Thursday, January 24, 2019

Employer’s Evaluation of Inconsistent Witness Accounts Does Not Show Dishonest Belief


Yesterday, the Sixth Circuit Court of Appeals affirmed an employer’s summary judgment on an age and reverse race discrimination claim based on the employer’s honest belief – despite contradictory information produced during its investigation – that the plaintiff had violated company policy.  Hardesty v. Kroger Co., No. 18-3378 (6th Cir. 1-23-19).   Choosing between inconsistent accounts given during an investigation does not create an issue of fact about the employer’s bad faith.  The investigation was sufficiently diligent to be worthy of credence and the Court refused to second-guess the harshness of the punishment.

According to the Court’s opinion, the plaintiff had been hired six months earlier to conduct telephone interviews with job applicants for a new store.  He was observed by a co-worker hanging up on calls directed to his desk so that he could continue a discussion with another co-worker and this was reported to management as to time, place and witnesses.  There seemed to be a discrepancy whether she saw this happen two or three times.  The company’s “customer first” policy requires applicants to be given excellent customer service.  An investigation was conducted which showed that his average call time was under 2 minutes per call, compared to an average of 5 minutes per call.  The call logs did not track individual calls.  When confronted, the plaintiff explained that he just spoke quicker than his co-workers.  The other co-worker denied noticing the plaintiff hanging up on callers, but this was not mentioned in the investigation report.  Although the plaintiff was given the option of resigning, he chose termination.

The Court rejected the plaintiff’s argument that the failure to mention in the report that another witnesses could not corroborate the allegation showed consciousness of guilt and doubt in the truth of the allegations against him.  It found this argument to require a strained and unreasonable inference to be drawn:

Even assuming that [his co-worker’s] inability to corroborate the accusation can be fairly read to refute it, investigations often produce conflicting evidence, requiring an employer to evaluate credibility and weigh various pieces of information.  Just because an employer must choose between inconsistent accounts “does not mean that there inevitably is a genuine issue of fact concerning the employer’s good faith.

The Court also rejected the plaintiff’s attack on the Company’s reliance on the significant discrepancy in the average call times: “exceptionally short call times could reflect a pattern of dishonest behavior and reveal a practice of failing to properly screen applicants or disconnecting calls.”

While the employer may have left some stones unturned (like checking surveillance footage to see if the reporting employee actually walked by the plaintiff’s cubicle as described),

when we evaluate the honesty of an employer’s belief, we do not require evidence of an optimal decisional process or a scorched-earth investigation.  Smith, 155 F.3d at 807.  “[T]he key inquiry is whether the employer made a reasonably informed and considered decision before taking an adverse employment action.”   

In any event, the evidence showed that the employer conducted a thorough and sufficiently diligent investigation which was worthy of credence:

She spoke to all potential witnesses, scrutinized Hardesty’s call logs for any suspicious patterns, sought advice from her colleagues in human resources and operations, and met with [the plaintiff] to clarify why his logs reflected such short phone calls as compared to his team’s average.  After reviewing all the data she believed available, she concluded that [the plaintiff] likely released at least one incoming call and determined that this warranted immediate termination.  “That [the plaintiff] or the court might have come to a different conclusion if they had conducted the investigation is immaterial.”  Seeger v. Cincinnati Bell Tel. Co., 681 F.3d 274, 287 (6th Cir. 2012).

The Court also rejected the plaintiff’s argument that his alleged misconduct did not warrant termination under the employer’s prior administration of its policies.  However, he apparently failed to identify a comparator who was sufficiently similarly-situated who was treated differently (i.e., better) because the alleged comparator’s actions may not have violated the policy.  Unfortunately, the Court did not elaborate.

Not a single Kroger employee involved in [this] investigation ever questioned whether hanging up on a customer merited termination.  And “disputes about the interpretation of company policy do not typically create genuine issues of material fact regarding whether a company’s stated reason for an adverse employment action is only a pretext designed to mask unlawful discrimination.”

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.