Third Circuit Reverses NLRB’s Determination In Favor of Union Workers

By ,

SPG

The Third Circuit Court of Appeals recently ruled that an employer’s threat and subsequent call to the police regarding union organizers on both public and company property did not violate 29 U.S.C. § 157 Section 8(a)(1). National Labor Relations Board v. ImageFirst Uniform Rental Service., No. 17-3680, 2018 WL 6614237 (3d Cir. December 18, 2018). The case arose from an incident in which ImageFirst, a health care laundry service provider, called the police on union members who were distributing pro-union literature on and near their Columbia, PA facility. The manager called the police and requested the union workers be removed from company property and a grassy area which abutted the road. The union ultimately filed a complaint and alleged that ImageFirst unlawfully interfered with union activities under 29 U.S.C. § 157 Section 8(a)(1). An administrative judge decided the trespassing was too insignificant to warrant a removal of the union members. The NLRB affirmed the decision.

In reversing, the Third Circuit Court found that substantial evidence did not support the finding by the NLRB that ImageFirst’s threat to call the police and the company’s call to the police were motivated solely by a desire to remove the union representatives from the public right-of-way. Rather, the Court concluded that “no reasonable fact finder could have failed to find that ImageFirst’s conduct was motivated by broader concerns over its property interests, implicated by the union representative’s repeated and ongoing forays onto its private property.” Therefore, the company’s concern was reasonable and the Court denied enforcement of the NLRB findings.

At the Law Offices of Sidkoff, Pincus & Green, our experienced Pennsylvania and New Jersey attorneys handle many types of legal matters. If you are interested in having a consultation with one of our attorneys, please call us at 215-574-0600 or contact us online.

  Category: Business Law
  Comments: Comments Off on Third Circuit Reverses NLRB’s Determination In Favor of Union Workers
  Other posts by

Termination One Month After Requesting FMLA Leave Creates Sufficient Casual Link

By ,

SPG

In Ha Long v. Spalding Auto. Inc., the Eastern District Court of Pennsylvania—ruling on a motion to dismiss—determined that the plaintiff may proceed on his FMLA retaliation claim against his former employer because there were sufficient facts to establish a prima facie case for FMLA retaliation. No. CV 17-4865, 2018 WL 6244755, at *4 (E.D. Pa. Nov. 29, 2018). In Ha Long, the plaintiff sued his former employer alleging employment discrimination and retaliation. Plaintiff began his employment with Defendant in 2013 and was diagnosed with thoracic disease and disc disease in September 2015. Throughout his employment, Plaintiff periodically needed to request time off and needed accommodations due to his health conditions. Later, in March 2016, Plaintiff requested FMLA leave to attend to his daughter’s needs, as she was undergoing surgery. Initially, the FMLA request was not approved; however, the employer approved the FMLA leave after Plaintiff contacted his union representative, who contacted the chief operating officer. Then in June 2016, Plaintiff again had to request FMLA leave due to the pain he was experiencing as a result of his medical condition. On July 1, 2016, Defendant approved this request, conditioned upon Plaintiff sending appropriate FMLA documents within fifteen (15) days. Plaintiff allegedly complied with this request, but on August 1, 2016, Defendant terminated Plaintiff claiming the documentation was never received and citing attendance issues.

In order to state a viable claim for FMLA retaliation, the plaintiff here must be able to show that: (1) he engaged in protected employee activity; (2) he suffered an adverse employment action; and (3) the adverse action was causally related to the protected activity. Based on the facts at hand, the Court found that the plaintiff has alleged sufficient facts in order to defeat a motion to dismiss his FMLA retaliation claim. The Court recognized that the one-month gap between plaintiff requesting FMLA leave and his subsequent termination created a reasonable link that they may be related.

The statutes, regulations, and case law that govern the employer-employee relationship are constantly evolving. If you have questions about a legal situation, contact the Philadelphia employment lawyers at the Law Office of Sidkoff, Pincus & Green P.C. today to schedule a confidential consultation. We can be reached at 215-574-0600 or by submitting a convenient online contact form.

Dittman v. UPMC Ruling – Pennsylvania’s Economic Loss Doctrine Permits Recovery for “Purely Pecuniary Damages” on Negligence Claims

By ,

SPG

In 2014, a group of employees from the University of Pittsburgh Medical Center (UMPC) filed a class action lawsuit against the organization, claiming that a breach in data compromised sensitive personal employee information, including social security numbers, tax information, and confidential bank account information. The plaintiffs alleged that UMPC failed to adopt the appropriate security measures, which increased the risk of identity theft and other crimes.

In a landmark decision, the Pennsylvania Supreme Court held that employers have a legal duty to protect employee information that is stored on internet-accessible computer systems. In addition, by limiting the economic loss doctrine, claimants can sue for economic losses resulting from a failure to protect their personal data.

According to the plaintiffs involved in the Dittman v. UPMC case, as a condition of employment, they were required to provide certain personal information, including Social Security numbers and bank account information. As a result, the plaintiffs argued that UPMC had a duty to protect their information against the threat of identity theft crimes.

The plaintiffs alleged that UPMC breached this duty by failing to implement effective security measures, including encryption programs, firewalls, and adequate authentication protocols. The plaintiffs sought economic damages for losses associated with fraudulent tax returns, as well as the potential risk of identity theft crimes.

Significance of the Pennsylvania Supreme Court Ruling

The Court’s decision in the Dittman v. UPMC case made the rule of law in Pennsylvania very clear. Employers who collect personal data must take reasonable measures to protect that information. The Pennsylvania Supreme Court also adopted a wide interpretation of the economic loss doctrine, and found that employees may recover economic losses in a variety of tort actions. By limiting the economic loss doctrine, claimants can now sue for the economic losses resulting from a failure to protect personal data.

The Court’s decision also reflects the rise in cyberattacks, and the growing need for improved cybersecurity frameworks. The lower court found that employers should not be held responsible for security breaches that were not preventable. However, the PA Supreme Court overturned this argument, because companies are now expected to take advantage of the latest cybersecurity systems that protect confidential employee data.

Because of the expansive interpretation of the economic loss doctrine, defendants will not be able to rely on this line of defense to summarily dismiss negligence claims.

Philadelphia Business Lawyers at the Law Office of Sidkoff, Pincus & Green P.C. Represent Employees in Legal Disputes

If your employer failed to take adequate security measures to protect your personal information against the threat of cyberattacks, contact the Philadelphia business lawyers at the Law Office of Sidkoff, Pincus & Green P.C. Protecting your rights is our top priority, and we will work tirelessly to secure the maximum financial compensation you deserve. To schedule a confidential consultation, call us today at 215-574-0600 or contact us online. Our offices are conveniently located in Philadelphia, where we serve clients throughout Southeastern Pennsylvania, South Jersey, and across New Jersey.

Third Circuit Rules in Favor of Employer in Wrongful Termination Case

By ,

SPG

A former maintenance mechanic for East Penn Manufacturing Co. filed a lawsuit against the company, claiming that he was wrongfully terminated after allegedly damaging a laptop computer that belonged to the company. The employee attempted to establish a connection between his termination and a previous work-related injury, suggesting that he was discriminated against for the disabling injury. According to the U.S. Court of Appeals for the Third Circuit, there was insufficient evidence to establish a link between his termination and the injury.

After injuring his left knee in a work-related injury in 2012, the plaintiff underwent surgery to fix the problem. He was out of work and on disability leave for approximately eight months. He received Workers’ Compensation benefits during this time. He started to experience pain in the same knee in 2013, and submitted a claim for Workers’ Compensation benefits, but his claim was denied. After undergoing a second surgery in 2014, he was out of work again for several months. When he recovered, he was able to return to his position and collect the same salary.

According to the plaintiff, when he returned to work, he was disciplined for taking too much time off after the second surgery. A personnel director at East Penn scheduled a disciplinary meeting and explained the company’s policy regarding sick days and absences. Several months later, he was accused of throwing an object, which damaged a company-owned laptop. A personnel director confronted him about the incident, but he denied it. He was suspended pending an investigation, and ultimately fired.

The District Court ruled that no reasonable jury would find a link between the plaintiff’s firing and his workplace injury. However, the plaintiff argued that he presented enough evidence to support the claim that he was fired because of his injury, and that the district court set too high a standard for proving a prima facie case.

Earlier this month, the Third Circuit affirmed the lower court’s summary judgment. According to the Third Circuit, East Penn had a legitimate reason for terminating the plaintiff, who failed to provide sufficient evidence to support his claim. The company had a written statement from another East Penn employee who witnessed the plaintiff throw the object that damaged the laptop computer. The Court ruled that summary judgment, based on the lack of causal link, was appropriate.

Philadelphia Business Lawyers at the Law Office of Sidkoff, Pincus & Green P.C. Represent Clients in Wrongful Termination Cases

If you have been wrongfully terminated, or your employee rights have been violated, contact the Philadelphia business lawyers at the Law Office of Sidkoff, Pincus & Green P.C. We will protect your rights and secure the maximum financial compensation you deserve. To schedule a confidential consultation, call us today at 215-574-0600 or contact us online. Our offices are conveniently located in Philadelphia, where we serve clients throughout southeastern Pennsylvania and New Jersey.

Jury Awards $6M to Teva Executive in Discrimination Lawsuit

By ,

SPG

An executive at Teva Pharmaceuticals was recently awarded $6 million by a federal jury in a discrimination lawsuit. The plaintiff was a senior director for the Israeli-based company and had worked for the company since 2001. He was fired from the company in 2016, when he was 58 years old. He alleged that he was wrongfully terminated because of his age and national origin.

Details of the lawsuit allege that the plaintiff’s supervisor had a history of making anti-American comments. For example, he stated that the United States did a poor job of providing adequate military support to Israel in the conflict with the Middle East. According to the plaintiff, the Israeli supervisors did not provide American employees with information when it was requested, and they told him that hiring decisions were made based on employees’ ages. In addition, the Israeli supervisors regularly requested additional data about American employees.

In response to the perceived unfair treatment, a group of American employees filed a report alleging cultural bias. The plaintiff also stated that the Israeli supervisors micromanaged the American employees. After reviewing the report, the higher-ups at the company terminated the plaintiff for deficient performance, even though he had never received a negative performance review in his tenure with the company.

The company made a request for a summary judgment, but the request was denied as the Pennsylvania federal trial court found that there was enough evidence to send the case to trial. Employers can claim reverse discrimination or prevent a discrimination claim if they can provide accurate reasons for the employment decisions that they made, including detailed documentation for their decision-making process.

Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Represent Employees in Discrimination Cases

If your employee rights have been violated or you have been discriminated against by another employee, you are urged to contact the Philadelphia employment lawyers at Sidkoff, Pincus & Green P.C. We will review the details of your case and recommend the best legal course of action. To schedule a confidential consultation, call us today at 215-574-0600 or contact us online. Our offices are conveniently located in Philadelphia, where we serve clients throughout southeastern Pennsylvania and New Jersey.

Any Company Registered to Do Business in Pennsylvania Now Subject to Lawsuits

By ,

SPG

The Pennsylvania Superior Court ruled in September that companies that are registered to conduct business in Pennsylvania may now be sued in the Pennsylvania state courts. Murray v. Am. LaFrance, LLC, 2018 Pa. Super. 267 (Pa. Super. 2018).  This includes foreign-based corporations who are registered to do business in Pennsylvania. Murray follows a June 28, 2018 Superior Court decision, Webb-Benjamin, LLC v. International Rug Group, LLC, which also granted personal jurisdiction over foreign-based businesses.

In this context, “foreign corporation” refers to a company that is registered to do business in a different jurisdiction or state than that which it is incorporated in.

The ruling followed a case involving a group of New York firefighters who had experienced hearing loss as a result of excessive occupational noise exposure from fire engine sirens. The firefighters sued Federal Signal Corporation, a foreign corporation registered in Pennsylvania.

In support of its ruling, the Superior Court examined Bors v. Johnson & Johnson, an Eastern District of Pennsylvania case which held that “consent remains a valid form of establishing personal jurisdiction under the Pennsylvania registration statute after Daimler.” Daimler was a 2014 Supreme Court case which held that a normally a foreign corporation must be “at home” in a state before the state court can exercise personal jurisdiction over it. However, the Supreme Court in Daimler did not address whether a business can consent to a state court’s jurisdiction based on the state’s business registration requirements.

The Bors court found that Pennsylvania’s statue informs the registrant about the jurisdictional effect of registering to do business in the state. As a result, by consenting to register, a corporation submits to jurisdiction for all purposes.

Unless and until Murray and Webb-Benjamin are appealed, and a higher court reverses the Superior Court’s rulings, foreign corporations registering to conduct business in Pennsylvania will considered consenting to personal jurisdiction.

Philadelphia Business Lawyers at the Law Office of Sidkoff, Pincus & Green P.C. Provide Legal Counsel to Pennsylvania Employees

If you intend to file a lawsuit against your employer, who is registered as a foreign corporation, you are urged to contact the Philadelphia business lawyers at the Law Office of Sidkoff, Pincus & Green P.C. To schedule a confidential consultation today, call us at 215-574-0600 or contact us online. Our office is conveniently located in Philadelphia where we represent clients in Pennsylvania and New Jersey.

  Category: Business Law
  Comments: Comments Off on Any Company Registered to Do Business in Pennsylvania Now Subject to Lawsuits
  Other posts by

Supreme Court’s Decision Impacts Employee Rights

By ,

SPG

Earlier this year, the Supreme Court’s conservative majority made a ruling that will likely have a considerable impact on employee rights in this country. In the case of Epic Systems Corp. v. Lewis, the court’s 5-4 decision brings attention to the issue of whether a company can require its employees to settle employment disputes through individual arbitration, rather than allowing them to combine their collective efforts to protest complaints including job discrimination, wage and hour disputes, and sexual harassment. The decision, which ruled in favor of employer, Epic Systems Corp., expands on a previous Supreme Court decision that allows corporations to avoid class-action lawsuits by enforcing contracts that require individual arbitration.

In making its decision, the Court had to interpret the Federal Arbitration Act (FAA) and the National Labor Relations Act (NLRA). According to the FAA, federal courts must enforce arbitration agreements according to their terms, including those that provide for individualized proceedings. The NLRA states that it is illegal for any contract to deny an employee the right to form or participate in labor organizations, to bargain collectively, or to engage in certain activities for the purpose of collective bargaining, or “mutual aid and protection.” The court had to decide whether the no-group-arbitration clause provides adequate grounds to prohibit employees from pursuing individual arbitration.

The Supreme Court decision, written by Justice Neil Gorsuch, ignited a debate among the liberal and conservative Justices, particularly Justice Ruth Bader Ginsburg, who described the decision as destructive to employee rights because it would prevent employees from unionizing. In his majority opinion, Gorsuch wrote that federal courts were instructed by Congress to enforce arbitration agreements according to their terms. Gorsuch also commented that Ginsberg’s objections are to policy, and those decisions are made by policymakers in those political branches. Gorsuch acknowledged that the FAA had a saving clause that urged courts to refrain from enforcing arbitration agreements that were illegal. However, the Court ruled that the FAA makes individual arbitration agreements enforceable and that the saving clause does not override the outcome.

Impact of Court’s Decision

There are millions of Americans whose employee contracts require individual arbitration over collective actions. Some argue this decision may allow employers to be less accountable to their employees. They also say it will make employees less likely to voice their concerns due to the high cost and significant amount of time and effort associated with individual arbitration. In her dissenting decision, Justice Ginsburg opined that a Congressional correction was needed in order to overturn the majority decision and protect employees. In addition to wage-related issues, this would also impact how sexual harassment in the workplace would be handled. Others believe that the decision will benefit employees because there will be an added incentive to ensure that there are fair arbitration agreements. In addition, arbitration is typically less costly than pursuing a case in court.

Philadelphia Employment Lawyers at the Law Office of Sidkoff, Pincus & Green P.C. Guide Clients in Employment-Related Disputes

If you have questions about employment contracts, contact the Philadelphia employment lawyers at the Law Office of Sidkoff, Pincus & Green P.C. at your earliest convenience. To schedule a consultation, call us at 215-574-0600 or contact us online today. Our offices are conveniently located in Philadelphia, where we serve clients throughout Southeastern Pennsylvania and New Jersey.

Expanded Definition of “Sex” Protects Rights of LGBTQ Community in Pennsylvania

By ,

SPG

The Pennsylvania Human Relations Commission recently released new guidelines for handling discrimination complaints based on gender identity or sexual orientation. The Commission expanded its legal definition of “sex” to include not only the individual’s biological sex, but also his or her sexual orientation, gender expression, gender transition, and gender identity. As a result, LGBTQ Pennsylvanians may now file civil complaints with the Commission if they believe that they have been denied employment, education, housing opportunities, or public accommodations on the basis that identify as LGBTQ.

More Comprehensive Legislation Needed

While this change is an important step for LGBTQ rights, it does not take the place of comprehensive, state-wide legislation, according to the advocacy group, Equality PA. Since the 1990s when the laws were updated, the General Assembly declined to change the laws on several occasions. Local municipalities, including Philadelphia and Pittsburgh, have passed ordinances that help to add gender identity and sexual orientation as protected classes. However, a proposal in Harrisburg may jeopardize those laws.

Many people already assumed that protections were in place, so the updated guidelines bring the law in line with protections that people thought already existed. Prior to the updated guidelines, Pennsylvanians who wanted to pursue legal action against an employer for discrimination had to file a Title VII lawsuit against their employer. However, unlike those listed in the Human Relations Act, anti-discrimination protections under Title VII do not apply to retail stores, restaurants, and other public accommodations.

The Commission received thousands of comments from Pennsylvania residents, ranging from concerns over religious liberty to claiming that the proposal would expose women and children to sexual assaults in public restrooms. The Commission stated that the Religious Freedom Protection Act prohibits governments from placing a significant burden on the “free exercise of religion,” and the law does not apply to private businesses. Burden is defined as a government action that results in the following:

  • Constrains or inhibits conduct or expression mandated by a person’s sincerely held religious beliefs
  • Curtails a person’s ability to express adherence to that person’s religious faith
  • Denies a person a reasonable opportunity to engage in those activities that are fundamental to that person’s religion
  • Compels conduct or expression that violates a mandatory tenet of a person’s religious faith

Philadelphia Business Lawyers at the Law Office of Sidkoff, Pincus & Green P.C. Handle Claims Involving LGBTQ Discrimination

If your rights have been discriminated against due to your gender identity or sexual orientation, contact the Philadelphia business lawyers at the Law Office of Sidkoff, Pincus & Green P.C. To schedule a confidential consultation, call us today at 215-574-0600 or contact us online. Our offices are conveniently located in Philadelphia, where we serve clients throughout Southeastern Pennsylvania and New Jersey.

  Category: Discrimination, Employment Law
  Comments: Comments Off on Expanded Definition of “Sex” Protects Rights of LGBTQ Community in Pennsylvania
  Other posts by

Abbott Laboratories Ordered to Pay $8M in Age Discrimination Case

By ,

SPG

In an age discrimination case against the defendants, Abbott Laboratories and Abbot Laboratories Supervisor Kim Perez, a jury found in favor of the plaintiff, Luz Gonzalez-Bermudez, a former national sales manager who worked out of the company’s Puerto Rico office. The employee claimed she had been demoted, and her pay later cut, after a corporate reorganization in 2010.

Based on the evidence presented in court, the jury found that the defendants discriminated against the employee based on her age. As a result, the plaintiff was awarded $8 million in damages.

In 2016, the jury awarded the plaintiff $3 million from Abbott and $1 million from her supervisor in retaliation for age bias. However, under the applicable provisions of federal and local age bias laws, the U.S. District Court for the District of Puerto Rico doubled the awards, bringing the total awards to $6 million against Abbott Laboratories and $2 million against the plaintiff’s supervisor.

Other Employee Demotions and Abbott’s Willful Conduct

According to the Court, the defendants waived their right to challenge the finding that Abbott’s conduct was willful, because they failed to raise the issue earlier in the case. If the defendants had done so, they may have been able to convince the jury that other employees were also demoted during the same time period, two of whom were younger than the plaintiff.

However, while the plaintiff and two other employees were bumped to lower pay grades, the plaintiff was the only one whose pay was reduced a third time. This brought her salary lower than what she agreed to accept as part of the reorganization.

The two other employees, who were 12 and 9 years younger than her, continued to be paid within the level that they accepted.

The Court also found that the plaintiff’s new position involved a great deal of responsibilities without help from any of the 28 employees who she managed in her previous position. She also had a track record of positive performance reviews before the reorganization.

In her new position, the plaintiff received a poor performance rating, which was orchestrated by her supervisor. Additional evidence suggested that the plaintiff was demoted, denied promotions, and given unfairly negative reviews as retaliation after complaining about age discrimination.

As a result, the Court declined to overrule the jury. The jury also awarded the plaintiff $250,000 in back pay.

The defendants subsequently filed motions for a new trial, reduced damages, or to alter or amend the judgment are still pending.

Philadelphia Employment Discrimination Lawyers at the Law office of Sidkoff, Pincus & Green P.C. Represent Victims of Age Discrimination

If you or someone you know has been discriminated against due to your age, it is in your best interest to contact the Philadelphia employment discrimination lawyers at the Law Office of Sidkoff, Pincus & Green P.C. We will protect your rights and secure that maximum financial compensation you deserve. To schedule a confidential consultation, call us today at 215-574-0600 or contact us online. Our offices are conveniently located in Philadelphia, where we serve clients throughout Southeastern Pennsylvania and South Jersey.

Pennsylvania Supreme Court Upholds Non-Economic Damages for Whistleblower Claims

By ,

SPG

Recently, the Pennsylvania Supreme Court held that wrongfully terminated whistleblowers can recover non-economic damages. Bailets v. Pa. Tpk. Comm’n., 2018 Pa. LEXIS 1498 (2018). Bailets centered around a whistleblower claim made by a manager of the Pennsylvania Turnpike Commission (PTC) alleging that they fired him in retaliation for reporting wrongdoings and waste to his supervisors. The lower court found in Plaintiff’s favor and awarded economic and noneconomic damages totaling over $3 million. The Pennsylvania Supreme Court affirmed the lower court’s decision and award of economic and non-economic damages.

This issue centered on whether the term “actual damages” in Section 125 of the Whistleblower Law should be narrowly or broadly interpreted to include non-economic damages. PTC argued that actual damages refer solely to economic damages because allowance of non-economic damages would be analogous to punitive damages. PTC also argued that exceptions to the Commonwealth’s immunity should be narrowly interpreted and thus non-economic damages should not be read into “actual damages.” The employee argued that actual damages include non-economic damages because the law’s purpose is remedial and serves to compel government compliance to the law. In addition, the employee argued that there is a long precedent in Pennsylvania that actual damages are equivalent to economic and non-economic damages. Furthermore, the employee argues that not awarding non-economic damages “would undermine the very purpose of the law to protect and encourage employee reporters of waste and wrongdoing.”

The Court approached this as an issue of statutory interpretation and held that the law must be liberally construed to allow non-economic damages, thus fulfilling the remedial purpose of the Whistleblower Law. Furthermore, the Court found that reading “actual damages” as solely economic damages would be superfluous considering the statute’s inclusion of different types of economic damages under the allowed types of recovery. The Court agreed with the employee that Pennsylvania’s precedence historically supports the finding that actual damages includes non-economic damages. The Court stressed that the state must allow recovery for non-economic harms such as humiliation, embarrassment, and mental anguish in order to make Plaintiff whole.. Going forward, Bailets is significant in that it will open the door for more claims under the Whistleblower Law and allow for a greater recovery for successful claimants.

For more information, please call our Philadelphia whistleblower lawyers at the Law Offices of Sidkoff Pincus & Green at 215-574-0600 or submit an online inquiry.