California Appeals Court: Employee Must Arbitrate Employment Dispute
Why it matters: Holding that an employee was equitably estopped from denying a defendant’s right to arbitrate an employment dispute, a California appellate court affirmed a trial court’s grant of a motion to compel arbitration. Real Time Staffing Services hired Narciso Garcia as an hourly employee. As part of the hiring process, Garcia filled out an employment application that included an arbitration agreement. Garcia was then assigned to work for Pexco LLC. When Garcia later sued both Real Time and Pexco for violations of the state’s Labor Code, the defendants moved to compel arbitration. Garcia objected, arguing that Pexco was not a signatory to the arbitration agreement. A trial court granted the motion to compel, and the appellate panel affirmed. Each cause of action in the complaint was alleged against “All Defendants,” with no distinction between Real Time and Pexco, the court said, leaving Garcia’s claims intertwined between the defendants. “On these facts, it is inequitable for the arbitration of Garcia’s assignment to proceed with Real Time, while preventing Pexco from participating,” the court wrote. Read more
Supreme Court Won’t Weigh In on FLSA Definition of “Wages”
Why it matters: The U.S. Supreme Court denied certiorari in a case defining what constitutes “wages” to calculate overtime pay under the Fair Labor Standards Act, leaving in place the expansive interpretation adopted by the U.S. Court of Appeals for the Ninth Circuit. The city of San Gabriel, California, had a policy of permitting workers to receive “cash-in-lieu” payments when they purchased less medical insurance coverage (because of coverage under a spouse’s plan, for example). But the city did not include these payments when determining a worker’s regular rate of pay for purposes of calculating overtime under the FLSA, triggering a collective action. After a split decision from a district court, the Ninth Circuit sided with the employees. Even though the “in-lieu” amount was not a payment based on the number of hours worked, it was still compensation that must be included in the overtime calculation, the panel wrote, relying in part on the U.S. Department of Labor’s interpretation of the statute. The city filed a writ of certiorari, but the justices denied it without comment, leaving the Ninth Circuit’s opinion in place despite contrary authority from the Third, Sixth and Tenth Circuits, where the courts have adopted more narrow readings of what constitutes “wages.” Read more
Lack of Detail in EEOC Charge Doesn’t Mandate Dismissal of a Lawsuit
Why it matters: The lack of detail found in a plaintiff’s charge with the Equal Employment Opportunity Commission did not require dismissal of the subsequent lawsuit for failure to exhaust administrative remedies, the U.S. Court of Appeals for the Tenth Circuit determined in a sexual harassment suit. Seeking to sue Needham Trucking LLC and a company shareholder, Bryan Jones filled out an intake questionnaire with the EEOC. In response to multiple questions asking for detailed explanations, Jones wrote “[s]ee attached.” The EEOC never received the attachment and did not tell Jones it was missing, but prepared a charge form and issued a right-to-sue letter on his behalf. Jones then filed a Title VII suit. Needham moved to dismiss for failure to exhaust administrative remedies, arguing that the facts alleged in the charge were insufficient to put it on notice of the claims made in the complaint. A district court granted the motion, but the Tenth Circuit reversed. Although Jones’ complaint was “undoubtedly” more detailed than his charge form, the form only needs to “describe generally” the alleged discrimination, the panel held. Read more
NLRB ALJ Strikes Down 17 Employer Policies
Why it matters: More than a dozen policies—including one requiring an employer’s approval before a worker could make a social media post—were shot down by a National Labor Relations Board administrative law judge in a decision involving a real estate management services company. Patrick Thurman filed a charge with the agency last year, pointing to several policies in the Newmark Grubb Knight Frank handbook that he said violated the National Labor Relations Act. For example, the company required employees to “avoid activities … inconsistent with the best interests of the company and our clients,” and mandated that workers get permission from management before posting about the company on social media. An ALJ agreed with Thurman that the challenged policies (17 in all) violated the statute. Other policies that failed to pass muster included one banning clothing with printed slogans or promotions, as well as another prohibiting the use of company technology for personal use. The decision serves as a reminder to employers that the NLRB continues to keep a close eye on employer handbooks and policies on a wide range of topics, from clothing to social media to technology use. Read more
|
