Jimenez v. Laborers' Welfare Fund of the Health and Wefare Department of the Construction and General Laborers' District Council of Chicago and Vicinity

CourtDistrict Court, N.D. Illinois
DecidedOctober 8, 2020
Docket1:18-cv-07886
StatusUnknown

This text of Jimenez v. Laborers' Welfare Fund of the Health and Wefare Department of the Construction and General Laborers' District Council of Chicago and Vicinity (Jimenez v. Laborers' Welfare Fund of the Health and Wefare Department of the Construction and General Laborers' District Council of Chicago and Vicinity) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jimenez v. Laborers' Welfare Fund of the Health and Wefare Department of the Construction and General Laborers' District Council of Chicago and Vicinity, (N.D. Ill. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION ZUYIN JIMENEZ, on behalf of herself ) and all others similarly situated, ) ) Plaintiff, ) ) v. ) No. 18-cv-07886 ) LABORER’S WELFARE FUND OF ) Judge John J. Tharp, Jr. THE HEALTH AND WELFARE ) DEPARTMENT OF THE ) CONSTRUCTION AND GENERAL ) LABORERS’ DISTRICT COUNCIL ) OF CHICAGO AND VICINITY, AND ) LOCAL 225 OF THE LABORERS’ ) INTERNATIONAL UNION OF ) NORTH AMERICA, ) ) Defendants.

MEMORANDUM OPINION AND ORDER Plaintiff Zuyin Jimenez has sued her union, Local 225 of the Laborer’s International Union (“Local 225”), along with the Laborers’ Welfare Fund of the Health and Welfare Department of the Construction and General Laborer’s’ District Council of Chicago and Vicinity (“the Fund”), for sex discrimination under Title VII and the Illinois Human Rights Act. She alleges that the Fund discriminated against her by refusing to enroll her spouse, Laura Luna, in health insurance coverage that they otherwise extended to opposite-sex spouses. She further alleges that Local 225 offered only one health insurance option to its members through the Fund, despite knowing that same-sex spouses were excluded from that coverage. Both defendants moved to dismiss under Fed. R. Civ. P. 12(b)(6). Local 225 argues that Jimenez’s complaint should be dismissed as against the Local because she did not sufficiently allege discriminatory action by the Union. For its part, the Fund moves to dismiss because Jimenez and the Fund did not have an employment relationship, and further because Jimenez did not timely exhaust her administrative remedies. For the reasons discussed below, the Court denies both motions. BACKGROUND Jimenez, a member of Local 225, is entitled through that membership to a health insurance benefit through the Fund. First Am. Compl. (“FAC”) ¶ 11-12, ECF No. 21. She married Laura

Luna on October 14, 2014., and afterwards applied for health insurance for herself and her spouse. Id. at ¶¶ 14-15. On November 17, 2014, after Jimenez had provided her marriage license, the Fund sent Ms. Jimenez a letter stating that “same-sex partners are not eligible dependents,” attaching a “Summary Plan Description” with this policy highlighted. Id. at ¶¶ 15-18. She then called the Fund and spoke with an employee who told her that the Fund is a private company that will not recognize same-sex marriages. Id. at ¶ 21. On November 24, 2014, Jimenez sent a letter to the Fund stating that she believed the Fund’s policy was illegal. Id. at ¶ 22. The Fund responded by reiterating its stance that same-sex spouses are ineligible for coverage and warned her that she may have to pay the Fund’s attorney’s fees if she sued them and lost. Id. at ¶ 24. Local 225, her union, “was aware that the Fund denied spousal benefits to its gay members,” Id. at ¶ 19, and “does not offer any

other options for health care benefits other than through the fund.” Id. at ¶ 10. The Fund amended its plan on May 11, 2015 to extend coverage to same-sex spouses, and Jimenez’s spouse Luna obtained health insurance. Id. at ¶¶ 26-27. When Luna used her new benefits to get medical care, she discovered she had cancer, which had advanced to the point that a hysterectomy was required. Id. at ¶¶ 28-29. Had Luna been seen by a physician earlier, Jimenez alleges, the hysterectomy could have been avoided. Id. at ¶ 30. The Equal Employment Opportunity Commission EEOC investigated and determined that there was reasonable cause to believe Jimenez had suffered discrimination in violation of Title VII. Id. at ¶ 41. Jimenez subsequently filed this action seeking damages. DISCUSSION In light of the Supreme Court’s decision in Bostock v. Clayton County, Georgia, 140 S. Ct. 1731 (2020), there can no longer be any dispute that the conduct alleged constitutes sex discrimination, so long as the other requirements of a Title VII claim are met. Had Jimenez been a man seeking spousal coverage for a wife, coverage would not have been denied. She did not

receive this coverage because she was a woman seeking coverage for her wife. See Bostock, 140 S. Ct. at 1739 (explaining that Title VII’s language requires a but-for causation test which “directs us to change one thing at a time and see if the outcome changes. If it does, we have found a but- for cause.”). Jimenez’s sex was a but-for cause of the Fund’s denial of spousal coverage. The remaining question is whether Jimenez can seek a remedy against these two defendants under Title VII. Defendants argue that they cannot be liable under Title VII and seek dismissal of the complaint for failure to state a claim upon which relief can be granted. Fed. R. Civ. P. 12(b)(6). Local 225 contends that since it is not an agent or fiduciary of the Fund, it cannot be held liable; and further that Jimenez did not plead sufficient facts to state a claim against Local 225. Def. Local

225 Mot. to Dismiss FAC 3-6, ECF No. 23. The Fund maintains that it has no employment relationship with Jimenez that would give rise to Title VII liability; and also urges the Court to dismiss the FAC for failure to exhaust administrative remedies before the EEOC. Def. Fund Mot. to Dismiss FAC 4-7, ECF No. 25. The Court addresses the defendants’ arguments in turn. I. Local 225 Jimenez’s allegations, in Local 225’s view, are conclusory and lack sufficient detail to implicate Local 225 in the Fund’s decision to deny health care eligibility to Ms. Luna. Local 225 Mot. at 3-5, ECF No. 23. Local 225’s argument boils down to this: if the complaint sufficiently alleges discriminatory action by anyone, Jimenez’s dispute is with the Fund, not Local 225, and therefore the Court should dismiss her lawsuit against them. As explained below, the Court finds that Local 225, as a labor organization, is liable under Title VII insofar as it fails to fulfill its function as an agent of its members, and that Jimenez has plausibly alleged such a failure here. A. Local 225 is liable as an agent of its members. Title VII governs Local 225 as a labor organization and makes it unlawful “to exclude or

to expel from its membership, or otherwise to discriminate against, any individual because of his race, color, religion, sex, or national origin.” 42 U.S.C. § 2000e-2(c). This clause applies to “the union’s role as the employees’ agent “in bargaining and in implementing contracts.” Maalik v. Int’l Union of Elevator Constructors, Local 2, 437 F.3d 650, 652 (7th Cir. 2006). “If [a union] discriminates in the performance of its agency function, it violates Title VII, but not otherwise.” E.E.O.C. v. Pipefitters Ass’n Local Union 597, 334 F.3d 656, 659 (7th Cir. 2003). Unions can be held liable for the discriminatory conduct of other parties “only if they know (or ought to know) what is going on and choose to do nothing[.]” See Maalik, 437 F.3d at 653. Local 225 thinks that its relationship with the Fund, not with Jimenez, is dispositive here. It argues that since the Local is neither an agent nor a fiduciary of the Fund, it cannot be liable for

any discriminatory actions that the Fund took against Jimenez. Local 225 Mot. at 3-4. In support of its argument, Local 225 cites Waggoner v. Dallaire, 649 F.3d 1362 (9th Cir. 1981), a case that dealt with the enforceability of a collective bargaining agreement as it pertained to the collection of employer contributions for fringe benefits.

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Jimenez v. Laborers' Welfare Fund of the Health and Wefare Department of the Construction and General Laborers' District Council of Chicago and Vicinity, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jimenez-v-laborers-welfare-fund-of-the-health-and-wefare-department-of-ilnd-2020.