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

KCI’s Transit Division provides bus and shuttle services on 32 set routes, four of which cross state lines. From 2009 through 2012, its revenue generated by interstate routes fluctuated between 1.0% and 9.7%. KCI trains drivers on multiple interstate and intrastate routes. KCI may assign a driver to any route on which he has been trained, including interstate routes, and may discipline a driver who refuses to drive an assigned route. As a “common carrier by motor vehicle” authorized to engage in interstate commerce, KCI is subject to Federal Motor Carrier Safety Administration (FMCSA) regulations and possesses a U.S. Department of Transportation registration number. KCI provides each driver with a “Federal Motor Carrier Safety Regulations Pocketbook” detailing the driver’s responsibilities under DOT regulations. Plaintiffs were drivers who, during the relevant period, worked more than 40 hours in a week without receiving overtime pay; 1.3% of their trips required them to cross state lines. Resch filed a purported collective action to recover unpaid overtime. The district court conditionally certified a class. The Third Circuit affirmed summary judgment in favor of KCI, holding that Plaintiffs are ineligible for overtime under the Motor Carrier Act exemption to the Fair Labor Standards Act, 29 U.S.C. 213(b)(1), and Pennsylvania Minimum Wage Act. View "Resch v. Krapf's Coaches Inc" on Justia Law

Woodcrest operates a rehabilitation and nursing facility. The Union filed a petition for an election and Woodcrest employees voted to unionize. Woodcrest filed objections to the election and the Union filed a charge alleging that Woodcrest committed various unfair labor practices (29 U.S.C. 151-169). The National Labor Relations Board (NLRB) issued a first amended complaint against Woodcrest, and the case was tried before an Administrative Law Judge, who found that Woodcrest committed unfair labor practices by withholding benefits from election-eligible employees and by engaging in three coercive interrogations of election-eligible employees, but that Woodcrest did not create an unlawful impression of surveillance in another exchange with an employee. The NLRB affirmed the ALJ’s decision with respect to the benefit withholding and interrogation claims, but it reversed with respect to the surveillance claim. The Third Circuit affirmed with regard to the Board’s conclusions that Woodcrest coercively interrogated at least one employee and by created an unlawful impression of surveillance. The court vacated the conclusion that Woodcrest’s withholding of benefits from unit employees violated the Act and remanded. View "800 River Road Operating Co LLC v. Nat'l Labor Relations Bd." on Justia Law

McMaster worked for Eastern, an armored courier company, as a driver or guard. Her assignment changed daily. McMaster spent 51% of her total days working on vehicles rated heavier than 10,000 pounds, and 49% of her total days working on lighter vehicles. She was paid by the hour and frequently worked more than 40 hours per week. She was not paid overtime. After McMaster left Eastern, she filed a purported class action claiming that the Fair Labor Standards Act required Eastern to pay overtime wages , 29 U.S.C. 216(b). The dispute centered on the Act’s the Motor Carrier Act Exemption. According to McMaster, she fell within an exception to the exemption, enacted prior to her employment. The Corrections Act waives the exemption for motor carrier employees who, in whole or in part, drive vehicles weighing less than 10,000 pounds and states: “Section 7 of the Fair Labor Standards Act . . . appl[ies] to a covered employee notwithstanding section 13(b)(1) of that Act.” The district court held that McMaster was eligible for overtime for all hours she worked over 40 in a workweek. The Third Circuit affirmed. McMaster met the criteria of a “covered employee” and was entitled to overtime. View "McMaster v. Eastern Armored Servs., Inc" on Justia Law

In 2007, Werkheiser was elected to the three-member Pocono Township Board of Supervisors. Supervisor Hess was elected in 2009; Bengel was elected in 2011. Supervisors are permitted to be employed by the Township. Werkheiser was appointed Township Roadmaster by the Board. Hess, as Chairman of the Board, Secretary, and Treasurer, received $36,000 per year in salary and benefits. In 2012, Hess took 10-days leave. Froio was selected to assume Hess’s administrative duties. Over Werkheiser’s objection, Bengel and Hess voted to hire Froio as Township Administrator, with compensation of $70,000. As Froio’s position developed, Hess’s responsibilities and workload decreased. Hess continued to be paid. Werkheiser objected to creation of a new position with greater expense and to paying Hess when his duties were being performed by Froio. Hess and Bengel began private deliberations to deny Werkheiser reappointment and to replace him with Bengel. In 2013, Werkheiser was formally denied reappointment. Werkheiser sued, asserting First Amendment retaliation and state law violations. The district court reasoned that there were important differences between public employees and elected officials; found that Werkheiser had established a constitutional violation; and denied a motion to dismiss. The Third Circuit held that the defendants were entitled to qualified immunity; the contours of the First Amendment right at issue were not clearly established. View "Werkheiser v. Pocono Township" on Justia Law

Knight, a member of the International Longshoremen’s Association, was financial secretary for the Local. In 2000, he distributed a flier stating the Local was hosting the Worker’s Coalition. McBride, director of Diamond State Port Corporation (which operates the Port of Wilmington where Union members work) offered to be a speaker and contributed $500 to the hotel hosting the meeting. The Union’s national vice president, Paylor, told McBride that Worker’s Coalition was not affiliated with the Union. McBride withdrew as a speaker, but he did not seek return of the $500. Knight filed Union charges against Paylor for interfering with the Local. Paylor counter-charged, alleging frivolous claims and using the Union name without permission. A hearing board cleared Paylor, but decided that Knight committed violations. Knight filed suit. On first remand, the district court ordered and the Union created a new policy and held a new hearing. The Union did not comply with an order to change its constitution. On second appeal, the Third Circuit held that Knight’s due process rights were not violated in the second hearing, but the district court awarded Knight attorney’s fees ($243,758.34), costs, and interest, reasoning that, because of Knight’s suit, Union members: can no longer be disciplined for harmless references to the Union name or logo; are more aware of disciplinary hearing due process rights; and, are properly informed about the Act. On third appeal, the Third Circuit affirmed. View "McBride v. Int'l Longshoremens Ass'n" on Justia Law

In 1999, Allstate reorganized its business and terminated the at-will employment contracts of about 6,200 sales agents, offering them conversion to independent contractor status; $5,000 and an economic interest in their accounts, to be sold to buyers approved by Allstate; severance pay equal to one year’s salary; or severance pay of 13 weeks’ pay. Employees who chose independent contractor status received a bonus of at least $5,000, were not required to repay any office-expense advances, and acquired transferable interests in their business two years after converting. All employees who chose not to convert and left the company were bound by noncompetition covenants in their original contracts. As a condition of becoming independent contractors, agents were required to sign a release waiving existing legal claims against Allstate. The Equal Employment Opportunity Commission sued, claiming that the company violated federal anti-retaliation laws. The district court reversed. The Third Circuit affirmed, noting the settled rule that employers can exchange consideration for releases of claims and that EEOC established neither protected activity nor an adverse action. View "Equal Emp't Opportunity Comm'n v. Allstate Ins. Co" on Justia Law

Heffernan joined the Paterson Police Department in 1985 and became a detective. In 2006, Spagnola, a former Paterson police chief and Heffernan’s friend, sought to unseat the incumbent mayor. Heffernan hoped that Spagnola would win, but was unable to vote for Spagnola based on his city of residence, did not work on the campaign, and did not consider himself “politically involved.” At the request of his bedridden mother, Heffernan picked up a Spagnola campaign sign, to replace one that had been stolen from her lawn. An officer assigned to the Mayor’s security staff observed Heffernan’s encounter with the Spagnola campaign manager. The next day, Heffernan was demoted to a “walking post” because of his “overt[] involvement in a political election.” Heffernan sued under 42 U.S.C. 1983. His free-association claim resulted in a jury verdict of $105,000. The judge retroactively recused himself and vacated the verdict. A new judge granted the defendants summary judgment on a free-expression claim; on remand, another judge concluded that Heffernan had adequately pleaded and prosecuted his free-association claim, but found that Heffernan did not establish that he actually exercised his First Amendment rights. The Third Circuit affirmed; claims of retaliation based only on the perceived exercise of those rights are foreclosed. View "Heffernan v. City of Paterson" on Justia Law

The Bureau of Prisons terminated Kannikal on September 3, 1999. In 2001, Kannikal filed a formal complaint with the EEOC, but he did not receive an administrative hearing until 2006. Kannikal’s case was then held in abeyance because it was considered part of a pending class action complaint. In 2007, the Department of Justice informed Kannikal that his case would no longer be held in abeyance. Kannikal asked the EEOC about his case status in 2008 and 2009, but never received a response. He filed suit on March 28, 2012. The district court dismissed, citing 28 U.S.C. 2401(a), which provides that “every civil action commenced against the United States shall be barred unless the complaint is filed within six years after the right of action first accrues.” The court held that Kannikal’s cause of action accrued on October 17, 2001, 180 days after he filed his EEOC complaint, and expired six years later. The Third Circuit vacated, finding that section 2401’s six-year limitations period does not apply to suits brought under Title VII. View "Kannikal v. Att'y Gen. of the United States" on Justia Law

Daniels is an African-American educator born in 1950. She has a masters degree in elementary education and is certified as a reading specialist. She sued her former employer, the School District of Philadelphia, alleging violations of the Age Discrimination in Employment Act, 29 U.S.C. 621; Title VII of the Civil Rights Act, 42 U.S.C. 2000e; and the Pennsylvania Human Relations Act, substantively and by retaliating against her because she opposed what she believed was SDP’s discriminatory conduct in violation of the acts. The district court entered summary judgment in favor of the district. She appealed only the retaliation claim. The Third Circuit affirmed. Daniels failed to establish a causal link between her protected activities and the adverse actions; she did not show an “unusually suggestive” temporal proximity. View "Daniels v. Philadelphia Sch. Dist." on Justia Law

Flora worked as Luzerne County Public Defender from 1980- 2013. He became Chief Public Defender in 2010, maintaining a private practice. His predecessor had tried to secure additional funding by submitting weekly reports concerning excessive caseloads and staffing deficiencies. Flora obtained grant funding for representing juveniles, but was not able to obtain additional money for adult offenders. Flora reported that the existing level of resources did not allow the Office to provide constitutionally adequate representation. The County was unresponsive, so Flora refused representation to those not faced with incarceration. In 2012 Flora initiated a class action lawsuit on behalf of indigent defendants and sought an injunction to prevent his firing. The state court ordered the County to provide adequate funding and prohibited refusing representation to indigent defendants. While the parties were in mediation, the County approved new positions. The funding litigation followed the “Kids for Cash” scandal. From 2003-2008, about 50% of Luzerne County juvenile offenders appeared in court without counsel. Virtually all were adjudicated delinquent. Federal investigators uncovered that judges had accepted kickbacks from for-profit juvenile detention facilities to send unrepresented juveniles to those facilities. The Pennsylvania Supreme Court ordered vacatur and expungement of thousands of delinquency adjudications. Flora alleges that, in 2013, he learned that 3,000 adjudications had not been expunged and reported the matter. Flora was relieved of his duties. Flora sued, alleging retaliation for his funding lawsuit and for reporting noncompliance with the expungement order. The district court dismissed. The Third Circuit vacated, finding that, under the Supreme Court’s 2014 decision, Lane v. Franks, Flora pled facts sufficient to allege that he spoke as a citizen. View "Flora v. County of Luzerne" on Justia Law