In wage and Auer news, Bloomberg reports that a potential Supreme Court ruling upending “Auer deference” could magnify judicial oversight of federal agencies enforcing labor and employment law. Named after the Supreme Court’s decision in Auer v. Robbins and dating back to the 1945 case Seminole Rock, Auer deference instructs courts to defer to agencies’ interpretations of their own ambiguous regulations unless “plainly erroneous or inconsistent with the regulation.” Last week, the Court granted cert in Kisor v. Wilkie, which presents the question of whether Auer and Seminole Rock should be overruled. The Department of Labor, and the Wage and Hour Division in particular, has benefited from Auer’s deferential standard in judicial review of its interpretations. Commentators say that the EEOC, which cannot issue substantive regulations under Title VII, and the NLRB, which rarely engages in notice-and-comment rulemaking, have less to lose from a potential reversal.
Yesterday the Ninth Circuit heard oral argument in Hamidi v. SEIU Local 1000, a case brought by the National Right to Work Legal Defense Foundation on behalf of a group of California public employees challenging the union’s pre-Janus procedures allowing members to refrain from payment of the “non-chargeable” portion of agency fees. Under the scheme, non-member employees had to annually opt out if they objected to paying the subset of fees the union otherwise used for activities beyond collective bargaining, like political advocacy. The employees said that the complex choice architecture made it too onerous for them to opt out, but the district court dismissed the case based on Ninth Circuit precedent upholding a similar scheme in Mitchell v. Los Angeles United School District. In light of Janus, the employees asked the Ninth Circuit to reverse Mitchell and return an estimated $100 million in fees to around 40,000 non-members. At argument yesterday, the judges questioned why the Ninth Circuit should not just vacate the ruling below and allow the district court to rule again. The union’s attorney argued that the district court’s ruling “could be issued again on remand,” but instead on the basis that the union relied in good faith on existing law when it collected the fees.
The NewsGuild of New York announced yesterday that Law360 editorial staffers voted 168-0 to ratify a first contract after two years of negotiations with parent company LexisNexis. The four-year agreement establishes a salary floor of $50,000 and will immediately raise total salaries by 22 percent retroactive to January 1, 2018. The contract also includes separate guaranteed paid sick leave and bereavement leave and successorship language that ensures the agreement would survive the company’s sale to a new owner.
Daily News & Commentary
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July 6
NY home health worker class action settlement secures preliminary approval; the NLRB upholds order finding Amazon violated federal labor law.
July 3
Unions seek a preliminary injunction to prevent USDA downsizing; the D.C. District Court issues a preliminary injunction against new student loan regulations; Matt Bruenig releases an analysis of Starbucks’ ongoing legal battle against Starbucks Workers United.
July 2
First Circuit denies federal worker unions’ mandamus petition; federal court denies preliminary injunction against new union reporting rule; House introduces the Securing Agriculture’s Workforce Act.
July 1
Trump nominates Keith Sonderling as Labor Secretary; DOL eliminates disparate-impact liability from Title VI regulations; OPM finalizes rule allowing suitability-based removal of federal employees for post-appointment conduct.
June 30
SCOTUS ends removal protections for agencies; staff at NYC cocktail bar vote to unionize.
June 29
In today’s News and Commentary, student-athletes file a class action suit challenging the NCAA’s new Age-Based Rule, a federal judge declines to issue a preliminary injunction against FEMA’s reduction in force but expedites proceedings, and Gavin Newsom opposes California’s proposed billionaire tax in favor of a federal approach. On Thursday, DeJuan Campbell, at basketball player […]