LexisNexis® Legal Newsroom
Mealey's Labor & Employment - Split Supreme Court: Nominee May Not Also Serve In An Acting Capacity

WASHINGTON, D.C. - Section 3345(b)(1) of the Federal Vacancies Reform Act of 1998 (FVRA) prevents any acting office for an office under this section from serving as a nominee and acting official, a divided U.S. Supreme Court ruled March 21 (National Labor Relations Board v. SW General, Inc., doing business...

Mealey's Labor & Employment - Nevada High Court: NLRA, ERISA Don't Preempt Minimum Wage Amendment

CARSON CITY, Nev. - Nevada's Minimum Wage Amendment (MWA), which allows employers to pay a lower minimum wage if they provide health benefits, is not preempted by the National Labor Relations Act (NLRA) or the Employee Retirement Income Security Act of 1974 (ERISA) and is not unconstitutionally vague...

Mealey's Labor & Employment - No Profits To Award From Bank's Pension Plan Transfer Strategy, Judge Says

CHARLOTTE, N.C. - Plaintiff employees in a decade-long case over a bank's illegal transfer of assets from a 401(k) plan to an Employee Retirement Income Security Act pension plan failed to show that any profit was retained by the bank as a result of the transfer, a North Carolina federal judge ruled...

Mealey's Labor & Employment - Drug Makers, Benefit Managers Hit With Class Suit Alleging Insulin Pricing Scheme

NEWARK, N.J. - Three drug makers and the three largest pharmacy benefit managers have engaged in a pricing scheme to drive up the cost of diabetes insulin - by more than 150 percent in the last five years - in violation of the Racketeer Influenced and Corrupt Organizations Act, the Employee Retirement...

Mealey's Labor & Employment - California Federal Judge Denies Decertification, Finds Vendors Are Employees

SAN FRANCISCO - A network of "vendors" who perform maintenance and repair services at properties owned by Field Asset Services Inc. (FAS) are employees, not independent contractors, and are owed overtime and business expenses, a California federal judge ruled March 17 in an order granting the...

Mealey's Labor & Employment - NLRB Rules In-N-Out Burger Can't Make Workers Remove Union, Wage-Related Buttons

WASHINGTON, D.C. - In-N-Out Burger Inc. violated the National Labor Relations Act (NLRA) when it prohibited employees from wearing unauthorized buttons or insignia that referenced union activity and wages, the National Labor Relations Board ruled March 21 (In-N-Out Burger, Inc. and Mid-South Organizing...

Mealey's Labor & Employment - Insurance Groups' Emergency Injunction Motion Over DOL Fiduciary Rule Denied

DALLAS - A Texas federal judge on March 20 denied a coalition of insurance associations' emergency motion for an injunction pending appeal of a ruling that the U.S. Department of Labor (DOL) has not exceeded its authority in formulating its new "fiduciary rule" and that the new rule does...

Mealey's Labor & Employment - ERISA Not The Vehicle For Health Centers' Suits Against Insurers, 9th Circuit Says

SAN FRANCISCO - Health care centers designated to receive direct payment from a health plan administrator for medical services cannot file suit in federal court under the Employee Retirement Income Security Act because they lack both direct statutory authority and derivative authority through assignment...

Mealey's Labor & Employment - 2nd Circuit Rules Against Louis C.K. In Dispute Over Plan Contributions

NEW YORK - Comedian Louis C.K.'s company is subject to the "controlling-employee" provisions in three employee benefit plan agreements and therefore must make plan contributions at the 40-hour workweek rate, even though C.K. worked fewer hours as editor of his TV show, the Second Circuit...

Mealey's Labor & Employment - Plaintiffs' Counsel Sanctioned For Behavior During Wage-And-Hour Deposition

SAN FRANCISCO - An attorney representing the named plaintiffs in a wage-and-hour class complaint must pay $7,706.32 in sanctions after acting in an "unprofessional" and "disrespectful" manner during deposition, a California federal magistrate judge ruled March 21, adding that the...

Mealey's Labor & Employment - Judge Nixes Class In Insureds' Suit Claiming Pharmacy Gouged On Generic Drugs

SAN FRANCISCO - The variety of contracts at issue and evidence that at least some of the contracted pharmacy benefit managers (PBMs) understood that a pharmacy's usual and customary rate did not include the rate offered for generic drugs in its membership program defeat a motion for class certification...

Mealey's Labor & Employment - 8th Circuit: Cargill Inc.'s Refusal To Bargain Violated The Labor Act

ST. LOUIS - An oil manufacturer failed to show that the National Labor Relations Board erred when it determined that the employer violated the National Labor Relations Act (NLRA) by refusing to bargain with the union representing its workers or when it refused to set aside the union election due to a...

Mealey's Labor & Employment - 4th Circuit: CBA Language Kills Retirees' Claim That Health Benefits Had Vested

RICHMOND, Va. - Health benefits for United Steel Workers retirees of a West Virginia aluminum manufacturer did not vest and were properly altered unilaterally by the company because union contracts expressly provided that the benefits remained in effect only for the term of the contracts, which had expired...

Mealey's Labor & Employment - Claimant Failed To Prove He Was Disabled Under Policy, 6th Circuit Panel Affirms

CINCINNATI - A disability insurer's decision to terminate a claimant's long-term disability benefits is supported by the medical evidence, the Sixth Circuit U.S. Court of Appeals said March 22, agreeing with a district court's finding that the claimant failed to show that his depression prevented...

Mealey's Labor & Employment - Judge Dismisses ERISA Action Involving Proton Beam Therapy Coverage Denial

BIRMINGHAM, Ala. - A man's Employee Retirement Income Security Act (ERISA) suit impermissibly seeks equitable relief in the face of other available remedies, a federal magistrate judge in Alabama held March 23 (Jeffrey Woodruff v. Blue Cross and Blue Shield of Alabama, et al., 2017 U.S. Dist. LEXIS...

Mealey's Labor & Employment - U.S. Supreme Court Hears Oral Arguments On ERISA's Church-Plan Exemption

WASHINGTON, D.C. - Whether a church establishes a plan or not, pension plans for religious nonprofits are and have been exempt from the minimum funding and reporting and disclosure requirements of the Employee Retirement Income Security Act, the attorney representing three religious hospitals and health...

Mealey's Labor & Employment - 2nd Circuit Reinstates Gay Employee's Title VII Gender-Stereotyping Claim

NEW YORK - A Second Circuit U.S. Court of Appeals panel on March 27 reinstated a gay employee's bias claim, finding that while it can't reconsider the ruling in Simonton v. Runyon, 232 F.3d 33 (2d Cir. 2000), which held that Title VII of the Civil Rights Act of 1964 does not prohibit discrimination...

Mealey's Labor & Employment - Court Affirms Verdict For Unpaid Overtime For Newspaper Employees

LOS ANGELES - After finding that all of a newspaper's challenges to a jury verdict in favor of former employees, who asserted claims for violation of California's unfair competition law (UCL) and other causes of action related to the termination of their jobs, failed, a California court on March...

Mealey's Labor & Employment - Insurer Acted Arbitrarily In Determining Disability Onset Date, 1st Circuit Panel Says

BOSTON - The First Circuit U.S. Court of Appeals on March 24 determined that a disability insurer acted arbitrarily and capriciously by relying on a job description of a generic "lawyer" rather than a job description of a specialized "environmental lawyer" when it determined the onset...

Mealey's Labor & Employment - Supreme Court Denies Cert In ERISA Class Action Against Verizon Communications

WASHINGTON, D.C. - In a two-sentence order, the U.S. Supreme on March 27 denied a petition for writ of certiorari filed by a defined-benefit pension plan participant and the Pension Rights Center in which they asked the court to consider whether the participant has standing to file a breach of fiduciary...

Mealey's Labor & Employment - Plan Excludes 'Educational Setting' Mental Health Treatment, 1st Circuit Finds

BOSTON - A Blue Cross Blue Shield company correctly denied coverage for a teenager's residential center treatment for his mental health problems because his father's group health insurance plan did not provide coverage for services rendered in an educational setting and the services at issue...

Mealey's Labor & Employment - Disability Plan's Provision Granting Discretionary Authority Is Void

SAN FRANCISCO - A de novo standard of review must be applied in a claimant's suit seeking long-term disability benefits because the plan's discretionary authority provision is void under California state law, a California federal judge said March 27 (Peter Englert v. The Prudential Insurance...

Mealey's Labor & Employment - Judge Hands Insurer Mixed Results In Colorectal Cancer Test Coverage Case

GREENSBORO, N.C. - An insurer received mixed results in its challenge to claims that it failed to properly compensate the developer of a colorectal cancer screening test, with a federal judge in North Carolina dismissing some of the claims on March 27 but largely allowing Employee Retirement Income Security...

Mealey's Labor & Employment - 9th Circuit: Cab Drivers Working The Phoenix Airport Are Not Employees

SAN FRANCISCO - Taxi drivers who lease cabs to pick up passengers at Phoenix Sky Harbor International Airport in Arizona are in business for themselves and not economically dependent on AAA Cab Service Inc. and are not employees under federal or state law, the Ninth Circuit U.S. Court of Appeals ruled...

Mealey's Labor & Employment - Seismic Workers Granted Class Certification In Wage Dispute

HOUSTON - A Texas federal magistrate judge on March 27 certified a class of workers paid on a day-rate basis who allege that they worked more than their allotted 12 hours per day but were not paid overtime (Darnell Senegal, et al. v. Fairfield Industries, Inc., d/b/a Fairfield Nodal, No. 16-2113, S.D...