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

Plaintiffs brought a collective lawsuit against Jimmy John’s on behalf of all assistant store managers nationwide for violations of the Fair Labor Standards Act (FLSA). Jimmy John’s owns just 2% of their stores; the rest are operated by franchisees. Jimmy John’s claimed that it did not maintain employment records for franchisee-employees and did not have contact information for the vast majority of putative collective members. The parties ultimately agreed that Jimmy John’s would send a letter to the non‐party franchisees asking for contact information for their assistant managers. Eventually, about 600 franchisee and 60 corporate employees joined the suit. The court bifurcated discovery, with the first phase to focus on the joint-employer issue. Two years into the litigation, plaintiffs filed separate lawsuits against their franchisee employers in district courts nationwide, asserting the same claims, arguing that the FLSA statute of limitations was running continuously on those claims. The district court subsequently enjoined plaintiffs from pursuing their lawsuits against the franchisee employers until their claims against Jimmy John’s were resolved. The Seventh Circuit reversed, rejecting arguments that the injunction was authorized under the court’s inherent equitable powers or the All Writs Act because it was necessary to prevent duplicative litigation, avoid inconsistent rulings, and protect the court’s pretrial orders regarding discovery and notice procedures. View "Lucas v. Jimmy John's Enterprises, LLC" on Justia Law

The Seventh Circuit affirmed the district court's grant of summary judgment for Morgan Stanely in a civil rights action. Plaintiff alleged that she was terminated on the basis of her sex and that Morgan Stanley allowed her coworkers to create a hostile work environment. The court held that plaintiff was not entitled to a trial on her discrimination claim because she presented no evidence that her sex influenced the decision to terminate her and she presented no evidence of discrimination based on the cat's paw theory. The court also held that plaintiff was not entitled to a trial on her hostile work environment claim because the statute of limitations restricted the allegations that the court could consider as part of her claim and the remaining conduct did not create a hostile work environment. View "Milligan-Grimstad v. Morgan Stanley" on Justia Law

Indiana law previously provided that, when school districts needed to reduce their teaching staffs, tenured teachers that were qualified for an available position had a right to be retained over non-tenured teachers. A 2012 amendment eliminated that right and orders school districts to base layoff choices on performance reviews without regard for tenure status. Madison Consolidated Schools relied on the new law to lay off Elliott, a teacher who earned tenure 14 years before the new law took effect, while it retained non-tenured teachers in positions for which Elliott was qualified. Elliott, who had been elected as president of his union, sued, claiming that the amendment violated the Contract Clause when applied to him. The Seventh Circuit affirmed summary judgment in Elliott’s favor. The statute, not the annual contracts, granted Elliott his contractual tenure rights, which became enforceable the year Elliott earned tenure. A decrease in job security necessarily impairs his rights under that contract. The change substantially disrupted teachers’ important and reasonable reliance interests. Improving teacher quality and public-education outcomes are important public interests of the highest order but even important goals and good intentions do not justify this substantial impairment of the tenure contract for already-tenured teachers. View "Elliott v. Board of School Trustees of Madison Consolidated Schools" on Justia Law

Marybeth Lauderdale served as acting superintendent and superintendent for the Illinois School for the Deaf (ISD), 2006-2010. During her last year as superintendent, she was paid a total of $88,048. Reggie Clinton was superintendent for the School for the Visually Impaired (ISVI), 1998-2003 and again, 2008-2010. When Clinton returned to ISVI in 2008, he received a 1.9% salary increase from his most recent salary at the Arcola School District. He was paid, at the end of his tenure at ISVI, $121,116 per year. After Clinton resigned, the Illinois Department of Human Services, which oversees ISD and ISVI, created one combined superintendent role to cover both schools and offered Lauderdale the role. Lauderdale wanted to be paid as much or more than Clinton had been paid but eventually accepted a salary of $106,500. Lauderdale sued, alleging sex discrimination under the Equal Pay Act, Title VII of the Civil Rights Act of 1964, and 42 U.S.C. 1983. The district court concluded no reasonable juror could find the pay discrepancy was a product of sex discrimination and that the discrepancy resulted from budget concerns and from the application of the Illinois Pay Plan. The Seventh Circuit affirmed, agreeing that the record indicated that the pay discrepancy was not based on sex. View "Lauderdale v. Illinois Department of Human Services" on Justia Law

The Unions represent engineers employed by the Railroad, which is an amalgamation of several carriers. As a result, the Railroad is a party to multiple collective bargaining Agreements (CBAs). The Railroad modified disciplinary rules; the new policy was set forth in “MAPS," and supplanted UPGRADE. The Railroad had previously made changes to UPGRADE over the Union’s objections. When it shifted from UPGRADE to MAPS it did not consult the Union. The Railway Labor Act, 45 U.S.C. 151–88 allows employers to change “rates of pay, rules, or working conditions of ... employees” in any way permitted by an existing CBA or by going through the bargaining and negotiation procedure prescribed in section 156. MAPS falls within the scope of “rules” and “working conditions.” The Railroad argued that the change was permitted under the CBA. The Seventh Circuit affirmed the dismissal of the Union’s suit. If a disagreement arises over the formation or amendment of a CBA, it is considered a “major” dispute under the Act, and it must be decided by a court. If it relates only to the interpretation or application of an existing agreement, it is labeled “minor” and must go to arbitration. In this case, there is at least a non-frivolous argument that interpretation of the agreement between the parties, not change, is at stake. View "Brotherhood of Locomotive Engineers and Trainmen v. Union Pacific Railroad Co." on Justia Law

Edwards owns a taxicab in Milwaukee and gets referrals from Yellow Cab. Edwards leased the cab to Giri, who subleased some of the time to Chapman so that the cab could be in service much of the day. Chapman received fares and tips, paid rent to Giri, and kept the difference; he did not pay or receive anything from Yellow Cab. Chapman argued, in his suit under the Fair Labor Standards Act that he was a Yellow Cab “employee” and that, after he complained about not receiving the minimum wage, Mohamed, Yellow Cab's President, told Giri that Chapman was “fired” (would not be dispatched to passengers calling Yellow Cab). Giri then terminated the sublease. Chapman argued that Mohamed’s action violated the Act’s anti-retaliation clause, 29 U.S.C. 215(a)(3). His suit was dismissed with prejudice. The judge stated that Chapman had not addressed all of the relevant factors. The Seventh Circuit affirmed. While federal court plaintiffs need not plead all legal elements plus facts corresponding to each, Chapman’s claim was implausible because it did not allege any direct dealings between himself and Yellow Cab. When the court requested more, Chapman did not respond with a plausible claim. He failed to provide additional details, insisting that, because Yellow Cab affected his driving through the chain of leases, it must be his employer. View "Chapman v. Yellow Cab Cooperative" on Justia Law

Golla, who has a law degree, alleged, under the Civil Rights Act, 42 U.S.C. 2000e-2(a)(1) and 42 U.S.C. 1983, that the Office of the Chief Judge engaged in intentional reverse racial discrimination by paying Taylor, an African‐American male, a significantly higher salary than Golla, a white male, despite working in the same department and performing the same duties under essentially the same title. Golla started working in the Office in 1983. He was fired in 1995 but reinstated 10 months after he filed a complaint with the EEOC. Under a settlement agreement, Golla was reinstated at a pay position and title, Law Clerk I, which he retained until he resigned in 2013. When asked during his deposition whether anyone in the workplace made racial comments toward him, Golla answered, "nothing direct racial." He claimed his African-American supervisor made comments that were demeaning. The district court rejected Golla’s claim, finding no direct evidence of reverse racial discrimination that resulted in the pay disparity and that Golla failed to establish a prima facie case of reverse racial discrimination under the indirect method of proof. The Seventh Circuit affirmed. The evidence as a whole was insufficient for a reasonable jury to conclude that Golla was paid at a lower pay grade than Taylor because of his race View "Golla v. Office of the Chief Judge of Cook County" on Justia Law

DT&C, a Chicago ground transportation company, and its owners were sued by former employees and the Secretary of Labor for violating state wage‐payment laws and the Fair Labor Standards Act, 29 U.S.C. 201. After the defendants ignored court orders, the district judges entered default judgments for the plaintiffs. Eleven months later, the defendants moved to vacate both judgments, FRCP 60(b), arguing that the company had closed in 2015 and no longer received mail at the office address and that one of the owners was in poor health so that he did not keep in contact with the lawyer. The Sixth Circuit affirmed the denial of the motions. Because the defendants did not show good cause for the default, did not act quickly in filing motions to vacate, and failed to articulate any meritorious defenses, the district judges did not abuse their discretion. The default was the result of “inattention to the litigation” rather than illness, and the defendants had not shown that they had a legitimate defense. View "Krantz v. DT & C Global Management LLC" on Justia Law

The Illinois Department of Human Services Home Services Program pays personal home health care assistants to care for elderly and disabled persons. The assistants are considered public employees under the Illinois Public Labor Relations Act, which authorizes collective bargaining. Since 2003, the Union has been the assistants' exclusive representative, required to represent all public employees, including non-members. Under the collective bargaining agreement, the Union collected limited "fair share" fees from workers who chose not to join, which were automatically deducted from the assistants' pay. Workers who objected to this fair-share arrangement sued under 42 U.S.C. 1983. The Seventh Circuit affirmed the dismissal of their claim; the Supreme Court reversed. On remand, the Objectors sought certification of a class of all non-union member assistants from whom the fees were collected until June 30, 2014, when the state stopped the fair-share deductions. They argued that their proposed class of around 80,000 members is entitled to a refund of approximately $32 million. The Seventh Circuit affirmed a holding that class certification was inappropriate, stating that: the class definition was overly broad in light of evidence that a substantial number of class members did not object to the fee and could not have suffered an injury; named plaintiffs were not adequate representatives; individual questions regarding damages predominated over common ones; the class faced manageability issues; and a class action was not a superior method of resolving the issue. View "Riffey v. Rauner" on Justia Law

King worked for many years in Ford’s vehicle assembly plants. She claims that after transferring to Ford’s Chicago plant in 2010, she was sexually harassed by a supervisor, after which she was reassigned to less desirable tasks, missing out on overtime, and receiving unwarranted discipline. King was fired in 2013 after missing several weeks of work for medical reasons that Ford claims she did not properly document. King sued, asserting sexual harassment and Family and Medical Leave Act (FMLA), 29 U.S.C. 2615, interference, and that Ford retaliated against her for her complaints of sexual harassment and taking FMLA leave, 42 U.S.C. 2000e‐2. The Seventh Circuit affirmed the rejection of her claims on summary judgment. King argued that she never received the right‐to‐sue letter, so the 90‐day limitations period never began to run, but admitted that she failed to keep the EEOC apprised of her mailing address. With respect to her FMLA claim, the court noted that King did not establish she actually worked at least 1,250 hours in the preceding year. As to her Title VII claim, King’s protected activity consists of her March 2012 EEOC charge and her internal complaints of harassment, the last of which was a call to the anti‐harassment hotline in April 2012; the adverse action on which King focused was her April 2013 firing. View "King v. Ford Motor Co." on Justia Law