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

Articles Posted in Labor & Employment Law
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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

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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

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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

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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

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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

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Dr. Khungar, a pediatrician, worked for Access. A year into her employment, in August 2015, she received a “final warning” from the regional medical director based on Khungar’s accessing of a patient’s medical file to obtain a coworker’s phone number, in violation of the Health Insurance Portability and Accountability Act. Khungar then reported an earlier incident in which the clinic manager referred to Khungar’s Indian ethnicity. in May 2016, complaints about Khungar began rolling into the Human Resources department (HR) from staff and the parents of her minor patients.Chief Medical Officer Mejia recommended Khungar’s termination based on the nature and volume of the complaints. He later testified that he was unaware of Khungar’s race, religion, and national origin. HR ratified Mejia’s recommendation. After she was notified of the decision, Khungar asserted that her past complaints of “cultural insensitivity” had never been addressed. HR repeatedly attempted to meet with Khungar, but Khungar canceled. Khungar filed an EEOC charge. Before leaving, Khungar made statements that were perceived to be threatening, which caused HR to fire Khungar immediately and employ a security guard for several weeks.Khungar filed suit, alleging discrimination and retaliation under Title VII. The Seventh Circuit affirmed that Khungar “cannot make out a prima facie case of discrimination.” Rhe evidence showed nondiscriminatory and nonpretextual reasons for Khungar’s termination. Khungar “failed to establish a genuine issue of material fact as to whether [her] protected activity caused her termination.” View "Khungar v. Access Community Health Network" on Justia Law

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In 2006 Conners began work as a licensed practical nurse (LPN) at a VA-operated facility near Chicago. Her duties included treating and observing patients, giving immunizations, managing the front desk, teaching classes, and completing paperwork. In 2011 she was hit by a car and suffered severe injuries. Her supervisor initially permitted her to retain her LPN position but radically reduced her responsibilities to only teaching and paperwork. After more than two years in that status, the VA concluded that Conners could not perform the essential duties of an LPN even with reasonable accommodations and unsuccessfully attempted to work with her on an acceptable reassignment. The VA terminated her employment.Conners sued the VA under the Rehabilitation Act for failing to accommodate her disability, retaliating against her, and subjecting her to a hostile work environment based on her disability. The district court rejected the claims on summary judgment. Only the accommodation claim was appealed. The Seventh Circuit affirmed. Conners had to prove that when she was fired she was a “qualified individual with a disability,” capable of performing the essential functions of an LPN with or without reasonable accommodation. Conners’s abilities to stand and walk were severely limited, making it impossible for her to treat and observe patients, respond to medical emergencies, give immunizations, or manage the front desk View "Conners v. Wilkie" on Justia Law

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Kellogg testified that when the Indiana Academy hired her as a teacher in 2006, its director, Dr. Williams, told her that she “didn’t need any more [starting salary, $32,000], because he knew [her] husband worked.” In 2017, Kellogg complained to the Dean of Ball State’s Teacher’s College, which oversees the Academy, that she received less pay than her similarly-situated male colleagues. The Dean responded that “[t]he issue [wa]s salary compression, which means those who [we]re hired after [Kellogg] began at a higher salary.” The Dean also noted that Kellogg’s salary increased by 36.45% during her time at the Academy while her colleagues’ salaries increased by less. In Kellogg’s 2018 lawsuit, the district court granted the Academy summary judgment, reasoning that there were undisputed gender-neutral explanations for Kellogg’s pay.The Seventh Circuit reversed. Williams’s statement contradicts the Academy’s explanations for Kellogg’s pay and puts them in dispute. It does not matter that Williams uttered the statement long ago, outside the statute of limitations period. Under the paycheck accrual rule, Williams’s statement can establish liability because it affected paychecks that Kellogg received within the limitations window. Kellogg can rely on Williams’s statement to put the Academy’s explanations in dispute. View "Kellogg v. Ball State University" on Justia Law

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McAllister began working for Innovation in 2014. In June 2016, an automobile accident left McAllister with serious head and back injuries. On her Family and Medical Leave Act, 29 U.S.C. 2601, application her doctor wrote she could not perform “any & all” functions and estimated that McAllister could not return to work until September 2016. McAllister was granted short-term disability benefits. According to McAllister, Innovation indicated that “all restrictions had to be lifted before [she] could return to work.” Thereafter, her doctors extended the date for her return to work. Her FMLA leave expired. At an October 2016 meeting, Innovation told McAllister that an employee unable to return to work after six months of leave would be terminated but granted her additional leave, to expire upon her November neuro-psychological evaluation. Her doctors failed to complete the required testing.Innovation terminated her in December. McAllister was granted long-term disability benefits, which ended in October 2018 when the insurer determined she no longer had “functional deficits," and Social Security Disability Insurance benefits, retroactive to the date of her accident. McAllister sued for failure to accommodate her under the Americans with Disabilities Act (ADA, 42 U.S.C. 12111(8)). The Seventh Circuit affirmed summary judgment in favor of Innovation. McAllister was not “qualified” under the ADA; there was no genuine dispute of material fact that she could perform another job with or without accommodations. View "McAllister v. Innovation Ventures, LLC" on Justia Law

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Wisconsin grants public-sector employees the right to bargain collectively through the State Employment Labor Relations Act (SELRA) and the Municipal Employment Relations Act (MERA). In 2011, SELRA and MERA were amended by Act 10, which divided Wisconsin state and municipal employees into “[p]ublic safety employee[s],” which includes police officers, firefighters, and deputy sheriffs, and “general municipal employee[s],” i.e., everyone else. A subsequent amendment created a class of “[t]ransit employee[s].” Public safety and transit employees and their unions continue to operate under the pre-Act 10 scheme but for general employees, Act 10 limited the scope of employers’ collective bargaining obligations, prohibiting bargaining over anything except increases to base wages and mandating that general employee unions submit to an annual recertification election. Certification now requires affirmative votes from an absolute majority of all employees in the bargaining unit, not just those voting. Act 10 bars public employers from deducting union dues from the earnings of general employees.The Seventh Circuit has previously rejected two challenges to Act 10’s constitutionality and affirmed the dismissal of this First Amendment suit, filed a public-employee labor union and two of its members, challenging the annual recertification requirement, the limitations on collective bargaining, and the prohibition on payroll deduction of union dues. View "International Union of Operating Engineers v. Daley" on Justia Law