Philadelphia Employment Lawyers: Ruling in Tyson Foods Overtime Case

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The United States Supreme Court recently ruled in favor of a group of pork processing plant workers, who argued that they were entitled to overtime wages for time spent “donning and doffing” (changing in and out of soiled work clothes). The Court held that statistical evidence could be used to determine overtime wages, because the employer failed to keep proper records. Some have speculated that this will lead to an uptick in litigation because plaintiffs in other class actions may now be able to use statistical evidence to support their cases.

The plaintiffs in this case were 3,344 workers employed in the kill, cut and retrim departments of a Storm Lake, Iowa pork processing plant owned by one of America’s largest meat producers, Tyson Foods, Inc. The employees specifically alleged that Tyson violated the Fair Labor Standards Act and the Iowa Wage Payment Collection Law. The workers filed their suit in an Iowa Federal District Court in 2007. The Court certified the class action the following year.

Details of the Trial

At trial, the plaintiffs submitted a study performed by Kenneth Mericle, an industrial relations expert. Mericle had examined how long it took employees to don and doff their work clothes. After examining 744 videotape recordings, Mericle concluded that it took the cut and retrim workers approximately 18 minutes per day to don and doff, while the kill employees spent just over 21 minutes a day changing clothes. After reviewing this evidence, the jury awarded the workers $2.9 million in wages.

Tyson appealed the ruling, but the Supreme Court affirmed. The Court found that because Tyson neglected to keep proper records, the representative evidence of the videotapes could be relied upon to estimate the hours that plaintiff employees had actually worked. Although some have expressed concern that allowing class action plaintiffs to rely on representative evidence will overburden the courts, the court limited its ruling to the facts and circumstances presented in this case alone. If future class action plaintiffs wish to rely on representative evidence, they will have to demonstrate that use of statistical methods is fair in their particular circumstance.

Philadelphia Employment Lawyers at Sidkoff, Pincus and Green Pursue Compensation for Workers Denied Overtime Pay

Federal and state laws require most employers to pay one and one half times the regular rate (“time and a half”) for hours worked in excess of 40 hours per week. In Pennsylvania, workers may collect unpaid overtime up to three years after the date the pay was earned.

If you have been denied overtime wages, the experienced Philadelphia employment lawyers at Sidkoff, Pincus & Green will fight to get you the compensation you deserve. To schedule a consultation, call us at 215-574-0600 or contact us online today. With offices conveniently located in Philadelphia, we serve clients throughout Southeastern Pennsylvania and South Jersey.

Philadelphia Class Action Lawyers: SCOTUS Denies Walmart Appeal

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In a four-1 ruling earlier this week, the U.S. Supreme Court denied a petition to review a 2006 jury decision in a class action, wage-and-hour lawsuit filed on behalf of Walmart employees in Pennsylvania.

In 2006, plaintiffs in Braun v. Wal-Mart Stores and Hummel v. Wal-Mart Stores were awarded $187.6 million in damages for wage-and-hour violations based on claims that the retail giant failed to properly pay employees for missed rest breaks and off-the-clock work. Walmart sought to have the decision overturned by the Supreme Court, arguing that the plaintiffs had not presented sufficient proof of class-wide commonality, only proof of individual claims. Walmart also argued that the determination of liability and damages in the case represented a “trial by formula” that had been disapproved by earlier Supreme Court decisions.

According to the majority opinion, however, liability in this case was not determined by a formula, but by evidence of breach of contract and wage-and-hour violations which were established by Walmart’s employment policies, business records and internal audits. Interest accrued since 2006 brings the current class action award to approximately $244 million.

Philadelphia class action lawyers at Sidkoff, Pincus & Green have been successfully representing plaintiffs in employment lawsuits for over 50 years. For more information about overtime violation claims and employment law in Pennsylvania or New Jersey, call 215-574-0600 or contact us online.

Philadelphia Business Litigation Lawyers: Mark Zuckerberg Settles Contract Lawsuit

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A real estate developer filed a case against Mark Zuckerberg, founder of Facebook Inc., alleging that Zuckerberg reneged on a promise to help the realtor develop his business in exchange for a discounted price on real estate that would have blocked the view from Zuckerberg’s home.

Initially, Zuckerberg was to buy the rights to purchase a property overlooking his Palo Alto, California home for $1.7 million from developer Mireca Voskerician. Voskerician had asserted that he and Zuckerberg agreed to this discounted price in exchange for a customer list comprised of Silicon Valley’s tech elite after the realtor threatened to build a mansion that would block much of Zuckerberg’s view.  These allegations formed the basis of Voskerician’s contract lawsuit against Zuckerberg for failing to live up to his end of the bargain.

However, it appears the developer’s case began to unravel after Zuckerberg’s lawyers’ allegedly discovered fraudulent bank statements produced by the developer. The developer has allegedly dropped the lawsuit in exchange for a promise that Zuckerberg will not sue him.

Philadelphia Business Lawyers at the Law Offices of Sidkoff, Pincus & Green Routinely Handle All Types of Contract Matters

At Sidkoff, Pincus & Green, we are known for our detail-oriented approach to contract law. If you have questions about a contract matter, contact one of our experienced Philadelphia commercial contract lawyers at 215-574-0600 or contact us online. With offices located in Philadelphia, we represent clients throughout Southeastern Pennsylvania and South Jersey.

Philadelphia Contract Lawyers: Arbitration Clauses in Nursing Home Contracts

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Over the past decade, arbitration clauses have become increasingly common. Look closely at your cellphone service contract, credit card contract or student loan agreement, and you are likely to discover that you have given up your right to seek redress in court in the event of a dispute. Nursing homes have also embraced these clauses. The ethics of mandatory arbitration for nursing home patients is even more questionable than in other contexts, because elderly patients may not be able to understand that they are surrendering this important right.

Recently in Massachusetts, an elderly nursing home patient was murdered by her 97-year-old roommate after a disagreement over moving a nightstand so that the decedent could make her way to the bathroom. The decedent’s son sought to hold the nursing home accountable, only to discover the nursing home contract forced any dispute into private arbitration.

The patient’s son has questioned whether the arbitration process could really be objective. The arbitration firm, who ultimately resolved this dispute, had previously handled over 400 arbitrations for the law firm representing the nursing home. Because the arbitration firm draws such a substantial amount of business from the nursing home, it would appear they might have a reason to resolve cases in their favor. In this case, the firm ruled in the nursing home’s favor, without providing any basis for their ruling. The arbitrator’s “opinion” consisted of a single check mark indicating that the nursing home had not been negligent in its care of the late patient.

Despite these issues, judges have consistently upheld mandatory arbitration clauses, even where the individuals who signed the contracts did not understand what rights they were forfeiting. However, lawmakers are becoming increasingly concerned because the private nature of arbitration proceedings can shield the public from patterns of wrongdoing in nursing homes. Recently, lawmakers in 16 states have urged the federal government to deny Medicaid and Medicare funding to nursing homes that use mandatory arbitration clauses.

In this case, the patient’s son challenged the validity of the arbitration clause in his mother’s nursing home contract on grounds that he signed the admissions papers on her behalf, but did not have the authority to bind her to arbitration. A judge found in his favor. Appeals courts across the country are following suit and throwing out nursing home contracts signed by family members of residents.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green Represent Businesses and Individuals in Contract Disputes

If you have a contract dispute, or are being sued for breach of contract, the experienced Philadelphia contract lawyers at Sidkoff, Pincus & Green can help. With offices conveniently located in Philadelphia, we represent clients throughout Pennsylvania and South Jersey. Call us at 215-574-0600 or contact us online today.

Philadelphia Employment Lawyers: Disability Discrimination Award

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Employee Wins $5.5 Million in Disability Discrimination Lawsuit

On December 28, 2011, Plaintiff Albert Gucker, a 61 year old mechanic, was constructively discharged from Defendant, U.S. Steel Corp. Plaintiff had work restrictions regarding lifting and climbing, due to an arthritic knee since 2003.

On that day, Plaintiff underwent a return-to-work exam by a company physician, after returning to work following surgery. The doctor approved him for work with the same restrictions he already had in place. On that same day, Plaintiff was informed by a supervisor that his restrictions would not be tolerated. The following day Plaintiff applied for Social Security disability insurance, and he was determined to be disabled.

Plaintiff alleged that U.S. Steel violated the Americans with Disabilities Act (ADA), and the Pennsylvania Human Relations Act (PHRA) when he was terminated. Throughout Plaintiff’s employment, he had received no complaints or negative reports about his job performance, and there were never any safety issues raised regarding his restrictions.

The jury found that Plaintiff was a qualified individual with a disability, and he should have received accommodations. The jury further concluded that U.S. Steel terminated Plaintiff based on his disability with the knowledge that it was violating the law, or may have been violating the law.

Following a two-week trial, the jury determined the Plaintiff entitled to receive $5.55 million, including $5 million in punitive damages and $550,000 in compensatory damages.

For more information on employment discrimination matters, call our employment lawyers in Philadelphia at Sidkoff, Pincus & Green at 215-574-0600 or contact us online.

Philadelphia Whistleblower Lawyers: Whistleblowing Cause of Termination

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Pennsylvania Plaintiff Fails to Demonstrate that Whistleblowing Caused Her Termination

Although Pennsylvania lacks a common law action for wrongful termination of at-will employees, such employees may have a cause of action in several limited circumstances. For a wrongful termination claim to be viable, the at-will employee must show that the termination violates a clear mandate of public policy.

In the recent Pennsylvania case, Auman v. Family Planning Plus, Plaintiff, an at-will employee of Family Planning Plus accused her employer of terminating her for whistleblowing. Plaintiff made a claim under the Pennsylvania Whistleblower Law (“PWL”) – a public policy exception to the at will doctrine. To be successful under the PWL, Plaintiff needed to show both a protected report of wrongdoing and a connection between the report and termination showing cause.

Plaintiff made several allegations of misconduct on the part of her employer and filed complaints against Family Planning Plus.  However, the Court ruled that Plaintiff’s accusations did not show concrete facts linking the whistleblowing to her termination. Plaintiff was not specifically directed to not file a report, and the Court found that there was no indication that her whistleblowing caused any adverse action toward Plaintiff. The Court stated that vague and inconclusive circumstantial evidence fails to satisfy this initial burden. If Plaintiff had shown that her whistleblowing negatively affected her career and resulted in her termination, the burden would have shifted to Family Planning Plus to show a separate and legitimate reason for the adverse action suffered by Plaintiff.

For more information on employment law and retaliation matters, call our employment lawyers in Philadelphia at Sidkoff, Pincus & Green at 215-574-0600 or contact us online.

Philadelphia Employment Lawyers: Retaliation Claim Proceeds in Court

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Eastern District of Pennsylvania Allows Employee’s Retaliation Claims to Proceed

In Betz v. Temple Health Systems the Eastern District of Pennsylvania ruled in favor of Plaintiff, allowing her to proceed with her retaliation claim against Defendant Temple Health Systems.

While working at Temple Health Systems, Plaintiff, a registered nurse, repeatedly complained to her supervisors and executive management about persistent sexual harassment, inappropriate touching and groping. Temple Health Systems Plaintiff’s allegations and determined that her complaints did not amount to sexual harassment or retaliation. Plaintiff then filed a charge of discrimination with the Equal Employment Opportunity Commission. Shortly thereafter, Temple Health Systems suspended and then fired Plaintiff. Temple Health Systems alleged that the suspension and termination were not in retaliation for Plaintiff’s complaints, but rather the result of a serious medical error that Plaintiff committed, which she subsequently attempted to hide by altering patient records.

In Betz, the Court found that “the employer’s statements in combination with the relatively short timeframe between the filing of the employee’s EEOC charge and her suspension formed the basis for establishing a prima facie case of retaliation under Title VII and the PHRA.” The Court also found that the Temple Health System’s proffered reason was sufficient to allow a factfinder to conclude that the employer suspended and terminated the employee for a legitimate non-discriminatory reason. However, the Court found there was sufficient evince of pretext because a factfinder could reasonably draw such a conclusion because a manager told Plaintiff that she would be fired if she kept on complaining, and that ‘[i]f you don’t shut your mouth, you’re next because you already complained and we’re sick of hearing from you’; and after the employee filed her EEOC Charge, the manager told her that she ‘made a big mistake by going to the EEOC.’”

For more information on employment law matters, call our employment lawyers in Philadelphia at Sidkoff, Pincus & Green at 215-574-0600 or contact us online.

Philadelphia Business Lawyers: Settlement in Mislabeled Product Lawsuit

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Qualitest Pharmaceuticals Inc., facing a class-action lawsuit brought by the federal government and 48 states claiming unlawful labeling, has settled the case for five million dollars.

Qualitest, a manufacturer of generic vitamins and a subsidiary of Endo Health Solutions, allegedly misrepresented the amount of fluoride in its multivitamin tablets. Although Qualitest labeled and advertised its product as containing the daily amount of fluoride recommended by the American Dental Association, the vitamins actually contained only half the recommended amount. Under the settlement agreement, Qualitest will pay $2.2 million to the federal government and $2.8 million to the state of New York to resolve claims pertaining to New York’s Medicaid program.

Philadelphia business lawyers at the Law Offices of Sidkoff, Pincus & Green have successfully represented clients in whistleblower lawsuits, class actions and business tort litigation for more than 50 years. Contact us online or call our Philadelphia law firm at 215-574-0600.

Business Lawyers Philadelphia: Insurance Bad Faith Claims

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Insurance Bad Faith Claims May Survive Even Where No Coverage is Due

In Citi Gas Convenience v. Utica Mutual Insurance Co., the Eastern District of Pennsylvania ruled that a party can bring a bad faith claim even where a court may find no coverage is due if “bad faith is asserted as to conduct beyond a denial of coverage, the bad faith claim is actionable as to the conduct regardless of whether the contract claim survives.”

For example, an insurer may conduct bad faith in its investigation practices, even if ultimately the Court rules that a party is not entitled to coverage. However, the Plaintiff in Citi Gas Conveniencefailed to adequately plead such a claim, and it was dismissed without prejudice.

For more information, call Philadelphia business lawyers at Sidkoff, Pincus & Green at 215-574-0600 or contact us online.

Philadelphia Business Lawyers: Conflict of Interest / Self-Dealing Transactions

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Courts will closely scrutinize conflict of interest and self-dealing transactions (i.e., having an individual and/or corporation on both sides of the same transaction). Traditionally, these types of transactions are subjected to the “entire fairness review”. In order to survive this standard review, the price and the dealing must be fair. Globe Woolen Co. v. Utica Gas & Elec. Co., 224 N.Y. 483 (fundamental business organization case holding that there is a breach of fiduciary duty of loyalty despite a director, who served on two boards of two companies, did not vote on a transaction because neither fair price nor fair dealing was present). Fair price is typically the equivalency of value between what the corporation gave up and what the corporation received. Fair dealing has several factors (none dispositive) of candor and disclosure:

1)      Not only abstaining vote, but excusing yourself to not exert pressure on the deal;

2)      Imbalance between the corporations at negotiation;

3)      Involvement of disinterested advisors; and

4)      Candor – director should not stand in silence when he or she is aware that the agreement is detrimental to one side.

For more information, call Philadelphia business lawyers at Sidkoff, Pincus & Green at 215-574-0600 or contact us online.