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

Articles Posted in Labor & Employment Law
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The Union (IUOE) challenged Wisconsin’s right-to-work law, which provides: No person may require, as a condition of obtaining or continuing employment, an individual to do any of the following: … Become or remain a member of a labor organization [or] 3. Pay any dues, fees, assessments, or other charges or expenses of any kind or amount, or provide anything of value, to a labor organization. Wis. Stat. 111.04(3)(a). IUOE, which had entered into several conditional union-security agreements with employers, filed suit. IUOE argued that Act was preempted by the National Labor Relations Act (NLRA), 29 U.S.C. 158(a)(3), and constituted a taking of affected unions’ property without just compensation. The district court determined that the Seventh Circuit’s 2014 decision upholding Indiana’s nearly-identical law controlled and dismissed IUOE’s complaint with prejudice. The Seventh Circuit affirmed, rejecting a challenge of preemption under the NLRA, even though the right-to-work laws prohibits the payment of any dues or fees to unions, and finding the takings claim premature. View "International Union of Operating Engineers v. Schimel" on Justia Law

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The Equal Employment Opportunity Commission found reasonable cause to believe that Chicago Police Department violated Title VII by harassing Officer Sommerfield based on his national origin, German, and religion, Jewish. Sommerfield alleged that his complaints led to retaliation. He filed another EEOC charge alleging retaliation. The agency again found reasonable cause. After years of litigation in his subsequent 42 U.S.C. 1981, 1983 suit, a jury awarded Sommerfield $30,000, rejecting his retaliation claim. Sommerfield’s lawyer requested $1.5 million in attorney’s fees, which the district court reduced to $430,000. The attorney claimed to have worked 3,742 hours at an hourly rate of $395; the judge reduced the hours to 2,878 and the rate to $300, which yielded a lodestar of $863,000. The judge took into account the modest degree of success Sommerfield had achieved and halved the lodestar. The Seventh Circuit affirmed, upholding the district court’s decisions to grant partial summary judgment for the city by confining the discrimination counts to the question whether a fellow officer’s statements had created a hostile work environment; eliminating two counts for lack of any evidence that would permit a finding that Sommerfield’s injury resulted from an express policy, a widespread practice, or a policymaker’s final action; and restricting the retaliation claim period. View "Sommerfield v. City of Chicago" on Justia Law

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Vidmar, Manney, and Gomez were discharged from the Milwaukee Police Department, for cause, by Police Chief Flynn. Their benefits and pay stopped immediately. They appealed their terminations to the Board of Fire and Police Commissioners, which rejected their appeals. They were permanently discharged. The former officers claimed that their employment did not end when they were discharged by the chief because they were entitled to employment until the conclusion of their appeals. They alleged that they were denied constitutional due process and wages. The district court rejected their claims and granted judgment on the pleadings. The Seventh Circuit affirmed. Under Wisconsin law, the former officers had no property interest in employment once they were discharged for cause by Chief Flynn. They were provided a full and adequate appellate process, and their discharges were upheld in accordance with Wisconsin law. They were not entitled to wages for the period of time between their discharge and the conclusion of their appeal under Wisconsin law as they were not employed during that time. View "Milwaukee Police Association v. Flynn" on Justia Law

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Hyatt and Local 1 are parties to a collective bargaining agreement (CBA) that prohibits the hotel’s managerial employees from performing work normally performed by bargaining-unit employees absent an emergency. The CBA provides for the arbitration of any disputes not resolved by the grievance procedure. In 2013-2014, there were several incidents in which managers performed bargaining-unit work in circumstances that Local 1 did not regard as emergencies. The union took grievances to arbitration; both resulted in awards in Local 1's favor. Ninety days passed without Hyatt filing a petition to vacate; the union filed a petition to confirm the awards (Labor Management Relations Act, 29 U.S.C. 185(a)). The union alleged that Hyatt “has failed and refused and continues to fail and refuse to comply with” the awards. Local 1 cited 41 examples of managers allegedly performing bargaining unit work in 2015. The Seventh Circuit affirmed confirmation of the awards, rejecting Hyatt’s argument that the matter was either moot or did not present an appropriate case for confirmation. The district court’s “modest action” places the court’s contempt power behind the prospective relief ordered by the arbitrators, while reserving the merits of pending or future grievances for arbitration. Local 1 has conceded that any contempt petition would be based solely on the outcome of arbitrations post-dating the confirmation order. Confirming the awards does not undermine the agreement to resolve disputes through arbitration. View "Unite Here Local 1 v. Hyatt Corp." on Justia Law

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Workers in Waupaca foundries alleged violation of the Fair Labor Standards Act (FLSA), 29 U.S.C. 201, by not treating the time that workers spend changing clothes and showering on-site after a shift to be compensable “work” time. They alleged that they end their shifts covered in a layer of “foundry dust,” which can irritate the skin and cause lung disease if inhaled. FLSA authorizes collective actions by employees on behalf of “similarly situated” employees. Unlike class actions under FRCP 23, collective actions under FLSA require would-be members to opt in (voluntarily join). The district judge ruled that he would “conditionally certify” the class since the plaintiffs showed a “reasonable basis” for believing that all the class members were similarly situated. After discovery, the judge would determine whether plaintiffs who had opted in were actually similarly situated. After several hundred current and former employees from three states opted in, Waupaca moved to decertify the class. The plaintiffs, deciding to proceed with only Waupaca’s Wisconsin employees, moved to certify a Rule 23 class just for Wisconsin state-law claims, and did not oppose the decertification of Indiana and Tennessee employees. The Seventh Circuit affirmed denial of Waupaca’s request to decertify the entire FSLA class; division of the FLSA class into three subclasses and their transfer to district courts in their respective states; and Rule 23 ceritfication of the Wisconsin claims. View "DeKeyser v. Thyssenkrupp Waupaca, Inc." on Justia Law

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From 2008-2012, Stuckey worked as an AutoZone manager and was transferred between Chicago-area stores several times. None of the transfers entailed any loss in pay, benefits, or responsibilities. In 2012 he was transferred again, this time from a store on Kedzie Avenue that serves a largely Hispanic clientele. Stuckey never reported for work at his new assignment. He filed an EEOC complaint. Stuckey is black; he claimed that AutoZone transferred him out of the Kedzie location in an effort to make it a “predominantly Hispanic” store. The EEOC filed suit on Stuckey’s behalf alleging that the transfer violated 42 U.S.C. 2000e-2(a)(2), an infrequently litigated provision of Title VII that makes it unlawful for an employer “to limit, segregate, or classify his employees … in any way which would deprive or tend to deprive any individual of employment opportunities or otherwise adversely affect his status as an employee, because of such individual’s race, color, religion, sex, or national origin.” The Seventh Circuit affirmed summary judgment for AutoZone, holding that the transfer was not an adverse employment action. The court rejected EEOC’s argument that the statute does not require the claimant to prove that the challenged action adversely affected his employment opportunities or status. View "Equal Employment Opportunity Commission v. AutoZone, Inc." on Justia Law

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Hanson provides public refrigerated warehousing and transportation services. It employs dozens of workers in Michigan and Indiana. Teamsters Union Local 142 filed a petition to be the exclusive collective‐bargaining representative for a subset of Hanson’s Indiana employees; 37 employees voted. Hanson and the union disputed two of the votes, a sufficient number to affect the outcome of the election. Hanson argued that one vote should not count, claiming that the voter’s intent could not be discerned from the ballot; the union argued that another vote should not count, claiming that the voter was not employed by the employer at the time of the vote. The National Labor Relations Board rejected Hanson’s argument and counted the first disputed vote as a vote in favor of representation, then concluded that the second disputed vote was no longer outcome determinative and certified the union. The Seventh Circuit reversed, finding it impossible to divine the voter’s intent from the face of the ballot. View "National Labor Relations Board v. Hanson Cold Storage Co. of Indiana" on Justia Law

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Nicholson has been a Peoria police officer since 1991. In 2003, she became the Asset Forfeiture investigator. Five years later, Nicholson had serious issues with fellow officer Wilson, whom she accused of using department equipment to place her under surveillance. The department conducted an investigation, after which Wilson was suspended for 20 days Nicholson then filed an EEOC charge of discrimination, followed by a lawsuit, which was settled. A new Rotation Policy, implemented in 2012, provided that all specialty assignments, including the Asset Forfeiture investigator position, were subject to three-year rotations. Nicholson sought reappointment. According to the panel that interviewed her, Nicholson “[i]nterviewed very poorly, seemed angry [and] controlling.” She began her interview by refusing to answer questions until she read aloud a nine-page manifesto. The panel selected another officer. After failing to retain the Asset Forfeiture position and having not applied to any other position, Nicholson was reassigned to patrol by default. Nicholson filed another EEOC charge, alleging that sex discrimination and unlawful retaliation. She then filed suit. The Seventh Circuit affirmed summary judgment in favor of defendants, stating that Nicholson did not present enough evidence to survive summary judgment on either claim and that her motion to recuse the judge was frivolous. View "Nicholson v. City of Peoria" on Justia Law

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Ferrill was hired as Edgewood Elementary School's principal for an initial two-year term with an automatic third-year rollover unless the Board of Education opted out. Ferrill is black; the district serves predominantly white suburbs on the southern edge of Milwaukee County. While she was principal, Edgewood's staff had exceedingly low morale. Ferrill had multiple performance complaints. Staff described her as confrontational, inconsistent, and quick to claim racism. The superintendent hired a consultant to improve Ferrill’s performance. The consultant recommended termination. The Board opted out of the rollover, at the superintendent's recommendation. Ferrill found a new job, which the Board treated as a functional resignation. She sued, alleging racial discrimination under Title VII of the Civil Rights Act and 42 U.S.C. 1981, and retaliation under Title VII and the First Amendment. The district judge granted the Board summary judgment on some claims. A jury rejected others after less than 30 minutes of deliberation. The Seventh Circuit affirmed. Ferrill’s shortcomings were well documented and confirmed by an independent consultant, so she did not establish that she was meeting legitimate performance expectations and thus did not establish a prima facie case of discrimination. The retaliation claim failed for lack of evidence connecting the Board’s decision to activity protected by Title VII. View "Ferrill v. Oak Creek-Franklin Joint School District" on Justia Law

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Tibbs, an administrative assistant in the Illinois court system, was suspended the day she returned to work after taking leave under the Family and Medical Leave Act, 29 U.S.C. 2601. She was then fired after she chose not to attend a disciplinary meeting. Her supervisor, a judge in the judicial circuit in which she was employed, sent a letter citing several instances of misconduct, including insubordination. Tibbs sued the Administrative Office of the Illinois Courts, contending that the agency employed her and that she was fired in retaliation for taking FMLA leave. The district court granted summary judgment for the agency, reasoning that it never employed Tibbs and thus could not have discharged her, and that in any event, there was no evidence of retaliation. The Seventh Circuit affirmed. Tibbs cannot point to evidence from which a jury could reasonably infer that any of her supervisors harbored retaliatory animus against her. The court did not resolve the question whether the Administrative Office employed Tibbs. View "Tibbs v. Administrative Office of the Illinois Courts" on Justia Law