Justia U.S. 6th Circuit Court of Appeals Opinion Summaries

Articles Posted in Labor & Employment Law
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The United States Court of Appeals for the Sixth Circuit ruled in a case involving Bannum Place of Saginaw, LLC and Bannum, Inc., affiliates offering reentry services for formerly incarcerated individuals. After Bannum Saginaw's employees voted to unionize, the company undertook actions that were perceived as anti-union, leading to unfair labor practice charges. Bannum Saginaw was found guilty of firing union supporters Greg Price and Ernie Ahmad. The National Labor Relations Board (NLRB) sought to enforce a supplemental decision and order directing the companies to pay specific backpay amounts to Price and Ahmad.The court held that Bannum, Inc. and Bannum Saginaw were a single employer and affirmed the Board's decision to jointly hold them responsible for the backpay. The court rejected the argument that this decision violated Bannum, Inc.'s due process rights, noting that when two entities constitute a single employer, notice to one is notice to all. The court also upheld the Board's backpay calculations, dismissing the companies' arguments that the employees had not sufficiently mitigated their damages. Consequently, the court granted the Board's application for enforcement and denied the companies' cross-petition. View "NLRB v. Bannum Place of Saginaw, LLC" on Justia Law

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In the case between the National Labor Relations Board (NLRB) and Bannum Place of Saginaw, LLC and Bannum, Inc., the court ruled in favor of the NLRB.Bannum Place of Saginaw, a provider of reentry services for formerly incarcerated individuals, had been found to have engaged in unfair labor practices, including the termination of two union supporters. The NLRB sought enforcement of its decision to award specific backpay amounts to the two affected employees. Bannum contested this decision, arguing that Bannum, Inc. and Bannum Place of Saginaw were not a single employer and that the backpay calculation was erroneous.The court, however, upheld the NLRB's decision, noting that substantial evidence supported the finding that Bannum, Inc. and Bannum Place of Saginaw constituted a single employer. The court also rejected Bannum's argument that the backpay calculation was erroneous, stating that the burden was on the employer to establish facts that would mitigate that liability. The court also dismissed Bannum’s claims that its due process rights were violated, explaining that the relationship between Bannum, Inc. and Bannum Place of Saginaw was so interrelated that they actually constituted a single integrated enterprise.In conclusion, the court granted the NLRB's application for enforcement and denied Bannum's cross-petition. View "NLRB v. Bannum Inc." on Justia Law

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In this case, the plaintiff, Jason Schwebke, brought a lawsuit against his employer, United Wholesale Mortgage (UWM), alleging disability discrimination under state and federal law. Schwebke, who is deaf, claimed that UWM failed to provide him with necessary accommodations and retaliated against him. In response, UWM participated in extensive discovery procedures for several months without invoking its right to arbitration as per the parties' employment agreement.Seven months into the case, UWM moved to compel arbitration. The district court denied this motion, reasoning that UWM had implicitly waived its right to compel arbitration through its conduct. On appeal, the United States Court of Appeals for the Sixth Circuit affirmed the district court's decision.The appellate court applied the principle from the Supreme Court's decision in Morgan v. Sundance, Inc., which held that a party may waive its contractual right to arbitrate by participating in litigation. In applying this rule, the court found that UWM's actions—participating in extensive discovery, failing to raise arbitration in its defense, and not moving to compel arbitration until seven months into the case—were completely inconsistent with reliance on the arbitration agreement. The court therefore concluded that UWM had implicitly waived its right to arbitration. View "Schwebke v. United Wholesale Mortgage LLC" on Justia Law

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The court case involves Ferrellgas, L.P., which was appealing against an order enforcing a subpoena issued by the Equal Employment Opportunity Commission (EEOC). The subpoena was part of an EEOC investigation into a discrimination charge filed by an employee, alleging that Ferrellgas had engaged in discriminatory hiring, pay, and termination practices.Ferrellgas contended that the subpoena was improperly served, was facially invalid due to procedural errors, was overly broad, and would impose an undue burden. Ferrellgas also argued that the subpoena sought information on hiring practices, which was irrelevant to the specific discrimination charge. The United States Court of Appeals for the Sixth Circuit rejected all of Ferrellgas's arguments.The Court found that the subpoena was served properly, despite Ferrellgas's claims to the contrary. It also ruled that the procedural errors in the subpoena were harmless and did not preclude its enforcement. The Court concluded that the subpoena was not overly broad, as the information sought could shed light on the alleged discriminatory practices. The Court also held that Ferrellgas failed to demonstrate that complying with the subpoena would impose an undue burden.In conclusion, the Court affirmed the district court's order enforcing the EEOC's subpoena, deciding that the lower court did not abuse its discretion in doing so. View "EEOC v. Ferrellgas, L.P." on Justia Law

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In this case, the United States Court of Appeals for the Sixth Circuit was presented with an appeal involving an Ohio hospital's mandate for its employees to get COVID-19 vaccines. The plaintiffs, a group of current and former employees who had requested religious exemptions from the mandate, sued the hospital for religious discrimination under Title VII and Ohio Revised Code § 4112 after the hospital initially rejected all religious exemptions. The district court dismissed the case for lack of subject matter jurisdiction and failure to state a claim, leading to this appeal.The appellate court affirmed the dismissal for the majority of plaintiffs, ruling they lacked standing to sue because they could not demonstrate sufficient injury. However, the court reversed the dismissal for two of the plaintiffs who had resigned after their religious exemption requests were denied but before the hospital changed its policy and granted all religious exemptions. The court held that these two plaintiffs had plausibly alleged that they were forced to resign, or "constructively discharged", and thus had standing to sue.Furthermore, the court found that these two plaintiffs had sufficiently alleged that the hospital failed to provide reasonable accommodations for their religious practices and treated them differently from other employees. Consequently, they had stated plausible claims for relief under Title VII and Ohio Revised Code § 4112. The case was remanded for further proceedings concerning these two plaintiffs. View "Savel v. MetroHealth System" on Justia Law

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This case involves two consolidated appeals from the Western District of Michigan and the Southern District of Ohio. The dispute revolves around how pizza delivery drivers should be reimbursed for the cost of using their personal vehicles for work. The delivery drivers argued that they should be reimbursed according to a mileage rate published by the IRS, while the employers contended that a “reasonable approximation” of the drivers’ expenses sufficed.The United States Court of Appeals for the Sixth Circuit disagreed with both parties. The court held that the Fair Labor Standards Act (FLSA) requires employers to pay each employee a wage of not less than $7.25 an hour. If the employer requires an employee to provide tools for work, the employer violates the Act if the cost of these tools cuts into the minimum or overtime wages required to be paid under the Act.Applying these standards, the court rejected the employers' argument that a “reasonable approximation” of a delivery driver’s cost of providing his vehicle is always sufficient reimbursement. Similarly, the court also rejected the drivers' argument that they should be reimbursed using the IRS standard-mileage rate for business deductions, as this rate is a nationwide average and does not accurately reflect an individual employee's actual costs.The court vacated the district courts’ decisions and remanded for further proceedings, suggesting that a potential solution could be a burden-shifting regime similar to those in Title VII cases. View "Bradford v. Team Pizza, Inc." on Justia Law

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In this consolidated appeal involving two cases from the Western District of Michigan and the Southern District of Ohio, the United States Court of Appeals for the Sixth Circuit ruled on how pizza-delivery drivers should be reimbursed for the cost of using their vehicles for work. The main dispute lay in the reimbursement method: the Michigan court sided with the drivers, stating they should be reimbursed based on a mileage rate published by the IRS, while the Ohio court agreed with the employers, stating a "reasonable approximation" of the drivers' costs suffices. The Sixth Circuit disagreed with both courts and vacated their decisions.The central issue involved the Fair Labor Standards Act (FLSA) requirement that employers pay each employee at least a minimum wage. The court found that if an employer required a minimum-wage employee to provide his own "tools" for work (in this case, their own vehicles), the employer must reimburse them for 100% of the cost of doing so. The court emphasized that the FLSA mandates that each employee be paid at least the specified minimum wage, not a "reasonable approximation".The court also disagreed with the plaintiffs’ argument that they should be reimbursed using the IRS's standard-mileage rate for business deductions, as it is a nationwide average and does not consider the individual costs of each driver. The court emphasized that the statute entitles a minimum-wage employee to reimbursement of actual costs incurred on the employer's behalf, neither more nor less. The case was remanded back to the lower courts for further proceedings. View "Parker v. Battle Creek Pizza, Inc." on Justia Law

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This case concerns a dispute involving the Producers Service Corporation (PSC), an oilfield services company, and several of its current and former employees. The employees alleged that PSC failed to pay them a lawful overtime premium for all hours worked over forty per week. PSC argued that it paid its employees in accordance with a Belo plan, a statutory exception to the Fair Labor Standards Act (FLSA) that allows employers to pay a fixed salary to employees who work fluctuating hours. The district court found that PSC could not establish one of the prerequisites to a valid Belo plan because its employees worked irregular schedules not by necessity, but due to factors within PSC’s control, and therefore granted summary judgment in favor of the employees.On appeal, the United States Court of Appeals for the Sixth Circuit reversed the district court's decision, holding that PSC presented evidence creating a genuine dispute of fact as to the reason behind the employees' irregular schedules. Not all irregular schedules were due to scheduled time off, and PSC provided a plausible explanation for the weeks that employees worked fewer than forty hours despite taking no time off: swings in demand for its services. As such, the matter was remanded back to the district court for further proceedings. View "Jones v. Producers Service Corp." on Justia Law

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In this case, the United States Court of Appeals for the Sixth Circuit was faced with the claims of Cameron Cooper, an employee with Tourette Syndrome, who sued his former employer, Coca-Cola Consolidated, Inc. (CCCI), under the Americans with Disabilities Act (ADA). Cooper's Tourette Syndrome caused him to involuntarily utter racist and profane words. He alleged that CCCI failed to provide him with reasonable accommodations and constructively discharged him by forcing him into an undesirable position.Cooper had been working as a delivery merchandiser for CCCI, a role which required excellent customer service. However, his condition led to complaints from customers due to his use of offensive language. CCCI attempted various accommodations, including having Cooper work alongside another employee and ultimately transferring him to a warehouse position with no customer contact. Cooper claimed that CCCI could have accommodated him by assigning him to a non-customer-facing delivery route.The court held that providing excellent customer service was an essential function of Cooper's job and, given his condition, he could not perform this function without an accommodation. The court further held that Cooper's proposed accommodation (assigning him to a non-customer-facing delivery route) was not objectively reasonable because the suggested delivery route did involve customer contact and there were no other non-customer-facing routes available at the time. Additionally, the court found that the warehouse position offered by CCCI was a reasonable accommodation under the ADA.As to the constructive discharge claim, the court held that Cooper failed to show that CCCI deliberately created intolerable working conditions with the intention of forcing him to quit. The court concluded that CCCI provided Cooper with reasonable accommodations each time he requested, thus, there was no evidence to support a constructive discharge claim.The court affirmed the lower court's decision to grant summary judgment in favor of CCCI. View "Cooper v. Dolgencorp, LLC" on Justia Law

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Stephen Caudle, a truck driver for Hard Drive Express, Inc., sued his employer alleging that he was fired in retaliation for attempting to report unlawful employment practices. The case focuses on the Fair Labor Standards Act (FLSA) and Michigan Whistleblower Protection Act (WPA), with Caudle arguing that his firing was a response to his complaints about Hard Drive's failure to reimburse him for time and money spent on repairs. The district court granted summary judgement in favor of the employer, interpreting Caudle's complaints as related only to Hard Drive's paid-time-off policy, and therefore not protected under FLSA or WPA.The United States Court of Appeals for the Sixth Circuit reversed this decision, holding that there was a genuine factual dispute about whether Caudle's complaints were about vacation pay or the company's failure to compensate him for repairs. The court found that there was sufficient evidence to suggest that Caudle's complaints could have put the company on notice of potential violations of the FLSA, and therefore his firing could be seen as a violation of the anti-retaliation provisions of the FLSA and Michigan WPA. The court remanded the case for further proceedings. View "Caudle v. Hard Drive Express, Inc." on Justia Law