Justia Class Action Opinion Summaries

Waupaca manufactures iron castings and provides its foundry employees with personal protective equipment (PPE), including hard hats, safety glasses, ear protection, steel-toed footwear, and a fire-retardant uniform. Waupaca requires these employees to wear PPE while working; failure to comply can result in discipline. Waupaca provides locker rooms with showers. Typically, foundry workers finish their shift, clock out and proceed to locker rooms, where they remove their PPE, shower, and change into street clothes. Because of hazards associated with chemicals and dust to which some workers are exposed, Waupaca recommends that employees shower and remove their PPE on-site. Not all employees do so. Employees, representing a class of more than 400 (an opt-in class, 29 .S.C. 216(b)) alleged that Waupaca violated the Fair Labor Standards Act, 29 U.S.C. 201, by not paying for time spent showering and changing clothes at work. The district court granted Waupaca summary judgment, ruling that those activities were not compensable under the FLSA because the Occupational Safety and Health Administration had not mandated that foundry workers shower and change clothes on-site. The Seventh Circuit reversed, reasoning that OSHA’s decision not to promulgate a rule requiring such activities does not bar a party from presenting evidence as to compensability under the FLSA and that factual disputes otherwise precluded summary judgment.View "DeKeyser v. Thyssenkrupp Waupaca, Inc." on Justia Law

Plaintiff filed suit against Ralphs alleging violations of the California Labor Code and California Business and Professions Code 17200 et seq. On appeal, Ralphs challenged the district court's denial of its motion to compel arbitration. The court concluded that Ralphs' arbitration policy was unconscionable under California law. The court concluded that Ralphs' arbitration was procedurally unconscionable where, among other things, agreeing to Ralphs' policy was a condition of applying for employment and the terms were not disclosed to plaintiff until three weeks after she had agreed to be bound by it. In regards to substantive unconscionability, the court concluded, among other things, that Ralphs' terms required that the arbitrator impose significant costs on the employee up front, regardless of the merits of the employee's claims, and severely limited the authority of the arbitrator to allocate arbitration costs in the award. Further, the state law supporting such a conclusion was not preempted by the Federal Arbitration Act, 9 U.S.C. 2. Accordingly, the court affirmed and remanded for further proceedings. View "Chavarria v. Ralphs" on Justia Law

Plaintiffs filed a class action on behalf of themselves and other similarly situated, alleging that USSA committed numerous violations of California labor laws, including, inter alia, requiring them to work through their meal periods. On appeal, USSA challenged the district court's certification of the meal break sub-class on the grounds that plaintiffs have not established "commonality," as required under Federal Rule of Civil Procedure 23(a)(2), or "predominance," as required under Rule 23(b)(3). The court concluded that plaintiffs' claims would yield a common answer that was "apt to drive the resolution of the litigation," as required by Rule 12(b)(3). The court agreed with the district court that the "nature of the work" inquiry would be a common one, focused on the legality of a single-guard staffing model, rather than a site-by-site inquiry; concluded that common issues of law or fact would predominate; and the district court did not abuse its discretion in concluding that Rule 12(b)(3) was satisfied where plaintiffs' claims "will prevail or fail in unison" as required by the rule. Accordingly, the court affirmed the judgment of the district court. View "Abdullah v. U.S. Security Associates, Inc." on Justia Law

This case concerned the 2011 NFL lockout. Active NFL players filed a class action suit (Brady suit) against the NFL, alleging violations of the federal antitrust laws and other claims. Retired NFL players also filed suit against the NFL and its teams, alleging antitrust violations (Eller I suit). After both actions were consolidated, the Brady suit was settled, the players re-designated the NFLPA as their collective bargaining agent, the NFL and NFLPA signed a new collective bargaining agreement (CBA) incorporating the settlement terms, the Brady plaintiffs dismissed their action, the lockout ended, and the 2011 NFL season commenced. Carl Eller and other retired NFL players (plaintiffs) then filed this class action (Eller II) against the NFLPA and others. The district court granted defendants' motion to dismiss and plaintiffs appealed, alleging claims for intentional interference with prospective economic advantage under Minnesota law. The court concluded that no reasonable jury could find that plaintiffs had a reasonable expectation of a prospective separate contractual relation with the NFL that would provide more than the increased benefits provided in the 2011 CBA. Even if plaintiffs alleged a reasonable expectation of prospective contractual relations or economic advantage with the NFL, plaintiffs failed to allege facts proving that defendants improperly or wrongfully interfered with these advantageous prospects. Accordingly, the court affirmed the judgment of the district court. View "Eller, et al. v. NFL Players Assoc., et al." on Justia Law

Plaintiff filed suit against his former employer, New York Life, both individually and on behalf of a putative class of insurance agents. Plaintiff alleged state law claims seeking unpaid overtime wages and recovery of improper deductions, as well as statutory liquidated damages under New York Labor Law. On appeal, plaintiff challenged the district court's dismissal of his complaint based on the "home state exception" to federal jurisdiction under the Class Action Fairness Act (CAFA), 28 U.S.C. 1332(d). The court held that the home state exception was not jurisdictional and must be - and in this case was - raised within a reasonable time. Further, the 2011 amendment to New York Labor Law was not retroactive and the district court's grant of partial summary judgment with respect to plaintiff's overtime claim was correct. Accordingly, the court affirmed the judgment of the district court. View "Gold v. New York Life Ins. Co." on Justia Law

Plaintiffs sued their employer on behalf of themselves and “similarly situated” individuals, alleging that the employer violated the Fair Labor Standards Act, 29 U.S.C. 201, by failing to ensure that they were paid for time worked during meal breaks. Notice was directed to potential collective-action members, and individuals opted into the lawsuit. FLSA collective actions are subject to “opt-ins,” unlike class actions under FRCP 23, under which those not wishing to be included must “opt out” after the class is certified. After preliminary discovery, the district court dismissed the claims of the opt-in plaintiffs without prejudice; at the request of the remaining plaintiffs, the court dismissed remaining claims with prejudice to enable appellate review. The Third Circuit dismissed an appeal for lack of jurisdiction, finding that the named plaintiffs lack final orders appealable under 28 U.S.C. 1291. Plaintiffs attempted to short-circuit the procedure for appealing an interlocutory order that is separate from, and unrelated to, the merits of the case. They could have obtained review of the decertification order by proceeding to final judgment on the merits of their individual or could have asked the trial court to certify their interlocutory orders for appeal. View "Camesi v. Univ. of Pittsburgh Medical Ctr." on Justia Law

Plaintiff filed suit against his employer (Nichols) for breach of the Collective Bargaining Agreement (CBA) and against his union for breach of its duty of fair representation. Plaintiff alleged that Nichols breached the CBA by failing to establish rest periods for workers on the continuously operating lines as required by Section 17.1 of the CBA. In this case, the union had a duty not to pursue a grievance to arbitration that it believed did not warrant such action. The court concluded that plaintiff had not raised a genuine issue of material fact on whether the union failed in its duty of fair representation on the issue before the court. Accordingly, the court affirmed the district court's grant of summary judgment for the union and the employer. View "Inechien v. Nichols Aluminum, LLC, et al." on Justia Law

E&Y appealed from the district court's order denying its motion to dismiss or stay proceedings, and to compel arbitration, in a putative class action brought by its former employees. At issue on appeal was whether an employee could invalidate a class-action waive provision in an arbitration agreement when that waiver removed the financial incentive for her to pursue a claim under the Fair Labor Standards Act of 1938 (FLSA), 29 U.S.C. 201, et seq. The court held that the FLSA did not include a "contrary congressional command" that prevented a class-action waiver provision in an arbitration agreement from being enforced by its terms. The court also held that, in light of the supervening decision of the Supreme Court in American Express Co v. Italian Colors Restaurant, the employee's argument that proceeding individually in arbitration would be "prohibitively expensive" was not a sufficient basis to invalidate the action waiver provision at issue here under the "effective vindication doctrine." Accordingly, the court reversed and remanded for further proceedings. View "Sutherland v. Ernst & Young LLP" on Justia Law

Plaintiffs, current and former employees of Amgen and AML, participated in two employer-sponsored pension plans, the Amgen Plan and the AML Plan. The Plans were employee stock-ownership plans that qualified as "eligible individual account plans" (EIAPs) under the Employee Retirement Income Security Act (ERISA), 29 U.S.C. 1107(d)(3)(A). Plaintiffs filed an ERISA class action against Amgen, AML, and others after the value of Amgen common stock fell, alleging that defendants breached their fiduciary duties under ERISA. The court concluded that defendants were not entitled to a presumption of prudence under Quan v. Computer Sciences Corp., that plaintiffs have stated claims under ERISA in Counts II through VI, and that Amgen was a properly named fiduciary under the Amgen Plan. Therefore, the court reversed the decision of the district court and remanded for further proceedings. View "Harris v. Amgen" on Justia Law

Davis sued Cintas, individually and on behalf of a class of female job applicants denied employment as entry-level sales representatives, alleging that Cintas’s hiring practices led to gender discrimination, in violation of Title VII, and caused Cintas to reject her application for employment twice. The district court denied Davis’s motion for class certification and granted summary judgment for Cintas. The Sixth Circuit affirmed both denial of class certification and the entry of summary judgment on her individual disparate-treatment claim arising in 2004 and her disparate-impact claim. The court reversed with respect to a disparate-treatment claim arising in 2003, noting that she was at least as qualified as the male candidates at that time. View "Davis v. Cintas Corp." on Justia Law