Justia U.S. 7th Circuit Court of Appeals Opinion Summaries

Articles Posted in Labor & Employment Law
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Paschall and Ragland worked as machine operators. During their employment, they experienced what they believed to be instances of sexual and racial harassment. A year after their employment ended, Paschall and Ragland sued their former employer. Paschall alleged that she was subjected to a hostile work environment based on her sex (Title VII of the Civil Rights Act of 1964, 42 U.S.C. 2000e-1-17), and based on her race, (Title VII and 42 U.S.C. 1981). Ragland alleged that he was subjected to a hostile work environment based on his race.The Seventh Circuit affirmed summary judgment in favor of the employer. Paschall and Ragland did not produce sufficient evidence from which a reasonable fact-finder could conclude that they satisfied all the elements of their claims. When a coworker is a harasser, the employer is liable only when the employee shows that the employer was negligent either in discovering or remedying the harassment. Here, the employer was not negligent in discovering or remedying the alleged harassment. View "Paschall v. Tube Processing Corp" on Justia Law

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In 2017, Anderson began working as a Pre-Fund Underwriting Auditor for NLC, a residential mortgage lender. NLC randomly conducts internal post-funding audits. Anderson exhibited performance deficiencies. Her supervisor, Gourley, counseled her. Anderson received ongoing training. She also experienced health problems and exhausted all of her available sick days on an extended leave. When Anderson returned to work in January 2018, Gourley emailed her, having learned of additional performance issues, and requested that she complete more training. In February 2018, NLC uncovered more errors. In March, Anderson experienced more health issues and took leave (Family and Medical Leave Act (FMLA), 29 U.S.C. 2601). Anderson asserts Gourley made comments about Anderson’s being “sick a lot” and about needing “a full team. “ During her leave, NLC’s audit system flagged several more errors in Anderson’s loans. In May 2018, HUD notified NLC of additional errors and cited NLC. Gourley recommended that Anderson be terminated for poor performance. Days after Anderson returned to work, NLC terminated her employment.The Seventh Circuit affirmed summary judgment for NLC in Anderson’s suit under the Americans with Disabilities Act, 42 U.S.C. 12101, and for interference and retaliation associated with her FMLA rights. Anderson did not raise a genuine issue of material fact with respect to either claim. View "Anderson v. Nations Lending Corp." on Justia Law

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When she began work, Campbell signed a contract with Keagle, the bar’s owner; it included an arbitration clause. After a dispute arose, the district judge denied Keagle’s motion to refer the matter to arbitration, finding several parts of the arbitration clause unconscionable: Keagle had reserved the right to choose the arbitrator and location of arbitration. Campbell had agreed not to consolidate or file a class suit for any claim and to pay her own costs, regardless of the outcome. The judge did not find that the contract was one-sided as a whole. Keagle accepted striking the provisions found to be unconscionable but sought to arbitrate rather than litigate.The Seventh Circuit remanded with instructions to name an arbitrator, reasoning that the mutual assent to arbitration remains. The Federal Arbitration Act, 9 U.S.C. 4, provides that, absent a contrary agreement, the arbitration takes place in the same judicial district as the litigation; “who pays” may be determined by some other state or federal statute, such as the Fair Labor Standards Act, on which Campbell’s suit rests. The chosen arbitrator can prescribe the procedures. Under 9 U.S.C. 5, “if for any … reason there shall be a lapse in the naming of an arbitrator" the court shall designate an arbitrator. View "Campbell v. Keagle Inc" on Justia Law

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The Seventh Circuit affirmed the district court's grant of summary judgment in favor of USS on plaintiff's Americans with Disabilities Act (ADA) claim, concluding that USS carried its burden to show that plaintiff's seizure disorder would pose a direct threat to himself and others at its Midwest Plant. In this case, USS's judgment was premised on the consideration of adequate evidence, as contemplated by the ADA and supporting regulations. Furthermore, USS's imposition of restrictions was based on information pertinent to plaintiff's personal experience with his seizure disorder. Therefore, the assessment USS conducted was sufficiently individualized. The court agreed with the district court that whether plaintiff's seizure disorder was controlled is a material fact about which there is no genuine dispute.Applying the direct threat analysis and weighing factors such as duration of the risk, the nature and severity of potential harm, the likelihood of harm that will occur, and imminence of harm, the court concluded that all the factors weigh in favor of finding that there is a direct threat. Therefore, USS has shown through undisputed evidence that, if hired for the Utility Person position, plaintiff's seizure disorder would pose a direct threat to himself and others at the Midwest Plant. View "Pontinen v. United States Steel Corp." on Justia Law

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Bourke was exposed to fumes during his employment with the Veterans Administration. He received treatment at a VA hospital and contends that medical malpractice there caused him serious injuries. He sought compensation from the Department of Labor under the Federal Employees Compensation Act for on-the-job injuries and from the United States under the Federal Tort Claims Act for medical malpractice. The Department of Labor processed Bourke’s claim but found that he had not shown that his asserted injuries had been caused by exposure to fumes. The VA (handling the FTCA claim) concluded that, once Bourke applied to the Department of Labor, all other sources of relief were precluded. Bourke sued under the Tort Claims Act, conceding the Department of Labor’s conclusion that conditions at work did not cause the medical issues for which he was treated by the VA, and alleging medical malpractice.The district court rejected his complaint on the ground that the Federal Employees Compensation Act offers his sole avenue of relief.; once the Department of Labor adjudicates a claim, the applicant must accept the result because 5 U.S.C. 8116(c) forecloses other sources of relief and 5 U.S.C. 8128(b)(2) blocks judicial review of the Department’s decisions.The Seventh Circuit vacated. Bourke is not seeking judicial review of the Department of Labor’s decision. Someone who loses before the Department cannot contest that outcome in court but may pursue other remedies that are compatible with the Department’s views. View "Bourke v. United States" on Justia Law

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Kaminski, a Polish-American woman in her fifties, worked for Elite, a temporary employment agency, for about two-and-a-half years. When assigned to a job, Kaminski traveled to and from the site on a bus equipped with security cameras. During her time at Elite, she never received a disciplinary infraction. Nor did anyone ever reprimand her for poor work or for any other reason. In 2019, Elite informed Kaminski that the warehouse where she was working no longer needed her help and discharged her. Kaminski says she called Elite’s human resources department to obtain the names of her former coworkers, but the office declined to supply the information.Kaminski sued Elite for discrimination under Title VII of the Civil Rights Act of 1964 and the Age Discrimination in Employment Act of 1967 (ADEA). The Seventh Circuit affirmed the dismissal of the complaint after screening under 28 U.S.C. 1915(e) and two opportunities to amend. Kaminski failed to allege facts showing a connection between her membership in a protected class and Elite’s decision to terminate her, nor did Kaminski’s complaint identify any similarly situated employees who received more favorable treatment. View "Kaminski v. Elite Staffing, Inc." on Justia Law

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For almost 30 years, Prill worked for the Eau Claire, Wisconsin County Highway Department performing physically demanding work, including driving a dump truck and maintaining roads. She suffered from pain in her lower back and knees, which was exacerbated by a car accident and multiple work injuries. Prill retired in 2014 and later filed for Social Security disability benefits alleging she could no longer perform heavy or medium work. Several doctors examined Prill or reviewed her medical records but reached different conclusions about her physical limitations.An ALJ found Prill’s testimony only partially credible, concluding that her report about the severity of her symptoms and the extent of her limitations was inconsistent with other record evidence. The ALJ also weighed the competing medical evidence and gave greater weight to the opinions of consulting physicians who reviewed Prill’s medical records than to the opinion of Prill’s treating physician. The ALJ concluded that Prill had not been disabled since August 2014. The Appeals Council of the Social Security Administration denied her request for review. The district court and Seventh Circuit affirmed. Substantial evidence supported the ALJ’s decision. The court rejected arguments the ALJ wrongly discounted Prill’s subjective allegations and improperly weighed the differing medical opinions. View "Prill v. Kijakazi" on Justia Law

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Simpson unsuccessfully applied to work as a Correctional Officer at the Cook County Department of Corrections four times in 2014-2017. Simpson believed the hiring practices underlying those rejections violated his rights—and those of other unsuccessful Black applicants—under Title VII of the Civil Rights Act, 42 U.S.C. 2000e-2(a)(1). Invoking disparate treatment and disparate impact theories, Simpson’s class action complaint alleged that, through the use of a five-step hiring process for correctional officers, the Department both intended to discriminate against Black applicants and succeeded in producing that result. The district court denied Simpson’s motion for class certification, finding that none of his proposed classes—a general class of all unsuccessful applicants and five subclasses of candidates dismissed at each step of the hiring process—satisfied Rule 23(a)(2)’s requirement that they present “questions of law or fact common to the class.”The Seventh Circuit vacated. The district court’s analysis apparently merged Simpson’s disparate impact claims with his disparate treatment claims for intentional discrimination. While disparate treatment claims may require a more searching commonality inquiry, disparate impact claims most often will not: the common questions are whether the challenged policy has in fact disparately impacted the plaintiff class and, if so, whether that disparate impact is justified by business necessity. The court did not clearly delineate its reasoning for declining to certify three of Simpson’s disparate impact subclasses. View "Simpson v. Dart" on Justia Law

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In 2016, Lax raised concerns about discrimination. After notification of his right to file a formal complaint, Lax filed a formal complaint of disability discrimination against his employer (DHS), alleging he had been improperly placed on indefinite suspension and had his security clearance suspended after he checked himself into a hospital for mental health treatment and missed two days of work.DHS's final agency decision, rejecting Lax’s complaint, was sent to Lax’s work email address on July 17, 2019. One minute later, Lax was sent the password to open an attachment, which contained: the final decision, a “Notice of Appeal Rights,” a privacy statement, and a certificate of service. The “Notice of Appeal Rights” stated that Lax had the right to file suit in federal court within 90 days of receiving the final decision. Lax concedes that he opened these emails and read them on the day they were sent but claims that he was unable to open the attached document until the next day; government security measures prevented him from accessing his work email account on any non-work device.On October 16, 2019 (91 days after July 17), Lax filed suit. The Seventh Circuit affirmed the dismissal of the suit as untimely under 42 U.S.C. 2000e5(f)(1). Lax did not satisfy the extraordinary circumstances element for equitable tolling. View "Lax v. Mayorkas" on Justia Law

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After being fired from the CTA, Miller and McGuire (both Caucasian) sued their former employer, alleging racial discrimination and retaliation in violation of federal (42 U.S.C 1981 and 1983, Title VII of the Civil Rights Act of 1964) and Illinois state law. Following discovery, the defendants moved for summary judgment. Despite receiving two extensions, however, Miller and McGuire failed to respond. Finding no persuasive excuse for this failure, the district court denied their third extension and took up the motion without a responsive pleading. The court concluded that the undisputed evidence did not support the claims and granted CTA summary judgment.The Seventh Circuit affirmed. The district court did not abuse its discretion in denying an extension, and evidence of basic elements of a retaliation claim was lacking. Miller and McGuire could not avoid summary judgment based on the suspicious timing of their discharges alone unless, “[a]t minimum,” they first produced evidence supporting a reasonable inference that Bonds (a CTA officer) knew of their EEO complaints. They did not. Undisputed evidence showed that CTA had legitimate (nonracial) reasons for terminating Miller and McGuire’s employment and these reasons were not pretextual. View "Miller v. Chicago Transit Authority" on Justia Law