Thursday, July 25, 2013

Ohio Supreme Court Issues Two Interesting Employment Decisions

This month the Ohio Supreme Court issued two decisions of interest to Central Ohio employers.  First, this morning, the Court ruled that the Unemployment Compensation Board of Review did not err in denying coverage to a claimant who had deferred 62% of her income to her flexible spending account because her remaining income was below the $213/week threshold required to qualify for unemployment benefits. Bernard v. Unemp. Comp. Rev. Comm., Slip Opinion No. 2013-Ohio-3121.   In a case last week, the Court affirmed the denial of summary judgment to an employer which had claimed that political subdivision immunity protected it from an intentional tort claim for failing to supervise. Vacha v. N. Ridgeville, Slip Opinion No. 2013-Ohio-3020.

In Bernard, the employee was terminated from her position and filed for unemployment compensation.  However, the ODJFS found that she had only earned $125/week in taxable wages in the prior 20 weeks, making her ineligible.  She appealed the denial of benefits on the grounds that she had deferred $900/month to her FSA in the employer’s cafeteria plan.  The relevant statute provides that all compensation should be considered, except for payments made on behalf of an employee to a cafeteria benefit plan. 26 U.S.C. § 3306(b)(5)(G).  While the statute is ambiguous, the UCBR’s interpretation was reasonable, and therefore, must be affirmed. The Court also rejected the employee’s argument that the statute was required to be construed in her favor in light of the UCRB’s reasonable interpretation.

In Vacha, the plaintiff was raped by a co-worker who had been hired at the behest of the town’s mayor and who had been the delinquent-child support paying father of two of the mayor’s grandchildren.  While he did not have a felony criminal record, he had been convicted of domestic violence and disorderly conduct.  The city did not conduct any criminal background check.   The plaintiff filed suit alleging, among other things, negligent hiring/supervision and the intentional tort of acting “intentionally with willful, wanton disregard for the safety of others, in selecting, supervising or otherwise controlling” the now-convicted rapist.  The City alleged that it was immune from suit under Ohio Revised Code §2744.02. The statute, however, does not apply to “[c]ivil actions by an employee * * * against his political subdivision relative to any matter that arises out of the employment relationship between the employee and the political subdivision.” (Emphasis added.) R.C. 2744.09(B).”  While the City argued that an intentional tort does not arise out of the employment relationship, the Court had subsequently held otherwise in Sampson v. Cuyahoga Metro. Hous. Auth., 131 Ohio St.3d 418, 2012-Ohio-570:
 

1.       When an employee of a political subdivision brings a civil action against the political subdivision alleging an intentional tort, that civil action may qualify as a “matter that arises out of the employment relationship” within the meaning of R.C. 2744.09(B).

2.       An employee’s action against his or her political subdivision employer arises out of the employment relationship between the employee and the political subdivision within the meaning of R.C. 2744.09(B) if there is a causal connection or a causal relationship between the claims raised by the employee and the employment relationship.

The Court then turned to whether the plaintiff’s intentional tort in this case came within the types of claims recognized in §2744.09(B):

To resolve the discretionary appeal here, Sampson requires consideration of whether there is a causal connection or causal relationship between Vacha’s intentional-tort claim and her employment relationship. If there is, then Vacha’s claim arises out of the employment relationship and the city may not claim political-subdivision immunity. If, on the other hand, there is no causal connection or causal relationship, then the city may be entitled to immunity under R.C. Chapter 2744.

While the rape might have been unrelated to the employment relationship, her claim related to the City’s alleged misconduct in how it hired and supervised the rapist. “It is a causal connection or causal relationship between that alleged conduct and [the plaintiff’s] employment relationship that governs the applicability of R.C. 2744.09(B) here. While this case does not present the clear causal relationship that existed in Sampson (where the employer had the employee-plaintiff arrested at work), “[a] plaintiff need only establish a genuine issue of material fact as to whether the plaintiff’s claims are causally related or causally connected to the employment relationship to survive summary judgment.”
 

Neither the trial court nor the court of appeals, however, considered whether the particular evidence in this case established a genuine issue of material fact as to whether there is a causal connection or a causal relationship between North Ridgeville’s selection, supervision, and control of Ralston, and Vacha’s employment relationship with the city. We decline to make that determination in the first instance.

Nonetheless, because the employer failed to show that “is entitled to political-subdivision immunity on Vacha’s employer-intentional-tort claim as a matter of law,” the denial was summary judgment was affirmed. 

 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.