that his former employer discriminated against him and harassed him based on his sexual orientation (Brandon Grey v. American Management Services, LLC, No. BC412760, Calif. Super., Los Angles Co.).

    Mealey's Labor & Employment - Plaintiffs Seek Preliminary Approval Of $30.9 Million Class Action Settlement

    SPRINGFIELD, Mass. - Plaintiffs in an Employee Retirement Income Security Act breach of contract lawsuit on June 15 filed a joint motion for preliminary approval of a $30.9 million class settlement in Massachusetts federal court (Dennis Gordon, et al. v. Massachusetts Mutual Life Insurance Co., et al., No. 13-30184, D. Mass.).

    Mealey's Labor & Employment - Data Breach Whistle-Blower's Wrongful Termination Suit Survives Dismissal

    PHOENIX - A former collegiate district employee who claims that he was terminated in part due to reporting data security lapses that led to a network breach may bring his contractual wrongful termination claim against his former employer, an Arizona federal magistrate judge ruled June 14, while directing the plaintiff to file a more definite statement of that claim (Miguel Corzo v. Maricopa County Community College District, et al., No. 2:15-cv-02552, D. Ariz.; 2016 U.S. Dist. LEXIS 77243).