Monday, July 21, 2014

EEOC’s New Pregnancy Discrimination Act Enforcement Guidance Expands Law

Last week, the EEOC issued updated Enforcement Guidance concerning the Pregnancy Discrimination Act, which had last been issued in 1983.  Although it is not a binding regulation, this is the document which EEOC investigators are required to apply in conducting investigations and can be used in litigation as an influential statement of the law by the agency charged with enforcing it.    As expected, the new Enforcement Guidance expanded the reach of the PDA.   Moreover, the EEOC now contends that all pregnant employees are entitled to reasonable accommodations offered to disabled employees under the ADA, maternity leave (from the first day of work) and light duty under a variety of legal theories.  Not all courts have adopted the EEOC’s expansive view of the PDA, but employers can expect an increase in litigation on these issues by private plaintiffs and the EEOC until these issues are definitively resolved.

The PDA amended Title VII so that “discrimination on the basis of sex” would include “pregnancy, childbirth or related medical conditions.”  In particular, the following provision was incorporated into Title VII:

(k) The terms 'because of sex' or 'on the basis of sex' include, but are not limited to, because of or on the basis of pregnancy, childbirth, or related medical conditions; and women affected by pregnancy, childbirth, or related medical conditions shall be treated the same for all employment-related purposes, including receipt of benefits under fringe benefit programs, as other persons not so affected but similar in their ability or inability to work, and nothing in section 703(h) of this title shall be interpreted to permit otherwise. This subsection shall not require an employer to pay for health insurance benefits for abortion, except where the life of the mother would be endangered if the fetus were carried to term, or except where medical complications have arisen from an abortion: Provided, That nothing herein shall preclude an employer from providing abortion benefits or otherwise affect bargaining agreements in regard to abortion.

This PDA has been interpreted to include discrimination against women based on their desire or intention to eventually become pregnant or because they are capable of becoming pregnant.  This can occur, for instance, when an employer engages in paternalistic decisionmaking and decides that certain jobs or duties are too dangerous for pregnant employees or women in general.  The EEOC considers “related medical conditions” to include gestational diabetes, preeclampsia, and lactation.

Reasonable Accommodations.  The EEOC concedes, as it must, that the ADA provides that pregnancy is not a disability.  However, “[p]regnancy-related impairments are disabilities if they substantially limit one or more major life activities or substantially limited major life activities in the past.” More importantly, in a footnote, the EEOC observed that:
The expanded definition of "disability" under the ADA also may affect the PDA requirement that pregnant workers with limitations be treated the same as employees who are not pregnant but who are similar in their ability or inability to work by expanding the number of non-pregnant employees who could serve as comparators where disparate treatment under the PDA is alleged.

In other words, if the ADA requires an employer to provide a reasonable accommodation to a disabled employee, it must also provide the same accommodation to a pregnant employee in order to show uniform treatment.  Therefore, the EEOC expanded upon this argument to announce the following:
Title VII requires that individuals affected by pregnancy, childbirth, or related medical conditions be treated the same for all employment-related purposes as other persons not so affected but similar in their ability or inability to work. Thus, an employer is obligated to treat a pregnant employee temporarily unable to perform the functions of her job the same as it treats other employees similarly unable to perform their jobs, whether by providing modified tasks, alternative assignments, leave, or fringe benefits.
An employer may not refuse to treat a pregnant worker the same as other employees who are similar in their ability or inability to work by relying on a policy that makes distinctions based on the source of an employee's limitations (e.g., a policy of providing light duty only to workers injured on the job). However, an employer may treat a pregnant employee the same as other employees who are similar in their ability or inability to work with respect to other prerequisites for obtaining the benefit that do not relate to the cause of an employee's limitation. For example, a pregnant worker who needs changes in her duties or schedule would be responsible for conveying the request to her supervisor and for providing reasonable documentation of her limitations if this is what the employer requires of employees who seek workplace changes for reasons other than pregnancy. Similarly, if a pregnant worker requests a change that the employer is providing as a reasonable accommodation to a co-worker with a disability, the employer may evaluate the pregnant employee's request in light of whether the change would constitute an "undue hardship," since this would amount to treating the pregnant employee the same as an employee with a disability whose accommodation request would also be subject to the defense of undue hardship.  (italics added for emphasis).

Pregnant workers can also be “regarded” as disabled under the ADAA or have a history of a disability.

Lactation.  As mentioned, the EEOC considers lactation to be a related medical condition to pregnancy.  The EEOC’s FAQ notes that “if an employer allows employees to change their schedules or use sick leave for routine doctor appointments and to address non-incapacitating medical conditions, then it must allow female employees to change their schedules or use sick leave for lactation-related needs.”  Moreover,
[i]n addition to being protected under the PDA, female hourly employees who are breastfeeding have rights under other laws, including a provision of the Patient Protection and Affordable Care Act that amended the Fair Labor Standards Act to require employers to provide reasonable break time and a private place for breastfeeding employees to express milk.

Light Duty.  Many employers provide light duty to employees injured on the job who are receiving workers compensation.  As a Sixth Circuit panel ruled in December, the EEOC now contends that these employers must similarly provide light duty to pregnant employees who need and request it if the employer:
provides light duty for employees who are not pregnant but who are similar in their ability or inability to work. An employer may not treat pregnant workers differently from employees who are similar in their ability or inability to work based on the cause of their limitations. For example, an employer may not deny light duty to a pregnant employee based on a policy that limits light duty to employees with on-the-job injuries.

Contraception Coverage.  The EEOC also considers the PDA to prohibit “discrimination related to a woman's use of contraceptives.   It rejects in footnote 38 of the Guidance the argument (adopted by some courts) that contraception coverage is not an issue under the PDA because it arises before pregnancy because contraception applies to a “potential pregnancy.”  Therefore, “an employer could not discharge a female employee from her job because she uses contraceptives.”
 Although it concedes that there may be religious exemptions under the Supreme Court’s recent Hobby Lobby  decision, the EEOC views the exclusion of contraception coverage as sex discrimination under the PDA:
Employers can violate the PDA by providing health insurance that excludes coverage of prescription contraceptives, whether the contraceptives are prescribed for birth control or for medical purposes. To comply with Title VII, an employer's health insurance plan must cover prescription contraceptives on the same basis as prescription drugs, devices, and services that are used to prevent the occurrence of medical conditions other than pregnancy. For example, if an employer's health insurance plan covers preventive care for medical conditions other than pregnancy, such as vaccinations, physical examinations, or prescription drugs to prevent high blood pressure or to lower cholesterol levels, then prescription contraceptives also must be covered.

Maternity Leave.  The EEOC also argues that denying or limiting the length of maternity leave – even under a uniformly applied policy – can create an illegal discriminatory impact on pregnant women:
A policy that restricts leave might disproportionately impact pregnant women. For example, a 10-day ceiling on sick leave and a policy denying sick leave during the first year of employment have been found to disparately impact pregnant women.
If a claimant establishes that such a policy has a disparate impact, an employer must prove that the policy is job related and consistent with business necessity. An employer must have supporting evidence to justify its policy. Business necessity cannot be established by a mere articulation of reasons. Thus, one court refused to find business necessity where the employer argued that it provided no leave to employees who had worked less than one year because it had a high turnover rate and wanted to allow leave only to those who had demonstrated "staying power," but provided no supporting evidence. The court also found that an alternative policy denying leave for a shorter time period might have served the same business goal, since the evidence showed that most of the first year turnover occurred during the first three months of employment.

Parental Leave.  While an employer need only provide maternity leave for as long as the mother is physically restricted, if it provides additional “bonding” leave to the mother, the EEOC says that it must similarly provide such child-care leave to the father under the PDA:  If, for example, an employer extends leave to new mothers beyond the period of recuperation from childbirth, it cannot lawfully refuse to provide an equivalent amount of leave to new fathers for the same purpose.”  

NOTICE: This summary is designed merely to inform and alert you of recent legal developments. It does not constitute legal advice and does not apply to any particular situation because different facts could lead to different results. Information here can change or be amended without notice. Readers should not act upon this information without legal advice. If you have any questions about anything you have read, you should consult with or retain an employment attorney.