Employment Law Chicago Blog

  • 7th Circuit Affirms Summary Judgment on FMLA, ADA and Title VII Claims

    On November 20, 2018, the 7th Circuit affirmed an order of summary judgment in a lawsuit in which the plaintiff alleged that her employer violated the Family and Medical Leave Act ("FMLA"), the Americans with Disabilities Act ("ADA") and Title VII of the Civil Rights Act of 1964 ("Title VII").  Riley v. City of Kokomo, Indiana Housing Authority, No. 17-1701 (7th Cir. 11/20/2018).  The plaintiff worked for the Kokomo Housing Authority for eight years before the termination of her employment.  During her employment, the plaintiff suffered from various disabilities, which required her to take leaves of absence.  She alleged that the housing authority improperly denied her requests for medical leave and retaliated against her for those requests by disciplining and terminating her, in violation of the FMLA.  She further alleged that the housing authority failed to provide her with reasonable accommodations for her disabilities and discriminated as well as retaliated against her in violation of the ADA.  She also claimed that she was subjected to retaliation for engaging in protected activity in violation of Title VII.

  • 7th Circuit Affirms Summary Judgment for Employer on Claim for Breach of Employment Separation Agreement

    On November 1, 2018, the 7th Circuit affirmed an order of summary judgment in favor of an employer-defendant on a breach of contract claim brought by a former employee-physician, who alleged that the defendant breached her employment separation agreement by releasing a credentialing form with some "fair" ratings to a potential employer.  Gallo v. Mayo Clinic Health System-Franciscan Medical Center, Inc., No 17-1623 (7th Cir. 11/1/2018).  The plaintiff resigned her employment and entered into an employment separation agreement to prevent the defendant from saying anything negative about her to prospective employers in response to employment inquiries.  Subsequently, her former supervisor rated her performance as "fair" on two criteria in a credentialing form.  She sued for breach of the separation agreement, alleging that as a result of the breach, she was not hired for a subsequent position by a prospective employer with whom she had entered into employment contract negotiations.  The separation agreement indicated that no reference will be made to any performance issue and nothing derogatory will be stated to potential employers seeking a reference.

  • 7th Circuit Affirms Summary Judgment on Title VII Discrimination, Retaliation and Hostile Work Environment Claims

    On October 30, 2018, the 7th Circuit affirmed an order of summary judgment in favor of the defendant-employer in a Title VII lawsuit in which the plaintiff, a former dental assistant at a Veterans Affairs dental clinic, alleged that he was discriminated against based on his gender (male) and race (Hispanic), he was retaliated against for filing EEO complaints, and he faced a hostile work environment.  Abrego v. Wilkie, Secretary of Veterans Affairs, No. 17-3413 (7th Cir. 10/30/2018).  Under Title VII of the Civil Rights Act of 1964 ("Title VII"), it is unlawful for an employer to discriminate against an employee based on race, color, religion, sex, or national origin.  To prevail on a Title VII employment discrimination claim, a plaintiff-employee must prove three elements: (1) she is a member of a protected class; (2) she has been subjected to an adverse employment action; and (3) that the employer took the adverse job action on account of the employee's membership in the protected class.

  • 7th Circuit Remands $10 Million Award in Collective Arbitration of FLSA Wage Claims for Threshold Determination by District Court of Whether Employment Contract Permits Class or Collective Arbitrations of Employment-related Claims.

    On October 22, 2018, the 7th Circuit ruled that the district court erred in invalidating a waiver clause in the parties' arbitration agreement, vacated the district court's order enforcing a $10 million arbitration award in a collective action under the Fair Labor Standards Act for multiple wage claims, and remanded the case to the district court to conduct the threshold inquiry regarding class or collective arbitrability to determine whether the arbitration clause of the employment agreement authorizes collective arbitration.  Herrington, et al. v. Waterstone Mortgage Corporation, No. 17-3609 (7th Cir. 10/22/2018).  The plaintiff-employee filed a collective action against her employer for alleged minimum wage and overtime wage and hour violations of the Fair Labor Standards Act ("FLSA").  A collective action allows similarly situated employees to opt in to the lawsuit.  The district court compelled arbitration pursuant to the arbitration agreement between the employer and employee, but struck down as unlawful a waiver clause that appeared to forbid class or collective arbitration of the plaintiff's claims.  The arbitrator conducted a collective arbitration over the employer's objections and awarded more than $10 million in damages and attorneys' fees to the plaintiff and 174 similarly situated employees.

  • 7th Circuit Reverses Summary Judgment for Employer on Title VII Retaliation Claim

    On October 15, 2018, the 7th Circuit reversed an order of summary judgment that the district court had entered in favor of the defendant-employer in a Title VII lawsuit in which the plaintiff alleged that her former employer unlawfully terminated her employment in retaliation for her protected activity of filing an internal complaint of sexual harassment with human resources against a manager who had sexually harassed another employee.  Donley v. Stryker Sales Corporation, No. 17-1195 (7th Cir. 10/15/2018).  The 7th Circuit held that suspicious timing and shifting, inconsistent explanations from the employer raised genuine issues of material fact about the reason for the termination sufficient to preclude summary judgment.

  • 7th Circuit Affirms Summary Judgment on Title VII Severance Pay Sex Discrimination Claim

    On October 12, 2018, the 7th Circuit affirmed an order of summary judgment in favor of a defendant-employer in a Title VII gender discrimination lawsuit in which the plaintiff-employee alleged that she did not get the same chance to resign her employment with severance pay that three male employees got.  Barbera v. Pearson Education, Inc., No. 18-1085 (7th Cir. 10/12/2018).  The district court granted summary judgment because the proposed comparator male employees were not similarly situated to the plaintiff.  They sought resignation with severance pay before circumstances with the employer materially changed, but the plaintiff sought resignation with severance pay after circumstances changed.  Title VII of the Civil Rights Act of 1964 ("Title VII") makes it unlawful for an employer to fail or refuse to hire or to discharge any employee, or otherwise discriminate against any employee with respect to her compensation, terms, conditions, or privileges of employment, because of her race, color, religion, sex, or national origin.  Gender discrimination in connection with disparate severance pay is a cognizable claim under Title VII.

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