Mealey's Employment : Mealey's : Legal News & Analysis

Mealey's Employment

August 30, 2024
Radio Personality’s Company Seeks Rehearing After Religious Bias Claims Reinstated

CINCINNATI — Lampo Group LLC, the company of radio personality Dave Ramsey, filed a petition in the Sixth Circuit U.S. Court of Appeals for rehearing en banc after a panel partially reversed a trial court’s dismissal of claims by an employee who alleges that the company failed to take precautions against the spread of COVID-19 during the initial days of the coronavirus pandemic.
August 30, 2024
Final Approval Of $10.8M Settlement Sought In Wage Suppression Case

NEWARK, N.J. — Individuals who worked for a tax preparation franchisor or franchisees who brought a class complaint in a federal court in New Jersey alleging that there was a conspiracy to suppress compensation via no-poach agreements filed motions for final approval of a $10.8 million settlement and for approval of attorney fees, expenses and service awards.
August 29, 2024
6th Circuit Reverses Dismissal Of Misclassification Suit Involving ERISA Benefits

CINCINNATI — Reversing dismissal of a putative class action in which insurance agents assert Employee Retirement Income Security Act claims over alleged misclassification and denial of benefits, a Sixth Circuit U.S. Court of Appeals panel ruled that the lower court erred by relying on documents regarding which “there are legitimate questions” of whether they “are a full set of the relevant, governing plan documents.”
August 29, 2024
7th Circuit Orders Injunctive Relief Reconsideration After Wal-Mart Bias Verdict

CHICAGO — A Seventh Circuit U.S. Court of Appeals panel upheld a jury’s finding of liability as to Wal-Mart Stores East L.P. as well as punitive and compensatory damages in a disability bias case brought by the Equal Employment Opportunity Commission after a longtime employee with Down syndrome was fired but vacated the trial court’s denial of injunctive relief sought by the EEOC and remanded for reconsideration.
August 29, 2024
Asphalt Paving Company To Pay $1.25M To Settle EEOC Race Harassment Suit

TAMPA, Fla. — An asphalt paving company with offices in five states will pay $1.25 million and provide injunctive relief to end a lawsuit by the Equal Employment Opportunity Commission alleging that the company subjected a dozen Black former employees and a class of other Black employees to frequent, severe harassment due to their race, according to a consent decree signed by a federal judge in Florida.
August 28, 2024
Judge Denies Attorney Fees In First Impression Withdrawal Liability Case

HAMMOND, Ind. — On remand following reversal of a Multiemployer Pension Plan Amendments Act (MPPAA) ruling in a withdrawal liability dispute, an Indiana federal judge entered final judgment totaling $4,026,324.18 plus post-judgment interest for an employer but denied its opposed request for $217,249 in attorney fees.
August 28, 2024
Judge Dismisses Putative Class Suit Over Alleged Data Breach For Lack Of Standing

COLUMBUS, Ohio — Granting dismissal of a putative class action against a private contractor over an alleged data breach, an Ohio federal judge said the plaintiff “has not adequately pleaded that any of his PII [personally identifiable information] was improperly accessed, let alone stolen.”
August 28, 2024
U.S. As Amicus Tells High Court No Heightened Standard To Prove FLSA Exemption

WASHINGTON, D.C. — The preponderance-of-the-evidence standard applies where employers are proving that employees are exempt from the Fair Labor Standards Act’s (FLSA) minimum wage and overtime requirements; the heightened standard of clear and convincing evidence applies only where “the individual interests at stake in a proceeding are particularly important,” the United States argues in an amicus brief filed in the U.S. Supreme Court supporting a food distributor and its CEO.
August 28, 2024
9th Circuit Says CERCLA Does Not Limit FTCA’s Misrepresentation Exception

SAN FRANCISCO — The United States is entitled to sovereign immunity from claims brought by employees of the San Francisco Police Department (SFPD) who allegedly were harmed by radioactive contamination at a former U.S. Navy base that was leased to the SFPD because the claims were based on misrepresentations made by the Navy and are therefore exempt under the Federal Tort Claims Act (FTCA), a Ninth Circuit U.S. Court of Appeals panel found in affirming a trial court’s order and rejecting the employees’ assertion that the Comprehensive Environmental Response Compensation, and Liability Act (CERCLA) limited the exemption at issue.
August 27, 2024
Arizona Pet Stores Will Pay $340,000 To Resolve EEOC Sexual Harassment Suit

PHOENIX — A federal judge in Arizona granted a joint motion for entry of a consent decree filed by the Equal Employment Opportunity Commission and the owners and operators of two Arizona pet stores in a lawsuit alleging that female workers were subjected to pervasive sexual harassment and retaliation.
August 27, 2024
Airlines Will Settle Pilot’s USERRA Payless Leave Class Suit For $4.75M

SPOKANE, Wash. — Alaska Airlines Inc. and Horizon Air Industries Inc. have agreed to pay $4.75 million to a class of commercial airline pilots who allege that they were denied pay during short-term military leaves while pay was provided to pilots taking other types of leaves, according to motion for preliminary settlement approval filed in a federal court in Washington.
August 26, 2024
Former Employees Reach Settlement With Philadelphia Inquirer Over Data Breach

PHILADELPHIA —Three employees or former employees of the Philadelphia Inquirer LLC moved for preliminary approval of a $525,000 class action settlement reached with the newspaper to settle claims for damages caused by a data breach that the newspaper did not disclose to subscribers and employees for nearly a year.
August 26, 2024
5th Circuit Vacates DOL’s Tip Credit Rule, Finds It ‘Contrary’ To FLSA’s Text

NEW ORLEANS — A Fifth Circuit U.S. Court of Appeals panel on Aug. 23 reversed a trial court’s summary judgment order for the U.S. Department of Labor (DOL) in a case challenging the agency’s final rule restricting when employers may claim a “tip credit” for “tipped employees,” vacated the final rule and rendered summary judgment for the two associations challenging the rule, opining that the rule was “arbitrary and capricious” and “contrary” to the clear text of the Fair Labor Standards Act (FLSA).
August 23, 2024
Hospitality Business Workers’ Human Trafficking Claims Settled for $730,000

OKLAHOMA CITY — A federal magistrate judge in Oklahoma on Aug. 22 granted final approval of a $730,000 settlement between hospitality businesses based in that state and workers from the Philippines who allege that they were induced to travel to the United States to work based on false promises.
August 23, 2024
NLRB Majority Ends Consent Orders Opposed By General Counsel, Charging Party

WASHINGTON, D.C. — Consent orders offered by a respondent to resolve an unfair labor practice case that are opposed by both the charging party and general counsel will no longer be accepted, a divided National Labor Relations Board ruled Aug. 22 in a case involving a Puerto Rico hospital and a union representing four units of employees.
August 23, 2024
Ohio Nursing And Rehab Will Pay $150,000 To End EEOC Bias, Retaliation Suit

COLUMBUS, Ohio — An Ohio nursing and rehabilitation facility agreed to pay $150,000 and take other actions to end a complaint in a federal court in that state by the Equal Employment Opportunity Commission, which accused the facility of wrongly firing an older male worker due a lack of available work while offering work to younger female workers.
August 22, 2024
4th Circuit Affirms Dismissal For ‘Pesky’ Standing Requirements In Medicare Row

RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals affirmed a district court’s ruling dismissing a putative class action filed by the spouse of a decedent pursuant to the Medicare Secondary Payer (MSP) Act regarding a workers’ compensation insurer’s alleged failure to reimburse Medicare for the decedent’s mesothelioma-related treatment, finding that though the requirements of standing “are often pesky,” the spouse lacked standing in this case.
August 22, 2024
FTC’s New Noncompete Rule Set Aside By Federal Judge In Texas

DALLAS — The Federal Trade Commission lacks the statutory authority to issue a new rule largely banning noncompete agreements, a federal judge in Texas ruled, setting aside the rule and directing that it “shall not be enforced or otherwise take effect on September 4, 2024, or thereafter.”
August 20, 2024
Wholesaler Seeks Rehearing After 1st Circuit Finds Sales Reps Were Misclassified

BOSTON — An industrial product wholesaler filed a petition for rehearing en banc after a First Circuit U.S. Court of Appeals panel affirmed a trial court’s ruling that the company’s inside sales representatives (ISRs) were misclassified as exempt under the Fair Labor Standards Act (FLSA).
August 20, 2024
Cabbie Who Quit Because Of COVID-19 Lack Of Fares May Collect CARES Act Benefits

WASHINGTON, D.C. — A panel of a District of Columbia appeals court reversed the decision of an administrative law judge (ALJ) denying pandemic unemployment assistance (PUA) benefits provided by the Coronavirus Aid, Relief, and Economic Security (CARES) Act to a taxi driver who claimed benefits due to a sharp decline in fares during the COVID-19 pandemic that rendered him unable to pay for his taxi and equipment.
August 20, 2024
Teacher Awarded $1.1M On Retaliation, Defamation Claims In Pandemic Speech Case

NEW HAVEN, Conn. — A Connecticut teacher who alleged that she was subjected to retaliation and defamation after making public comments regarding the need for a safety plan during the coronavirus pandemic and stating on social media that there had been an unreported case of COVID-19 in her school was awarded $1.1 million by a federal jury in her state.
August 20, 2024
Pennsylvania Law Firm Seeks COVID-19 Employee Retention Credits It Says It Is Owed

PHILADELPHIA — A Pennsylvania law firm filed suit against the federal government seeking a tax refund of $790,318.08 for 2020 and 2021, claiming that it is entitled to employee retention tax credits as provided for by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, along with statutory interest and attorney fees, for wage payments it paid to its employees during the COVID-19 pandemic.
August 19, 2024
Dave Ramsey Worker’s Pandemic Religious Bias Claims Reinstated By 6th Circuit

CINCINNATI — A former employee of Dave Ramsey and his company, Lampo Group LLC, who alleges that the company failed to take precautions against the spread of COVID-19 during the initial days of the coronavirus pandemic may proceed with his religious bias claims but failed to meet Federal Rule of Civil Procedure 9(b)’s heightened pleading requirements for his common-law fraud claim, a Sixth Circuit U.S. Court of Appeals panel ruled, partially reversing a trial court’s dismissal of all of the employee’s claims.
August 16, 2024
Ex-Employee Denied Vaccination Exemption Amends Religious Discrimination Complaint

DETROIT — A former employee of a health insurance company filed an amended complaint alleging that she was wrongly denied a religious exemption from the company’s mandatory COVID-19 vaccination policy after a Michigan federal court determined that the proposed amended complaint alleged sufficient facts to support her claims and denied as moot the company’s motion for judgment on the pleadings.
August 16, 2024
6th Circuit In Union Spat Affirms President’s Right To Remove NLRB General Counsel

CINCINNATI — The president has the authority at-will to remove and replace the National Labor Relations Board general counsel, a Sixth Circuit U.S. Court of Appeals panel ruled, denying an employer’s petition for review and granting the NLRB’s cross-application for enforcement of its order which found that the employer must turn over subcontracting and bargaining employee information to the union and that a union member violated the National Labor Relations Act (NLRA) by striking another employee with a picketing sign and spitting in his face.