Justia U.S. 7th Circuit Court of Appeals Opinion Summaries
Articles Posted in Labor & Employment Law
Pack v. Middlebury Community Schools
The School terminated Pack's employment as a teacher after less than a year and published a press release about Pack on its website, allegedly criticizing Pack, which remains available on the School’s website. Pack sued the School. The Elkhart Truth ran an article later that month under the headline: “Fired Northridge teacher, an atheist, sues Middlebury Community Schools for religious discrimination.” Pack and the School settled that case. The School agreed to maintain a level of confidentiality and agreed to tell Pack’s prospective employers only limited information about him. The parties agreed that neither would disparage the other party. The settlement agreement did not mention the 2014 press release. Pack sued Elkhart Truth in state court, alleging defamation. School Superintendent Allen gave an affidavit supporting Truth’s motion to dismiss. Pack later recruited two acquaintances to call the School and pose as prospective employers. During one call, Allen said that Pack’s termination was “a matter of public record.” During another, Allen said Pack was terminated “for cause.”Pack sued for breach of the settlement agreement. The Seventh Circuit affirmed summary judgment for the School on all claims. The School had no contractual obligation to remove the pre-existing press release from its website, enjoys absolute privilege for the affidavit submitted in the Truth litigation, and did not disclose contractually forbidden information to “prospective employers” because the callers were not “prospective employers.” View "Pack v. Middlebury Community Schools" on Justia Law
Sweeney v. Raoul
The Illinois Public Labor Relations Act allowed public unions to require nonmembers to pay “fair share” or “agency” fees to compensate for the representative services the union provides. In 1977 the Supreme Court concluded that a similar fair-share fees law did not violate nonmembers’ First Amendment rights. In 2018, in “Janus,” the Supreme Court overruled that decision and held that unions compelling the payment of fair share fees from nonmembers offended the First Amendment by compelling nonmembers to subsidize private speech on matters of substantial public concern.”Local 150 represents around 3,300 municipal employees in 133 bargaining units, employing nine staff members at an annual cost of about $5 million. Local 150 remains obligated to represent nonmembers but must now do so without any way of compelling fair share fees. Local 150 filed suit, 42 U.S.C. 1983, alleging that the duty of fair representation in Illinois law without the corresponding ability to collect fair share fees infringes the union’s First Amendment rights of free speech and association.The district court entered summary judgment against the union. The Seventh Circuit vacated and remanded with instructions to dismiss the union’s complaint for lack of subject matter jurisdiction. The union has not alleged any concrete and particular facts showing that it faces a post-Janus freeriding predicament. The court declined to address the substantial legal question in the abstract. View "Sweeney v. Raoul" on Justia Law
Igasaki v. Illinois Department of Financial and Professional Regulation
Igasaki, a gay, Japanese-American, suffers from gout. From 1994 until his 2015 termination at age 62, Igasaki was an IDFPR staff attorney. In 2011, Forester gave Igasaki a good performance review; in 2012, Forester rated Igasaki poorly, providing specific examples of deficient performance. In 2013, IDFPR placed Igasaki on a corrective action plan. He subsequently received three reprimands. Igasaki made limited progress on seven of 12 plan requirements. The plan listed: failure to meet 50 deadlines; sleeping while at work; problems finding files; and lack of preparation for administrative proceedings. In 2014, the Igasaki was suspended for incompetence. Igasaki’s corrective action plan was again renewed. Igasaki received another suspension for insubordination. In Igasaki’s 2014 review, Forester rated him as needing improvement in all categories. In 2015, Forester noted that he had not progressed on six of the 12 requirements; for the first time, Igasaki formally requested accommodation for his gout. IDFPR granted Igasaki an ergonomic keyboard and authorization for an administrative assistant; Igasaki’s request for flexible deadlines, not supported by a doctor’s note, was denied. IDFPR terminated him weeks later.After filing charges with the Illinois Department of Human Rights and the EEOC, Igasaki sued. The Seventh Circuit affirmed summary judgment in favor of IDFPR, rejecting claims of race discrimination, sex discrimination, and retaliation (Title VII, 42 U.S.C. 2000e-2), age discrimination (Age Discrimination in Employment Act, 29 U.S.C. 623), and disability discrimination (Americans with Disabilities Act, 42 U.S.C. 12112). View "Igasaki v. Illinois Department of Financial and Professional Regulation" on Justia Law
Brotherhood of Locomotive Engineers & Trainmen GCA UP v. Union Pacific Railroad Co.
In 2020 Union Pacific Railroad announced a change to its employee attendance policy. Several regional branches of the union opposed the change and sought an order under the Railway Labor Act, 45 U.S.C. 151a (RLA), requiring Union Pacific to submit the change to collective bargaining. The district court dismissed for lack of jurisdiction; the claim belonged in arbitration before the National Railroad Adjustment Board.The Seventh Circuit affirmed and granted Union Pacific’s motion for sanctions under Federal Rule of Appellate Procedure 38 for the frivolous appeal. For the second time in three years, the Brotherhood has pressed a position squarely foreclosed by settled law. The union’s challenge to the revised policy amounted to a “minor dispute” subject to mandatory arbitration under the RLA. Given the parties’ course of dealing over workplace attendance requirements, there was a clear pattern and practice of Union Pacific modifying its policies many times over many years without subjecting changes to collective bargaining, which provided the railroad with a nonfrivolous justification to unilaterally modify its attendance policy. That reality made this dispute a minor one subject to resolution through mandatory arbitration. View "Brotherhood of Locomotive Engineers & Trainmen GCA UP v. Union Pacific Railroad Co." on Justia Law
Hickey v. Protective Life Corp.
Hickey filed suit under the Family and Medical Leave Act (FMLA), 29 U.S.C. 2601, alleging that his former employer, Protective Life, had interfered with the exercise of his FMLA rights and had retaliated against him for exercising those rights. Hickey later abandoned his retaliation claim. The district court held that Hickey could not succeed on his interference claim because he was unable to prove that he had suffered any monetary damages as a result of the alleged interference or was otherwise entitled to equitable relief. The court refused to consider a supplemental declaration that, according to the court, contradicted Hickey’s deposition testimony.The Seventh Circuit affirmed. The district court correctly concluded that, without evidence that Hickey suffered harm for which the FMLA provides a remedy, Hickey does not have a cognizable action for FMLA interference, and did not abuse its discretion in refusing to consider Hickey’s supplemental declaration as evidence of damages. When Hickey returned from his FMLA leave, he received the same salary and benefits as he had received before his leave. Under the arrangement given him upon his return, his compensation could have diminished after six months but his employment with Protective terminated approximately three weeks after his return for reasons unrelated to his FMLA leave. View "Hickey v. Protective Life Corp." on Justia Law
Posted in:
Labor & Employment Law
Gracia v. SigmaTron International, Inc.
Gracia’s former employer, SigmaTron, fired her 13 years ago after she filed sexual harassment and hostile work environment claims with the Equal Employment Opportunity Commission. Gracia prevailed in a 2014 trial on a Title VII retaliation claim. She found new work at a different company. In 2015, SigmaTron described Gracia’s lawsuit in public filings with the Securities and Exchange Commission. Gracia filed another Title VII retaliation claim, plus claims for retaliation under the Illinois Human Rights Act, defamation, and invasion of privacy. The district court dismissed Gracia’s defamation and false light invasion of privacy claims and later granted SigmaTron summary judgment on the Title VII and Illinois Human Rights Act claims.The Seventh Circuit affirmed. Gracia failed to present specific facts to show any injury in fact and expressly acknowledged that SigmaTron’s disclosures did not affect her current employment, with which she is content. That admission left the district court without subject matter jurisdiction to consider the Title VII claim on the merits. As for Gracia’s state law claims, the district court was right to conclude that the allegations failed to state a claim on which relief could be granted. View "Gracia v. SigmaTron International, Inc." on Justia Law
Posted in:
Civil Procedure, Labor & Employment Law
White v. United Airlines, Inc.
White has been employed as a commercial airline pilot since 2005 and has also served in the U.S. Air Force since 2000, first on active duty and now on reserve duty. As a reservist, he is required to attend periodic military-training sessions. White has taken periods of short-term military leave, usually for a day or two at a time, during which he did not receive pay from United. Under United’s collective bargaining agreement, pilots receive pay when they take other short-term leaves of absence, such as jury duty or sick leave. United also maintains a profit-sharing plan for its pilots that is based on the wages they earn; pilots who take paid sick leave or paid leave for jury duty earn credit toward their profit-sharing plan, while pilots who take short-term military leave do not. White initiated a class action under the 1994 Uniformed Services Employee and Reemployment Rights Act (USERRA), which is intended to prevent civilian employers from discriminating against employees because of their military service, 38 U.S.C. 4301(a). The district court dismissed White’s complaint.The Seventh Circuit reversed. USERRA’s mandate that military leave be given the same “rights and benefits” as comparable, nonmilitary leave requires an employer to provide paid military leave to the same extent that it provides paid leave for other absences. Paid leave falls within the “rights and benefits” defined by the statute. View "White v. United Airlines, Inc." on Justia Law
Posted in:
Labor & Employment Law, Military Law
Cheli v. Taylorville Community School District
On September 28, 2018, Cheli, a computer system administrative assistant for the District, since 2014, was taken into a meeting with about 25 minutes’ notice. The District’s superintendent and Director of Computer Services terminated Cheli because a female student had alleged that Cheli had sexually harassed her three weeks prior. Cheli denied the allegations. The Board retroactively memorialized Cheli’s termination on October 9, 2018. Cheli never received notice of the Board meeting and did not receive written notice of the charges or the evidence against him but received a notice of termination via certified mail stating that “[t]he basis or grounds for discharge include incompetence.” That notice informed Cheli that he could request the written report. The District did not provide the report upon Cheli’s request.A collective bargaining agreement governed Cheli’s employment and provides for discipline for reasonable cause. An employee is entitled to a conference, attended by a representative of his choice, and a written explanation for the discipline. The District’s Policy Manual, however, contains a provision titled “Employment At-Will.”Cheli sued under 42 U.S.C. 1983, alleging the defendants violated his procedural due process rights. The Seventh Circuit reversed the dismissal of the suit. The collective bargaining agreement established that Cheli could not be terminated except “for reasonable cause,” which created a protected property interest for which he was entitled to due process View "Cheli v. Taylorville Community School District" on Justia Law
Anderson v. Weinert Enterprises Inc.
Weinert roofing employees could drive directly to job sites around Green Bay or could carpool from the shop using a company truck. For carpool employees, Weinert paid travel time at time-and-a-half the minimum wage and did not count travel time toward an employee’s 40-hour workweek. Weinert paid more than minimum wage for job-site work; job-site overtime pay was higher than travel time pay. Anderson, a Weinert seasonal employee, filed a collective action under the Fair Labor Standards Act, 29 U.S.C. 216(b), and Wisconsin law. Three other employees joined the action. Anderson converted the collective action into an individual FLSA action, which settled. Anderson then sought class certification (FRCP 23) for the state claims. Anderson identified 37 former or current Weinert employees to include in the class and requested the inclusion of employees Weinert expected to hire in 2019.The Seventh Circuit affirmed the denial of class certification. Employees to be hired in a future period cannot be included in the class. Anderson failed to show that joinder of the 37 employees in a single lawsuit (with multiple named plaintiffs) would be impracticable, as required by Rule 23(a). Anderson did not identify any difficulty in locating or contacting potential class members; the class lacked the geographical spread that might render joinder impracticable. Prevailing under the Act allows a plaintiff to recover attorneys’ fees and costs, offsetting some of the disincentive created by the small damages available. The numerosity requirement focuses on whether joinder would be impracticable, not whether each potential class member could bring a separate lawsuit. View "Anderson v. Weinert Enterprises Inc." on Justia Law
Marnocha v. St. Vincent Hospital and Health Care Center, Inc.
Marnocha, a board-certified doctor in pediatrics and neonatal-perinatal medicine, received her license in 1981 and joined St. Vincent’s Hospital in Indianapolis in 1987. In 2017, Dr. Marandi began became the Executive Director of the pediatric service for St. Vincent, which has two locations. Marandi concluded there were too many neonatologists on staff. In formulating his restructuring plan, Marandi reviewed workflows and schedules, before deciding to terminate the neonatologists at one of St. Vincent’s campuses. Standard restructure review required an HR employee, to assess the impact on the entire targeted group, “to make sure that any business decisions [were not] based off of specifics to an individual and that [they are] specific to the organizational needs.” In 2018, Marandi discharged Marnocha and four of her colleagues. Four of the terminated neonatologists interviewed for one open position at the other campus. A 35-year-old (Landis) was chosen; the others were over 50 years old.Marnocha filed suit under the Age Discrimination in Employment Act, 29 U.S.C. 621. The Seventh Circuit affirmed summary judgment in favor of St. Vincent. Marnocha failed to establish that the doctors at the other campus were similarly situated; she did not provide their ages, work history, performance reviews, supervisors, or qualifications. The two work environments are distinct, varying by NICU level, acuity, and pace. The record supports a range of legitimate, non-age-related reasons for hiring Landis over Marnocha. View "Marnocha v. St. Vincent Hospital and Health Care Center, Inc." on Justia Law
Posted in:
Labor & Employment Law