Justia Class Action Opinion Summaries
Articles Posted in Labor & Employment Law
Ross v. RBS Citizens N.A.
Plaintiffs filed a class action, alleging violation of the Fair Labor Standards Act, 29 U.S.C. 216(b), and the Illinois Minimum Wage Law, 820 ILCS 105/1, based on denial of overtime pay. For the IMWL claim, the district court certified two classes: "hourly" and "assistant branch manager." The Seventh Circuit affirmed, rejecting an argument that the certification order did not comply with the commonality requirement of FRCP 23(c)(1)(B). The court referred to the 2011 Supreme Court decision, Wal-Mart Stores, Inc. v. Dukes, and concluded that the defendant's unofficial policy concerning overtime provided the "common answer" that will potentially resolve the case.
View "Ross v. RBS Citizens N.A." on Justia Law
Carey v. 24 Hour Fitness USA, Inc.
In 2005, during plaintiff's employment, defendant issued an employee handbook, including a provision that all employment-related disputes, whether initiated by an employee or by defendant, would be "resolved only by an arbitrator through final and binding arbitration," that disputes under the Fair Labor Standards Act were among those subject to the arbitration policy, that disputes cannot be brought as class actions or in representative capacities, and that the Federal Arbitration Act was its governing authority. Plaintiff signed a receipt that reiterated the arbitration policy. After his employment ended, plaintiff filed a class action, alleging violation of the FLSA by failing to adequately compensate him and other similarly-situated employees for overtime work. The district court denied a motion to stay proceedings and compel arbitration, finding that the provision was illusory because the employer retained the right to terminate or modify the provision at any time. The Fifth Circuit affirmed, noting that under the provision the company could make amendments almost instantaneously. View "Carey v. 24 Hour Fitness USA, Inc." on Justia Law
City of Dallas v. Martin, et al.
This matter arose out of a dispute over whether the City of Dallas paid its firefighters and police officers in accord with a 1979 ordinance adopted pursuant to a voter-approved referendum. Claiming the City had not properly paid them, some firefighters and police officers brought a class action asserting breach of contract claims and seeking a declaratory judgment. For the reasons set out in City of Dallas v. Albert, the court concluded that: (1) the ordinance's adoption by means of referendum did not result in the City's loss of immunity from suit; (2) the City had immunity from suit as to the declaratory judgment action; (3) by non-suiting its counterclaim the City did not reinstate immunity from suit as to the Officers' claims that were pending against the City when it non-suited the counterclaim; and (4) the case must be remanded for the trial court to consider whether the Legislature waived the City's immunity by amending the Local Government Code. View "City of Dallas v. Martin, et al." on Justia Law
Harris v. Super. Ct.
Plaintiffs, claims adjusters employed by defendants, filed four class action lawsuits alleging defendants erroneously classified them as exempt "administrative" employees, seeking damages based on unpaid overtime work. At issue was whether plaintiffs were exempt employees, not entitled to overtime compensaution under the Labor Code and regulations of the California Industrial Welfare Commission (IWC). The court held that the Court of Appeal misapplied the substantive law when its analysis focused on Wage Order 4. The court held that, in resolving whether work qualified as administrative, courts must consider the particular facts before them and apply the language of the statutes and wage orders at issue. Only if those sources failed to provide adequate guidance, was it appropriate to reach out to other sources. Accordingly, the court reversed and remanded. View "Harris v. Super. Ct." on Justia Law
Brown, et al. v. Offshore Specialty Fabricators, et al.
This appeal involved a putative class action brought against several oil and gas companies and several companies that provide labor for offshore oil and gas projects. Plaintiffs alleged that defendants maintained a hiring scheme to employ foreign workers on the Outer Continental Shelf in violation of the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. 1961-1968, and the Outer Continental Shelf Lands Act (OCSLA), 43 U.S.C. 1331 et seq. The district court disposed of all plaintiffs' claims and then entered final judgment dismissing all claims. The court held that the Service Defendants did not violate RICO because the law that would make their conduct racketeering activity did not apply in the place where that conduct occurred, namely vessels floating on the waters of the Outer Continental Shelf. The court rejected plaintiffs' contention that the exemptions the Service Defendants possessed to the OCSLA manning requirements did not shield them from RICO liability because those exemptions were fraudulently obtained. The court also held that plaintiffs could not state a claim for a private right of action for damages under the OCSLA and the district court's dismissal was proper. The court further held that the district court did not err in disposing plaintiffs' OCSLA enforcement claim. Accordingly, the judgment of the district court was affirmed. View "Brown, et al. v. Offshore Specialty Fabricators, et al." on Justia Law
Douglas v. First Student, Inc.
Petitioners, who were all employed by Respondent as public school bus drivers or dispatchers, claimed that Respondent failed to compensate them for regular and overtime wages in weeks in which they worked more than forty hours. Petitioners filed a class-action complaint in federal district court, alleging violations of the federal Fair Labor Standards Act and the Arkansas Minimum Wage Act (AMWA). Respondents opposed Petitioners' motion to amend their complaint, contending the amendment would be futile because Petitioners' AMWA claims were barred by the three-year statute of limitations set forth in Ark. Code Ann. 16-56-105. The Supreme Court accepted certification to answer what the appropriate statute of limitations was for a private cause of action pursuant to Ark. Code Ann. 11-4-218(e), which allows an employee to bring a private cause of action for relief against an employer for minimum wages, including overtime wages, but does not include a specific limitations provision. After acknowledging the Court's long history of applying section 16-56-105's three-year limitation period for statutorily created liabilities that do not contain an express limitations period, the Court answered that a three-year statute of limitations would apply to private causes of action brought pursuant to AMWA. View "Douglas v. First Student, Inc." on Justia Law
Kairy, et al. v. Supershuttle Int’l, et al.
Plaintiffs, current or former "franchisee" shuttle van drivers for SuperShuttle in various parts of California, filed a putative class action alleging that plaintiffs were misclassified as "independent contractors" when, in truth, they were "employees" under California law. Plaintiffs alleged that they had consequently been deprived of the full protections provided to employees under the California Labor Code, including overtime and minimum wages, reimbursement of business expenses and deductions wrongfully taken from wages, and meal period pay. The district court granted SuperShuttle's motion to dismiss plaintiffs' state law claims holding that it lacked subject matter jurisdiction. The court held that the third prong in San Diego Gas & Electric Co. v. Superior Court (Covalt) was not satisfied, the California Public Utilities Code 1759 was not implicated, and the district court retained subject matter jurisdiction over the case. On remand, the district court could determine whether the SuperShuttle drivers were employees or independent contractors under California law without hindering or interfering with PUC decisions or policies. View "Kairy, et al. v. Supershuttle Int'l, et al." on Justia Law
Novella v. Westchester County, et al.
This appeal and cross-appeal concerned the pension benefits owed to plaintiff, a retired carpenter, and members of a class he purported to represent. Plaintiff asserted that the pension fund was guilty of seven violations of the Employee Retirement Income Security Act (ERISA), 29 U.S.C. 1001 et seq., and sought declaratory and injunctive relief. The court agreed with the district court that defendants' interpretations of certain plan language was arbitrary and capricious and therefore affirmed the district court's award of summary judgment to plaintiff on his individual claims for miscalculation of pension benefits. The court concluded, however, contrary to the district court, that the six-year statute of limitations applicable to plaintiff's and each other putative class member's ERISA claims began to run when each pensioner knew or should have known that defendants had miscalculated the amount of his pension benefits, and that he was being underpaid as a result. Therefore, the court vacated the district court's judgments certifying the plaintiff class, granting summary judgment to the class, and granting prejudgment interest to the class members. The court remanded for further factfinding with regard to when each putative class member became, or should have become, aware of his alleged injury so as to begin the running of the statute of limitations as applied to him.
Shahriar, et al. v. Smith & Wollensky Restaurant
Plaintiffs, on behalf of themselves and all other similarly situated, filed a complaint alleging that defendants violated the minimum wage and overtime provisions of the Fair Labor Standards Act (FLSA), 29 U.S.C. 201-19, by requiring waiters to share tips with tip-ineligible employees. Plaintiffs also alleged that Park Avenue also violated various provisions of the New York Labor Law by requiring servers to share tips with tip-ineligible employees and by failing to pay waiters for an extra hour's work when their workdays lasted more than ten hours. Defendants appealed from the district court's order granting plaintiffs' motion for class certification. The court held that plaintiffs provided ample and sufficient evidence as to the elements of Rule 23(a)(1)-(4) and Rule 23(b)(3) for it to uphold the district court's findings and conclusions with respect to each of the Rule 23 requirements. Accordingly, the court affirmed the district court's order.
Bennett, et al. v. Nucor Corp., et al
Plaintiffs, six current and former African-American employees, brought suit against Nucor alleging racial discrimination in violation of 42 U.S.C. 1981 and Title VII of the Civil Rights Act of 1964, 42 U.S.C. 2000e-2000e-17. The district court denied plaintiffs' requests for class certification, granted summary judgment in favor of Nucor on several claims and the case proceeded to trial. A jury returned verdicts against Nucor and awarded each plaintiff monetary damages. The parties appealed and cross-appealed, contesting various rulings by the district court. The court held that the district court did not abuse its discretion in believing that evidence of a previous enforcement action alleging race discrimination at the Blytheville plant was relevant to the credibility of plaintiffs' allegations. The court also held that the district court properly admitted certain statements at issue. The court further held that because Nucor failed to renew its motion under Rule 50(b), the court was without power to disturb the district court's entry of judgment on the jury's punitive damages award. The court finally held that the district court did not abuse its discretion by concluding that plaintiffs had not met their burden of demonstrating the commonality of their claims and that summary judgment was warranted on plaintiffs' disparate impact claims, failure-to-train disparate treatment claims, and failure-to-promote disparate treatment claims. Accordingly, the judgment of the district court was affirmed.