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

The plaintiffs retired from the Louisville Metropolitan police department and received free health insurance, administered by Kentucky Retirement Systems. Kentucky initially paid all of their healthcare costs. After the officers turned 65, Medicare became the primary payer, leaving Kentucky to cover secondary expenses. Each officer came out of retirement, joining county agencies different from the ones they served before retiring. They became eligible for healthcare benefits in their new positions. Kentucky notified them that federal law “mandate[d]” that it “cannot offer coverage secondary to Medicare” for retirees “eligible to be on [their] employer’s group health plan” as “active employees.” Some of the officers then paid for insurance through their new employers; others kept their retirement insurance by quitting or going part-time. The officers sued.The district court granted summary judgment to the officers, ordered Kentucky to reinstate their retirement health insurance, and awarded the officers some of the monetary damages requested. The Sixth Circuit affirmed. The officers have a cognizable breach-of-contract claim. Under Kentucky law, the Kentucky Retirement Systems formed an “inviolable contract” with the officers to provide free retirement health insurance and to refrain from reducing their benefits, then breached that contract. The Medicare Secondary Payer Act of 1980 did not bar Kentucky from providing Medicare-eligible police officers with state retirement insurance after they reentered the workforce and became eligible again for employer-based insurance coverage, 42 U.S.C. 1395y. View "River City Fraternal Order of Police v. Kentucky Retirement Systems" on Justia Law

The Labor Management Relations Act forbids employers from directly giving money to unions, 29 U.S.C. 186(a); an exception allows an employer and a union to operate a trust fund for the benefit of employees. Section 186(c)(5)(B) requires the trust agreement to provide that an arbitrator will resolve any “deadlock on the administration of such fund.” Several construction companies and one union established a trust fund to subsidize employee vacations. Six trustees oversaw the fund, which is a tax-exempt entity under ERISA 26 U.S.C. 501(c)(9). A disagreement arose over whether the trust needed to amend a tax return. Three trustees, those selected by the companies, filed suit, seeking authority to amend the tax return. The three union-appointed trustees intervened, arguing that the dispute belongs in arbitration.The court agreed and dismissed the complaint. The Sixth Circuit affirmed. While ERISA plan participants or beneficiaries may sue for a breach of statutory fiduciary duty in federal court without exhausting internal remedial procedures, this complaint did not allege a breach of fiduciary duties but rather alleges that the employer trustees’ own fiduciary duties compelled them to file the action to maintain the trust’s compliance with tax laws. These claims were “not directly adversarial to the [union trustees] or to the Fund.” View "Baker v. Iron Workers Local 25" on Justia Law

Wyatt began working as a Nissan project manager in 2013. For two years she received positive annual performance reviews. During those years, Wyatt twice had medical leave. Nissan restored Wyatt to her position and granted nearly all the work accommodations recommended by Wyatt’s doctor. In 2015, Wyatt began working on a project headed by Mullen who sexually harassed and assaulted her. Wyatt’s complaints led to Mullen leaving the company. At the same time, Wyatt took medical leave for back surgery. Upon her return, she and her doctors requested workplace accommodations, similar to those she had previously requested. Nissan denied her request for a 40-hour workweek. Wyatt claims that managers harassed her about her requests and gave Wyatt her first “below expectations” annual evaluation, Wyatt filed a charge of discrimination with the EEOC. Her managers later issued Wyatt a Performance Improvement Plan. Wyatt refused to sign the PIP, believing that it was retaliatory. In February 2017, Wyatt took medical leave and continues to be on leave.Wyatt filed suit, alleging hostile work environment, Title VII, 42 U.S.C. 2000e; failure-to-accommodate, Americans with Disabilities Act, 42 U.S.C. 12101l and retaliation claims under Title VII, the ADA, and the Family and Medical Leave Act, 29 U.S.C. 2601. The district court granted Nissan summary judgment. The Sixth Circuit affirmed with respect to Wyatt’s ADA discrimination claim and claims that were based on retaliatory harassment but reversed with respect to Wyatt’s hostile work environment and retaliation claims based on adverse employment actions. View "Wyatt v. Nissan North America, Inc." on Justia Law

Jackson, an African American woman, was GCRC's Human Resources Director. Daly, GCRC’s chief administrative officer, was Jackson’s supervisor. There were pending internal discrimination complaints when Jackson started, including a complaint by African American employees about Bennett. Jackson ultimately negotiated a severance agreement with Bennett. A second issue involved McClane’s complaints about Williams, GCRC’s finance director, who subsequently resigned. Jackson was also responsible for approving Equal Employment Opportunity Plans submitted by vendors and contractors. Jackson realized that several vendors’ EEOPs had expired and became concerned that some GCRC directors were conducting business with vendors before their EEOPs were approved. Jackson implemented several changes in GCRC’s EEOP approval process. Several employees, vendors, board members, and union representatives complained to Daly about Jackson’s “abrasiveness” and communication style. Other employees reported having good experiences with Jackson. Daly fired Jackson without giving a reason other than she was an at-will employee. Jackson filed a retaliation claim under Title VII of the Civil Rights Act and Michigan’s Elliot-Larsen Civil Rights Act. The district court granted GCRC summary judgment.The Sixth Circuit reversed. Jackson engaged in protected activity and there remains a genuine factual dispute as to causation. Jackson’s actions could reasonably be viewed as steps to ensure there was no discrimination in hiring both within GCRC and among its vendors, and were protected activity under Title VII. A reasonable juror could find that Jackson has established a prima facie case of causation through circumstantial evidence including the temporal proximity between Jackson’s protected activity and termination. View "Jackson v. Genesee County Road Commission" on Justia Law

Torres started working for Precision in 2011. He was not then legally authorized to work in the U.S. but obtained work authorization about five months later. Torres listed a fake Social Security number on a tax form when he started the job. In May 2012, Torres injured his back at work. Precision did not pay all of the doctor's bills. Torres pursued a workers’ compensation claim. After receiving a September 2011 call from Torres’s lawyer, supervisors confronted Torres. Torres recorded their threatening and profanity-laced statements. Torres was immediately terminated.Torres sued, claiming Precision violated Tennessee law by firing him in retaliation for making a workers’ compensation claim. The district court rejected the claim, citing the Immigration Reform and Control Act of 1986. On remand, the district court found Precision liable for retaliatory discharge and held that federal law did not preempt a damage award. The court awarded Torres backpay, compensatory damages for emotional distress, and punitive damages. The Sixth Circuit affirmed. Federal law makes it illegal to employ undocumented aliens, but Tennessee’s workers’ compensation law protects them. Because of federal law, the company cannot be required to pay lost wages that the alien was not allowed to earn; the employer is liable for wages the employee could have lawfully received, and for damages unrelated to the employee’s immigration status. View "Torres v. Precision Industries, Inc." on Justia Law

Strickland, an African-American Detroit Police Officer since 2008, claims that he has been subjected to race-based harassment throughout his tenure. He cited several incidents, social media posts, and Department reports and having been denied desired shift assignments and training in favor of white officers. A Committee on Race and Equality report concluded that “the department has a growing racial problem” and that African-American officers who complained were retaliated against. On January 22, 2017, off-duty, Strickland pulled into a gas station that, unbeknownst to him, was the site of an active police investigation of a reported incendiary device. He could not see the firetrucks or police cars. When Strickland saw a uniformed sergeant emerge from the fog, he immediately identified himself as an officer but was handcuffed in a way that was extremely tight. A sergeant led him away, belittling him in front of other officers. Strickland was later diagnosed with a bilateral wrist contusion and was suspended for three days without pay. Strickland complained. After an investigation, Strickland was charged with three code of conduct violations.Strickland sued, alleging hostile workplace and illegal retaliation (Title VII), and under 42 U.S.C. 1983, claiming an unlawful search and seizure and excessive force. The district court rejected the claims on summary judgment. The Sixth Circuit affirmed with respect to the hostile work environment claim but reversed the grant of qualified immunity to one officer on the excessive force claim and summary judgment in favor of the city on the retaliation claim. View "Strickland v. City of Detroit" on Justia Law

In 2010, Felten filed a qui tam complaint alleging that his then-employer, Beaumont Hospital, was violating the False Claims Act (FCA), 31 U.S.C. 3730(h), and the Michigan Medicaid False Claims Act by paying kickbacks to physicians and physicians’ groups in exchange for referrals of Medicare, Medicaid, and TRICARE patients. Felten also alleged that Beaumont had retaliated against him by threatening and “marginaliz[ing]” him for insisting on compliance with the law. After the government intervened and settled the case against Beaumont, the district court dismissed the remaining claims, except those for retaliation and attorneys’ fees and costs.Felten amended his complaint to add allegations of retaliation that took place after he filed his initial complaint: he was terminated after Beaumont falsely represented to him that an internal report suggested that he be replaced and that his position was subject to mandatory retirement. Felten further alleged that he had been unable to obtain a comparable position in academic medicine because Beaumont “intentionally maligned [him].”The district court dismissed the allegations of retaliatory conduct occurring after Felten’s termination. The Sixth Circuit vacated. The FCA’s anti-retaliation provision protects a relator from a defendant’s retaliation after the relator’s termination. View "Felten v. William Beaumont Hospital" on Justia Law

In 2008, State Bank, a Fentura subsidiary, hired Wollschlager to deal with “problem loans.” Wollschlager’s contract provided a golden parachute worth $175,000 if the Bank fired him early. In 2009, the FDIC deemed the Bank “troubled.” In 2010, Wollschlager negotiated an amended agreement worth $245,000. Wollschlager's 2011 separation agreement provided that the $245,000 payment would comprise $138,000 (one year’s salary) within 60 days of Wollschlager’s departure; $107,000 plus his base compensation through the end of the year ($28,000) would be paid once the Bank’s conditions improved. Fentura did not seek FDIC prior approval. The FDIC and the Federal Reserve subsequently approved the $138,000 installment. FDIC regulations “generally limit payments to no more than one year of annual salary.” In 2013, Fentura sought approval to pay the remainder, acknowledging that the agreements required prior approval. The FDIC refused, citing 12 U.S.C. 1828(k).The district court granted the FDIC judgment on the record. The Sixth Circuit affirmed The statute says that the agency should withhold golden parachute payments for misconduct and should also consider whether the employee “was in a position of managerial or fiduciary responsibility,” the “length of” the employment, and whether the “compensation involved represents a reasonable payment for” the employee’s services. The FDIC reasonably found that the payment would result in a windfall of two years’ salary for an employee who worked for just three years and that the Bank never sought initial approval. View "Wollschlager v. Federal Deposit Insurance Corporation" on Justia Law

Massey began working as a security guard in 2004. Massey alleges that her supervisors and co-workers commented on “her weight, the size of her breast, her looks and body [odor]”; and referred to her as the “Queen of FMLA.” She alleges she was denied medical leave. In 2015, Great Lakes became Massey’s employer. Supervisors told Massey that she looked “sloppy,” and that her breasts were “drooping.” Massey went to human resources; she claims the harassment continued. On October 29, 2017, Massey was driving a Great Lakes van when the van incurred damage. Massey claimed that she was not aware that she had been in an accident. Massey claims that she was approved for FMLA leave for breast reduction surgery through November 17: there is no record that anyone at Great Lakes knew about her FMLA leave for her surgery. On November 15, Massey was told that it had been determined that she falsified her incident report. Great Lakes terminated her employment on December 16, 2017.Massey filed an EEOC complaint, alleging sexual harassment and retaliation, and later sued, alleging sexual harassment, retaliation, and gender discrimination under Title VII and the Michigan Elliot-Larsen Civil Rights Act and FMLA retaliation. The Sixth Circuit affirmed summary judgment in favor of Great Lakes, finding insufficient evidence that the harassment Massey faced was “severe or pervasive.” Great Lakes established that it honestly believed that Massey falsified her report as a basis for her termination. View "Nathan v. Great Lakes Water Authority" on Justia Law

Schwamberger, a former deputy director of the Marion County Board of Elections sued the Board and its former director, Meyer, asserting, under 42 U.S.C. 1983, that the defendants’ actions constituted First Amendment retaliation, violation of the Fourteenth Amendment’s Due Process Clause, and violation of the Equal Protection Clause. Each Ohio County Board of Elections must have four members divided equally between the two major parties. The deputy director (Schwamberger) and the director (Meyer) are always members of opposite political parties, R.C. 3501.091, and deputy directors serve at the pleasure of their county boards. Schwamberger was terminated for impermissibly commenting on the election process, and therefore on policy and political issues related to her deputy-director position, after attempting to complain about errors in the 2018 election to the Board.The Sixth Circuit affirmed the dismissal of Schwamberger’s suit. Schwamberger’s speech proximately caused her termination but that speech implicated policy concerns; she was a policymaking employee, so her speech was unprotected. Schwamberger has not demonstrated a property interest in her position. Under Ohio law, she was an at-will employee who served at the pleasure of the Board. Even if the Board did act “arbitrarily” regarding her discharge, its actions do not create a constitutional claim. View "Schwamberger v. Marion County Board of Elections" on Justia Law