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

Articles Posted in Labor & Employment Law
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Plaintiff previously worked for the Springfield Utility Board (SUB). As part of an internal investigation into Plaintiff’s alleged misconduct, SUB restricted Plaintiff from speaking with potential witnesses and other SUB employees regarding the subject of the investigation while it was underway. Plaintiff sued SUB, certain SUB employees, and SUB’s retained counsel pursuant to 42 U.S.C. Section 1983, alleging that the investigation-related speech restrictions violated the First Amendment. The district court granted summary judgment in favor of Defendants, and Plaintiff appealed.   The Ninth Circuit affirmed the district court’s summary judgment in favor of Defendants. The panel held that the communication restriction complained of by Plaintiff did not violate the First Amendment because it did not limit Plaintiff’s ability to speak about matters of public concern. Nothing in Defendants’ instructions barred him from speaking about any alleged mismanagement at the Springfield Utility Board or other topics that would potentially relate to a matter of public concern. Rather, the restrictions merely barred him from personally discussing his own alleged violation of Springfield Utility Board policies—a matter of private, personal concern—with potential witnesses or fellow Springfield Utility Board employees. View "TODD ROBERTS V. SPRINGFIELD UTILITY BOARD, ET AL" on Justia Law

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The Washington State Criminal Justice Training Commission (“CJTC”), the City of Spokane, and others (collectively, the “CJTC Defendants”) moved for summary judgment in the district court on Plaintiff’s state law claims, asserting that they are entitled to statutory immunity under Wash. Rev. Code (“RCW”) 43.101.390(1). The district court denied summary judgment, and the CJTC Defendants appealed.   The Ninth Circuit certified to the Washington Supreme Court the following question: What is the scope of immunity provided by RCW 43.101.390? Specifically, does the provision grant immunity for intentional torts committed in the course of administering the Basic Law Enforcement Academy? View "JOHN CRUZ V. CITY OF SPOKANE, ET AL" on Justia Law

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Plaintiff sought to represent a class of individuals, known as Amazon Flex drivers, claiming damages and injunctive relief for alleged privacy violations by Amazon.com, Inc. (“Amazon”). Plaintiff contended that Amazon monitored and wiretapped the drivers’ conversations when they communicated during off hours in closed Facebook groups. The district court denied Amazon’s motion to compel arbitration, holding that the dispute did not fall within the scope of the applicable arbitration clause in a 2016 Terms of Service Agreement (“2016 TOS”). Amazon appealed, arguing that the district court should have applied the broader arbitration clause in a 2019 Terms of Service Agreement (“2019 TOS”) and that even if the arbitration clause in the 2016 TOS applied, this dispute fell within its scope.   The Ninth Circuit affirmed the district court’s order denying Amazon’s motion to compel arbitration. Under California law and principles of contract law, the burden is on Amazon, as the party seeking arbitration, to show that it provided notice of a new TOS and that there was mutual assent to the contractual agreement to arbitrate. The panel held that there was no evidence that the email allegedly sent to drivers adequately notified drivers of the update. The district court, therefore, correctly held that the arbitration provision in the 2016 TOS still governed the parties’ relationship. The panel concluded that because Amazon’s alleged misconduct existed independently of the contract and therefore fell outside the scope of the arbitration provision in the 2016 TOS, the district court correctly denied Amazon’s motion to compel arbitration. View "DRICKEY JACKSON V. AMZN" on Justia Law

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Plaintiff a devout Jehovah’s Witness, objected to California’s loyalty oath because she believed it would violate her religious beliefs by requiring her to pledge primary allegiance to the federal and state governments and to affirm her willingness to take up arms to defend them. he Controller’s Office rejected this proposal and rescinded the job offer. Plaintiff sued the Controller’s Office and the California State Controller in her official capacity, alleging violations of Title VII under both failure-to-accommodate and disparate-impact theories. She also asserted a failure-to-accommodate claim against the Controller’s Office under the California Fair Employment and Housing Act (“FEHA”), and she alleged that the refusal by both defendants to accommodate her religious beliefs violated the Free Exercise Clauses of the federal and state constitutions.   THe Ninth Circuit reversed the district court’s dismissal. The panel held that, as currently pleaded, Plaintiff’s alleged injury was redressable only through a claim for damages. The panel held that she lacked the actual and imminent threat of future injury required to have standing to seek prospective relief on any of her claims, but she could attempt to cure this defect by amendment. The panel held that Plaintiff could seek damages from the Controller’s Office on her claims under Title VII. As currently pleaded, she could not obtain damages for her free exercise claim under 42 U.S.C. Section 1983. The panel held, however, that the district court abused its discretion in denying Plaintiff leave to amend to seek damages from the State Controller in her individual capacity. View "BRIANNA BOLDEN-HARDGE V. CALIFORNIA STATE CONTROLLER, ET AL" on Justia Law

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Plaintiff filed a class action against Defendants Amazon.com Services, Inc. and Amazon.com, Inc., alleging that Defendants’ failure to compensate employees for time spent waiting for and passing through mandatory security screening before and after work shifts and breaks violates Oregon’s wage and hour laws. The district court granted judgment on the pleadings to Defendants, and Plaintiff timely appealed.   The Ninth Circuit affirmed the district court’s judgment on the pleadings in favor of Defendants. The panel had certified the following issue to the Oregon Supreme Court: “Under Oregon law, is time that employees spend on the employer’s premises waiting for and undergoing mandatory security screenings compensable?” In response, the Oregon Supreme Court held that Oregon law aligns with federal law regarding what activities are compensable. Therefore, time that employees spend on the employer’s premises waiting for and undergoing mandatory security screenings before or after their work shifts is compensable only if the screenings are either (1) an integral and indispensable part of the employees’ principal activities, or (2) compensable as a matter of contract, custom, or practice. Plaintiff’s complaint did not allege that either of the identified exceptions applied. Accordingly, the panel held that the district court properly granted judgment on the pleadings to Defendants. View "LINDSEY BUERO V. AMAZON.COM SERVICES, INC., ET AL" on Justia Law

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Plaintiffs, current and former employees of RingCentral, participated in RingCentral’s employee welfare benefits plan. The plan participated in the “Tech Benefits Program” administered by Sequoia Benefits and Insurance Services, LLC, a management and insurance brokerage company. The Tech Benefits Program was a MEWA that pooled assets from employer-sponsored plans into a trust fund for the purpose of obtaining insurance benefits for employees at large-group rates. Plaintiffs filed this putative class action on behalf of the RingCentral plan and other Tech Benefits Program participants, asserting that Sequoia owed fiduciary duties to the plan under ERISA because Sequoia allegedly exercised control over plan assets through its operation of the Tech Benefits Program. Plaintiffs alleged that Sequoia violated its fiduciary duties by receiving and retaining commission payments from insurers, which Plaintiffs regarded as kickbacks, and by negotiating allegedly excessive administrative fees with insurers, leading to higher commissions for Sequoia.   The Ninth Circuit affirmed the district court’s dismissal for lack of Article III standing. The court held that Plaintiffs failed to establish Article III standing as to either of their two theories of injury. The panel held, as to the out-of-pocket-injury theory, Plaintiffs failed to establish the injury in fact required for Article III standing because their allegations did not demonstrate that they paid higher contributions because of Sequoia’s allegedly wrongful conduct. And Plaintiffs failed to plead the third element, that their injury would likely be redressed by judicial relief. View "RACHAEL WINSOR, ET AL V. SEQUOIA BENEFITS & INSURANCE, ET AL" on Justia Law

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In a case in which federal civil immigration detainees— who are held in the Northeast ICE Processing Center (“NWIPC”), a private detention center in Tacoma, Washington, operated by GEO Group—challenge GEO’s practice of paying them less than the State’s minimum wage to work at the detention center, the Ninth Circuit certified the following questions to the Washington Supreme Court:1) In the circumstances of this case, are the detained workers at NWIPC employees within the meaning of Washington’s Minimum Wage Act (“MWA”)? 2) If the answer to the first question is yes, does the MWA apply to work performed in comparable circumstances by civil detainees confined in a private detention facility operating under a contract with the State? 3) If the answer to the first question is yes and the answer to the second question is no, and assuming that the damage award to the detained workers is sustained, is that damage award an adequate legal remedy that would foreclose equitable relief to the State in the form of an unjust enrichment award? View "UGOCHUKWU NWAUZOR, ET AL V. THE GEO GROUP, INC." on Justia Law

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Plaintiff brought an action against the TSA, alleging discrimination in violation of the Rehabilitation Act when she was terminated from her limited-duty position. According to the allegations in Plaintiff’s complaint, she suffered two injuries while working for the TSA. She alleged that she was terminated due to her disability, and despite the availability of limited duty positions that she could fill, such as “exit lane monitor,” “secondary ticket checker,” or “bypass door monitor.” Plaintiff appealed the dismissal of her Rehabilitation Act claim for the second time.
The Ninth Circuit affirmed the district court’s order dismissing, as preempted by the Aviation and Transportation Security Act (“ATSA”), Plaintiff’s claim against the TSA. The panel joined the First, Fifth, Seventh, and Eleventh Circuits in holding that the ATSA, as applicable to security screeners, preempts the Rehabilitation Act. The ATSA authorized the Administrator of the TSA to set aside employment standards for security screeners as necessary to fulfill the TSA’s screening functions under the ATSA. A statutory note to the ATSA provides that the Administrator is authorized to do so notwithstanding any other provision of law. The panel held that use of the phrase “notwithstanding any other provision of law” reflected legislative intent to preempt the provisions of the Rehabilitation Act.   Plaintiff contended that preemption was unnecessary because the two statutes could be harmonized, and preemption was foreclosed by explicit language in the Whistleblower Protection Act (“WPEA”). The panel declined to address the issue of whether the WPEA made the Rehabilitation Act generally applicable to security screeners because this issue was not raised in the district court. View "ANNA GALAZA V. ALEJANDRO MAYORKAS" on Justia Law

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While at a bar at the U.S. Embassy compound in Baghdad, Iraq, Plaintiff was shoved by an intoxicated co-worker. She was reluctant to report the incident, but she eventually acquiesced to requests of the State Department and her employer. Because of her report, Plaintiff’s employer attempted to transfer her to a different position. After initially refusing the transfer, she was fired. Plaintiff filed suit under the Defense Contractor Whistleblower Protection Act (DCWPA). The district court dismissed her complaint without prejudice, allowing leave to amend.   The Ninth Circuit affirmed the district court’s dismissal of Plaintiff’s action under DCWPA against Valiant Integrated Services, LLC, and The Electronic On-Ramp, Inc. The panel held that to survive a motion to dismiss under the DCWPA, a plaintiff must plausibly allege that: (1) she made a disclosure that she reasonably believed was evidence of a violation related to a Department of Defense contract; and (2) her employer discharged, demoted, or otherwise discriminated against her because of that disclosure. The panel held that Plaintiff did not plausibly allege a reasonable belief that her complaint about the shoving incident encompassed one of the acts described in Section 4701(a)(1)(A)-(C). The panel held that, in the context of a defense contract, a violation of law is related to the contract if it is related to the purpose of the contract or affects the services provided by the defense contractor to the Department of Defense. The panel concluded that, under this standard, Plaintiff’s complaint failed to allege a sufficient nexus between the shove and the Department of Defense-Valiant contract. View "SANA KAPPOUTA V. VALIANT INTEGRATED SERVICES, ET AL" on Justia Law

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The appeal raised the question of whether the Federal Arbitration Act (FAA) preempts a state rule that discriminates against the formation of an arbitration agreement, even if that agreement is ultimately enforceable.   The Ninth Circuit affirmed the district court’s grant of a preliminary injunction in favor of Plaintiffs, a collection of trade associations and business groups (collectively, the Chamber of Commerce); the panel held that the FAA preempted AB 51, which was enacted to protect employees from “forced arbitration” by making it a criminal offense for an employer to require an existing employee or an applicant for employment to consent to arbitrate specified claims as a condition of employment. The panel held that AB 51’s penalty-based scheme to inhibit arbitration agreements before they are formed violates the “equal-treatment principle” inherent in the FAA and is the type of device or formula evincing hostility towards arbitration that the FAA was enacted to overcome. Because the FAA’s purpose is to further Congress’s policy of encouraging arbitration, and AB 51 stands as an obstacle to that purpose, AB 51 was therefore preempted. Because all provisions of AB 51 work together to burden the formation of arbitration agreements, the panel rejected California’s argument that the court could sever Section 433 of the California Labor Code under the severability clause in Section 432.6(i) and then uphold the balance of AB 51. View "CHAMBER OF COMMERCE OF THE US, ET AL V. ROB BONTA, ET AL" on Justia Law