Justia U.S. D.C. Circuit Court of Appeals Opinion Summaries

The NLRB affirmed an ALJ‘s finding that Wendt engaged in numerous unfair labor practices under the NLRA, 29 U.S.C. 158(a)(1), (3), (5) based on five incidents and actions.The D.C. Circuit affirmed with respect to: Wendt’s plant manager’s denial of an employee’s request for the presence of a union representative during questioning that resulted in a suspension; the reassignment of a Union bargaining team member to a lower level of work and the denial of his requests for overtime following a temporary layoff during negotiations; Wendt’s promotion of three Union employees into plant supervisor positions without hiring anyone to fill the vacant unit roles while requiring the new supervisors to continue doing some of the unit work from their previous roles; and, following the Union’s certification, Wendt’s delay of evaluation of unit employees and accompanying wage increases for about six months. The court reversed with respect to the temporary layoffs during bargaining; the NLRB did not adequately address Wendt’s “past practices” argument. View "Wendt Corp. v. National Labor Relations Board" on Justia Law

The Postal Reorganization Act of 1970 authorizes USPS to “classify and fix the compensation and benefits of all officers and employees,” 39 U.S.C. 1003(a), to “provide adequate and reasonable differentials in rates of pay between employees in the clerk and carrier grades . . . and supervisory and other managerial personnel.” USPS must “achieve and maintain compensation for its . . . employees comparable to the rates and types of compensation paid in the private sector of the economy” and must allow organizations representing supervisory and other managerial employees “to participate directly in the planning and development of pay policies and schedules” relating to supervisory and managerial employees.The Association, a recognized organization of supervisory personnel, challenged USPS’s adoption of the 2016–2019 pay package for “Field” Executive and Administrative Schedule personnel. The district court dismissed the complaint, finding that the cited provisions state “policy goals.” not mandatory and enforceable directives.The D.C. Circuit reversed. The Association plausibly alleged that USPS exceeded its statutory authority by failing to institute “some differential” in pay for supervisors and by failing to demonstrate that it set its compensation levels by reference, inter alia, to the compensation paid” in the private sector. USPS failed to comply with the Act by refusing to consult with the Association on compensation for “Area” and “Headquarters” employees; by refusing to consult regarding postmasters; and by failing to provide the Association with reasons for rejecting its recommendations. View "National Association of Postal Supervisors v. United States Postal Service" on Justia Law

In 2020, the FLRA adopted a new threshold for when collective bargaining is required. Under the new standard, the duty to bargain is triggered only if a workplace change has "a substantial impact on a condition of employment." Labor unions challenged the FLRA's decision to alter the bargaining threshold, maintaining that the FLRA's new standard is both inconsistent with the governing statute and insufficiently explained.The DC Circuit held that the FLRA's decision to abandon its de minimis exception in favor of a substantial-impact threshold was not sufficiently reasoned, and thus is arbitrary and capricious in violation of section 706 of the Administrative Procedure Act. In this case, the cursory policy statement that the FLRA issued to justify its choice to abandon thirty-five years of precedent promoting and applying the de minimis standard and to adopt the previously rejected substantial-impact test is arbitrary and capricious. Therefore, the court granted the labor unions' petitions for review and vacated the FLRA's policy statement. View "American Federation of Government Employees v. Federal Labor Relations Authority" on Justia Law

Unions challenged a Policy Statement of the Federal Labor Relations Authority that announced for the first time that zipper clauses (provisions that foreclose midterm bargaining) are mandatory bargaining subjects. The Authority determined that, if an agency and a union intractably disagree over a zipper clause proposal, the agency may bring the proposal to the impasses panel—which has the authority to put it (or a different clause reflecting what it determines to be a better resolution) into the parties’ term agreement. Before 2020, the Authority had not issued any Policy Statement in over 35 years.The D.C. Circuit vacated the Policy Statement. The Authority structured its consideration of the zipper clause question in two steps, first holding that the Federal Service Labor-Management Relations Statute does not entitle employees to demand midterm bargaining even when the parties’ agreement is silent on the matter. The Authority then relied on that holding as “necessary” to its conclusion that proposed contractual zipper clauses expressly foreclosing midterm bargaining are mandatory bargaining subjects. The first holding was arbitrary. The Authority’s errors “include miscasting Supreme Court precedent, relying on conclusory assertions, and mischaracterizing its dramatic shift of the bargaining baseline as allowing the parties to resolve the issue.” View "American Federation of Government Employees v. Federal Labor Relations Authority" on Justia Law

Breiterman was subjected to three disciplinary actions imposed by her employer, the U.S. Capitol Police. She was suspended after commenting to fellow employees that women had to “sleep with someone” to get ahead. She was later placed on administrative leave and ultimately demoted for leaking a picture of an unattended Police firearm to the press. Although Breiterman admitted to this misconduct, she sued the Police, alleging sex discrimination, retaliation in violation of the Congressional Accountability Act, 2 U.S.C. 1301, and unlawful retaliation for speech protected by the First Amendment.The D.C. Circuit affirmed summary judgment in favor of the Police. The Police provided legitimate, nondiscriminatory reasons for suspending Breiterman, placing her on administrative leave during an investigation into the media leak, and demoting her from a supervisory position; nothing in the record would allow a reasonable jury to conclude that those reasons were a pretext for discrimination or retaliation. Supervisors are entrusted with greater authority than officers, held to a higher standard, and disciplined more severely than officers for similar violations, so Breiterman’s nonsupervisory comparators are too dissimilar to draw any inference of discriminatory treatment. Even assuming some procedural deviation occurred, the deviations were not so irregular as to indicate unlawful discrimination. View "Breiterman v. United States Capitol Police" on Justia Law

Cadillac of Naperville's service mechanics went on strike in 2017. The National Labor Relations Board found that the dealership responded to the strike unlawfully (29 U.S.C. 158(a)) by discharging one mechanic for his union activity, threatening to retaliate against several mechanics, and refusing to bargain with the mechanics’ union. The mechanic, Bisbikis, was one of six mechanics permanently replaced during the strike and had approached the dealership’s owner about certain worker complaints. The owner had “warned” Bisbikis that “things would not be the same” if the mechanics decided to strike. After the strike settled, the owner stated that Bisbikis was a ringleader of the strike and he no longer wanted to employ Bisbikis. Later, the owner fired Bisbikis, assertedly for insubordination. The owner subsequently sought to restrict union access to Naperville premises.At the NLRB’s request, the D.C. Circuit remanded the discharge issue for the Board to apply its intervening decision changing the framework under which it assesses alleged retaliation in mixed-motive cases. Under that decision, the NLRB bears the initial burden of proving that union activity was a “motivating factor” in an adverse action against an employee; if it meets that burden, the employer must prove that it “would have taken the same action in the absence of the unlawful motive.” The court rejected the dealership’s other challenges. View "Cadillac of Naperville, Inc. v. National Labor Relations Board" on Justia Law

The San Antonio Symphony contracts to perform most of its shows at the Tobin Center. After the Tobin Center barred the Symphony’s musicians from distributing leaflets on the premises, the musicians’ union filed an unfair labor practices charge. The leaflets informed patrons attending a ballet performance that they would not hear a live symphony and encouraged them to insist on live music. The National Labor Relations Board revised its approach and concluded that a property owner has the right to exclude from its property off-duty contractor employees seeking access to the property to engage in Section 7 activity unless those employees work both regularly and exclusively on the property and the property owner fails to show that they have one or more reasonable non-trespassory alternative means to communicate their message.The D.C. Circuit remanded. In aiming to identify those contractor employees with a sufficiently strong connection to the property to warrant the grant of access rights, the Board’s approach was arbitrary, both as to the condition that contractor employees work “regularly” on the property and as to the condition that they also work “exclusively” on the property. On remand, the Board may decide whether to proceed with a version of the test it announced and sought to apply in this case or to develop a new test. View "Local 23, American Federation of Musicians v. National Labor Relations Board" on Justia Law

USAID administers the government’s foreign development assistance program. OIG, USAID’s oversight arm, includes Offices of Investigations and of Management. In 2012, OIG hired Marcato to the management office. Marcato frequently alleged misconduct by high-ranking officials, reporting within OIG that officials had doctored reports sent to Congress. She repeated those allegations to Senate staffers, prompting unfavorable media coverage. Marcato interfered with Giacalone's investigative work. Her supervisors met with Marcato to explain a protocol for Marcato in speaking to Giacalone or entering the Investigations workspace. Marcato recorded the meeting on her cell phone, despite a USAID security policy barring the unauthorized use of such a device. Marcato continued to contact Giacalone and violated the protocol several times. She sent e-mails that prompted concern over disclosures of sensitive information. An investigation of Marcato’s conduct, including her e-mail disclosure, cell phone recording, and failure to follow the communications protocol, was conducted by the OIG of the Defense Department because Marcato “self-identified as a whistleblower.” Defense substantiated four instances of misconduct. Marcato’s removal noted that Marcato’s disclosures “could have jeopardized the integrity” of an ongoing criminal investigation” and that confidence in Marcato had been “irreparably damaged.”The D.C. Circuit affirmed the Merit Systems Protection Board's rejection of her claims under the Whistleblower Protection Act. A federal agency may defend an adverse personnel action taken against a whistleblower by showing that it would have taken the same action in the absence of any protected disclosures. View "Marcato v. United States Agency for International Development" on Justia Law

The Union and AT&T entered into a contract governing certification of the Union to represent non-management employees and the relationship between the parties, requiring the parties to arbitrate disputes over “the description of an appropriate unit for bargaining” and the definition of “nonmanagement” employees. All other disputes arising under the contract “shall not be subject to arbitration.” Disputes that are subject to arbitration must “be submitted to arbitration administered by, and in accordance with, the rules of the American Arbitration Association (AAA).” The AAA’s Labor Arbitration Rules provide that the arbitrator shall have the power to rule on his own jurisdiction, “including any objections with respect to the existence, scope, or validity of the arbitration agreement.” After AT&T acquired Time Warner, the Union initiated discussions about “appropriate potential bargaining units in the newly acquired company.” The parties could not reach an agreement. The Union sought to compel arbitration. The district court dismissed, finding the dispute did not lie within the categories of arbitrable disputes, and that it (as opposed to the arbitrator) could make that threshold determination.The D.C. Circuit vacated. The agreement delegates threshold questions of arbitrability to an arbitrator. The question of whether the parties’ dispute falls within the contract’s arbitration clause, then, is for an arbitrator, not a court, to decide. The district court lacked jurisdiction to determine whether the dispute must be submitted to arbitration. View "Communications Workers of America, AFL-CIO v. AT&T Inc." on Justia Law

In 2009, Finberg became the Chief Operating Officer of Adams, a produce distributor. Grinstead was Adams’s CEO. In 2011, federal authorities investigated Adams for fraud against the Department of Defense. Finberg claims he was unaware of the scheme until later when suppliers and Adams’s CFO discussed the scheme in front of him. Finberg agreed to gradually end the scheme to avoid further detection. Adams hired a law firm to internally investigate its operations, which revealed that CEO Grinstead had engaged in extensive fraud. PNC Bank froze the business’s accounts; Adams was unable to promptly pay suppliers $10 million. Adams declared bankruptcy. Grinstead pled guilty to wire fraud, misprision of felony, and multiple failures to file tax returns. Finberg pled guilty to misprision of a felony. A disciplinary complaint was filed against Adams with the USDA Agricultural Marketing Service, alleging violation of the Perishable Agricultural Commodities Act, 7 U.S.C. 499b(4), by failing to promptly pay suppliers. The determination that Adams violated the Act triggered the Act’s employment bar for each person who was responsibly connected to the violation.An ALJ found that Finberg was responsibly connected. A USDA Judicial Officer affirmed, finding that Finberg exercised judgment, discretion, or control once he learned of the fraudulent scheme and failed to report. The D.C. Circuit reversed The agency lacked substantial evidence that Finberg’s activities contributed to Adam’’s violation of the Act. View "Finberg v. United States Department of Agriculture" on Justia Law