Justia U.S. 3rd Circuit Court of Appeals Opinion Summaries

Miller Plastic Products Inc. fired Ronald Vincer in March 2020, during the early weeks of the COVID-19 pandemic. Vincer had expressed concerns about the company's pandemic protocols and its operating status, believing it was not an essential business. The National Labor Relations Board (NLRB) determined that Vincer’s termination violated Section 8(a)(1) of the National Labor Relations Act (NLRA) because it was motivated, at least in part, by his protected concerted activity.The Administrative Law Judge (ALJ) found that Vincer’s conduct was protected under the NLRA and that his termination was motivated by his protected activity. The ALJ also disallowed testimony regarding after-acquired evidence at the liability stage of the proceeding. Miller Plastic petitioned for review of the Board’s order, and the Board cross-applied for enforcement.The United States Court of Appeals for the Third Circuit reviewed the case. The court concluded that substantial evidence supported the Board’s determination that Vincer’s conduct was protected under the NLRA and was a motivating factor for his termination. The court also agreed with the ALJ’s decision to disallow testimony regarding after-acquired evidence at the liability stage, noting that such evidence is typically considered during compliance proceedings.However, the court found that the NLRB failed to adequately address certain evidence related to Miller Plastic’s affirmative defense that it would have fired Vincer even absent his protected conduct. The court remanded the case to the Board to address the significance of that evidence. The court denied Miller Plastic’s petition for review in part and granted the Board’s cross-application for enforcement in part, affirming the finding that Vincer was terminated because of his concerted activity. View "Miller Plastic Products Inc v. NLRB" on Justia Law

Alexander Smith, a Christian firefighter in Atlantic City, was prohibited from growing a beard due to the city's grooming policy, which he claimed violated his religious beliefs. Smith sued the city, alleging violations of the Free Exercise Clause, the Equal Protection Clause, and Title VII’s accommodation and anti-retaliation provisions. The District Court denied his motion for a preliminary injunction and later granted summary judgment for the city on all claims.The United States District Court for the District of New Jersey initially denied Smith's motion for a preliminary injunction, finding that his claims were unlikely to succeed on the merits. After discovery, the court granted summary judgment in favor of the city on all four claims, leading Smith to appeal the decision.The United States Court of Appeals for the Third Circuit reviewed the case. The court vacated the District Court’s judgment regarding Smith’s Title VII accommodation claim and his free exercise claim, finding that the city's grooming policy was not generally applicable and failed strict scrutiny. The court affirmed the District Court’s judgment on the equal protection claim and the Title VII retaliation claim, concluding that Smith did not establish a prima facie case of retaliation. Additionally, the court reversed the denial of Smith’s motion for a preliminary injunction, recognizing a likelihood of success on the merits and the irreparable harm caused by the loss of First Amendment freedoms. View "Smith v. City of Atlantic City" on Justia Law

A private fencing coach alleged that during a flight, a university’s assistant fencing coach sexually harassed and assaulted her. She reported the incident to the university’s head coach, who discouraged her from reporting it further and, along with the assistant coach, allegedly retaliated against her within the fencing community. The university later investigated and confirmed the harassment but found no policy violation. The coach sued the university, the two coaches, and the Title IX coordinator, claiming violations of Title IX and state-law torts.The United States District Court for the Middle District of North Carolina transferred the case to the Middle District of Pennsylvania due to improper venue and judicial efficiency. After the transfer, the plaintiff amended her complaint, and the defendants moved to dismiss. The transferee court dismissed the entire suit, holding that the plaintiff, as neither a student nor an employee, was outside the zone of interests protected by Title IX. It also dismissed the state-law tort claims as untimely or implausible.The United States Court of Appeals for the Third Circuit reviewed the case de novo. It held that the zone-of-interests test applies to Title IX claims and that the plaintiff’s claims related to her exclusion from university-hosted fencing events and retaliation manifesting on campus were within that zone. The court affirmed the dismissal of the state-law tort claims against the university and its employees, except for the claims against the assistant coach, which were not time-barred under North Carolina’s three-year statute of limitations. The case was vacated in part, affirmed in part, and remanded for further proceedings. View "Oldham v. Penn State University" on Justia Law

Plaintiffs Charles and Grant Adler, through their business entity CM Adler LLC, distributed tortillas and other food products of Defendant Gruma Corporation to grocery stores in central New Jersey under a "Store Door Distributor Agreement" (SDDA). When Defendant terminated the relationship, Plaintiffs filed a lawsuit alleging retaliatory termination due to their organizing efforts with other distributors. Plaintiffs claimed violations of state and federal labor laws, including failure to pay minimum wages and unlawful deductions, and argued that the SDDA was a franchise agreement subject to New Jersey's Franchise Practices Act, which forbids termination without cause.The United States District Court for the District of New Jersey dismissed the case, concluding that Texas law governed under the SDDA and the case should proceed to arbitration. The District Court did not address the applicability of the Federal Arbitration Act (FAA) or Plaintiffs' exemption argument under 9 U.S.C. § 1. It found the parties had contracted for Texas law, under which the arbitration agreement was enforceable, and rejected Plaintiffs' bid to apply New Jersey law instead. The District Court also decided that Charles and Grant Adler, who did not sign the contract, were estopped from challenging its arbitration provision because they acted as parties to the contract when they performed the LLC’s work.The United States Court of Appeals for the Third Circuit reviewed the case and concluded that the FAA does not apply to the SDDA because Plaintiffs are transportation workers engaged in interstate commerce. The Court of Appeals found that the District Court erred in its choice-of-law analysis by failing to consider the impact of New Jersey public policies on its arbitrability ruling. The Court of Appeals vacated the order compelling arbitration and remanded for the District Court to complete the choice-of-law analysis under the correct framework and to reevaluate whether the individual Plaintiffs, who did not sign the arbitration agreement, are bound by its terms. View "Adler v. Gruma Corporation" on Justia Law

Michele Cornelius sued CVS Pharmacy Inc., New Jersey CVS Pharmacy, L.L.C., and her former supervisor, Shardul Patel, alleging a hostile work environment. Cornelius claimed that Patel targeted her with negative treatment because she is a woman, including denying her promotions, overworking her, and undermining her relationships with employees. Despite her multiple complaints to CVS, no action was taken against Patel. Cornelius resigned in October 2021, but Patel did not respond, and she was subsequently fired on November 4, 2021.The United States District Court for the District of New Jersey granted CVS's motion to compel arbitration and dismissed Cornelius's complaint. The court concluded that Cornelius's claims were not protected from arbitration under the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act of 2021 (EFAA) because her hostile work environment claim did not constitute a "sexual harassment dispute." The court also found that Cornelius and CVS had entered into a valid arbitration agreement and that the agreement was not unconscionable.The United States Court of Appeals for the Third Circuit reviewed the case. The court agreed with the District Court that the EFAA did not cover Cornelius's claims but reached this conclusion on different grounds, determining that her dispute arose before the EFAA's effective date of March 3, 2022. However, the Third Circuit found that the District Court abused its discretion by not considering whether discovery was necessary before deciding that Cornelius and CVS had a valid agreement to arbitrate. Consequently, the Third Circuit affirmed in part, vacated the judgment, and remanded the case to the District Court for further proceedings, including consideration of whether discovery on the validity of the arbitration agreement was warranted. View "Cornelius v. CVS Pharmacy Inc" on Justia Law

The case involves the Central States, Southeast and Southwest Areas Pension Fund (the "Fund") seeking to collect withdrawal liability payments from several companies (the "Related Employers") that were commonly controlled with Borden Dairy Company of Ohio, LLC and Borden Transport Company of Ohio, LLC (the "Borden Ohio entities"). The Borden Ohio entities had previously withdrawn from the Fund and entered into a settlement agreement with the Fund during an arbitration process, which revised their withdrawal liability payments. The Borden Ohio entities later went bankrupt and ceased making payments, prompting the Fund to seek payment from the Related Employers.The United States District Court for the District of Delaware dismissed the Fund's suit under Federal Rule of Civil Procedure 12(b)(6), ruling that the Multiemployer Pension Plan Amendments Act (MPPAA) does not provide a statutory cause of action to enforce a private settlement agreement. The District Court also concluded that the Fund failed to meet the procedural requirements for notice and demand outlined in 29 U.S.C. § 1399(b)(2).The United States Court of Appeals for the Third Circuit reviewed the case and concluded that the settlement agreement is properly understood as a revision to the withdrawal liability assessment under the MPPAA. Since no employer began an arbitration with respect to the revised assessment, the Fund has a cause of action under 29 U.S.C. § 1401(b)(1). The Court also determined that the Fund met the procedural requirements for notice and demand under 29 U.S.C. § 1399(b)(1). Consequently, the Third Circuit reversed the District Court's order dismissing the Fund's suit and remanded the case for further proceedings. View "Central States Southeast & Southwest Areas Pension v. Laguna Dairy S.de R.L. de C.V." on Justia Law

Prestige Home Care Agency, operated by Nursing Home Care Management Inc., did not compensate its employees for travel time between clients' homes. The U.S. Department of Labor (DOL) sued Prestige for this and other violations of the Fair Labor Standards Act (FLSA). The District Court found Prestige's actions to be willful violations of the FLSA and granted summary judgment in favor of the DOL. Prestige appealed the summary judgment, the exclusion of its expert witness, and the denial of its motion for sanctions against the DOL.The District Court for the Eastern District of Pennsylvania excluded Prestige’s expert witness, denied Prestige’s motion for sanctions, and granted summary judgment for the DOL on all claims. The court found that Prestige willfully violated the FLSA by not compensating for travel time, failing to pay for short breaks, improperly compensating overtime, and not keeping accurate records.The United States Court of Appeals for the Third Circuit reviewed the case. The court held that travel time between job sites during the workday is compensable under the FLSA. It affirmed the District Court’s finding that Prestige violated the FLSA’s recordkeeping requirements and acted willfully in its violations, extending the statute of limitations to three years. The court also upheld the District Court’s calculation of back wages and liquidated damages, finding the DOL’s estimates sufficient given Prestige’s inadequate records.The Third Circuit found no abuse of discretion in the District Court’s exclusion of Prestige’s expert witness, who made several legal errors in his report. The court also upheld the denial of sanctions against the DOL, as the documents in question were already in Prestige’s possession and had little impact on the case. The Third Circuit affirmed the District Court’s judgment in all respects. View "Secretary United States Department of Labor v. Nursing Home Care Management Inc." on Justia Law

Two Starbucks employees, Echo Nowakowska and Tristan Bussiere, were terminated after engaging in labor organizing activities. Starbucks claimed the terminations were due to policy violations and poor performance. However, the National Labor Relations Board (NLRB) found that the terminations were motivated by the employees' organizing activities, violating Sections 8(a)(1) and 8(a)(3) of the National Labor Relations Act (NLRA). The NLRB sought enforcement of its order, while Starbucks cross-petitioned for review on several issues, including the constitutionality of the NLRB's administrative law judges (ALJs) and the sufficiency of evidence supporting the NLRB's conclusions.The ALJ concluded that Starbucks failed to prove it would have terminated the employees absent their organizing activities. The ALJ found substantial evidence that the terminations and reduction in hours were motivated by anti-union animus, supported by internal communications and the timing of disciplinary actions. The NLRB adopted the ALJ's findings and ordered Starbucks to reinstate the employees and compensate them for lost earnings and benefits.The United States Court of Appeals for the Third Circuit reviewed the case. The court held that it lacked jurisdiction to consider Starbucks' constitutional challenge to the ALJ removal protections and found that Starbucks failed to demonstrate injury from these protections. The court also found substantial evidence supporting the NLRB's conclusions that the terminations and reduction in hours were due to the employees' organizing activities. Additionally, the court upheld the NLRB's finding that Starbucks knew about the employees' recording activities before their terminations, precluding the use of after-acquired evidence to limit remedies.However, the court vacated the portion of the NLRB's order requiring Starbucks to compensate the employees for direct or foreseeable pecuniary harms, finding it exceeded the Board's authority under the NLRA. The case was remanded for further proceedings consistent with the court's opinion. View "NLRB v. Starbucks Corp" on Justia Law

East Penn Manufacturing Company, Inc. (East Penn) did not fully compensate its workers for the time spent changing into uniforms and showering after shifts, which was required due to the hazardous nature of their work involving lead-acid batteries. The company provided a grace period for these activities but did not record the actual time spent. The U.S. Department of Labor sued East Penn under the Fair Labor Standards Act (FLSA) for failing to pay employees for all time spent on these activities.The United States District Court for the Eastern District of Pennsylvania granted summary judgment in favor of the government, determining that changing and showering were integral and indispensable to the workers' principal activities. The jury subsequently awarded $22.25 million in back pay to 11,780 hourly uniformed workers. The District Court, however, declined to award liquidated damages. East Penn appealed the decision, and the government cross-appealed the denial of liquidated damages.The United States Court of Appeals for the Third Circuit reviewed the case and affirmed the District Court's rulings. The Third Circuit held that employers bear the burden of proving that any unpaid time is de minimis (trivial). The court also held that employers must pay for the actual time employees spend on work-related activities, not just a reasonable amount of time. The court found that the District Court's jury instructions and the admission of the government's expert testimony were proper. Additionally, the Third Circuit upheld the District Court's decision to deny liquidated damages, concluding that East Penn had acted in good faith based on legal advice, even though that advice was ultimately incorrect.In summary, the Third Circuit affirmed the District Court's judgment, requiring East Penn to compensate employees for the actual time spent on changing and showering, and placing the burden of proving de minimis time on the employer. View "Secretary United States Department of Labor v. East Penn Manufacturing Inc" on Justia Law

In April 2020, a nursing home decided to pay its employees bonuses in recognition of their efforts during the COVID-19 pandemic. These bonuses were temporary salary increases, which were gradually reduced over the next few months until salaries returned to almost original levels. The company did not notify the union representing its employees or provide an opportunity to bargain before implementing and scaling back the bonuses. The National Labor Relations Board (NLRB) determined that the bonuses were wages subject to mandatory bargaining under the National Labor Relations Act (the Act).An Administrative Law Judge (ALJ) initially found that the bonuses were gifts rather than wages and thus not subject to mandatory bargaining. The ALJ also found that the management rights clause in the collective bargaining agreement (CBA) authorized the company's actions. However, the ALJ found the company violated the Act by failing to respond to the union's information request.The United States Court of Appeals for the Third Circuit reviewed the case. The court upheld the NLRB's determination that the bonuses were wages tied to employment-related factors and constituted hazard pay, making them subject to mandatory bargaining. The court also agreed with the NLRB that the management rights clause did not survive the CBA's expiration and thus did not authorize the company's unilateral actions. The court denied the company's petition for review and granted the NLRB's cross-petition for enforcement, including the make-whole remedy for affected employees and compensation for adverse tax consequences. The court also enforced the order regarding the company's failure to respond to the information request. View "Alaris Health at Boulevard East v. National Labor Relations Board" on Justia Law