Justia U.S. 6th Circuit Court of Appeals Opinion Summaries
Articles Posted in Labor & Employment Law
Acosta v. Off Duty Police Services, Inc.
ODPS offers private security and traffic control services. Most ODPS workers are sworn officers for some law-enforcement entity. Non-sworn workers may have no background in law enforcement. ODPS offers assignments to workers who meet the qualifications specified by the customer. Workers can choose to reject a job but might not receive future assignments if they decline. ODPS sometimes provides workers with equipment. Workers pay for other equipment. All workers must own police-style vehicles. The cost of the non-sworn workers’ investments is roughly $3,000-$5,000. On the job, workers follow the customer’s instructions, comply with ODPS’s standard policies, and occasionally submit to the supervision of other ODPS workers. Sworn police officers wear their official police uniforms; non-sworn workers wear uniforms with ODPS-branded patches. Workers send ODPS an invoice to be paid an hourly wage. All workers sign “independent contractor agreements,” including non-compete clauses. ODPS has never paid overtime wages. The Department of Labor sued under the Fair Labor Standards Act, 29 U.S.C. 207(a)(1). The district court held that ODPS’s non-sworn workers were employees entitled to overtime wages but that sworn officers were independent contractors because they “simply were not economically dependent on ODPS” and some of ODPS’s records “faulty.” The Sixth Circuit reversed in part. All of the workers were employees. The court noted the length and consistency of the relationship between ODPS and its workers, that ODPS’s workers earned set wages to perform low-skilled jobs for fixed periods, and that the officers were an integral part of ODPS’s business. View "Acosta v. Off Duty Police Services, Inc." on Justia Law
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Labor & Employment Law
Shepherd v. Incoal, Inc.
Tramble worked for various Kentucky coal companies from at least May 1963 until June 1985. Tramble’s 1987 claim for benefits under the Black Lung Benefits Act (BLBA), 30 U.S.C. 901–944, indicated that he had stopped working due to a job-related back injury. That claim was denied although the parties stipulated to 17 years of qualifying coal mine employment. The ALJ found that medical evidence established that Tramble suffered from coal workers’ pneumoconiosis but was not totally disabled. After his 2008 death, Tramble’s widow sought survivor’s benefits. Reversing an award by an ALJ, the Department of Labor Benefits Review Board found that the ALJ failed to explain adequately how he calculated the 15.25-years of underground coal mine employment that justified application of the 15-year statutory presumption of entitlement to benefits. On remand, the ALJ again awarded benefits. The Board again reversed. The Sixth Circuit remanded. Further fact-finding is required to ensure that all relevant evidence has been considered. The court rejected Incoal’s argument that, in order to be credited with one year of coal mine employment, a miner must be on the payroll of a mining company for 365 consecutive days and have worked 125 of those days in or around a coal mine . View "Shepherd v. Incoal, Inc." on Justia Law
Jammal v. American Family Insurance Co.
The named plaintiffs in a suit under 29 U.S.C. 1132(a) represent several thousand current and former insurance agents for American Family Insurance and claim that American Family misclassified them as independent contractors, while treating them as employees, in order to avoid paying them benefits in compliance with the Employee Retirement Income Security Act of 1974 (ERISA). Reversing the district court, the Sixth Circuit held American Family properly classified its agents as independent contractors. The court applied factors relating to the skill required of an agent and the hiring and paying of assistants; the district court correctly recognized that the agreement favored independent-contractor status but did not weigh this important component when reaching its conclusion. View "Jammal v. American Family Insurance Co." on Justia Law
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Labor & Employment Law
Island Creek Coal Co. v. Wilkerson
Wilkerson mined coal for over 25 years. In 1994, he retired from the Island Creek’s Crescent mine, where he had worked most recently as an electrician. In 2012, Wilkers sought benefits under the Black Lung Benefits Act, which provides compensation to miners disabled by pneumoconiosis, 30 U.S.C. 902(b), 922(a)(1). The Sixth Circuit denied a petition for review, upholding the Benefits Review Board’s award of benefits. The defendant forfeited an argument that the ALJ lacked authority to hear the case under the Appointments Clause by failing to raise it in its opening brief. Appointments Clause challenges arise under the U.S. Constitution, but are “not jurisdictional and thus are subject to ordinary principles of waiver and forfeiture.” Substantial evidence supports the award. An ALJ may presume an applicant suffers from the disease if he worked for 15 years at a qualifying coaling mine and suffers “a totally disabling respiratory or pulmonary impairment.” Wilkerson worked for more than 15 years at a qualifying mine, and substantial evidence showed that he suffered total disability due to a respiratory or pulmonary impairment. Faced with the conflicting medical evidence, the ALJ turned to the four doctors who testified, credited testimony from one doctor, discounted the three others for legitimate reasons, and concluded that Wilkerson suffered from a disability. The doctor’s conclusion about Wilkerson’s disability tracked the newest available data. View "Island Creek Coal Co. v. Wilkerson" on Justia Law
Haddad v. Gregg
Haddad sued under 42 U.S.C. 1983 alleging his employment was terminated by the Michigan Department of Insurance and Financial Services (MDIFS), for exercising his First Amendment rights. The Sixth Circuit affirmed summary judgment in favor of the employer. Haddad argued that he was acting as a “virtual private citizen” because his duties as an MDIFS examiner required him to speak in the public interest and work to end the inclusion of intra-family exclusion clauses (IFEs) in insurance policies. By making this argument, however, Haddad acknowledged that he was acting pursuant to his official duties when he sought to end the use of IFEs through his examinations, the very activity that he claims was the basis for his termination. “[W]hen public employees make statements pursuant to their official duties, the employees are not speaking as citizens for First Amendment purposes, and the Constitution does not insulate their communications from employer discipline.” Haddad’s purpose was to further his official work to end what he believed to be an unfair insurer practice; his conduct was part of the performance of his job, and the district court did not err by concluding that Haddad was not speaking as a private citizen. View "Haddad v. Gregg" on Justia Law
Brumley v. United Parcel Service, Inc.
Brumley injured her back while unloading packages from a UPS truck. After receiving workers’ compensation and taking a leave of absence, Brumley returned to work. Her supervisor sent her home because her return-to-work letter included injury-related restrictions related to driving and lifting. UPS subsequently informed her that it was initiating an internal ADA “interactive process” and asked Brumley to submit two medical forms to allow the company to evaluate her restrictions and identify possible accommodations. Brumley opted to discontinue the process and had the doctor remove her restrictions. Several months later, she sued UPS for failure to accommodate, in violation of the Americans with Disabilities Act, 42 U.S.C. 12101 (ADA), based on the time she was off work during the process. The district court granted UPS summary judgment. The Sixth Circuit affirmed. The ADA does not obligate employers to make on-the-spot accommodations of the employee’s choosing. Under the ADA, an employer must engage in an “informal, interactive process” with the employee to “identify the precise limitations resulting from the disability and potential reasonable accommodations that could overcome those limitations.” If Brumley voluntarily abandoned the process, UPS is not liable for failing to provide reasonable accommodation. View "Brumley v. United Parcel Service, Inc." on Justia Law
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Labor & Employment Law
Vest v. Resolute FP US Inc.
Plaintiff Mead Vest contended defendant Resolute FP US Inc. breached its fiduciary-duty obligations set forth in the Employee Retiree Income Security Act when it failed to notify her late husband of his right to convert a group life insurance policy to an individual life insurance policy after he ceased employment and began drawing long-term disability benefits. The district court ruled plaintiff did not adequately plead a breach-of-fiduciary-duty cause of action. After review, the Sixth Circuit agreed and affirmed. View "Vest v. Resolute FP US Inc." on Justia Law
Posted in:
Insurance Law, Labor & Employment Law
Bullington v. Bedford County
Bullington worked as a Bedford County Sheriff’s Department dispatcher for over eight years. During her employment, Bullington had Hodgkin’s Lymphoma, a form of cancer, which she treated with chemotherapy. The chemotherapy caused neuropathy and scar tissue in Bullington’s lungs, so Bullington needed additional treatment. Because of her diagnosis and treatment, Bullington asserts that the Department treated her differently than the other employees. Bullington brought suit, alleging violations of constitutional rights under the Fourteenth Amendment to be free from discrimination and retaliation, that the county violated her constitutional rights by not providing adequate supervision and training, violations of the Tennessee Human Rights Act, and violations of the Americans with Disabilities Act (ADA). The district court rejected her claims on the pleadings. The Sixth Circuit vacated. The district court correctly dismissed Bullington’s ADA claim, which required exhaustion of administrative remedies. Bullington did not file a claim with the EEOC. The court improperly dismissed her claims under 42 U.S.C. 1983. In enacting the ADA, Congress did not intend to abandon the rights and remedies set forth in Fourteenth Amendment equal protection jurisprudence. View "Bullington v. Bedford County" on Justia Law
Bakery, Confectionery, Tobacco Workers and Grain Millers International Union AFL-CIO v. Kellogg Co.
Local Union 3-G represents employees at Kellogg’s Battle Creek plant and is affiliated with the International Union, which represents employees at additional Kellogg’s plants. “Regular” employees and “non-regular” employees, including casual employees, make up the 3-G bargaining unit. There is a Master Agreement between Kellogg, the International Union, and local unions at four plants, which have Supplemental Agreements. A Memorandum of Agreement, appended to the Battle Creek Supplemental Agreement, states that the Supplemental and Master Agreements will not apply to casual employees and the Company may terminate casual employees without being subject to the grievance procedure. A 2015 Master Agreement “established wage rates, a signing ratification bonus for all employees, the establishment of a transitional employee classification to replace casual employees, and other changes" for all Battle Creek bargaining unit employees. After the ratification vote, Kellogg refused to pay a ratification bonus to casual employees, seasonal employees, and some regular employees. The parties went through the grievance procedure, but Kellogg refused to arbitrate, arguing that the arbitration provisions do not apply to casual employees. The Sixth Circuit previously held that arbitration provisions in the “Memphis Supplemental Agreement” did not cover casual employees. The district court determined that judicial estoppel did not apply to the Battle Creek action and granted the motion to compel arbitration. The Sixth Circuit affirmed, The Agreement has a broad arbitration clause, so the presumption of arbitrability is particularly applicable. View "Bakery, Confectionery, Tobacco Workers and Grain Millers International Union AFL-CIO v. Kellogg Co." on Justia Law
Busk v. Integrity Staffing Solutions, Inc.
Integrity provides thousands of hourly workers, like Plaintiffs, to fill orders, track merchandise, and process returns at Amazon facilities. Other Plaintiffs were directly employed by Amazon. Plaintiffs claim “Amazon.com exercises direct control over the hours and other working conditions,” and sued, concerning a policy that is enforced at all Amazon locations. Plaintiffs and other hourly employees must undergo a security clearance check at the end of each shift and before taking lunch breaks, to deter theft and reduce inventory shrinkage. Plaintiffs allege that the policy "was solely for the benefit of the employers and their customers” and that this process took approximately 25 minutes each day. Because employees were required to “clock out” before the screening, they were not compensated for time spent waiting in line and undergoing the screenings. Plaintiffs alleged violations of the Fair Labor Standards Act, 29 U.S.C. 201 (FLSA) and state labor laws. The district court dismissed. The Sixth Circuit reversed in part. While time spent undergoing mandatory security checks is not compensable under federal law, neither Nevada nor Arizona incorporates the federal Portal-to-Portal Act; the time is compensable under the states' laws, but the Arizona Plaintiffs failed to satisfy Arizona’s “workweek requirement,” by identifying a particular workweek in which, taking the average rate, they received less than the minimum wage per hour. View "Busk v. Integrity Staffing Solutions, Inc." on Justia Law
Posted in:
Labor & Employment Law