Justia U.S. 9th Circuit Court of Appeals Opinion Summaries

Articles Posted in Labor & Employment Law
by
Alexander Behrend, a Work Practice Apprentice (WPA) at the San Francisco Zen Center, filed an employment discrimination lawsuit under the Americans with Disabilities Act (ADA). Behrend, who lived and worked at the Center, performed various tasks including meditation, cleaning, cooking, and maintenance. He argued that his role was not ministerial because it involved mostly menial work and did not include teaching or leading the faith.The United States District Court for the Northern District of California granted summary judgment in favor of the San Francisco Zen Center. The court found that Behrend's role fell within the First Amendment’s ministerial exception, which exempts religious organizations from certain employment laws in relation to their ministers. The court determined that Behrend’s duties, although menial, were integral to the Center’s religious mission and practice.The United States Court of Appeals for the Ninth Circuit reviewed the case and affirmed the district court’s decision. The Ninth Circuit held that the ministerial exception applied to Behrend’s role as a WPA. The court emphasized that the exception is broad and includes roles that are essential to carrying out a religious organization’s mission, even if they do not involve teaching or leadership. The court concluded that Behrend’s work was a vital part of Zen training and practice, thus fitting within the ministerial exception. The court rejected Behrend’s argument that only those with key roles in preaching and transmitting the faith qualify for the exception, noting that precedent supports a broader application. The court affirmed the district court’s grant of summary judgment, upholding the application of the ministerial exception. View "BEHREND V. SAN FRANCISCO ZEN CENTER, INC." on Justia Law

by
The case involves a collective action brought by call-center workers against their employer, Customer Connexx LLC, for failing to pay overtime wages under the Fair Labor Standards Act (FLSA). The workers claimed they were entitled to overtime pay for the time spent booting up and shutting down their computers each day. Connexx required employees to be ready to take calls at the start of their shifts, necessitating pre-shift computer engagement. The workers were prohibited from clocking in more than seven minutes before their shift, and time was rounded to the nearest quarter-hour, leading to uncompensated work time.The United States District Court for the District of Nevada initially granted summary judgment in favor of Connexx, holding that the time spent on these tasks was not compensable under the FLSA because it was de minimis. The Ninth Circuit Court of Appeals reversed and remanded, instructing the district court to determine whether the time was de minimis and whether Connexx had knowledge of the overtime work. On remand, the district court again granted summary judgment to Connexx, maintaining that the time was de minimis and that Connexx had policies allowing employees to request time adjustments.The United States Court of Appeals for the Ninth Circuit reviewed the case and reversed the district court’s summary judgment. The Ninth Circuit held that the de minimis doctrine remains applicable to FLSA claims but found that there were triable issues of material fact regarding whether the time spent booting up and shutting down computers was de minimis. The court also found that there were factual disputes about whether Connexx’s policies allowed employees to be compensated for this time. The case was remanded for further proceedings to resolve these factual disputes. View "Cadena v. Customer Connexx LLC" on Justia Law

by
Domingo Musquiz, a former rail industry employee, petitioned for review of a decision by the U.S. Railroad Retirement Board (RRB). The RRB had adopted a hearing officer's finding that Musquiz was at fault for an overpayment of his reduced-age annuity under the Railroad Retirement Act (RRA) and denied his request for a waiver or reduction of repayment of the overpayment and penalty. Musquiz had failed to report his re-employment and additional income to the RRB, leading to the overpayment.The RRB's decision was based on the fact that Musquiz had received a booklet of regulations, including reporting requirements, when he applied for his annuity. The RRB concluded that Musquiz should have known about his reporting duties and was at fault when he did not report his change in employment and additional outside income.The United States Court of Appeals for the Ninth Circuit agreed with the RRB that Musquiz was at fault for the overpayment that occurred from August 2012 to June 2, 2013. However, the court concluded that Musquiz was without fault for the RRB’s overpayment of his annuity from June 3, 2013, onward. The court reasoned that by then, the RRB had informed Musquiz that they had taken his outside earnings into account and adjusted his annuity payments.The court granted Musquiz's petition, vacated the RRB's decision, and remanded the case to the RRB for further proceedings. The court instructed the RRB to develop a factual record and determine whether recovery of the overpayment from June 3, 2013, onward would be contrary to the purpose of the RRA, against equity, or against good conscience. View "Musquiz V. United States Railroad Retirement Board" on Justia Law

by
Tomas Perez, an underground haul truck driver, sued his former employer, Barrick Goldstrike Mines, Inc., alleging that the company wrongfully interfered with his rights under the Family and Medical Leave Act (FMLA) when it terminated his employment. Perez claimed that he had suffered a serious health condition that prevented him from performing his job, and that Barrick terminated his employment because he sought protected leave. Barrick, however, argued that Perez had faked his injury and violated company policy.The case was first heard in the United States District Court for the District of Nevada. The jury found in favor of Barrick, concluding that Perez failed to show by a preponderance of the evidence that he suffered a serious health condition preventing him from performing his job or that Barrick terminated his employment because he sought protected leave. Perez appealed the decision, arguing that the district court erred by not instructing the jury that only contrary medical evidence could defeat his doctor’s certification of a serious health condition.The case was then reviewed by the United States Court of Appeals for the Ninth Circuit. The court held that the FMLA does not require an employer to present contrary medical evidence before contesting a doctor’s certification of a serious health condition. Therefore, the district court did not err by failing to instruct the jury that only contrary medical evidence could defeat Perez’s doctor’s certification. The jury was allowed to properly consider the non-medical evidence that Barrick offered at trial in support of its argument that Perez did not have a serious health condition within the meaning of the Act. The court affirmed the district court’s judgment in favor of Barrick. View "Perez v. Barrick Goldstrike Mines, Inc." on Justia Law

by
The plaintiff, Purushothaman Rajaram, a naturalized U.S. citizen, alleged that Meta Platforms, Inc., refused to hire him because it preferred to hire noncitizens holding H1B visas, to whom it could pay lower wages. Rajaram claimed that this constituted employment discrimination under 42 U.S.C. § 1981, which prohibits discrimination in hiring against U.S. citizens based on their citizenship.The district court dismissed Rajaram's complaint, ruling that section 1981 does not prohibit discrimination based on U.S. citizenship. Rajaram appealed this decision to the United States Court of Appeals for the Ninth Circuit.The Ninth Circuit disagreed with the district court's interpretation of section 1981. The appellate court held that the statutory text of section 1981 prohibits employers from discriminating against U.S. citizens. The court reasoned that an employer that discriminates against U.S. citizens gives one class of people—noncitizens—a greater right to make contracts than U.S. citizens. This interpretation, the court held, is consistent with the plain language of the statute, which guarantees that all persons shall have the same right to make and enforce contracts as is enjoyed by white citizens.The Ninth Circuit reversed the district court's dismissal of Rajaram's employment discrimination action and remanded the case for further proceedings. The court concluded that section 1981 does prohibit discrimination in hiring against U.S. citizens on the basis of their citizenship. View "RAJARAM V. META PLATFORMS, INC." on Justia Law

by
The case involves Bristol SL Holdings, Inc., the successor-in-interest to Sure Haven, Inc., a defunct drug rehabilitation and mental health treatment center, and Cigna Health and Life Insurance Company and Cigna Behavioral Health, Inc. Bristol alleged that Sure Haven's calls to Cigna verifying out-of-network coverage and seeking authorization to provide health services created independent contractual obligations. Cigna, however, denied payment based on fee-forgiving, a practice prohibited by the health plans. Bristol brought state law claims for breach of contract and promissory estoppel against Cigna.The district court initially dismissed Bristol’s claims, but the Ninth Circuit Court of Appeals reversed the dismissal, holding that Bristol had derivative standing to sue for unpaid benefits as Sure Haven’s successor-in-interest. On remand, the district court granted Cigna’s motion for summary judgment, ruling that the Employee Retirement Income Security Act of 1974 (ERISA) preempted Bristol’s state law claims.On appeal, the Ninth Circuit Court of Appeals affirmed the district court's decision. The court held that Bristol’s state law claims were preempted by ERISA because they had both a “reference to” and an “impermissible connection with” the ERISA plans that Cigna administered. The court reasoned that Bristol’s claims were not independent of an ERISA plan because they concerned the denial of reimbursement to patients who were covered under such plans. The court also held that allowing liability on Bristol’s state law claims would interfere with nationally uniform plan administration, a central matter of plan administration. View "Bristol SL Holdings, Inc. v. Cigna Health and Life Insurance Co." on Justia Law

by
The plaintiff, Rhita Bercy, filed a hostile work environment claim against her employer, the City of Phoenix, alleging a single course of conduct that continued over a period of nearly two years. She filed her bankruptcy petition within that two-year period. The claim was based on conduct that occurred both before and after she filed her bankruptcy petition. The parties agreed that a claim based on conduct before the petition, and any damages resulting from that conduct, belonged to the bankruptcy estate. The question was whether Bercy could recover damages on that claim for alleged harm arising from discriminatory conduct that occurred after she filed for bankruptcy.The United States District Court for the District of Arizona granted the City's motion for summary judgment, holding that Bercy lacked standing to pursue her claim. The court reasoned that because Bercy could have brought her claim at the time of her bankruptcy petition, and any subsequent damages were sufficiently rooted in prebankruptcy incidents, the entire claim belonged to the bankruptcy estate under 11 U.S.C. § 541(a)(1).On appeal, the United States Court of Appeals for the Ninth Circuit affirmed the district court's decision. The appellate court held that Bercy's hostile work environment claim was sufficiently rooted in the prebankruptcy past and thus belonged to the bankruptcy estate. Therefore, only the bankruptcy trustee had standing to sue on the claim. The court clarified that the Bankruptcy Code provides a “fresh start” to the debtor at discharge, but not “a continuing license to violate the law.” View "Bercy v. City of Phoenix" on Justia Law

by
The plaintiff, Ronald Hittle, was the Fire Chief for the City of Stockton, California. He alleged that he was terminated from his position due to his religion, specifically his attendance at a religious leadership event. The City of Stockton, former City Manager Robert Deis, and former Deputy City Manager Laurie Montes were named as defendants. The City had hired an independent investigator, Trudy Largent, to investigate various allegations of misconduct against Hittle. Largent's report sustained almost all of the allegations, including Hittle's use of city time and a city vehicle to attend a religious event, his failure to properly report his time off, potential favoritism of certain Fire Department employees based on a financial conflict of interest not disclosed to the City, and endorsement of a private consultant's business in violation of City policy.The United States District Court for the Eastern District of California granted summary judgment in favor of the defendants. The court found that Hittle failed to present sufficient direct evidence of discriminatory animus in the defendants' statements and the City's notice of intent to remove him from City service. The court also found that Hittle failed to present sufficient specific and substantial circumstantial evidence of religious animus by the defendants.On appeal, the United States Court of Appeals for the Ninth Circuit affirmed the district court's decision. The appellate court held that employment discrimination claims under Title VII and the California Fair Employment and Housing Act are analyzed under the McDonnell Douglas burden-shifting framework. The court concluded that Hittle failed to present sufficient direct evidence of discriminatory animus in the defendants' statements and the City's notice of intent to remove him from City service. Hittle also failed to present sufficient specific and substantial circumstantial evidence of religious animus by the defendants. The court found that the district court's grant of summary judgment in the defendants' favor was appropriate where the defendants' legitimate, non-discriminatory reasons for firing Hittle were sufficient to rebut his evidence of discrimination, and he failed to persuasively argue that these non-discriminatory reasons were pretextual. View "HITTLE V. CITY OF STOCKTON" on Justia Law

by
Yuriria Diaz, a former employee of Macy's West Stores, Inc., filed a lawsuit under the California Private Attorneys General Act (PAGA) for alleged violations of California's labor code. Macy's appealed the district court's order compelling arbitration of all Diaz's claims. The United States Court of Appeals for the Ninth Circuit affirmed the district court's order compelling arbitration of Diaz's individual PAGA claims, but vacated the order to the extent it compels arbitration of her non-individual claims.Previously, the district court had compelled arbitration of all Diaz's claims, interpreting the arbitration agreement between Diaz and Macy's to include non-individual PAGA claims. The court denied Diaz's request for a stay and closed the case, stating there were no remaining claims before the court.The Ninth Circuit concluded that it had jurisdiction to review the district court's order as a final decision with respect to arbitration. The court found that at the time of contracting, the parties consented only to arbitration of individual claims relating to Diaz's own employment. The agreement's language was strongly indicative of an intent to exclude any amalgamation of employees’ claims—including non-individual PAGA claims—from arbitration.The court rejected Macy's request that the district court on remand be instructed to dismiss the non-individual claims because under a recent California Supreme Court decision, those claims cannot be dismissed. The court remanded with instruction to treat the non-arbitrable non-individual claims consistent with the California Supreme Court’s decision, anticipating that the parties will, per their agreement, request a stay with respect to those claims. View "Diaz v. Macy’s West Stores, Inc." on Justia Law

by
The case involves pension plan participants, Evelyn Wilson and Stephen Bafford, who alleged that the plan administrator, the Administrative Committee of the Northrop Grumman Pension Plan, violated the Employee Retirement Income Security Act (ERISA) by not providing pension benefit statements automatically or on request, and by providing inaccurate pension benefit statements prior to their retirements. The district court initially dismissed the case, but on appeal, the Ninth Circuit Court of Appeals affirmed in part and vacated in part the dismissal, allowing the plaintiffs to file amended complaints.Upon remand, the plaintiffs filed amended complaints, but the district court dismissed their claims again. The plaintiffs appealed once more to the Ninth Circuit Court of Appeals. The Ninth Circuit held that the lower court's prior mandate did not preclude the plaintiffs from pleading their claim for violation of ERISA on remand. The court also held that the plaintiffs stated a viable claim under ERISA by alleging that the plan administrator provided substantially inaccurate pension benefit statements.The court rejected the administrator’s argument that there were no remedies available for the ERISA violations the plaintiffs alleged. As a result, the Ninth Circuit reversed the district court’s dismissal of the plaintiffs’ claims and remanded the case for further proceedings. View "BAFFORD V. ADMINISTRATIVE CMTE. OF THE NORTHROP GRUMMAN PLAN" on Justia Law