{"id":53,"date":"2019-12-09T18:16:50","date_gmt":"2019-12-09T18:16:50","guid":{"rendered":"https:\/\/www.fedbar.org\/labor-employment-law-section\/\/april\/"},"modified":"2019-12-09T19:56:50","modified_gmt":"2019-12-09T19:56:50","slug":"april","status":"publish","type":"page","link":"https:\/\/www.fedbar.org\/labor-employment-law-section\/le\/circuit-updates\/2019-2\/april\/","title":{"rendered":"April"},"content":{"rendered":"<p>\u00a0<\/p>\n<p style=\"TEXT-ALIGN: center\" align=\"center\"><b><span style=\"TEXT-DECORATION: underline\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif; LINE-HEIGHT: 107%'>Second Circuit <\/span><\/span><\/b><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif; LINE-HEIGHT: 107%'><\/span><\/p>\n<p><b><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif; LINE-HEIGHT: 107%'><\/span><\/b><\/p>\n<p><b><span style=\"FONT-SIZE: 12pt\"><em>Natofsky v. City of New York<\/em><\/span><\/b><b><span style=\"FONT-SIZE: 12pt\"><em>, <\/em>921 F.3d 337 (2d Cir. April 18, 2019)<\/span><\/b><\/p>\n<p><\/p>\n<p style=\"LINE-HEIGHT: normal\"><i><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/i><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><span style=\"FONT-SIZE: 12pt\">The Court of Appeals holds for the first time that employment discrimination cases under the Rehabilitation Act and the Americans with Disabilities Act follow the \u201cbut-for\u201d causation model, not \u201cmotivating factor.\u201d The Court also holds the plaintiff cannot survive defendant\u2019s motion for summary judgment on his claim. <\/span><\/span><\/p>\n<p><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0On the causation standard, the Second Circuit applies the Supreme Court\u2019s reasoning in <i>Gross<\/i> and <i>Nasser<\/i> in holding that when Congress prohibits discrimination \u201cbecause of\u201d the plaintiff\u2019s protected status (as opposed to explicitly stating that discrimination cannot be a \u201cmotivating factor,\u201d the \u201cbut-for\u201d causation test applies. <\/span><\/p>\n<p><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>\u00a0<\/span><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 On the merits of the case, while plaintiff has a hearing disability and management treated him poorly by\u00a0 inter alia demanding that he speak more clearly and quickly and demoting him, he cannot prove discrimination because the evidence shows management was unhappy with his performance, reasoning, \u201cThere was ample evidence that Pogoda and Peters had reason to (and did) think that Natofsky\u2019s performance was deficient and demoted him on that basis. First, Pogoda noted in March 2014 her view that Natofsky was \u2018clueless.\u2019 Second, that same month, Natofsky failed to provide Peters with information regarding staffing and budgeting at the DOI, two areas under Natofsky\u02b9s purview. Third, there was a new administration in office that was restructuring the department in which Natofsky worked. Defendants presented evidence that other employees had been asked to leave or were transferred from their positions, including Natofsky\u02b9s immediate supervisor, Ulon. We conclude that \u2018construing the evidence in the light most favorable\u2019 to Natofsky and \u2018drawing all reasonable inferences in his favor,\u2019 no reasonable juror could conclude that Natofsky would have retained his position but for his disability.\u201d<\/span><\/p>\n<p><b><i><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>Fox v. Costco Wholesale Corp<\/span><\/i><\/b><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><strong>., ___ F.3d ___, 2019 WL 105643 (2d Cir. March 6, 2019)<\/strong><\/span><\/p>\n<p><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0After holding the Americans with Disabilities Act makes it illegal for an employer to maintain a hostile work environment on the basis of an employee\u2019s disability, the Court reinstates the claim brought by a disabled worker who was harassed because of his disability. Plaintiff has Tourette\u2019s Syndrome and Obsessive Compulsive Disorder. As a result of his neurological condition, plaintiff would often touch the floor before moving, and he would cough when he felt a verbal tic coming on to prevent others from hearing him use foul language. But his coworkers mocked him over his disability. In his deposition, Fox described how certain Costco employees would make \u201chut\u2010hut\u2010hike\u201d remarks to mimic Fox\u2019s verbal and physical tics. Fox also testified that these comments \u201cwere audible to the managers of the Holbrook warehouse from their position on the warehouse\u2019s podium,\u201d and \u201chappened in plain view of the Supervisors and the Front End Managers and nothing was ever said.\u201d Fox testified further that these types of comments happened for \u201cmonths and months\u201d and \u201cwhenever\u201d he would experience tics. <\/span><\/p>\n<p><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 On the scope of the ADA, the Court says that the ADA\u2019s language relating to \u201cterms, conditions and privileges\u201d of employment is identical to the protections under Title VII, which does prohibit a hostile work environment on the basis of race, sex, etc. Since the Supreme Court had already held that Title VII prohibits a hostile work environment when the ADA was enacted in 1990, we can assume that Congress intended the ADA to protect disabled workers from disability-related harassment. The Fourth, Fifth, Eighth and Tenth Circuits have already interpreted the ADA this way.<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 As for whether Fox has a hostile work environment claim, some managerial acts do not get him there, including certain discipline for not performing his duties properly, as \u201clegitimate reprimands by an employer are not abuse.\u201d But the jury may find that plaintiff suffered ongoing and pervasive harassment from coworkers who ridiculed his disability. While the district court in dismissing this claim said plaintiff had to introduce \u201cevidence regarding the number of times the comments were made per shift, week and\/or month\u201d to show that the \u201chut\u2010hut\u2010hike\u201d comments pervaded Fox\u2019s working environment. But that \u201cdemand[s] too much of Fox, the Court of Appeals says, because he \u201cis not required to list the shift, week, or month to be able to present this issue to a jury.\u201d Because Fox identified specific comments\u2014his co\u2010workers mocking his Tourette\u2019s by repeating \u201chut\u2010hut\u2010hike,\u201d presumably while touching the floor\u2014and because he testified that \u201cwhenever I said [the F word], they said \u2018hut\u2010hut\u2010hike\u2019\u201d for \u201cmonths and months,\u201d Fox has provided evidence sufficient to meet his burden to demonstrate pervasiveness. On Fox\u2019s evidence at this stage, we hold, a reasonable fact finder could conclude that the \u201chut\u2010hut\u2010hike\u201d comments made for months by co\u2010workers when Fox experienced verbal tics were sufficiently severe and pervasive to change the conditions of Fox\u2019s employment.<\/p>\n<p><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><velarde v. gw gj inc span><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><strong><em>Velarde v. GW GJ, Inc., <\/em>___ F.3d ___, 2019 WL ____ (2d Cir. February 5, 2019)<br><\/strong><span style=\"FONT-SIZE: 12pt\"><br>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Intern who obtained educational experience at a cosmetology school was not entitled to salary under the Fair Labor Standards Act. Under <\/span><i><span style=\"FONT-SIZE: 12pt\">Glatt v. Searchlight Pictures<\/span><\/i><span style=\"FONT-SIZE: 12pt\">, 811 F.3d 528 (2d Cir. 2015), the intern is not entitled to any compensation under the FLSA the intern is the \u201cprimary beneficiary\u201d of the relationship. If the intern\u2019s employer is the \u201cprimary beneficiary\u201d of the relationship, then the entity is an employer under the FLSA and the intern has to receive compensation.<\/span><\/span><\/velarde><\/span><\/p>\n<p><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>\u00a0<\/span><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 After finishing eight weeks in the classroom, plaintiff worked at the salon run by the school, performing cosmetology services for the public. He also had to perform janitorial and clerical work. Under state law, to offer cosmetology services in New York, students have to complete 1,000 hours of coursework in various subject areas, like hair styling. Plaintiff said the beauty school was the primary beneficiary of the relationship because it derived revenue from the work he performed for paying customers. He says that any training and skills he received from providing those services are \u201cbesides the point.\u201d The Second Circuit disagrees.<\/span><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><nbsp span the court first beneficiary test applies cases involving schools vocation-related programs. it then holds primary this because received significant benefits at salon as was required complete coursework did so under supervision school instructors. and actually had work exactly hours consistent with licensing requirements. while says he also performed clerical janitorial duties second circuit already held that relatively menial repetitive tasks may legitimately comprise part relationship intern receives pay. plaintiff points out earned money from his cosmetology academy has no obligation turn reasonable profit on operations is not case in which business uses facade a vocational to deceive students into unexpectedly long without compensation replacing labor of its paid employees or working well beyond long-standing state for><\/nbsp><\/span><\/p>\n<p><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><em>Submitted by:<\/em><br>\nStephen Bergstein, Esq.<br><\/span><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>Bergstein &amp; Ullrich, LLP<br><\/span><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>5 Paradies Lane<br><\/span><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>New Paltz, New York 12561<br><\/span><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>(845) 419-2250<\/span><\/p>\n<p><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><\/span><\/p>\n<p style=\"TEXT-ALIGN: center; LINE-HEIGHT: normal\" align=\"center\"><b><span style=\"TEXT-DECORATION: underline\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>Fourth Circuit<\/span><\/span><\/b><i> <\/i><\/p>\n<p><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><strong><\/strong><\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><b style=\"mso-bidi-font-weight: normal\"><span style=\"FONT-SIZE: 12pt\"><em>Haynes v. Waste Connections, Inc.<\/em><\/span><\/b><b style=\"mso-bidi-font-weight: normal\"><span style=\"FONT-SIZE: 12pt\"><em>, <\/em>\u2013 F.3d \u2013 , 2019 WL 1768918 (4th Cir. April 23, 2019), available at <a href=\"http:\/\/www.ca4.uscourts.gov\/opinions\/172431.P.pdf\"><font color=\"#0563c1\">http:\/\/www.ca4.uscourts.gov\/opinions\/172431.P.pdf<\/font><\/a>\u00a0<br><\/span><\/b><\/p>\n<p><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/span><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0A waste management company fired a black employee who had worked for the company for nine years.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The employee left before the start of his scheduled shift, after sending a text message to his supervisor saying that the employee was ill and could not work that day.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The supervisor consulted with other staff members who said that the employee left because he was frustrated that his truck was still under repair.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The company informed the employee that his employment was being terminated for job abandonment.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The employee filed a lawsuit against the company, alleging that he was terminated based on his race in violation of Title VII.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The district court entered summary judgment for the company, ruling that the employee failed to establish an appropriate comparator outside his protected class, and failed to produce evidence that the reason for termination was pretextual.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The employee appealed, and the Fourth Circuit reversed.<i><\/i><\/span><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>To establish a prima facie case of discriminatory termination in violation of Title VII under the <i>McDonnell Douglas<\/i> framework, the employee must show that (1)\u00a0he was a member of a protected class; (2)\u00a0he was satisfactorily performing his job at the time his employment was terminated; (3) he was terminated from employment; and (4) the prohibited conduct in which he engaged was comparable in seriousness to misconduct of other employees outside the protected class who received less severe discipline.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The burden then shifts to the employer to provide a legitimate, non-discriminatory reason for termination.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The employee then must demonstrate that the proffered reason is pretextual.<\/span><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>The Fourth Circuit reversed the district court\u2019s ruling that the employee failed to identify an appropriate comparator outside the protected class.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>To establish a valid comparator, the employee must produce evidence that he and the comparator had the same supervisor, were subject to the same standards, and engaged in the same conduct without such differentiating or mitigating circumstances that would distinguish their conduct or the employer\u2019s treatment of them.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The employer argued that in addition to leaving before the start of his shift, the employee also had three prior infractions, including two minor driving incidents and use of a cell phone, although the employer had not previously cited those infractions as reasons for termination.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The employee argued that a white co-worker who had committed more serious infractions, yelled at his supervisor while quitting his job, and was allowed to return to work, was an appropriate comparator.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Fourth Circuit agreed, emphasizing that a comparator need not have been involved in precisely the same conduct as the employee.<\/span><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>The Fourth Circuit also rejected the employer\u2019s argument, not addressed in the district court, that the employee failed to demonstrate that his performance was satisfactory.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Fourth Circuit explained that the employee did not have to show that his performance was perfect, only that he was qualified for the job and that he was meeting his employer\u2019s legitimate expectations.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The employer argued that the employee violated company policy by notifying his supervisor of his illness by text message, but the record showed that the employee routinely communicated with his supervisor by text message.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The employee had also received performance bonuses and had recently been told that his performance was good.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Therefore, the Fourth Circuit concluded that there was sufficient evidence that the employee was performing satisfactorily at the time of termination.<\/span><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Finally, the Fourth Circuit ruled that the district court erred by determining that there was no evidence that the reason for termination was pretextual.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Court cited prior cases allowing an inference of pretext when there is evidence that the employer has changed the proffered reason for termination over time.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Although the employer initially identified job abandonment as the only reason for termination, during the litigation the employer claimed that the employee\u2019s allegedly poor attitude was a reason for termination.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The employee also offered evidence that he did not engage in job abandonment, which the employer\u2019s own policies defined as missing work for three days without calling.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Fourth Circuit found the inconsistencies in the employer\u2019s explanation for termination sufficient to create a genuine issue of material fact as to whether the proffered reason for termination was pretextual.<\/span><\/p>\n<p><i><\/i><\/p>\n<p><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif; LINE-HEIGHT: 107%'><\/span><\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><b style=\"mso-bidi-font-weight: normal\"><i><span style=\"FONT-SIZE: 12pt\">Spencer v. Virginia State University<\/span><\/i><\/b><span style=\"FONT-SIZE: 12pt\"><strong>, \u2013 F.3d \u2013, 2019 WL 1233046 (4th Cir. March 18, 2019), available at <span class=\"MsoHyperlink\"><a href=\"http:\/\/www.ca4.uscourts.gov\/opinions\/172453.P.pdf\"><font color=\"#0563c1\">http:\/\/www.ca4.uscourts.gov\/opinions\/172453.P.pdf<\/font><\/a><\/span>\u00a0<\/strong><\/span><\/p>\n<p><span style=\"FONT-SIZE: 12pt\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0A sociology professor sued her university for violation of the Equal Pay Act and Title VII, alleging that the university paid two male professors more than it paid her because she is a woman.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The district court granted summary judgment in favor of the university on both claims.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The professor appealed, and the Fourth Circuit affirmed.<span style=\"mso-bidi-font-style: italic\"><\/span><\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>To establish a prima facie case for violation of the Equal Pay Act, a plaintiff must show that (1) the employer paid higher wages to an employee of the opposite sex who (2) performed equal work on jobs requiring equal skill, effort, and responsibility (3) under similar working conditions.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>This showing permits an inference that a pay disparity was based on sex discrimination, even without evidence of discriminatory intent.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The burden then shifts to the employer to show that the pay differential was based on a factor other than sex.<\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>On the Equal Pay Act claim, the Fourth Circuit ruled that the professor failed to develop evidence that she performed work equal to that of her two proposed male comparators.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Fourth Circuit concluded that the evidence could not support a finding that the comparators\u2019 work was equal to that of the professor\u2014both comparators were former university administrators who taught in different departments from the professor.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>They taught more graduate courses than the professor, and worked more hours than she did.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Fourth Circuit cautioned that an Equal Pay Act plaintiff cannot rely on high-level generalizations to show equal work; rather, she must offer evidence that the allegedly equal jobs required virtually identical work, skill, effort, and responsibility.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Fourth Circuit concluded that even if the professor could make out a prima facie case, the university would still be entitled to summary judgment, because the undisputed facts showed that the pay differential was based on a factor other than sex.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>It was undisputed that the comparators\u2019 pay was based solely on their prior service as administrators, under the university\u2019s policy of paying administrators who return to teaching 75% of their administrative salary.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>For these reasons, the Fourth Circuit affirmed summary judgment on the Equal Pay Act claim.<\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>The Fourth Circuit also considered the employee\u2019s sex-based wage discrimination claim under Title VII.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Unlike the Equal Pay Act, Title VII requires a showing of intentional discrimination, through direct or circumstantial evidence, or through the <i>McDonnell Douglas<\/i> burden-shifting framework.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>To establish a prima facie case for wage discrimination under <i>McDonnell Douglas<\/i>, the employee must show (1) she is a member of a protected class; (2) she was performing her job satisfactorily; (3) an adverse employment action occurred; and (4) the circumstances suggest a discriminatory motive.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>When the prima facie case is based on comparators, the plaintiff must show that she is paid less than men in similar jobs.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>\u201cSimilar\u201d is a less stringent standard than \u201cequal\u201d; to evaluate whether jobs are similar, courts consider whether two employees had the same job description, were subject to the same standards, reported to the same supervisor, and had comparable qualifications.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>If the employee makes out a prima facie case, the burden shifts to the employer to show a legitimate, non-discriminatory explanation for the wage disparity.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The burden then shifts back to the employee to show that the explanation is merely pretextual.<\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>The Fourth Circuit concluded that the employee failed to offer evidence that she and her proposed comparators held similar jobs.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Again, the Court criticized the employee\u2019s attempt to rely on generalizations, explaining that a plaintiff must offer evidence that the proposed comparators are similarly situated to the plaintiff in all respects.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Further, the Fourth Circuit concluded that the undisputed facts established a legitimate, non-discriminatory reason for the comparators\u2019 higher pay\u2014the university\u2019s practice of paying 75% of the former administrative salary.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Fourth Circuit found no evidence in the record that the explanation was a pretext for sex discrimination.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Therefore, the Fourth Circuit affirmed summary judgment for the university on the Title VII claim.<br><\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><b style=\"mso-bidi-font-weight: normal\"><i><span style=\"FONT-SIZE: 12pt\">Brundle v. Wilmington Trust, N.A.<\/span><\/i><\/b><b style=\"mso-bidi-font-weight: normal\"><span style=\"FONT-SIZE: 12pt\">, \u2013 F.3d \u2013, 2019 WL 1287632 (4th Cir. March 21, 2019), available at <span class=\"MsoHyperlink\"><a href=\"http:\/\/www.ca4.uscourts.gov\/opinions\/171873.P.pdf\"><font color=\"#0563c1\">http:\/\/www.ca4.uscourts.gov\/opinions\/171873.P.pdf<\/font><\/a><\/span> <\/span><\/b><\/p>\n<p><i><\/i><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\">\n<\/p><p>\u00a0<span style=\"FONT-SIZE: 12pt\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0The owners of a closely held corporation created and sold the company to an employee stock ownership plan (\u201cESOP\u201d).<span style=\"mso-spacerun: yes\">\u00a0 <\/span>An employee sued the ESOP\u2019s trustee, alleging that the trustee breached its fiduciary duties by overpaying for the company\u2019s stock, in violation of the Employee Retirement Income Security Act (\u201cERISA\u201d).<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Evidence presented at a bench trial showed that the owners, after twice trying and failing to sell the company, planned to sell the company to the ESOP in exchange for cash and a tax benefit.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The company engaged a trustee for the ESOP, and the trustee negotiated the stock purchase.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The district court found that the trustee breached its fiduciary duties, causing the ESOP to overpay for the stock, and awarded more than $29 million in damages.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The district court awarded attorneys\u2019 fees under ERISA\u2019s statutory fee-shifting provision, and under the equitable common fund doctrine.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The trustee appealed, and the employee cross-appealed the amount of the attorneys\u2019 fees.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Fourth Circuit affirmed.<\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>ERISA generally prohibits a plan fiduciary from causing a sale or exchange of property between the plan and a party in interest.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>29 U.S.C. \u00a7 1106(a)(1)(A).<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Congress carved out an exception for ESOPs, which necessarily require the ESOP to purchase stock from the sponsoring employer, a party in interest.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>To fall within the exception to the general prohibition on interested party transactions, an ESOP must pay no more than \u201cadequate consideration\u201d for the employer\u2019s stock.<span style=\"mso-spacerun: yes\">\u00a0 <\/span><i>Id.<\/i> \u00a7 1108(e)(1).<span style=\"mso-spacerun: yes\">\u00a0 <\/span>To determine whether there was adequate consideration only, courts focus on the conduct of the fiduciary, applying ERISA\u2019s prudent person standard.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>An ESOP fiduciary must act solely in the interest of the participants, with the care, skill, prudence, and diligence of a prudent person acting in a like capacity.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The plan fiduciary has the burden to show that the exception applies.<i><\/i><\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><i><span style=\"FONT-SIZE: 12pt\"><\/span><\/i><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>The Fourth Circuit rejected the trustee\u2019s arguments that the district court committed clear error in its fact findings underlying the conclusion that the trustee violated ERISA.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>According to the district court\u2019s findings, the trustee hired a financial advisor, and relied on the financial advisor\u2019s report to determine the value of the company\u2019s stock.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The district court found four primary faults in the trustee\u2019s reliance on the advisor\u2019s report:<span style=\"mso-spacerun: yes\">\u00a0 <\/span>(1) the trustee did not investigate why the report omitted mention of a recent, much lower valuation of the company\u2019s stock; (2) the trustee failed to investigate financial projections underlying the valuation; (3) the report included a control premium for the stock, despite the fact that the company\u2019s owners would retain control; and (4) the advisor consistently rounded the valuation upward, in favor of the company, and to the detriment of the ESOP.<i> \u00a0<\/i>The district court also found that the trustee, which had a lucrative business relationship with the financial advisor for the company, rushed to complete the stock purchase and met with the company\u2019s management only once.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Fourth Circuit found no clear error in these findings, and affirmed the conclusion that the trustee failed act with the diligence required of a fiduciary.<\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Next, the Fourth Circuit rejected the trustee\u2019s challenge to the damages award.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The employee presented expert testimony that the ESOP overpaid by more than $100 million.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Based on its independent analysis, the district court found that the ESOP overpaid by approximately $29 million.<i><span style=\"mso-spacerun: yes\">\u00a0 <\/span><\/i>The Fourth Circuit found no clear error in these findings.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Fourth Circuit rejected the trustee\u2019s argument that the damages award should be reduced by a $20 million cash payment<a name=\"BM_1_\"><\/a> the ESOP received when it sold the stock to another company.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Fourth Circuit concluded that this late gain was irrelevant and did not change the fact that the ESOP had overpaid for the stock.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Therefore, the Fourth Circuit affirmed the damages award.<span style=\"mso-spacerun: yes\">\u00a0 <\/span><\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Finally, the Fourth Circuit affirmed the attorneys\u2019 fees award.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The district court awarded $1.8 million in statutory fees, and an additional $1.5 million payable out of the damages judgment based on the common fund doctrine.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The trustee argued that ERISA\u2019s statutory fee-shifting provision displaced the common fund doctrine, making it improper for the district court to award any fees under the common fund doctrine.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Fourth Circuit rejected this argument, holding that ERISA\u2019s fee-shifting provision to not displace the common fund doctrine, while acknowledging that the Seventh Circuit has agreed with the trustee\u2019s position.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The employee argued that the district court erred by refusing to award the full one-third contingent fee in the employee\u2019s engagement agreement with counsel.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Fourth Circuit disagreed, reasoning that the employee could not bind the ESOP participants to an engagement agreement and noting that many of the participants objected to the contingent fee.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Fourth Circuit found no clear error in the amount of the district court\u2019s award under the common fund doctrine.<\/span><\/p>\n<p><b style=\"mso-bidi-font-weight: normal\"><i><span style=\"FONT-SIZE: 12pt\">Parker v. Reema Consulting Services, Inc.<\/span><\/i><\/b><b style=\"mso-bidi-font-weight: normal\"><span style=\"FONT-SIZE: 12pt\">, 915 F.3d 297 (4th Cir. February 8, 2019), available at <span class=\"MsoHyperlink\"><a href=\"http:\/\/www.ca4.uscourts.gov\/opinions\/181206.P.pdf\"><font color=\"#0563c1\">http:\/\/www.ca4.uscourts.gov\/opinions\/181206.P.pdf<\/font><\/a><\/span>\u00a0<\/span><\/b><\/p>\n<p><span style=\"FONT-SIZE: 12pt\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0An employee sued her former employer for sex discrimination in violation of Title VII, 42 U.S.C. \u00a7 2000e-2, asserting hostile work environment, retaliatory termination, and discriminatory termination claims.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Two weeks after the employee was promoted to a management position, a male co-worker started a rumor that she had engaged in a sexual relationship with a supervisor to obtain the promotion.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The top manager at the facility helped spread the rumor.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>As a result of the rumor, other workers the employee managed openly resented and disrespected her, and the top manager told her he could not allow her to advance further within the company.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The employee filed an internal sexual harassment complaint against the co-worker who started the rumor and the top manager.<i><span style=\"mso-spacerun: yes\">\u00a0 <\/span><\/i>In response, the co-worker filed a complaint against the employee, and she was directed not to have contact with him, although he was permitted to come into her workspace and talk to employees she managed.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Several weeks later, the employer fired the employee, citing the co-worker\u2019s complaint and the employee\u2019s purported insubordination toward the top manager.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The district court dismissed all three of the employee\u2019s claims on the employer\u2019s Rule 12(b)(6) motion.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Regarding the hostile work environment claim, the district court concluded that the rumor was not based on sex, and that the alleged harassment was not severe or pervasive because it only lasted for a few weeks.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>For the same reasons, the court ruled that the employee did not have an objectively reasonable belief that the rumor was discriminatory, and therefore dismissed the retaliation claim.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Finally, the court dismissed the discriminatory termination claim on the ground that the employee had not exhausted the claim with the EEOC.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>On appeal, the Fourth Circuit reversed in part and affirmed in part.<\/span><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>To state a hostile work environment claim based on sex in violation of Title VII, the employee must allege workplace harassment that was (1) unwelcome; (2)\u00a0based on the employee\u2019s sex; (3) sufficiently severe or pervasive to alter the conditions of employment and create an abusive atmosphere; and (4) imputable to the employer.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Only the second and third elements were at issue on appeal. <\/span><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>The Fourth Circuit rejected the employer\u2019s argument that its actions were based on the employee\u2019s rumored conduct\u2014sleeping with her boss to obtain a promotion\u2014not based on her sex, and therefore were not discriminatory.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Citing the deeply rooted perception that women, not men, use sex to achieve success, the Court recognized that the employee\u2019s complaint invoked a sex stereotype.<i><span style=\"mso-spacerun: yes\">\u00a0 <\/span><\/i>The Court also pointed to the employee\u2019s allegations that a male co-worker had started the rumor, and that the male supervisor with whom the employee allegedly had a sexual relationship was not sanctioned, while she was.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Based on these allegations and the stereotype that women use sex to advance in the workplace, the Fourth Circuit concluded that the employee alleged that the harassment was based on sex.<\/span><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>The Fourth Circuit also concluded that the alleged harassment was severe or pervasive.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Court cited allegations showing that the harassment was continuous from the time of her promotion until her termination, that even the top manager helped spread the rumor, and that the rumor had physically threatening consequences when it resulted in a manager slamming a door in the employee\u2019s face and another manager screaming at her.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Further, the Court described the rumor as humiliating, because it generated open resentment and disrespect, and noted the instances where it interfered with the employee\u2019s work.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>In light of these allegations, the Court ruled that the employee plausibly alleged a hostile work environment claim.<\/span><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Given its ruling that the employee stated a hostile work environment claim, the Fourth Circuit also reversed the dismissal of the retaliatory termination claim, noting that the district court\u2019s decision was based on its erroneous conclusion that the employee failed to state a hostile work environment claim.<\/span><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Finally, over a dissenting opinion, the Fourth Circuit affirmed the dismissal of the discriminatory termination claim.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The employee alleged in her complaint that she was terminated based on sex, citing a three-strikes policy that the employer failed to follow when it terminated her.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>In her EEOC charge, the employee alleged that she was terminated based on the rumor and related conduct, but did not mention the three-strikes policy.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Because the Court found that the complaint alleged a broader pattern of misconduct than the EEOC charge, it concluded that the discriminatory termination claim was properly dismissed.<i><\/i><\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\">\u00a0<\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 10pt; LINE-HEIGHT: 115%\"><b style=\"mso-bidi-font-weight: normal\"><i><span style='FONT-SIZE: 12pt; LINE-HEIGHT: 115%; mso-bidi-font-family: \"Times New Roman\"'>U.S. Department of Labor v. Fire &amp; Safety Investigation Consulting Services, LLC<\/span><\/i><\/b><b style=\"mso-bidi-font-weight: normal\"><span style='FONT-SIZE: 12pt; LINE-HEIGHT: 115%; mso-bidi-font-family: \"Times New Roman\"'>, 915 F.3d 277 (4th Cir. February 8, 2019), available at <span class=\"MsoHyperlink\"><a href=\"http:\/\/www.ca4.uscourts.gov\/opinions\/181632.P.pdf\"><font color=\"#0563c1\">http:\/\/www.ca4.uscourts.gov\/opinions\/181632.P.pdf<\/font><\/a><\/span> <\/span><\/b><\/p>\n<p><i><span style='FONT-SIZE: 12pt; LINE-HEIGHT: 115%; mso-bidi-font-family: \"Times New Roman\"'><\/span><\/i><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0The Department of Labor sued a company that provided onsite safety and environmental consulting services for violation of the overtime provisions of the Fair Labor Standards Act, 29 U.S.C. \u00a7 207.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The company employed consultants who were regularly scheduled to work what is known in the industry as a \u201chitch\u201d:<span style=\"mso-spacerun: yes\">\u00a0 <\/span>12-hour workdays for 14 consecutive days, followed by 14 days off, for a total of 168 hours.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The company paid the consultants a fixed sum, or \u201chitch rate.\u201d<span style=\"mso-spacerun: yes\">\u00a0 <\/span>A hitch included two 84-hour workweeks; the company alleged that the hitch rate included a regular rate for the first 40 hours of each week, and an overtime rate of 1.5 times the regular rate for the next 44 hours.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The DOL contended that the regular rate was the fixed sum divided by 168 hours, and that the company failed to pay any overtime compensation.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The district court agreed with the DOL and entered summary judgment, concluding that the company violated the FLSA\u2019s overtime requirement and failed to keep proper records of hours worked.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The district court awarded back pay and liquidated damages.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The company appealed, and the Fourth Circuit affirmed.<\/span><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>To determine whether a payment scheme violates the FLSA\u2019s overtime requirement, courts first determine what constitutes the regular rate of compensation, and then calculate the overtime compensation rate of 1.5 times the regular rate.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The regular rate is the hourly rate the employer pays for the normal, non-overtime 40-hour workweek.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>When determining the regular rate, courts look beyond what the parties have agreed is the regular rate, to examine actual pay practices. <\/span><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>The Fourth Circuit upheld the district court\u2019s conclusion that the company failed to pay overtime as required by the FLSA.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Although the company characterized part of the hitch rate as overtime compensation, the company\u2019s pay practices showed that the rate was not linked to actual overtime hours.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>For example, if a consultant worked less than 168 hours in a hitch, the company adjusted the consultant\u2019s pay using an hourly \u201cblended rate\u201d\u2014the hitch rate divided by 168 hours.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The company then multiplied that blended rate by the number of hours actually worked to arrive at the consultant\u2019s pay.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The company used the blended rate even if a consultant worked fewer than 40 hours in a week, earning no overtime pay at all.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Court concluded that this evidence showed that the blended rate operated as the regular rate.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Otherwise, when a consultant worked less than 168 hours, the company would have calculated pay by separately considering the number of regular hours and the number of overtime hours, using the purported regular and overtime rates.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Fourth Circuit rejected the company\u2019s reliance on a DOL regulation allowing the payment of a fixed sum for overtime work, 29 C.F.R. \u00a7 778.309, explaining that the regulation applies only when an employee works a fixed number of overtime and non-overtime hours.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>In this case, the consultants\u2019 overtime hours varied, and the company paid a uniform blended rate that did not properly account for the actual overtime and non-overtime hours worked. <i><\/i><\/span><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><i><span style=\"FONT-SIZE: 12pt\"><\/span><\/i><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><i><span style=\"FONT-SIZE: 12pt\"><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/i><span style=\"FONT-SIZE: 12pt\">The Fourth Circuit acknowledged that a consultant who worked less than a full hitch was, in the company\u2019s view, overcompensated by receiving the blended rate even for non-overtime hours.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>But the Court found this overcompensation illusory.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The consultants were only overcompensated if the Court accepted that the regular rate was what the company alleged, and the Court had already determined that the blended rate was the true regular rate.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The company\u2019s purported overcompensation of consultants could not excuse non-compliance with FLSA overtime requirements.<\/span><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><span style=\"FONT-SIZE: 12pt\"><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>The Fourth Circuit also affirmed the district court\u2019s ruling that the company violated the FLSA\u2019s recordkeeping requirements.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The FLSA and DOL regulations require employers to keep records of hours worked each workday and total hours worked each workweek.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The company cited a regulation providing that, for employees on fixed schedules, the employer may maintain records of the schedule of daily and weekly hours, instead of the hours worked each day and workweek.<i><span style=\"mso-spacerun: yes\">\u00a0 <\/span><\/i>However, the same regulation also requires that, in weeks where an employee does not adhere to the fixed schedule, the employer keep records of the exact number of hours worked each day and each week.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The company did not dispute that it did not keep such records for each consultant.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Therefore, the Fourth Circuit ruled that the district court properly granted summary judgment for the DOL.<\/span><\/p>\n<p><i><\/i><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\">\n<\/p><p>\u00a0<\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><b style=\"mso-bidi-font-weight: normal\"><i><span style=\"FONT-SIZE: 12pt\">Hannah P. v. Coats<\/span><\/i><\/b><span style=\"FONT-SIZE: 12pt\"><strong>, No. 17-1943, 2019 WL 664491 (4th Cir. February 19, 2019), available at <span class=\"MsoHyperlink\"><a href=\"http:\/\/www.ca4.uscourts.gov\/opinions\/171943.P.pdf\"><font color=\"#0563c1\">http:\/\/www.ca4.uscourts.gov\/opinions\/171943.P.pdf<\/font><\/a><\/span>\u00a0<\/strong><\/span><\/p>\n<p><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0A former operations analyst with the Office of the Director of National Intelligence (ODNI) brought claims for violation of the Rehabilitation Act, 29 U.S.C. \u00a7 701, and the Family and Medical Leave Act (FMLA), 29 U.S.C. \u00a7 2601.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The analyst was diagnosed with depression shortly after ODNI hired her on a five-year contract in 2011.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Until 2015, she received excellent performance reviews, and was assigned to work on ODNI\u2019s response to the Edward Snowden leak from 2013 to early 2015.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>After completing the Snowden assignment, the analyst developed attendance problems.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Supervisors attempted to address the analyst\u2019s attendance issues, but she failed to follow the plans put in place for her to arrive by a certain time or notify a supervisor in advance if she would be absent.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Supervisors then referred the analyst to the Employee Assistance Program (EAP) for counseling.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Around the same time, the analyst told her supervisors her psychiatrist recommended four weeks of medical leave, but then told supervisors her request was \u201con hold.\u201d<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The analyst participated in a counseling session with an EAP psychologist.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Several weeks later, the analyst renewed her leave request, and it was approved.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Just before taking a leave of absence, the analyst applied for a permanent position at ODNI.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Shortly after she returned, the interview panel recommended her for the position, but management rejected the recommendation based on the analyst\u2019s recent performance.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Therefore, the analyst\u2019s employment ended when she completed her five-year term.<span style=\"mso-spacerun: yes\">\u00a0 <\/span><\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>The analyst claimed that ODNI violated the Rehabilitation Act by failing to accommodate her depression, requiring her to undergo a medical examination, disclosing her confidential medical information, and refusing to hire her for the permanent position.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The analyst also alleged that the Director interfered with and retaliated against her for using FMLA leave.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The district court entered summary judgment for the Director of ODNI on all claims.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>On appeal, the Fourth Circuit reversed in part and affirmed in part.<\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>The Rehabilitation Act prohibits federal agencies from discriminating against employees on the basis of disability.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Among other things, the Rehabilitation Act requires employers to provide reasonable accommodations to qualified disabled employees.<br><\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><span style=\"mso-tab-count: 1\"><br>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>To establish a prima facie claim for failure to accommodate under the Rehabilitation Act, an employee must show that (1) she was a qualified person with a disability; (2) the employer had notice of the disability; (3) the employee could perform the essential functions of the job with a reasonable accommodation; and (4) the employer refused to make the accommodation.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Only the fourth element was at issue on appeal.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Fourth Circuit agreed with the district court that ODNI made reasonable accommodations for the analyst by creating an attendance plan and referring her to EAP when she did not follow that plan. <\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>The Rehabilitation Act also prohibits employers from requiring a medical examination or inquiring about an employee\u2019s disability, unless such examination or inquiry is shown to be job-related and consistent with business necessity.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Fourth Circuit first determined that the analyst\u2019s EAP session was not a pre-employment medical examination, because the analyst had not applied for a position when she was referred to EAP.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>ODNI referred her to EAP to deal with attendance problems in her current position.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Fourth Circuit further concluded that the EAP session was a voluntary counseling service, not a mandatory medical examination that would trigger the Rehabilitation Act.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Finally, even assuming that the EAP session was a medical examination, the Fourth Circuit ruled that referring the analyst to EAP was job-related and consistent with business necessity. <\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>The Rehabilitation Act requires employers who obtain medical information about employees to maintain the information in confidence.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Fourth Circuit rejected the analyst\u2019s argument that ODNI violated this requirement when her supervisors wrote in her EAP referral memo that the analyst suffered from depression.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The record showed that the analyst voluntarily disclosed her depression to ODNI, and her supervisors did not improperly elicit the information by asking questions related to her poor attendance.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Fourth Circuit also rejected the analyst\u2019s argument that ODNI violated the confidentiality requirement when the EAP psychologist disclosed to the analyst\u2019s supervisors that the analyst was concerned about ODNI\u2019s records retention policies and that, in the psychologist\u2019s view, the analyst\u2019s attendance problems were the result of lack of motivation, not depression.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Court ruled that this information was not medical in nature.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Even so, the Court ruled that none of the disclosures violated the Rehabilitation Act because ODNI did not rely on any medical information to decide not to hire the analyst; rather, ODNI relied on the analyst\u2019s attendance problems. <\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>The Fourth Circuit next considered the analyst\u2019s claim of disability discrimination based on ODNI\u2019s decision not to hire her permanently.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>To establish a prima facie case of discrimination under the Rehabilitation Act, an employee must show that (1) she is disabled; (2) she was otherwise qualified for a position; and (3) she suffered an adverse employment action solely on the basis of disability.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>If the employee establishes a prima facie case, the burden shifts to the employer to provide a legitimate, non-discriminatory reason for its conduct.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Once the employer provides such a reason, the employee bears the ultimate burden of persuasion to show that the proffered reason was a pretext for discrimination.<i><span style=\"mso-spacerun: yes\">\u00a0 <\/span><\/i>The Fourth Circuit assumed that the analyst made out a prima facie case, but concluded that she could not succeed on her claim because she failed to rebut the proffered reason for not hiring her\u2014persistent attendance problems.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Court agreed with the district court that a continuous attendance issue is a legitimate reason for an employment decision.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Although the Court accepted that the analyst\u2019s depression caused the attendance problems, it explained that the Rehabilitation Act does not require an employer to ignore blatant and persistent misconduct, even where the behavior is potentially tied to a medical condition. <i><\/i><\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><i><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><\/span><\/i><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><i><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/i><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'>Finally, the Fourth Circuit turned to the analyst\u2019s FMLA interference and retaliation claims.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The FMLA gives employees with qualifying medical conditions the right to take up to 12 weeks of leave during a 12-month period because of a serious health condition that makes the employee unable to perform the functions of her job.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The employee has the right to return to the same or an equivalent position after leave.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The employee need not specifically invoke the FMLA to put the employer on notice of the need for leave.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Once the employee makes the employer aware that the employee needs potentially FMLA-qualifying leave, it is the employer\u2019s responsibility to inquire further about whether the employee is seeking FMLA leave.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The FMLA also prohibits employers from retaliating against an employee who uses FMLA leave.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>To establish a prima facie case of FMLA retaliation, an employee must demonstrate that (1) she engaged in protected activity; (2) her employer took an adverse employment action against her; and (3) there was a causal link between the protected activity and the adverse action.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The burden then shifts to the employer to demonstrate a legitimate, non-retaliatory reason for the action and, if the employer does so, the burden shifts back to the employee to demonstrate that the proffered reason is pretextual.<\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>On the analyst\u2019s FMLA retaliation claim, the Fourth Circuit affirmed summary judgment for the same reasons that it articulated as to the Rehabilitation Act discrimination claim\u2014there was a legitimate, non-discriminatory reason not to hire the analyst because of her attendance issues, and the analyst did not show that the reason was pretextual.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>On the FMLA interference claim, the Fourth Circuit concluded that the district court erred by granting summary judgment.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Court ruled that a reasonable jury could find that, when the analyst disclosed her depression and requested psychiatrist-recommended leave, ODNI was on notice and obligated to inquire further about whether she was seeking FMLA leave. <\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Chief Judge Gregory concurred in the Court\u2019s opinion regarding the medical disclosure and FMLA retaliation claims, but otherwise dissented, and would have reversed summary judgment on all other claims.<\/span><\/p>\n<p><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\">\u00a0<\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><i><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><strong>Roe v. Howard<\/strong><\/span><\/i><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><strong>, No. 17-2338, 2019 WL 903983 (4th Cir. February 25, 2019), available at <span class=\"MsoHyperlink\"><a href=\"http:\/\/www.ca4.uscourts.gov\/opinions\/172338.P.pdf\"><font color=\"#0563c1\">http:\/\/www.ca4.uscourts.gov\/opinions\/172338.P.pdf<\/font><\/a><\/span>\u00a0<br><\/strong><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><br>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0An employee sued her former employer under the civil remedy provision of the Trafficking Victims Protection Act, 18 U.S.C. \u00a7 1595, alleging that the employer violated criminal provisions of the TVPA.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The employee, an Ethiopian national, worked as a live-in housekeeper for the employer, a State Department official, and her husband, while the official was assigned to the U.S. embassy in Yemen.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The district court denied the official\u2019s motion for summary judgment on the ground that the TVPA did not reach her extraterritorial conduct.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The district court also denied the official\u2019s motion in limine to exclude the testimony of another live-in housekeeper.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The evidence at trial showed that the husband repeatedly raped the housekeeper and threatened her to maintain her silence, including by retaining possession of her passport.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The evidence also showed that the official was aware of the rapes, and that the official instructed the housekeeper that her job was to keep the official\u2019s husband happy.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Another live-in housekeeper testified that the official and her husband engaged in similar conduct when she worked for them.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The jury found that the official violated criminal provisions of the TVPA by engaged in forced labor, forced labor trafficking, and commercial sex trafficking, and conspiring to engage in these offenses.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The jury found $1 million in compensatory damages for each of the four violations of the TVPA, but also found those damages duplicative; therefore, the jury awarded $1 million in compensatory damages and $2 million in punitive damages.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The district court denied the official\u2019s post-trial motions.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>On appeal, the Fourth Circuit affirmed.<\/span><\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>The TVPA criminalizes forced labor, trafficking with respect to forced labor, and sex trafficking by force, fraud, or coercion, among other offenses.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The civil remedy provision of the TVPA allows a victim to bring a civil action for damages based on the criminal offenses prohibited by the TVPA.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Through a serious of amendments to the TVPA, Congress broadened the statute\u2019s extraterritorial reach.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>As of 2006, the TVPA applied to offenses committed by federal government employees working outside the United States; as of 2008, the TVPA applied to offenses committed by any United States citizen.<\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>The Fourth Circuit rejected the official\u2019s contention that she could not be liable because the TVPA\u2019s civil remedy provision did not apply extraterritorially before 2008, and the conduct at issue occurred in Yemen in 2007.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Fourth Circuit analyzed the TVPA and its amendments in effect at the time of the conduct, and found a clear indication of extraterritorial effect, at least for certain conduct.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Although the civil remedy provision did not include an express statement of extraterritoriality, the civil remedy provision was designed to redress certain violations of criminal laws that applied extraterritorially.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Further, the TVPA\u2019s stated purpose was to address the problem of human trafficking \u201cthroughout the world.\u201d<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Therefore, the TVPA\u2019s civil remedy provision applied at least to the extent that the underlying criminal provisions of the TVPA applied to the official\u2019s extraterritorial conduct in 2007.<\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Turning to those underlying criminal provisions, the Fourth Circuit concluded that \u00a7 1591, which prohibits sex trafficking, expressly applied to extraterritorial conduct in 2007.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Although \u00a7\u00a7 1589 and 1590, which prohibit forced labor and forced labor trafficking, did not refer directly to foreign conduct, starting in 2006, those provisions applied to extraterritorial acts committed by federal employees, like the official in this case.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Therefore, the Fourth Circuit upheld the jury\u2019s findings that the official was civilly liable for violating these three provisions of the TVPA.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Fourth Circuit reached the opposite conclusion regarding \u00a7 1594, which prohibited conspiracy to commit other offenses, because the conspiracy statute was not enacted until 2008.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>However, this ruling did not affect the jury\u2019s damages award, because the jury would have awarded $1 million for any of the four TVPA violations. <\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Finally, the Fourth Circuit affirmed the district court\u2019s rulings on a series of evidentiary issues, including the district court\u2019s decision to allow the other live-in housekeeper to testify to her experience with the official and her husband.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>This testimony was relevant to show the official\u2019s knowledge of her husband\u2019s abuse, among other issues.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Therefore, the Fourth Circuit affirmed the judgment.<\/span><\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><\/span><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><i style=\"mso-bidi-font-style: normal\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><strong>Medtronic Sofamor Danek, Inc. v. Gannon<\/strong><\/span><\/i><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><strong>, 913 F.3d 704 (8th Cir. 2019)<\/strong><\/span><\/p>\n<p><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0In March 2015, Patrick Gannon (\u201cGannon\u201d) began employment with Medtronic Sofamor Danek, Inc, Medtronic Sofamor Danek USA, Inc., and Medtronic, Inc. (collectively, \u201cMedtronic\u201d). Gannon signed the Offer Letter with Medtronic which constituted a formal offer of employment by Medtronic. The Offer Letter included a start date, compensation structure, vacation time, and training. The letter also expressly stated that the offer is contingent on signing the Employee Agreement and Sales Guarantee Repayment Agreement. <\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0The Employee Agreement included confidentiality, proprietary inventions, and restrictions on competition. The Agreement also included a forum selection clause, stating disputes \u201carising out of or related to this Agreement\u201d must be litigated in Minnesota state court and that Gannon \u201cirrevocably consents to the personal jurisdiction of the state courts in the State of Minnesota for the purposes of any action arising out of or related to this Agreement.\u201d<\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0The Repayment Agreement states that Medtronic agreed to pay Gannon $900,000 over a three-year \u201cGuarantee Period.\u201d However, if Gannon voluntarily terminated from Medtronic during the Guarantee Period or within one year after the end of the Guarantee Period, he must pay back Medtronic the difference between his earned commissions and payment received.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Repayment Agreement does not include a forum selection clause. <\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0In 2016, Gannon left Medtronic. Medtronic sued him in Minnesota state court for failing to repay Medtronic pursuant to the Repayment Agreement because Gannon allegedly left during the Guarantee Period. Gannon removed the suit to federal court under 28 U.S.C. \u00a7 1332(a)(1). Medtronic moved to remand pursuant to the forum selection clause in the Employee Agreement.\u00a0<\/span><\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0The Minnesota district court granted Medtronic\u2019s motion by stating that the forum selection clause in the Employee Agreement applied to an action arising from the Repayment Agreement, because both agreements were different parts of the same contract and the suit was \u201crelated to\u201d the Employee Agreement and the forum selection clause applies.<\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0The Eighth Circuit affirmed the district court\u2019s grant of Medtronic\u2019s motion to remand. The court\u2019s reasoning was that the Employee Agreement contains a clear and unequivocal forum selection clause that unambiguously encompasses the Repayment Agreement. The Employee Agreement, Repayment Agreement, and Offer Letter were all executed simultaneously, and all indicate that they should be treated as a single contract. The Offer Letter summarized key provisions of the Repayment Agreement, therefore the Repayment Agreement was not a \u201cfree-standing contract.\u201d <\/span><\/p>\n<p><\/p>\n<p class=\"MsoPlainText\" style=\"MARGIN: 0in 0in 0pt\"><i><\/i><\/p>\n<p>\u00a0<\/p>\n<p><i><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif; LINE-HEIGHT: 107%'>Submitted by: <\/span><\/i><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif; LINE-HEIGHT: 107%'>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/p>\n<p><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif; LINE-HEIGHT: 107%'>\u00a0\u00a0<img decoding=\"async\" src=\"https:\/\/www.fedbar.org\/labor-employment-law-section\/wp-content\/uploads\/sites\/125\/2019\/12\/Sun-Paul-jpg.jpeg\" class=\"img-fluid\"><img fetchpriority=\"high\" decoding=\"async\" style=\"HEIGHT: 171px; WIDTH: 176px\" src=\"https:\/\/www.fedbar.org\/labor-employment-law-section\/wp-content\/uploads\/sites\/125\/2019\/12\/Dagger-Kelly-jpg.jpeg\" width=\"241\" height=\"220\" class=\"img-fluid\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <br><\/span><b><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>Paul K. Sun, Jr.<br><\/span><\/b><b><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>Kelly Margolis Dagger<br><\/span><\/b><b><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif; FONT-VARIANT: small-caps'>Ellis &amp; Winters LLP<br><\/span><\/b><a><span class=\"SYSHYPERTEXT\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><span style=\"TEXT-DECORATION: underline\"><font color=\"#0000ff\">paul.sun@elliswinters.com<\/font><\/span><\/span><\/span><\/a><b> <br><\/b><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><a href=\"mailto:kelly.dagger@elliswinters.com\">kelly.dagger@elliswinters.com<\/a><br><\/span><b><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif; FONT-VARIANT: small-caps'>Post Office Box 33550<br><\/span><\/b><b><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif; FONT-VARIANT: small-caps'>Raleigh, North Carolina 27636<br><\/span><\/b><b><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif; FONT-VARIANT: small-caps'>Telephone: 919.865.7014 <br><\/span><\/b><a href=\"http:\/\/www.elliswinters.com\/\"><span class=\"SYSHYPERTEXT\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><font color=\"#0000ff\">www.elliswinters.com<\/font><\/span><\/span><\/a> <\/p>\n<p style=\"TEXT-ALIGN: center; LINE-HEIGHT: normal\" align=\"center\"><b><span style=\"TEXT-DECORATION: underline\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>Fifth Circuit <\/span><\/span><\/b><\/p>\n<p style=\"BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: windowtext; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; BORDER-LEFT: medium none; PADDING-RIGHT: 0in\"><b><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif; LINE-HEIGHT: 107%'><strong><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA'><em>Thomas v. Tregre<\/em><\/span><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA'><em>, <\/em>\u2014 F.3d \u2013, 2019 WL156852 (5<sup>th<\/sup> Cir. January 25, 2019)<\/span><\/strong><\/span><\/b><\/p>\n<p style=\"BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: windowtext; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; PADDING-LEFT: 0in; BORDER-LEFT: medium none; PADDING-RIGHT: 0in\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif; LINE-HEIGHT: 107%'><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0St. John the Baptist Parish Deputy Sheriff Travis Thompson and two other deputies were the subjects of an investigation into a prisoner beating incident. Thomas and another deputy were African American and the third was Caucasian. The investigation found no fault on the part of the Caucasian deputy, but that Thomas should be disciplined. About a year later, the Sheriff, also and African American, transferred the two African American deputies, but not the Caucasian deputy, to another department. Thomas resigned his employment. At the same time, the prisoner pursued a civil suit alleging excessive use of force. The jury found neither Thomas nor the other African American deputy was liable. The sheriff then returned the reassigned deputy to his former duty and gave him back pay.<\/span><\/span><\/p>\n<p class=\"MsoNormal\" style=\"BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 1pt; PADDING-TOP: 0in; PADDING-LEFT: 0in; BORDER-LEFT: medium none; MARGIN: 0in 0in 0pt; PADDING-RIGHT: 0in\"><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><\/span><\/p>\n<p>\u00a0<\/p>\n<p><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Thomas did not reapply to resume work at the Sheriff\u2019s office. He pursued a charge of discrimination and this suit. The trial court dismissed Thomas\u2019 case, finding a failure to establish a prima facie case of race discrimination or retaliation.<br><\/span><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<br>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span>The Fifth Circuit agreed, ruling that, as to racial discrimination, Thomas did not meet the fourth prong of the <i style=\"mso-bidi-font-style: normal\">McDonnell Douglas<\/i> test: That Thomas was not similarly situated to the Caucasian deputy because the investigation exonerated the Caucasian deputy while concluding that Thomas should be disciplined.\u00a0<\/span><\/p>\n<p><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>As to retaliation, the Fifth Circuit ruled that because Thomas did not apply to be re-hired, he cannot establish a failure to re-hire claim as an adverse employment action. <br><\/span><b><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif; LINE-HEIGHT: 107%'><strong><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA'><em><br>\nThompson v. Dallas City Attorney\u2019s Office<\/em><\/span><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA'><em>, <\/em>\u2013F.3d\u2013, 2019 WL 168601 (5<sup>th<\/sup> Cir. January 11, 2019)<br><\/span><\/strong><\/span><\/b><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif; LINE-HEIGHT: 107%'><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><br>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Petrina Thompson worked as an attorney in the Dallas City Attorney\u2019s Office and alleged workplace discrimination, harassment, and retaliation, based on her age, color, race, and\/or sex. She brought two lawsuits: one in state court, raising only state law claims and one in federal court, raising only federal law claims.<\/span><\/span><\/p>\n<p><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><\/span><\/p>\n<p>\u00a0<\/p>\n<p><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>While the federal suit was pending, the state court granted summary judgment against Thompson, based on a statute of limitations defense. The federal trial court found the state court dismissal was res judicata and dismissed the federal suit.<\/span><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'>The Fifth Circuit affirmed the dismissal ruling that Texas\u2019 preclusion law barred Thompson\u2019s federal suit. The Court relied on <i style=\"mso-bidi-font-style: normal\">Allen v. McCurry<\/i> to rule that federal courts must step into the shoes of state courts and afford preclusive effect where state courts would do so. The Court specifically addressed <i style=\"mso-bidi-font-style: normal\">Henson v. Columbus Bank &amp; Trust<\/i>, ruling that <i style=\"mso-bidi-font-style: normal\">Henson<\/i> violated the Full Faith and Credit Act and has not been applicable since 1982.<br><\/span><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><\/span><\/p>\n<p>\n\u00a0\u00a0<\/p>\n<p><span style='FONT-SIZE: 12pt; mso-bidi-font-family: \"Times New Roman\"'><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>The Court further ruled that although the City raised its res judicata arguments in its reply brief \u2013 not its motion to dismiss \u2013 Thompson was not denied due process because Thompson had an opportunity to respond and did so.<\/span><\/p>\n<p><em>Submitted by:<\/em><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.fedbar.org\/labor-employment-law-section\/wp-content\/uploads\/sites\/125\/2019\/12\/Leeser-Susan-jpg.jpeg\" class=\"img-fluid\">\u00a0<\/p>\n<p><span style=\"FONT-SIZE: 12pt; BACKGROUND: white; COLOR: #2e2e2e; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA\"><strong>Susan Cone Kilgore<\/strong><\/span><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif; COLOR: #2e2e2e; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA'><br><span style=\"BACKGROUND: white\">Leeser Law Firm, PLLC\u00a0<\/span><br><span style=\"BACKGROUND: white\">9800 Lorene Lane\u00a0<\/span><br><span style=\"BACKGROUND: white\">San Antonio, Texas 78216<\/span><br><span style=\"BACKGROUND: white\">Phone: 210-904-8477<\/span><br><span style=\"BACKGROUND: white\">Fax: 210-504-4486<\/span><br><span style=\"BACKGROUND: white\">Email:\u00a0<\/span><\/span><span class=\"MsoHyperlink\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif; BACKGROUND: white; COLOR: #14336c; mso-fareast-font-family: Calibri; mso-fareast-theme-font: minor-latin; mso-ansi-language: EN-US; mso-fareast-language: EN-US; mso-bidi-language: AR-SA'><a><span style=\"COLOR: #14336c\"><span style=\"TEXT-DECORATION: underline\"><a href=\"mailto:susan@leeserlaw.comSusan\">susan@leeserlaw.com<\/a><\/span><a href=\"mailto:susan@leeserlaw.comSusan\"><\/a><\/span><\/a><span style='FONT-SIZE: 12pt; BACKGROUND: white; COLOR: #2e2e2e; mso-bidi-font-family: \"Times New Roman\"'><\/span><\/span><\/span><\/p>\n<p>Susan Kilgore represents clients with employment law disputes and international law issues, and provides mediation and dispute resolution when parties are in conflict. She is a former FBA Vice President for the 4th Circuit and a former co-Chair of the FBA Professional Ethics Committee. She is a member of the bars of the State of Texas and the District of Columbia.<br><br><br><b><span style=\"TEXT-DECORATION: underline\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><b style=\"mso-bidi-font-weight: normal\"><span style=\"TEXT-DECORATION: underline\"><span style=\"FONT-SIZE: 12pt\">Sixth Circuit<\/span><\/span><\/b><\/span><\/span><\/b><\/p>\n<p><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><b><i><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif; LINE-HEIGHT: 107%'><span class=\"MsoHyperlink\"><b style=\"mso-bidi-font-weight: normal\"><i style=\"mso-bidi-font-style: normal\"><span style=\"FONT-SIZE: 12pt; TEXT-DECORATION: none; COLOR: windowtext; text-underline: none\"><a href=\"http:\/\/www.opn.ca6.uscourts.gov\/opinions.pdf\/19a0063p-06.pdf\"><font color=\"#0563c1\">Secretary of Labor v. Timberline South, LLC<span style=\"FONT-STYLE: normal\">, 920 F.3d 1065 (6th Cir. April 5, 2019)<\/span><\/font><\/a><\/span><\/i><\/b><\/span><b style=\"mso-bidi-font-weight: normal\"><i style=\"mso-bidi-font-style: normal\"><span style=\"FONT-SIZE: 12pt\">\u00a0<\/span><\/i><\/b><\/span><\/i><\/b><b><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif; LINE-HEIGHT: 107%'><br><\/span><\/b><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif; LINE-HEIGHT: 107%'><br>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span style=\"FONT-SIZE: 12pt\">In <i style=\"mso-bidi-font-style: normal\">Timberline<\/i>, the Secretary of Labor filed suit against a timber-harvesting company (\u201cTimberline\u201d) alleging violations of the Fair Labor Standards Act\u2019s (\u201cFLSA\u201d) overtime provisions. Although Timberline conducts its operations solely within Michigan, the Sixth Circuit, applying the FLSA\u2019s \u201chandling clause,\u201d affirmed the district court\u2019s finding of liability, determining that Timberline is \u201can enterprise engaged in commerce or in the production of goods for commerce\u201d for the purposes of falling under the purview of the FLSA (<i style=\"mso-bidi-font-style: normal\">i.e<\/i>. a \u201ccovered enterprise\u201d) because it\u2019s employees handled, sold or otherwise worked on goods or materials that have been moved in or produced for commerce when they used logging and harvesting equipment and trucks manufactured outside of Michigan for the purposes of completing their work. The Sixth Circuit rejected Timberline\u2019s arguments that its truck drivers and helpers were exempt from the FLSA\u2019s overtime provisions under the federal Motor Carrier Act (\u201cMCA\u201d), 29 U.S.C. \u00a7213(b)(1), which exempts certain truck drivers engaged in interstate commerce from the protections of the FLSA, because Timberline\u2019s truck drivers operated only within Michigan and did not cross state lines.\u00a0<br><\/span><span style=\"FONT-SIZE: 12pt\"><br>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0The Sixth Circuit, however, vacated the district court\u2019s damages award and remanded for further proceedings because the damages award improperly included time employees spent commuting from home to work and for meal periods, which the district court included in its overtime calculation after finding that Timberline had an established custom or practice of compensating its employees for such time. The Sixth Circuit affirmed the district court\u2019s decision to award liquidated damages even though Timberline asked its accountant whether the company was exempt from paying overtime under the FLSA and the accountant responded that Timberline fell within the FLSA\u2019s exemption for agriculture. The Sixth Circuit affirmed the district court\u2019s liquidated damages award because: (1) Timberline could not establish that it made the mistake not to pay overtime in good faith and (2) Timberline could not demonstrate that it had reasonable grounds for believing that its failure to pay overtime was not a violation of the FLSA when the accountant did not hold himself out as knowledgeable about the FLSA and a Timberline officer did not believe that certain employees were agricultural employees.<br><\/span><\/span><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif; LINE-HEIGHT: 107%'><span class=\"MsoHyperlink\"><b style=\"mso-bidi-font-weight: normal\"><i style=\"mso-bidi-font-style: normal\"><span style=\"FONT-SIZE: 12pt; COLOR: windowtext\"><\/span><\/i><\/b><\/span><\/span><\/span><\/p>\n<p><a href=\"http:\/\/www.opn.ca6.uscourts.gov\/opinions.pdf\/19a0072p-06.pdf\"><font color=\"#0563c1\">Redlin v. Grosse Pointe Public School System<span style=\"FONT-STYLE: normal\">, ___ F.3d.___, 2019 WL 1615287 (6<sup>th<\/sup> Cir. April 16, 2019)<\/span><\/font><\/a><b style=\"mso-bidi-font-weight: normal\"><span style=\"FONT-SIZE: 12pt\"> <br><\/span><\/b><b style=\"mso-bidi-font-weight: normal\"><span style=\"FONT-SIZE: 12pt\"><br>\nSixth Circuit Finds Genuine Issues of Material Fact with Respect to the Majority of Assistant Principal\u2019s Claims of Discrimination and Retaliation<br><\/span><\/b><br><span style=\"FONT-SIZE: 12pt\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0In <i style=\"mso-bidi-font-style: normal\">Redlin<\/i>, an Assistant Principal at Grosse Pointe South High School (\u201cGPSHS\u201d), brought an action alleging that the school district discriminated against her on the basis of her gender and retaliated against her in violation of Title VII of the Civil Rights Act of 1964 (\u201cTitle VII\u201d), Michigan\u2019s Elliott-Larsen Civil Rights Act (\u201cELCRA\u201d) and the Family Medical Leave Act (\u201cFMLA\u201d). The district court granted summary judgment in favor of the defendant school district on all of Plaintiff\u2019s claims. The Sixth Circuit reversed the district court\u2019s grant of summary judgment with respect to Plaintiff\u2019s claims for gender discrimination under Title VII and ELCRA and Plaintiff\u2019s claims for retaliation under Title VII and ELCRA. The Sixth Circuit, however, affirmed summary judgment in favor of the school district for Plaintiff\u2019s FMLA retaliation claim.<\/span><span style=\"FONT-SIZE: 12pt\"><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span style=\"FONT-SIZE: 12pt\">Plaintiff was hired as an Assistant Principal at GPSHS in 2012. In 2014, Deputy Superintendent Jon Dean (\u201cDean\u201d) informed another Assistant Principal, Terry Flint (\u201cFlint\u201d) that he planned to conduct a spot check on an employee suspected of having come to work intoxicated.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Dean told Flint not to tell the employee.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Flint disobeyed Dean\u2019s direct order and informed the employee of the coming spot check. When Dean discovered Flint\u2019s insubordination, Flint initially denied it, but later confessed and received a letter of concern in his file as punishment (the letter was ultimately removed from his file). Subsequently, Flint made comments to Plaintiff about Flint\u2019s negative evaluation of a GPSHS employee. Plaintiff informed that employee to \u201ckeep an eye on her evaluation\u201d because she suspected Flint was out to get her. When GPSHS Principal Moussa Hamka (\u201cHamka\u201d) learned that Plaintiff had warned the employee, Hamka told Plaintiff that she would be disciplined for telling a staff member about an ongoing review by an administrator. Plaintiff complained to Dean about Hamka\u2019s reaction, which Dean understood as a complaint relating to gender discrimination and harassment against Hamka.<br><\/span><span style=\"FONT-SIZE: 12pt\"><br>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Later, Plaintiff heard a rumor that Hamka and a teacher had been in Hamka\u2019s office together after school hours. Plaintiff and Flint both discussed the rumor, but neither came forward with it. At the time, neither Plaintiff nor Flint received discipline for failure to report the rumor.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>At Plaintiff\u2019s end of year evaluation, she received a \u201cminimally effective\u201d rating for the school year.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>In contrast, Flint received an \u201ceffective\u201d rating.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>As a result of the minimally effective rating, Plaintiff received only a 1 year contract, instead of a rolling 2 year contract, and was informed she was subject to termination if at the end of 1 year she did not receive an \u201ceffective\u201d evaluation. Moreover, because of her minimally effective rating, Plaintiff became ineligible for a merit raise or step increase and was placed on an Individualized Development Plan (<i style=\"mso-bidi-font-style: normal\">i.e<\/i>. PIP).<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Shortly thereafter, the district\u2019s Superintendent allegedly transferred Plaintiff to a position in a middle school because of her gender discrimination complaint against Hamka and her warning to the employee about Flint\u2019s negative evaluation. Thereafter, Dean asked Plaintiff to resign, but she refused.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>During the subsequent school year, Plaintiff took an FMLA leave for stress. Plaintiff filed a Charge of Discrimination with the EEOC and filed her lawsuit after receiving a right to sue letter.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The district court granted summary judgment in favor of the school district on all counts.\u00a0<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span style=\"FONT-SIZE: 12pt\">Reversing the district court\u2019s judgment in favor of the school district, the Sixth Circuit found that a genuine issue of material fact existed with respect to whether the school district violated Title VII and ELCRA by discriminating against Plaintiff on the basis of her gender. According to Plaintiff, the discrimination took the form of the transfer from GPSHS to the middle school and the minimally effective rating she received in her evaluation. The Sixth Circuit determined that Plaintiff presented evidence sufficient to establish her <i style=\"mso-bidi-font-style: normal\">prima facie<\/i> case of gender discrimination, particularly that she suffered an adverse employment action and that she was treated differently than a similarly situated individual.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>First, the Sixth Circuit found that Plaintiff\u2019s transfer from GPSHS to the middle school and her minimally effective rating constituted adverse employment actions because the transfer constituted a demotion and the minimally effective rating affected her contractual status and placed her job in jeopardy.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Second, the Sixth Circuit agreed that Flint was an appropriate comparable and that Flint was not disciplined for failing to report the rumor about Hamka, was never transferred to a middle school and did not receive a lower than \u201ceffective\u201d evaluation. Moreover, like Plaintiff, Flint gave a \u201cheads up\u201d to a GPSHS employee about a potential negative employment action, but that did not result in similar consequences. The Sixth Circuit also determined that the record evidence created a genuine issue of material fact as to whether the stated reasons for the adverse employment actions against Plaintiff were merely pretexual.<br><\/span><span style=\"FONT-SIZE: 12pt\"><br>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0The Sixth circuit also reversed the district court\u2019s judgment in favor of the school district on Plaintiff\u2019s claims that her minimally effective evaluation and her transfer from GPSHS to the middle school constituted retaliation for her complaint about gender discrimination. The Sixth Circuit, however, upheld the district court\u2019s judgment in favor of the school district on Plaintiff\u2019s claim for FMLA retaliation because Plaintiff could not demonstrate an adverse employment action as a result of her FMLA leave.\u00a0<\/span><\/p>\n<p><span class=\"MsoHyperlink\"><b style=\"mso-bidi-font-weight: normal\"><i style=\"mso-bidi-font-style: normal\"><span style=\"FONT-SIZE: 12pt; COLOR: windowtext\"><a href=\"http:\/\/www.opn.ca6.uscourts.gov\/opinions.pdf\/19a0081p-06.pdf\"><font color=\"#0563c1\">Pierce v. Wyndham Vacation Resorts, Inc<span style=\"FONT-STYLE: normal\">., ___ F.3d. ___, WL 1894767 (6th Cir. April 29, 2019)<\/span><\/font><\/a><br><\/span><\/i><\/b><\/span><br><b style=\"mso-bidi-font-weight: normal\"><span style=\"FONT-SIZE: 12pt\">Sixth Circuit Affirms, in part, Employees\u2019 Successful FLSA Collective Action Against Wyndham\u00a0<br><\/span><\/b><span style=\"FONT-SIZE: 12pt\"><br>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0In a collective action, sales employees for Wyndham, an owner and operator of resorts, alleged that the company violated the Fair Labor Standards Act (\u201cFLSA\u201d) by failing to compensate them for overtime. Specifically, plaintiffs alleged that Wyndham required its time share and related sales employees to underreport their hours or altered the employees\u2019 timesheets to avoid paying overtime. At issue was whether:<span style=\"mso-spacerun: yes\">\u00a0 <\/span>(1) the district court properly certified the class; (2) the representative evidence established liability; and (3) the damages award was accurately calculated.<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span style=\"FONT-SIZE: 12pt\">Considering whether the district court properly certified the collective action, the Sixth Circuit determined whether 3 types of sales employees (\u201cfront-line,\u201d \u201cin-house\u201d and \u201cdiscovery\u201d) were similarly situated such that they could bring their collective action.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Affirming the district court, in part, the Sixth Circuit ruled that the district court did not abuse its discretion in certifying the collective action as to the in-house and front-line salespeople because even though both groups of employees had different job titles, they performed identical tasks, just directed at different customers. The Sixth Circuit, however, concluded that the district court abused its discretion in certifying the collective action as to the discovery sales employees because they sold a different product and regularly started at later times than the in-house and front line employees. Notably, the Sixth Circuit stated that Wyndham\u2019s common policy regarding disallowing overtime could not overcome the factual differences among the employees for the purposes of class certification.<span style=\"mso-spacerun: yes\">\u00a0\u00a0<\/span><\/span><\/p>\n<p><span style=\"FONT-SIZE: 12pt\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0With respect to establishing liability, the Sixth Circuit affirmed the district court\u2019s decision following a lengthy bench trial that the representative evidence presented proved Wyndham violated the FLSA\u2019s overtime provisions. Yet, the Sixth Circuit vacated the damages award and remanded for further proceedings because the district court erred in finding that the discovery employees were similarly situated for the purpose of certification of the collective action such that the district court needed to recalculate damages just for the in-house and front-line employees.<span style=\"mso-spacerun: yes\">\u00a0\u00a0<\/span><\/span><\/p>\n<p><em>Submitted by:<\/em><\/p>\n<p><img decoding=\"async\" style=\"HEIGHT: 168px; WIDTH: 152px\" src=\"https:\/\/www.fedbar.org\/labor-employment-law-section\/wp-content\/uploads\/sites\/125\/2019\/12\/Krause-Greg-jpg.jpeg\" width=\"493\" height=\"558\" class=\"img-fluid\">\u00a0<br><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><span style=\"FONT-SIZE: 12pt\"><br>\nGregory M. Krause<br><\/span><span style=\"FONT-SIZE: 12pt\">Miller, Canfield, Paddock &amp; Stone, P.L.C.<br><\/span><span style=\"FONT-SIZE: 12pt\">150 W. Jefferson, Suite 2500<br><\/span><span style=\"FONT-SIZE: 12pt\">Detroit, MI 48226 <br><\/span><span class=\"MsoHyperlink\"><span style=\"FONT-SIZE: 12pt\"><a><span style=\"TEXT-DECORATION: underline\"><font color=\"#0563c1\">krause@millercanfield.com<\/font><\/span><\/a><\/span><\/span><span style=\"FONT-SIZE: 12pt\"> <br><\/span><span class=\"MsoHyperlink\"><span style=\"FONT-SIZE: 12pt\"><a href=\"https:\/\/www.millercanfield.com\/GregKrause\"><font color=\"#0563c1\">https:\/\/www.millercanfield.com\/GregKrause<\/font><\/a><\/span><\/span><span style=\"FONT-SIZE: 12pt\">\u00a0<\/span><\/span><\/p>\n<p><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif; LINE-HEIGHT: 107%'><span lang=\"EN\" style=\"FONT-SIZE: 12pt; COLOR: #333333; mso-ansi-language: EN\">Greg Krause has an extensive litigation background and experience defending employers of all sizes against employment-related claims in state and federal courts and before state and federal anti-discrimination agencies. Greg\u2019s practice also includes providing advice and counsel to employers with respect to policy issues and litigation avoidance matters.<br><span class=\"MsoHyperlink\"><b style=\"mso-bidi-font-weight: normal\"><i style=\"mso-bidi-font-style: normal\"><span style=\"FONT-SIZE: 12pt; TEXT-DECORATION: none; COLOR: windowtext; text-underline: none\"><\/span><\/i><\/b><\/span><\/span><\/span><\/p>\n<p><a href=\"http:\/\/www.opn.ca6.uscourts.gov\/opinions.pdf\/19a0046p-06.pdf\"><font color=\"#0563c1\">Acosta v. Min &amp; Kim, Inc., <span style=\"FONT-STYLE: normal\">__F.3d__, 2019 WL 1234259 (6th Cir. March 18, 2019)<\/span><\/font><\/a><br><span style=\"FONT-SIZE: 12pt\"><br>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0In <i style=\"mso-bidi-font-style: normal\">Acosta v. Min &amp; Kim, Inc.<\/i>, the Sixth Circuit found that employers, a Korean and Japanese restaurant and its owners, violated the overtime requirements of the Fair Labor Standard Act (FLSA). Here, regardless of the numbers of hours the employees actually worked and even if their overtime hours vary, as long as they worked six days, the employees are paid the same amount of \u201cguaranteed wage\u201d every week. The Sixth Circuit found that this pay practice violated the FLSA\u2019s overtime requirement, because the \u201cguarantee wage\u201d did not include adequate overtime pay.\u00a0<br><\/span><span style=\"FONT-SIZE: 12pt\"><br>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Moreover, the employers were also found to have violated the record-keeping requirements of the FLSA. Here, while having time and payroll records for the years 2013 to 2014 and 2016 to 2017, the employers had no records for the two missing years in between. In addition, some of the records for 2013 and 2014 contained only employees\u2019 first name and their bi-weekly pay. Even though more detailed records existed, none of employers\u2019 documents contained all the FLSA-required information for all employees. Most significantly, the employers\u2019 failure to track employees\u2019 hours at all until August 2016 violated the record-keeping requirements of the FLSA.<br><\/span><span style=\"FONT-SIZE: 12pt\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<br>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0The Court then found that even though the employers\u2019 records were lacking, the Department of Labor, based on the employers\u2019 own records and testimony, had made a sufficient showing that the restaurant employees performed improperly uncompensated work and provided a reasonable estimate of the amount, which the employers did not offer any evidence to rebut. The Court also rejected the employers\u2019 argument that they paid employees generously in compared to the minimum wage and no employee had complained as \u201cbeside the point.\u201d The Court said, \u201cGenerosity is in the eye of the beholder, in this instance the eye of the employee, which is why compliance with the [FLSA] turns on dollars-and-cents calculations, not employee-satisfaction surveys.\u201d<br><\/span><span style=\"FONT-SIZE: 12pt\"><br>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Having found that the employers violated the FLSA, the Sixth Circuit, however, found that the employers\u2019 violations did not support an award of liquidated damages. The Court found that the employers here had adopted the prior owner\u2019s pay practices when they purchased the restaurant. The employers also had actively sought to understand the FLSA\u2019s requirements by consulting with and relying on their accountant about the guaranteed wage, as well as the minimum wage and overtime laws. Accordingly, the employers had reasonable, good faith basis that they were in compliance with the FLSA.<br>\n\u00a0<\/span><\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span class=\"MsoHyperlink\"><b style=\"mso-bidi-font-weight: normal\"><i style=\"mso-bidi-font-style: normal\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><a href=\"http:\/\/www.opn.ca6.uscourts.gov\/opinions.pdf\/19a0040p-06.pdf\"><font color=\"#0563c1\">Am. Mun. Power, Inc. v. Nat\u2019l Labor Relations Bd.<span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>, 917 F.3d 904 (6th Cir. March 11, 2019)<\/span><\/font><\/a><\/span><\/i><\/b><\/span><\/p>\n<p><b style=\"mso-bidi-font-weight: normal\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><\/span><\/b><\/p>\n<p class=\"MsoNormal\" style=\"BORDER-TOP: medium none; BORDER-RIGHT: medium none; BORDER-BOTTOM: windowtext 1pt solid; PADDING-BOTTOM: 1pt; PADDING-TOP: 0in; PADDING-LEFT: 0in; BORDER-LEFT: medium none; MARGIN: 0in 0in 0pt; PADDING-RIGHT: 0in\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0In <i style=\"mso-bidi-font-style: normal\">Am. Mun. Power, Inc. v. Nat\u2019l Labor Relation Bd.<\/i>, the employer petitioned the Sixth Circuit after the National Labor Relation Board (NLRB) had denied the employer\u2019s request for review to modify the definition of the collective bargaining unit, which included fulltime and regular part-time operators employed at the employer\u2019s facility. The employer argued that the definition was flawed because it failed to exclude operators who were assigned to the facility on a temporary basis. While agreeing that the temporary assignees are not included in the bargaining unit, the union believed that the employer-proposed modifications would have unintended consequences. The NLRB agreed with the union and denied the employer\u2019s request for review.<\/span><\/p>\n<p><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><span style=\"mso-tab-count: 1\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>The Sixth Circuit denied the employer\u2019s petition. The Court said that the NLRB is deputized with the power to determine \u201cthe unit appropriate for the purposes of collective bargaining.\u201d Because this process involved \u201cinformed discretion,\u201d the NLRB\u2019s judgment was to be accorded deference, and the Court could only overturn the NLRB\u2019s decision if it was arbitrary or constituted an abuse of discretion. Here, the Court found that the NLRB\u2019s decision denying the employer\u2019s request for a modification of the bargaining unit\u2019s language was neither arbitrary nor an abuse of discretion. First, the definition by its terms did not include temporary assigned employees, making any amendment or modification unnecessary. Second, the employer did not have any plan to assign other employees to the facility on a temporary basis. Finally, the Court said that in the future, if a new situation arises that demand resolution and the union refuses to cooperate, the company can invoke the unit clarification process; but, at the moment, the employer had gotten the answer that it needed, i.e., a temporarily assigned operator sent to the facility would not be included in the bargaining unit.\u00a0<br><\/span><br><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><em>Submitted by:<\/em><br><img decoding=\"async\" style=\"HEIGHT: 172px; WIDTH: 138px\" src=\"https:\/\/www.fedbar.org\/labor-employment-law-section\/wp-content\/uploads\/sites\/125\/2019\/12\/Ho-Nhan-png.png\" width=\"196\" height=\"273\" class=\"img-fluid\"><br><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>Nhan Ho, Esquire<br><\/span><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>Miller, Canfield, Paddock &amp; Stone, P.L.C.<br><\/span><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>150 W. Jefferson Ave, Suite 2500<br><\/span><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><detroit mi><\/detroit><\/span><span class=\"MsoHyperlink\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><a><span style=\"TEXT-DECORATION: underline\"><font color=\"#0563c1\">ho@millercanfield.com<\/font><\/span><\/a><br><\/span><\/span><span class=\"MsoHyperlink\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><a href=\"https:\/\/www.millercanfield.com\/NhanHo\"><font color=\"#0563c1\">https:\/\/www.millercanfield.com\/NhanHo<\/font><\/a><\/span><\/span><\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span class=\"MsoHyperlink\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><\/span><\/span><\/p>\n<p><span style=\"TEXT-DECORATION: none\"><span style=\"TEXT-DECORATION: underline\"><font color=\"#0563c1\"><\/font><\/span><\/span><\/p>\n<p>\u00a0<\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>Nhan Ho is an associate in the Employment and Labor Group of Miller Canfield Paddock and Stone PLC. She focuses her practice on representing employers in litigations and arbitrations as well as consulting employers with compliance requirements and labor relations issues.<\/span><\/p>\n<p class=\"MsoNormal\" style=\"TEXT-ALIGN: justify; MARGIN: 0in 0in 0pt\"><span class=\"MsoHyperlink\"><b style=\"mso-bidi-font-weight: normal\"><i style=\"mso-bidi-font-style: normal\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif' none text-underline: windowtext color: text-decoration:><a href=\"http:\/\/www.opn.ca6.uscourts.gov\/opinions.pdf\/19a0019p-06.pdf\"><font color=\"#0563c1\">Acosta v. Off Duty Police Servs., Inc.<span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>, No. 17-5995, 2019 WL 545124 (6th Cir. February 12, 2019)<\/span><\/font><\/a><\/span><\/i><\/b><\/span><\/p>\n<p><b style=\"mso-bidi-font-weight: normal\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><\/span><\/b><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0The Department of Labor (DOL) brought action against a private security and traffic control services provider alleging that its workers were employees \u2013 not independent contractors as the company alleged \u2013 thus entitling them to overtime wages under the Fair Labor Standards Act (FLSA).<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The defendant\u2019s workforce includes sworn officers, who also work for some law enforcement entities in addition to working for the defendant, and nonsworn officers, who have no background or day job in law enforcement.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The nonsworn officers are paid less per hour, but they perform the same duties for the defendant\u2019s customers as the sworn officers.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The lower court found that the nonsworn officers were statutory employees entitled to overtime wages, but the sworn officers were independent contractors because they were not economically dependent upon their job with the defendant given that they were merely supplementing their main source of income.<\/span><\/p>\n<p class=\"MsoNormal\" style=\"TEXT-ALIGN: justify; MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"TEXT-ALIGN: justify; MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0On appeal, the Sixth Circuit reversed in part, ruling that all of the defendant\u2019s workers are employees under the economic realities test regardless of their sworn status.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Court looked at each factor of the test, finding that the workers\u2019 services are integral to the defendant\u2019s business and that the low level of skill required to perform the job and the limited investment by the defendant\u2019s workers in specialized equipment supports employee status for all workers.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Court ruled that the level of control the defendant exerts on all of its nonsworn employees clearly supported a finding that those workers were employees, but that the evidence did not readily favor either party\u2019s position with respect to the sworn officers. As to permanency of the relationship, the Sixth Circuit disagreed with the lower court, ruling that whether a worker works for more than one company at a time is but one factor to consider in determining whether that worker is economically dependent upon the defendant company. By focusing only on the source of the workers\u2019 income, the lower court failed to consider that in the modern economy workers must routinely seek out more than one source of income to make ends meet. In the case at hand, the workers\u2019 consistent and relatively long relationship with the defendant company favored a finding of employee status.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>By balancing these factors, the Sixth Circuit ruled that all of the defendant\u2019s workers were employees under the FLSA given the FLSA\u2019s \u201cstrikingly broad\u201d definition of \u201cemployee.\u201d<\/span><\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span><b style=\"mso-bidi-font-weight: normal\"><i style=\"mso-bidi-font-style: normal\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><a href=\"http:\/\/www.opn.ca6.uscourts.gov\/opinions.pdf\/19a0024p-06.pdf\"><font color=\"#0563c1\">Airgas USA, LLC v. Nat\u2019l Labor Relations Bd.<span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>, No. 18-1686, 2019 WL 762199 (6th Cir. February 21, 2019)<\/span><\/font><\/a><\/span><\/i><\/b><\/span><\/p>\n<p><\/p>\n<p><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0An employee truck driver was issued a written warning for failing to properly secure his cargo in violation of the company\u2019s policy.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Prior to this written warning, the employee had filed several unfair labor practice (ULP) charges and had been disciplined for unrelated conduct shortly after filing each ULP charge.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>One of the ULP charges was in response to the employee\u2019s supervisor changing disciplinary polices to eliminate verbal warnings, in which the employee alleged that the policy change was in retaliation to filing an earlier ULP charge.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The employee filed a grievance disputing his written discipline for failing to properly secure his cargo, arguing that the written warning was excessive based on the employee\u2019s violation of the company policy for the incident because it was not as severe as the employee\u2019s supervisor led on and the supervisor\u2019s claims regarding the incident were inconsistent.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>After the employee filed a charge with the Board, the ALJ concluded that a prima facie case of discriminatory animus had been shown and that the nondiscriminatory reasons for the discipline were \u201cshifting and inconsistent\u201d and therefore the company had violated \u00a7 8(a)(4) and (a)(1) of the NLRA. A divided panel of the Board agreed and adopted the ALJ\u2019s order.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The employer filed a petition for review and the General Counsel cross-applied for enforcement of the Board\u2019s order.<\/span><\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"TEXT-ALIGN: justify; MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"TEXT-ALIGN: justify; MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0On appeal, the Sixth Circuit affirmed using the Wright Line burden-shifting framework, holding that substantial evidence supported the NLRB\u2019s conclusions. The Court found that the employee had engaged in protected activity and that the employer knew of the protected activity given that the employee filed two charges in the months leading up to his written warning and the employer provided an affidavit regarding one of the charges. The Court agreed with the ALJ and Board that there was evidence that the employer acted as it did on the basis of anti-union animus given the supervisor\u2019s lack of credibility regarding the cargo incident, the fact that the employee received his written warning under one month after he filed a ULP charge with the Board, and the difference in treatment other employees received who had similar violations but were issued lesser discipline.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Finally, the Court ruled that the employer could not show that it would have made the same employment decision regardless of the employee\u2019s protected activity given that the supervisor\u2019s actions in issuing the discipline were not calculated to rectify a safety problem and that his testimony about the level of safety concern posed was not credible.<span style=\"mso-spacerun: yes\">\u00a0 <\/span><\/span><\/p>\n<p class=\"MsoNormal\" style=\"TEXT-ALIGN: justify; MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><\/span><\/p>\n<p><em><strong>\u00a0<\/strong><\/em><\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><i style=\"mso-bidi-font-style: normal\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><submitted span by:><\/submitted><\/span><\/i><span style=\"FONT-SIZE: 12pt\"><\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><\/span><\/p>\n<p><em>Submitted by:<br><\/em><\/p>\n<p><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" style=\"HEIGHT: 250px; WIDTH: 194px\" src=\"https:\/\/www.fedbar.org\/labor-employment-law-section\/wp-content\/uploads\/sites\/125\/2019\/12\/Hogg-Jacob-jpg.jpeg\" width=\"437\" height=\"614\" class=\"img-fluid\"><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><br>\nJacob M. Hogg<br>\nMiller, Canfield, Paddock &amp; Stone, P.L.C.<\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><miller canfield paddock stone p.l.c.><\/miller><\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>150 W. Jefferson, Suite 2500<\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><detroit michigan><\/detroit><\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span class=\"MsoHyperlink\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><a><span style=\"TEXT-DECORATION: underline\"><font color=\"#0563c1\">hogg@millercanfield.com<\/font><\/span><\/a><\/span><\/span><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><br>\nAn associate at Miller Canfield, Jacob Hogg works with the Employment and Labor Group assisting with litigation and arbitration, internal compliance requirements for employers and representing various clients in labor relations and immigration issues.<\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\">\u00a0<\/p>\n<p class=\"MsoNormal\" style=\"TEXT-ALIGN: center; MARGIN: 0in 0in 0pt\" align=\"center\"><b style=\"mso-bidi-font-weight: normal\"><span style=\"TEXT-DECORATION: underline\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>Eighth Circuit<\/span><\/span><\/b><span style=\"FONT-SIZE: 12pt\"><\/span><\/p>\n<p class=\"MsoNormal\" style=\"TEXT-ALIGN: center; MARGIN: 0in 0in 0pt\" align=\"center\"><span style=\"FONT-SIZE: 12pt\"><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"BACKGROUND: white; MARGIN: 0in 0in 0pt\"><b style=\"mso-bidi-font-weight: normal\"><i style=\"mso-bidi-font-style: normal\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif; COLOR: black'>Bryant v. Jeffrey Sand Co.<\/span><\/i><\/b><b style=\"mso-bidi-font-weight: normal\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif' color: new black mso-bidi-font-family: roman mso-fareast-font-family:>, 18-2297, 2019 WL 1233052 (8th Cir. March 18, 2019)<\/span><\/b><\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0From 2009 to 2013, Adrian Bryant worked as a deckhand for Jeffrey Sand on the Cora, a barge that dredges sand from the Arkansas River. During this period, Bryant was the only black employee on the barge. The evidence at trial revealed that Bryant\u2019s direct supervisor, Jeffrey Skaggs engaged in a consistent pattern of racially-motivated abuse. Skaggs yelled explicit racial slurs at Bryant. Skaggs would also give Bryant difficult tasks that he would not assign other white employees. A co-worker testified that \u201ca number of times,\u201d Skaggs would \u201cget up in Bryant\u2019s face and use his chest to push Bryant around trying to get Bryant to fight Skaggs.\u201d<\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Bryant twice complained to his plant manager, Ken Bolton, and to the then-president of the company, Joe Wickliffe, four times regarding Skagg\u2019s behavior. Bolton never interviewed Bryant or other employees. Jeffrey Sand has no written anti-harassment or anti-discrimination policy and no human resources personnel. <\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Bryant testified that the harassment persisted and that he continued to make complaints after May 2012. Specifically, in August 2012, Skaggs made him paint rails in the hot sun and would not allow him to come into the air-conditioned part of the barge or access water. When Bryant said he felt ill, Skaggs responded, \u201cGo out there and paint those rails like I told your black ass to.\u201d Bryant began to experience chest pains and felt lightheaded, another employee called an ambulance and it was later determined that Bryant suffered a heart attack and did not return for two weeks.<span style=\"mso-spacerun: yes\">\u00a0 <\/span><\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Later, Clay McGeorge, received an anonymous email complaining of hearing racist comments on the Cora. Clay brought this information to Bolton, who began an investigation. Upon investigating, other employees told Bolton that they heard second-hand about Skaggs using racial slurs. However, Bolton did not interview Bryant as part of his investigation and the company took no disciplinary action against Skaggs.<span style=\"mso-spacerun: yes\">\u00a0 <\/span><\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Shortly after the investigation into the email, Jeffrey Sand fired Bryant for absenteeism. Bryant brought a suit under 42 U.S.C. \u00a7 1981, alleging a racially hostile work environment and retaliatory termination. The district court granted summary judgment in favor of Jeffrey Sand on the retaliation claim but allowed the hostile-work-environment claim to proceed to trial. The jury found for Bryant and awarded him $1.00 in compensatory damages and $250,000 in punitive damages. The district court denied Jeffrey Sand\u2019s post-trial motions for judgment as a matter of law and to amend of punitive damages. The court granted Bryant\u2019s motion for attorney\u2019s fees and costs. Jeffrey Sand appeals.<\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Jeffrey Sand argued it was entitled to judgment as a matter of law because there was insufficient evidence to charge punitive damages to the jury. The Eighth Circuit disagreed by holding that the award of punitive damages is supported by the record. Bryant repeatedly complained to supervisors about racial slurs and those supervisors never interviewed Bryant in response to his complaints. Additionally, Jeffrey Sand never disciplined Skaggs or tried to prevent further harassment. <\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Subsequently, the Eighth Circuit concluded that the jury could have reasonably concluded from these facts that Jeffrey Sand exhibited reckless indifference to Bryant\u2019s rights because, these facts, viewed in Bryant\u2019s favor, show that Jeffrey Sand\u2019s actions were \u201cso reprehensible as to warrant the imposition of further sanctions to achieve punishment or deterrence.\u201d Specifically, Skaggs\u2019s verbal and physical abuse went unchecked even after another employee corroborated Bryant\u2019s allegations, and even placed Bryant at risk of serious injury. As a result, the Eighth Circuit affirmed the judgment of the district court. <\/span><\/p>\n<p><em>Submitted by:<\/em><\/p>\n<p><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" style=\"HEIGHT: 146px; WIDTH: 250px\" src=\"https:\/\/www.fedbar.org\/labor-employment-law-section\/wp-content\/uploads\/sites\/125\/2019\/12\/Baillon-Frances-jpg.jpeg\" width=\"619\" height=\"349\" class=\"img-fluid\"><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><br>\nFrances E. Baillon is a recognized advocate for those who have been victimized by the unfair and illegal practices of employers. <span style=\"mso-spacerun: yes\">\u00a0<\/span>She currently serves as Vice President of the Minnesota Chapter of the National Employment Lawyers Association, as well as chair of its Amicus Committee, and is a member of the MSBA\u2019s Civil Jury Instruction Committee on Employment\u00a0Law.<\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><em>Ted McGee<\/em><\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>Law Clerk, Baillon Thome Jozwiak &amp; Wanta LLP<\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>University of Minnesota School of Law<\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>Juris Doctorate Candidate, May 2019<\/span><\/p>\n<p><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><\/span><\/p>\n<p class=\"MsoNormal\" style=\"MARGIN: 0in 0in 0pt\">\u00a0<\/p>\n<p class=\"MsoNormal\" style=\"TEXT-ALIGN: center; MARGIN: 0in 0in 0pt\" align=\"center\"><b style=\"mso-bidi-font-weight: normal\"><span style=\"TEXT-DECORATION: underline\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>D.C. Circuit<\/span><\/span><\/b><span style=\"FONT-SIZE: 12pt; FONT-FAMILY: \" new times roman><\/span><\/p>\n<p class=\"MsoNormal\" style=\"TEXT-ALIGN: center; MARGIN: 0in 0in 0pt\" align=\"center\"><span style=\"FONT-SIZE: 12pt\"><\/span><\/p>\n<p>\u00a0<\/p>\n<p><\/p>\n<p class=\"MsoBodyText\" style=\"MARGIN: 0in 0in 12pt\"><strong><i style=\"mso-bidi-font-style: normal\"><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>University of Southern California v. National Labor Relations Board<\/span><\/i>, 2019 WL 1119372, ___ F.3d ___ (D.C. Cir. March 12, 2019)<\/strong><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>In <i style=\"mso-bidi-font-style: normal\">University of Southern California v. National Labor Relations Board<\/i>, the D.C. Circuit reviewed the application of the NLRB\u2019s standard for determining when faculty members at private universities are managerial employees who are not entitled to the protections of the National Labor Relations Act.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>While the court affirmed the NLRB\u2019s test in many respects, it invalidated another aspect of the NLRB\u2019s ruling as inconsistent with the U.S. Supreme Court\u2019s <i style=\"mso-bidi-font-style: normal\">NLRB v. Yeshiva University<\/i>, 444 U.S. 672 (1980), decision.<\/span><\/p>\n<p class=\"MsoBodyText\" style=\"TEXT-ALIGN: left; MARGIN: 0in 0in 12pt\" align=\"left\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>In <i style=\"mso-bidi-font-style: normal\">Yeshiva<\/i>, the Supreme Court distinguished between the \u201cpyramidal\u201d management-employee relations in private industry and the collegial management structure of the university.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The Court held that where faculty exercised influence over the university\u2019s management through various committees, they were managerial employees not covered by the NLRA.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>In doing so, however, the Court noted that there could be subclasses of faculty who are not managerial employees.<\/span><\/p>\n<p class=\"MsoBodyText\" style=\"TEXT-ALIGN: left; MARGIN: 0in 0in 12pt\" align=\"left\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>In <i style=\"mso-bidi-font-style: normal\">University of Southern California<\/i>, a union sought to represent full and part time non-tenure-track faculty.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The university contested the union\u2019s ability to represent these employees, arguing that the employees were managerial.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The NLRB applied a test where it looked to the influence of faculty committees over five areas of university decision-making: academic programs, enrollment management policies, finances, academic policies, and personnel policies and decisions.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The NLRB looked to whether the faculty exercised actual control or effective recommendation authority in these areas, requiring that faculty recommendations be \u201calmost always\u201d followed by the administration without independent review.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The NLRB also imposed a bright-line, majority status rule under which the class of faculty at issue must constitute a majority of the committee.<\/span><\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>The D.C. Circuit upheld all of the challenged aspects of the NLRB\u2019s standard except the majority status rule, finding it inconsistent with the prior <i style=\"mso-bidi-font-style: normal\">Yeshiva <\/i>decision.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The court held that <i style=\"mso-bidi-font-style: normal\">Yeshiva <\/i>required consideration of the authority of the faculty as a whole, not that of individual professors or subgroups.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The court noted that even if faculty subgroups have different statuses within the university, they may share common interests.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>While the status of the subgroup itself could become relevant if the subgroup\u2019s interests fundamentally diverge from those of the majority of the faculty, the court required that the NLRB separate its analysis into two distinct inquiries: first, whether any faculty body as a whole exercises effective control and, if so, whether based on the interests of different groups the subgroup in question is included in that managerial faculty body.<span style=\"mso-spacerun: yes\">\u00a0\u00a0<br><b style=\"mso-bidi-font-weight: normal\"><i style=\"mso-bidi-font-style: normal\"><\/i><\/b><\/span><\/span><\/p>\n<p><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>Novato Healthcare Center v. National Labor Relations Board<\/span>, 916 F.3d 1095 (D.C. Cir. March 5, 2019)<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'>In <i style=\"mso-bidi-font-style: normal\">Novato Healthcare Center v. National Labor Relations Board<\/i>, an employer unsuccessfully challenged the NLRB\u2019s finding that it had engaged in an unfair labor practice by terminating 5 employees in the lead up to a contested union election.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Four of the employees in question had been active pro-union campaigners.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>A supervisor claimed that she saw the employees, who were nurses, sleeping from about 4:00am to 4:21am while on a night shift. <span style=\"mso-spacerun: yes\">\u00a0<\/span>The employees were permitted to sleep only during 10 minute breaks while another employee was on-duty.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>Based on the supervisor\u2019s report, the employer terminated the employment of the four pro-union employees.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>It also terminated a fifth employee, whose union views were unknown, in order to attempt to strengthen the decision to terminate the pro-union employees.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>While the 4:21am end time was verified by the date stamp on a photograph the supervisor took, the court upheld the NLRB\u2019s finding that the supervisor\u2019s claim to have seen the employees sleeping at 4:00am was not credible.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The court noted this finding was based on the supervisor\u2019s testimony that the only time that she had seen a clock during the sequence in question was when she stopped at a stop sign 3 blocks from work and noticed it was 3:50am.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The court noted that the supervisor had claimed that between that point and when she first saw the employees sleeping, she testified that she had engaged in numerous activities, including, driving the 3 blocks to the facility, parking and entering the facility, logging into a computer and checking e-mail, inspecting a refrigerator and freezer, using the restroom, collecting election flyers from a break room, reading the flyers, and walking around the facility.<span style=\"mso-spacerun: yes\">\u00a0 <\/span>The D.C. Circuit upheld the NLRB\u2019s finding that it was simply implausible for the supervisor to have performed all of these activities in 10 minutes.<\/span><\/p>\n<p><em>Submitted by:<\/em><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif'><\/span><\/p>\n<p style=\"TEXT-ALIGN: center; LINE-HEIGHT: normal\" align=\"center\"><b><span style=\"TEXT-DECORATION: underline\"><\/span><\/b><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" style=\"HEIGHT: 192px; WIDTH: 161px\" src=\"https:\/\/www.fedbar.org\/labor-employment-law-section\/wp-content\/uploads\/sites\/125\/2019\/12\/Blum-Headshot-jpg.jpeg\" width=\"201\" height=\"248\" class=\"img-fluid\"><\/p>\n<p><span style='FONT-SIZE: 12pt; FONT-FAMILY: \"Times New Roman\",serif; LINE-HEIGHT: 107%'><br>\nJack Blum is an associate in the Employment Disputes, Litigation and Arbitration practice at the Washington, D.C. office of Polsinelli, P.C.\u00a0 Mr. Blum represents employers in connection with claims of discrimination, wage and hour issues, the interpretation of employment agreements, the enforcement of restrictive covenants, and misappropriation of trade secrets.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0 Second Circuit Natofsky v. City of New York, 921 F.3d 337 (2d Cir. April 18, 2019) \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0The Court of&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":52,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"kp-content-permissions":[],"class_list":["post-53","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/www.fedbar.org\/labor-employment-law-section\/wp-json\/wp\/v2\/pages\/53","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fedbar.org\/labor-employment-law-section\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.fedbar.org\/labor-employment-law-section\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.fedbar.org\/labor-employment-law-section\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fedbar.org\/labor-employment-law-section\/wp-json\/wp\/v2\/comments?post=53"}],"version-history":[{"count":4,"href":"https:\/\/www.fedbar.org\/labor-employment-law-section\/wp-json\/wp\/v2\/pages\/53\/revisions"}],"predecessor-version":[{"id":548,"href":"https:\/\/www.fedbar.org\/labor-employment-law-section\/wp-json\/wp\/v2\/pages\/53\/revisions\/548"}],"up":[{"embeddable":true,"href":"https:\/\/www.fedbar.org\/labor-employment-law-section\/wp-json\/wp\/v2\/pages\/52"}],"wp:attachment":[{"href":"https:\/\/www.fedbar.org\/labor-employment-law-section\/wp-json\/wp\/v2\/media?parent=53"}],"wp:term":[{"taxonomy":"kp-content-permissions","embeddable":true,"href":"https:\/\/www.fedbar.org\/labor-employment-law-section\/wp-json\/wp\/v2\/kp-content-permissions?post=53"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}