Wednesday, September 16, 2015

Sixth Circuit Reverses Employer’s ADA and FMLA Summary Judgments

Earlier this week, the Sixth Circuit Court of Appeals reversed an employer’s summary judgment on ADA and FMLA claims and made several notable holdings. Hurtt v. International Services, Inc., No. 14-1824 (6th Cir. 9-14-15).   First, the Court reiterated that a constructive discharge could constitute an actionable adverse employment action for discrimination and retaliation claims.  Second, an employee whose commission draw and pre-paid expenses are revoked and issued a $22,000 invoice for prior draws could feel his working conditions had become intolerable so as to be constructively discharged.  Third, refusing to discuss an employee’s request to receive eight-hours of sleep per night – especially after being supported with a medical opinion -- could violate the ADA.  Finally, a constructive discharge could constitute FMLA interference even though the employer never overtly denied the employee’s request for FMLA leave.

According to the Court’s opinion, the plaintiff was a commissioned salesperson.  Following his resignation, he was convinced to return to work by the promise of a $70,000/year forgivable draw, a four-day work week, a $40/day per diem and pre-paid travel expenses.    However, the employer later denied that the draw was to be forgivable and the four-day work week never materialized.  The plaintiff claimed to only be permitted a few hours of sleep each night because of his travel schedule.  The plaintiff then submitted a doctor’s note in March noting, among other things, mental fatigue and recommended time off from traveling and sleep hygiene. The employer did not address his repeated requests for more sleep time and need for a four-day work week or the physician’s note.  On September 1, his therapist faxed the employer a note about his acute anxiety and depression, that he would be off work until September 5 and that he would require additional time off in the future under the FMLA.  On September 4, the plaintiff submitted an FMLA request for time off when his anxiety or depression flared up.  The employer responded the next day by terminating his draw retroactive to September 1, reinstated his commissioned pay plan, terminated his pre-paid travel expenses and requested that he repay the $22,752 already advanced to him through his draw.  The plaintiff indicated that he could not work under the new conditions and requested that his former compensation arrangements be reinstated.  In the meantime, the employer processed his FMLA request and sent a medical certification form to his medical provider.  On September 18, the plaintiff’s attorney notified the employer that he would not be returning to work and the proceedings were commenced.

The trial court had dismissed the plaintiff’s ADA discrimination allegation on the grounds that a constructive discharge could not constitute an adverse employment action (which is necessary to establish a prima facie case). The Court noted that this was not a proper analysis of the law.  Thus, although already well established, we hold once more today that a plaintiff may use a constructive discharge claim to show that he or she has suffered an adverse employment action.”

In addition, the Court found that the plaintiff had produced sufficient evidence to show that he had been constructively discharged.   

To demonstrate a constructive discharge, the plaintiff must show that (1) the employer deliberately created intolerable working conditions, as perceived by a reasonable person; (2) the employer did so with the intention of forcing the employee to quit; and (3) the employee actually quit. . . .

 . . .“[w]hether a reasonable person would have [felt] compelled to resign depends on the facts of each case[,]” but we consider several factors, including but not limited to, “reduction in salary” and “badgering, harassment, or humiliation by the employer calculated to encourage the employee’s resignation.” . . .

                . . . Further, in analyzing the second prong, we have held that “a complete failure to accommodate, in the face of repeated requests, might suffice as evidence to show the deliberateness necessary for constructive discharge.”

The Court found that a reasonable person would have found continued employment intolerable and felt compelled to resign by having his draw and pre-paid expenses terminated retroactively to his first date of medical leave and being put back on a commissioned pay plan. It was not difficult to find that the employer was attempting to force his resignation because he had already resigned before over the commissioned pay plan and only returned when promised a draw and the employer had refused to acknowledge or discuss his repeated requests for more sleep.  Accordingly, the Court found that the plaintiff’s disability discrimination claim should gone to a jury.

The Court also found that the plaintiff had stated actionable claims for retaliation.  His repeated requests for a reasonable accommodation (i.e., more sleep) and for FMLA leave constituted protected activity.  The Court rejected the employer’s contention that it had never been put on notice that he had a disability.  But, the pertinent inquiry here is not whether Hurtt proved he had a disability under the ADA, or whether ISI had specific knowledge of Hurtt’s alleged disability, but rather, whether Hurtt showed a good-faith request for reasonable accommodations.”  

As a whole, these acts are sufficient, good-faith requests for accommodations. [The employee's] verbal requests initially notified [the employer] that he sought sleep accommodations during his travels. And while Dr. Littles’ document did not explicitly request an accommodation, it specifically corroborated [his] verbal requests that he be given sufficient time to sleep during his travels to accommodate his medical conditions. Furthermore, Dr. Sharnowski’s letter and [his] FMLA leave request notified [the employer] that he sought accommodation in the form of time off from work. Accordingly, we conclude that [the plaintiff] has put forth sufficient evidence to show that he engaged in protected activity as required under a claim for retaliation under the ADA.

His constructive discharge was sufficient evidence of an adverse employment action to support his retaliation claim. “To be adverse, a retaliatory action must be enough to dissuade a reasonable person from engaging in the protected activity. . . .”  

Although the employer never denied the plaintiff’s FMLA request or demanded that he return to work, its constructive discharge of him could be construed as discouraging an employee from taking FMLA leave and, thus, constitute an actionable FMLA interference claim.  

Contrary to [the employer's] assertions, the fact that [it] did not literally interfere with [his] FMLA leave (i.e., by denying it, requesting he report to work, or complete work-related tasks) does not impede [the plaintiff's] claim of FMLA interference. By engaging in an act that would discourage [him] from using his FMLA leave, [the employer] could be liable under a claim for FMLA interference.

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 be changed or 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.