Thursday, October 22, 2015

Ohio Appeals Court Reverses Employer’s Summary Judgment on Sexual Harassment and Retaliation Claim

Last week, a unanimous Butler County Court of Appeals reversed an employer’s summary judgment on a sexual harassment and retaliation claim brought by a former grocery store employee.  Ellis v. Jungle Jim's Market, Inc., 2015-Ohio-4226.   The court found that there were factual disputes which prevented judgment on the employer’s defenses even though it did a lot correctly after learning of the alleged harassment.  In particular, the Court found there was enough evidence to show that the employer did not sufficiently prevent or remedy harassment because its management had not been trained about harassment or workplace investigations, it failed to obtain written statements from all witnesses in a timely fashion and its anti-harassment policy did not specifically address informal and verbal reports of harassment.  A jury could also find that the employer retaliated against the plaintiff for filing her OCRC Charge by immediately transferring her to a lower-skilled bagging position at the same rate of pay purportedly in order to protect her because it had not transferred her when she earlier complained about harassment and had not transferred or suspended the harassing employee.

According to the Court’s opinion, the plaintiff had been hired as a bagger and was subsequently promoted into the seafood department.  She had been given the employer’s sexual harassment policy, which directed her to bring concerns to her supervisor, her manager or to a certain employee (who had previously died) who chaired the store’s investigation committee.  About a month after her promotion in February 2013, she claimed that her supervisor subjected her on a daily basis to inappropriate sexual comments and suggestions, many of which were graphic and gross.   Although she regularly objected to his conduct and suffered emotional and physical distress from it, she did not report it to management because he told her that he was just kidding and implicitly threatened her when he said that he knew that she liked her job.
Another employee reported the alleged harassment of the plaintiff to the assistant store manager, who then reported it to the store manager (who now chaired the store’s investigation committee).  After speaking with the plaintiff, the store managers interviewed her supervisor and two other employees (who did not corroborate the plaintiff’s allegations).  They did not interview all of the department employees or obtain written statements from the department employees.  Nonetheless, they issued a disciplinary action on May 5 directing the supervisor to cease any sexual comments under penalty of immediate termination.  The plaintiff was instructed to report any further problems to the store manager and she declined the opportunity to transfer out of the department.  Her working hours were changed so that she would no longer work with her supervisor.
There was conflicting evidence about whether the inappropriate comments continued.  The plaintiff at one point testified that he only whispered about her to other employees.  She claimed, however, that he retaliated against her by denying her time off, etc.  She did not immediately bring these issues to management even though they regularly walked through her department and checked in with her in order to ensure that she was suffering no further harassment.  Nonetheless, the plaintiff filed an OCRC Charge on May 28 alleging sexual harassment.  She was almost immediately transferred back to bagging without any reduction in pay and declined the owner’s offer to return her to the seafood department.  She subsequently injured her knee and was medically restricted to a sitting position.  Accordingly, the store gave her its only light duty position as the store greeter.  However, she resigned because she felt that she had been put in that position in order to ridicule her.
The plaintiff filed suit in November.  The following May, the store finally interviewed the rest of the seafood department employees almost a year after its first investigation and received further corroboration of the sexual harassment and that it continued after the plaintiff had been transferred out of the department.
Unlike the trial court, the Court of Appeals found that the plaintiff produced sufficient evidence that her supervisor created a hostile working environment with his daily sexual comments and suggestions because his conduct could be found by a jury to be sufficiently severe and pervasive enough to alter the terms and conditions of employment.  The Court also found that the alleged harassment was also objectively and subjectively hostile to a reasonable person in the plaintiff’s position.  Evidence about her failure to complain, the testimony of co-workers that they never witnessed the alleged harassment and the fact that she accepted a ride home from the harasser only affected the weight of the employer’s defense and not whether the plaintiff could prevail at trial.
Unlike the trial court, the Court also found that there was sufficient evidence to hold the employer vicariously liable for the harassment.   First, it found that there remained issues of material fact about whether the employer could raise the “no tangible employment action” defense.  The plaintiff could not show that her harassing supervisor had taken any tangible actions because her transfers, etc. had been taken by upper store management.  Nonetheless, the employer was not entitled to summary judgment on the defense because it could not show that it took sufficient steps to prevent and remedy harassment.   In particular, its policy did not explicitly provide for informal or verbal complaints.   There were also issues as to whether the employer actively implemented the policy or trained supervisors or staff about it because it had not been updated following the death of the investigations committee chair and none of the managers had received training about harassment or how to conduct investigations. Second, the employer did not interview all of the departmental employees identified by the plaintiff in her interview or obtain written statements from any departmental employees until after the plaintiff filed her OCRC Charge.   The Court also faulted the employer for leaving the plaintiff in the department, only periodically touching base with her thereafter and not training the harasser about how his conduct had been objectionable.
As for her retaliation claim, the trial court had found that the transfer back to a bagging position at the same rate of pay was lateral and therefore, not materially adverse.  The Court of Appeals found this to be a disputed factual issue because a bagger’s diminished responsibility might have deterred a reasonable person from filing an OCRC Charge.  Further, the plaintiff could show a causal connection between her transfer and her protected activity because she was transferred almost immediately (or within a few days) after the employer learned that she had filed her OCRC Charge.  It also found a factual dispute as to whether the employer’s legitimate business reason for transferring her – to protect her from further sexual harassment – was pretextual because it had not transferred her earlier even though she had allegedly complained about continued harassment.  A jury could reasonably find that she had been transferred in retaliation for filing her OCRC Charge because the harasser could have been transferred or suspended instead.

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.