Thursday, January 14, 2016

Sixth Circuit Affirms Dismissal of FMLA Claims Without Actual Damages

Last month, the Sixth Circuit affirmed dismissal of FMLA interference and retaliation claims brought by a terminated warehouse worker, but remanded for the court to consider her state law claims.  Thiess v. Walgreen Company, No. 14-3892 (6th Cir. 12-7-15).  The plaintiff could not show that she suffered any compensable harm from the alleged FMLA interference.  Her allegation “that she would have taken more absences if her request had been granted in no way proves that [the employer] interfered with her request in any way.”  She also could not show unlawful retaliation when the employer had an honest belief following its internal investigation that she was properly terminated in accordance with company policy for fabricating assault allegations against a co-worker and assaulting him.  Finally, the Court remanded the case for resolution of her remaining claims.

According to the Court’s opinion, the plaintiff failed to provide medical certification to support her request for intermittent FMLA leave despite many opportunities and reminders.  In the meantime, the employer provisionally issued disciplinary actions for her unexcused absences that she alleged should have been covered by her FMLA request.   A few months later, she alleged that a co-worker assaulted her and filed a criminal complaint against him.  Following separate investigations by the police and the employer, which included video evidence, both the police and the employer determined that the plaintiff had falsely accused her co-worker and had actually assaulted him.  Accordingly, she was terminated. 

The plaintiff brought suit in state court alleging sexual harassment, discrimination and retaliation, and violation of the FMLA.   The employer removed to federal court on the basis of diversity jurisdiction.  After dismissing the FMLA claims on summary judgment, the trial court remanded the remaining claims back to state court. 
The Court of Appeals found that the plaintiff could not show FMLA interference because she suffered no financial harm from the employer’s failure to approve her FMLA leave.  Although she alleged that she would have taken more time off work than she actually did if it had been approved and if she had not been provisionally disciplined, she suffered no compensable damages from this alleged harm. “[T]he FMLA does not provide a remedy “unless the employee has been prejudiced by the violation.”  

The FMLA provides that an employee whose rights are interfered with is entitled to

damages equal to the amount of any wages, salary, employment benefits, or other compensation denied or lost to such employee by reason of the violation; or in a case in which wages, salary, employment benefits, or other compensation have not been denied or lost to the employee, any actual monetary losses sustained by the employee as a direct result of the violation.
29 U.S.C. § 2617(a)(1)(A)(i). If an employee does not suffer any damages, then the FMLA does not provide a remedy.
The Court also rejected the FMLA retaliation claim because the plaintiff could not show that the employer lacked on honest belief that she had violated company policy by fabricating assault allegations against a co-worker and assaulting him.  Therefore, there was insufficient evidence that it terminated her on account of her FMLA requests instead of its proffered reasons:

In deciding whether an employer reasonably relied on the particularized facts then before it, we do not require that the decisional process used by the employer be optimal or that it left no stone unturned.” . . . In reviewing Walgreens’s decision to fire Theiss, we are looking for “error on the part of the employer that is too obvious to be unintentional.”  . . . In light of this standard, we find nothing in the record showing any gross deficiency or oversight in Walgreens’s investigation. There is no evidence showing that Walgreens’s reasons for firing Theiss were dishonest, pretextual, not sincerely held, or discriminatory. On the contrary, Walgreens had a specific policy that provided for immediate termination in cases of “harassment or horseplay” and “falsifying . . . documents.” Since Walgreens determined—after due investigation—that this is precisely what Theiss had done, her termination was directly in line with a clearly established company policy.
Finally, the Court found that the case had been improperly remanded back to the state court after the dismissal of the FMLA claims.  The case had been removed to federal court on the basis of diversity jurisdiction, not just federal question jurisdiction.  Accordingly, the court had jurisdiction over the state law claims on the basis of diversity of citizen between the parties.

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.