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Workplace Disqualification under ADA

Disqualification under ADA
Anthony v. TRAX Int’l Corp


SOURCE: 

KEY WORDS:
Title I, ADA, Disqualification, Accomodation, Disability

AGENCY:

UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT


ACTION:

Modified and Certified for Publication


Document Citation:

No.18-15662



SUNNY ANTHONY,
an Arizona resident,
Plaintiff-Appellant,

v.
TRAXI NTERNATIONAL CORPORATION,
a Nevada corporation,
Defendant-Appellee

No.18-15662


D.C. No.2:16-cv-02602-ESW


COUNSEL Michael Zoldan (argued), Zoldan Law Group, Scottsdale, Arizona, for Plaintiff-Appellant. Scott A. Hagen (argued) and D. Zachary Wiseman, Ray Quinney & Nebeker P.C., Salt Lake City, Utah, for Defendant-Appellee. Barbara L. Sloan (argued), Attorney; Anne Noel Occhialino, Acting Assistant General Counsel; Jennifer S. Goldstein, Associate General Counsel; James L. Lee, Deputy General Counsel; U.S. Equal Employment Opportunity Commission, Office of General Counsel, Washington, D.C.; for Amicus Curiae. James R. Sigel (argued), Morrison & Foerster LLP, San Francisco, California; Joseph R. Palmore and Bryan J. Leitch, Morrison & Foerster LLP, Washington, D.C.; Daryl L. Joseffer and Michael B. Schon, U.S. Chamber Litigation Center, Washington, D.C.; for Amicus Curiae Chamber of Commerce of the United States of America.

Opinion by Judge Wardlaw

FOR PUBLICATION
D.C. No. 2:16-cv-02602-ESW OPINION Appeal from the United States District Court for the District of Arizona

Eileen S. Willett, Magistrate Judge, Presiding Argued and Submitted November 15, 2019 San Francisco, California Before: Kim McLane Wardlaw, William A. Fletcher, and Richard Linn, Circuit Judges. Opinion by Judge Wardlaw  SUMMARY 

The Honorable Richard Linn, United States Circuit Judge for the U.S. Court of Appeals for the Federal Circuit, sitting by designation. This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader.

Employment Discrimination

The panel affirmed the district court's grant of summary judgment in favor of the employer in a disability discrimination action under Title I of the Americans with Disabilities Act.

After plaintiff filed suit, alleging that her employer terminated her from her position as a technical writer because of her disability, the employer learned that, contrary to her representation on her employment application, plaintiff lacked the bachelor's degree required of all technical writers under the employer's government contract. Under the two-step qualified individual test promulgated by the EEOC and embedded in the court's precedent, an individual who fails to satisfy the job prerequisites cannot be considered "qualified" under the ADA unless she shows that the prerequisite is itself discriminatory in effect. Disagreeing with the Seventh Circuit and agreeing with other circuits, the panel held that a limitation on the use of after-acquired evidence, applicable under McKennon v. Nashville Banner Publishing Co., 513 U.S. 352 (1995), to an employer attempting to excuse its discriminatory conduct under the Age Discrimination in Employment Act, does not extend to evidence used to show that an ADA plaintiff is not a qualified individual, as required to establish a prima facie case of disability discrimination. Further, the employer had  no obligation to engage in the interactive process to identify and implement reasonable accommodations. COUNSEL Michael Zoldan (argued), Zoldan Law Group, Scottsdale, Arizona, for Plaintiff-Appellant. Scott A. Hagen (argued) and D. Zachary Wiseman, Ray Quinney & Nebeker P.C., Salt Lake City, Utah, for Defendant-Appellee. Barbara L. Sloan (argued), Attorney; Anne Noel Occhialino, Acting Assistant General Counsel; Jennifer S. Goldstein, Associate General Counsel; James L. Lee, Deputy General Counsel; U.S. Equal Employment Opportunity Commission, Office of General Counsel, Washington, D.C.; for Amicus Curiae. James R. Sigel (argued), Morrison & Foerster LLP, San Francisco, California; Joseph R. Palmore and Bryan J. Leitch, Morrison & Foerster LLP, Washington, D.C.; Daryl L. Joseffer and Michael B. Schon, U.S. Chamber Litigation Center, Washington, D.C.; for Amicus Curiae Chamber of Commerce of the United States of America. 

OPINION
WARDLAW, Circuit Judge:

Sunny Anthony appeals the grant of summary judgment in favor of TRAX International Corporation (TRAX) in her action alleging disability discrimination under the Americans with Disabilities Act, 42 U.S.C. §§ 12101 et seq. (ADA). The ADA prohibits discrimination against "a qualified individual on the basis of disability." Id. at § 12112(a). Here, TRAX terminated Anthony from her position as a Technical Writer—a position that by virtue of a third-party contract required a bachelor's degree in English, journalism, or a related field—allegedly due to an inability or unwillingness to accommodate her disability. TRAX discovered during the course of this litigation that Anthony lacked the requisite degree. We must decide under these circumstances whether such "after-acquired evidence" that an employee does not satisfy the prerequisites for the position, including educational background, renders the employee ineligible for relief under the ADA.
Anthony does not appeal the dismissal of her claim for retaliation.

I.

TRAX, a contractor for the Department of the Army, hired Anthony as a "Technical Writer I" in April 2010. Anthony had a history of post-traumatic stress disorder and related anxiety and depression. Her condition worsened, requiring her to miss periods of work. As a result, Anthony applied for and obtained leave under the Family and Medical Leave Act (FMLA) in April 2012. Anthony's physician  estimated that her condition would likely continue until May 30, 2012.

On June 1, 2012, Anthony asked to work from home, but TRAX denied her request. TRAX's Benefits Coordinator extended the time of her FMLA leave for thirty days, but notified Anthony that she would be fired unless she provided a "full work release," a doctor's clearance for return to work with no restrictions, by the time her leave expired on July 26, 2012. Because Anthony never submitted a full work release, TRAX terminated her employment effective July 30, 2012. According to TRAX's then-Manager of Human Resources, Anthony would have been eligible for rehire in administrative support positions that were open at the time.

Soon after she was fired, Anthony filed this suit for disability discrimination under the ADA, alleging that TRAX terminated her because of her disability and that it failed to engage in the statutorily required interactive process to find her a reasonable accommodation for employment. During litigation of this action, TRAX learned that Anthony lacked the bachelor's degree required of all Technical Writers, contrary to her representation on her employment application. The bachelor's degree prerequisite is not subjective, unrelated to the job, or open to exception: under TRAX's government contract, it may bill for Technical Writer work only if the employee in question has a bachelor's degree.

The parties cross-moved for summary judgment. The district court entered judgment in favor of TRAX, reasoning that, in light of the after-acquired evidence that Anthony lacked the required bachelor's degree when she was terminated, she was not a "qualified individual" within the protection of the ADA. The district court did not address  Anthony's argument that TRAX failed to engage in the interactive process to identify reasonable accommodations.

II.

We have jurisdiction pursuant to 28 U.S.C. § 1291. "We review the district court's grant of summary judgment de novo, viewing the evidence and drawing all reasonable inferences in the light most favorable to the non-moving party." Cohen v. City of Culver City, 754 F.3d 690, 694 (9th Cir. 2014) (citing Szajer v. City of Los Angeles, 632 F.3d 607, 610 (9th Cir. 2011)). "We must determine whether there are any genuine issues of material fact and whether the district court correctly applied the relevant substantive law." Id. (citing Del. Valley Surgical Supply Inc. v. Johnson & Johnson, 523 F.3d 1116, 1119 (9th Cir. 2008)).

III.

A. Title I of the ADA provides:
No covered entity shall discriminate against a qualified individual on the basis of disability in regard to job application procedures, the hiring, advancement, or discharge of employees, employee compensation, job training, and other terms, conditions, and privileges of employment.

42 U.S.C. § 12112(a). The text of § 12112(a) thus protects only "qualified individuals" from employment disability discrimination. Weyer v. Twentieth Century Fox Film Corp., 198 F.3d 1104, 1112 (9th Cir. 2000); Id. at 1108 ("The plain language of the [ADA] thus allows only those who are  'qualified individuals' to bring suit."). Accordingly, Anthony carries the initial burden of establishing that she is a qualified individual as part of her prima facie disability discrimination case. Hutton v. Elf Atochem N. Am., Inc., 273 F.3d 884, 891 (9th Cir. 2001); see Bates v. United Parcel Serv., Inc., 511 F.3d 974, 988 (9th Cir. 2007) (en banc) ("[U]nder the ADA, an employee bears the ultimate burden of proving that [she] is . . . a qualified individual with a disability . . . ." (internal quotation marks omitted)).

Section 12111(8) of the ADA explicitly defines a "qualified individual" as "an individual who, with or without reasonable accommodation, can perform the essential functions of the employment position that such individual holds or desires." 42 U.S.C. § 12111(8).

However, the "Equal Employment Opportunity Commission ('EEOC'), the agency to which Congress delegated authority to implement Title I of the ADA, has promulgated a regulation expanding this definition." Johnson v. Bd. of Trustees of Boundary Cty. Sch. Dist. No. 101, 666 F.3d 561, 564-65 (9th Cir. 2011) (internal citations omitted) (citing 56 Fed. Reg. 35,726, 35,735 (July 26, 1991)). The EEOC promulgated 29 C.F.R. § 1630.2(m) to further elaborate upon the meaning of the term "qualified." That subsection sets forth a two-step inquiry for determining whether the individual is qualified. We first determine whether the individual satisfies the prerequisites of the job; more specifically, whether "the individual satisfies the requisite skill, experience, education and other job-related requirements of the employment position such individual holds or desires." At step two, we determine whether, "with or without reasonable accommodation," the individual is able to "perform the essential functions of such position." 29 C.F.R. § 1630.2(m). 

The EEOC has also issued Interpretive Guidance on Title I of the Americans with Disabilities Act that further expounds on the definition of qualified individual. See 29 C.F.R. pt. 1630, app. to § 1630.2(m). At the first step, this guidance asks us to "determine if the individual satisfies the prerequisites for the position, such as possessing the appropriate educational background, employment experience, skills, licenses, etc." Id. We then go on to step two to "determine whether or not the individual can perform the essential functions of the position held or desired, with or without reasonable accommodation." Id.

B. At no time did Anthony satisfy the prerequisites step of the qualified individual element of an ADA prima facie case; it is undisputed that she never possessed the requisite bachelor's degree, and it is undisputed that, pursuant to TRAX's government contract, the bachelor's degree was an actual requirement of the Technical Writer position that could not be satisfied by any functional equivalent. However, Anthony, and the EEOC as amicus, argue that because her lack of a bachelor's degree was "after-acquired evidence"—evidence discovered well after the discriminatory adverse employment action—at most it should be used to limit liability.

1. Amicus EEOC perplexingly argues that we should disregard its regulation and interpretive guidance and revert to the plain language of 42 U.S.C. § 12111, which defines "qualified individual" as one who can perform the essential functions of the employment position such individual holds or desires. According to the EEOC, 29 C.F.R. § 1630.2(m) does not require all plaintiffs challenging disability-based  discriminatory conduct to show they satisfy the job's prerequisites in order to bring suit under the ADA. It argues that because Anthony's lack of a bachelor's degree was irrelevant to the decision to terminate her employment, Anthony can establish a prima-facie case of disability discrimination and withstand summary judgment with evidence that she can perform the essential job functions—"the standard for qualification that Congress expressly set forth in the statute."

The EEOC is not seeking deference under Auer v. Robbins, 519 U.S. 452 (1997), for the interpretation of 29 C.F.R. § 1630.2(m) that it advances in this litigation, see Dkt. 47, and so we need not determine whether the regulation is ambiguous. Likewise, we decline to determine whether the statute is ambiguous or capable of an interpretation in accord with the EEOC's position. Instead, as we must, we adhere to our precedent that has adopted the job prerequisites inquiry described in the EEOC's regulations as a mandatory step in the "qualified individual" determination.

In Bates, we explained that, under the ADA and the EEOC's regulations, "[q]ualification for a position is a two-step inquiry," beginning with "whether the individual satisfies the 'requisite skill, experience, education and other job-related requirements' of the position." 511 F.3d at 990 (quoting 29 C.F.R. § 1630.2(m)). The package-car driver position at issue in Bates "require[d] an applicant to meet [the employer's] threshold seniority requirements . . . , complete an application, be at least twenty-one years of age, possess a valid driver's license, and have a clean driving record by [the employer's] local standards." Id. at 990. Applying the two-step qualified individual test, we first ensured that the plaintiff met each of these prerequisites  before even considering whether the plaintiff could perform the job's essential functions. Id.

We reaffirmed our adoption of the "two-step qualification inquiry" in Johnson: "We have previously adopted the EEOC's two-step inquiry as the test for whether an individual is qualified within the meaning of the ADA." 666 F.3d at 565 (citing Bates, 511 F.3d at 990); see also Samper v. Providence St. Vincent Med. Ctr., 675 F.3d 1233, 1237 (9th Cir. 2012) (applying the EEOC's two-step test as adopted in Bates). Thus, "an individual who fails to satisfy the job prerequisites cannot be considered 'qualified' within the meaning of the ADA unless she shows that the prerequisite is itself discriminatory in effect." Johnson, 666 F.3d at 567.

Other circuits have likewise adopted the EEOC's two-step inquiry as the test to determine whether a person is a "qualified individual" within the meaning of the ADA. See Criado v. IBM Corp., 145 F.3d 437, 443 (1st Cir. 1998); McBride v. BIC Consumer Prods. Mfg. Co., 583 F.3d 92, 98 (2d. Cir. 2009); Deane v. Pocono Med. Ctr., 142 F.3d 138, 145 (3d Cir. 1998) (en banc); Foreman v. Babcock & Wilcox Co., 117 F.3d 800, 810 n.14 (5th Cir. 1997); Branham v. Snow, 392 F.3d 896, 904 (7th Cir. 2004); Benson v. Nw. Airlines, Inc., 62 F.3d 1108, 1111-12 (8th Cir. 1995); Tate v. Farmland Indus., Inc., 268 F.3d 989, 992-93 (10th Cir. 2001); Jarvela v. Crete Carrier Corp., 776 F.3d 822, 828-29 (11th Cir. 2015).

Anthony cites no authority interpreting the EEOC's regulations differently.

2. In a related argument, Anthony contends that courts applying the two-step qualified individual test are limited to the facts known to the employer at the time of the challenged employment decision. As support, she takes out of context  a portion of the interpretive guidance in 29 C.F.R. § 1630(m).

The EEOC has issued guidance as to when the determination as to whether an individual is qualified is to be made: The determination of whether an individual with a disability is qualified is to be made at the time of the employment decision. This determination should be based on the capabilities of the individual with a disability at the time of the employment decision, and should not be based on speculation that the employee may become unable in the future or may cause increased health insurance premiums or workers compensation costs.

29 C.F.R. pt. 1630, app. to § 1630.2(m) (emphasis added). This guidance clarifies that an employee must show she was qualified at the time of the adverse employment action, rather than at some earlier or later time. It does not limit the qualification determination to the facts known to the employer at the time of the challenged employment action. And for good reason—an employer's subjective knowledge has no bearing on the "skill, experience, education and other job-related [qualifications]," 29 C.F.R. § 1630.2(m), that a person in fact possesses.

3. Anthony argues that McKennon v. Nashville Banner Publishing Co., 513 U.S. 352 (1995), precludes the use of after-acquired evidence to demonstrate that she is unqualified for failing to satisfy the prerequisites prong. But McKennon was a case in which the defendant conceded it  had unlawfully discriminated against the plaintiff on the basis of age and was attempting to use after-acquired evidence of wrongdoing to assert that the plaintiff would have been fired anyway and to excuse its discriminatory conduct. 513 U.S. at 355-56. This is what the Supreme Court held impermissible, even as it allowed the evidence as relevant to the remedies available to the plaintiff. Id. at 356, 360.

In McKennon, the plaintiff sued for discrimination under the Age Discrimination in Employment Act (ADEA), which makes it unlawful "to discharge any individual . . . because of [her] age," 29 U.S.C. § 623(a)(1). McKennon held that permitting "after-acquired evidence of wrongdoing that would have resulted in termination [to] operate[], in every instance, to bar all relief for an earlier violation of the [ADEA]" would be contrary to the deterrence and compensation objectives behind the ADEA and other statutes within that statutory scheme. McKennon, 513 U.S. at 358. Although the ADEA and the ADA are part of the same "statutory scheme to protect employees in the workplace," McKennon, 513 U.S. at 357, the ADA expressly limits its protection to qualified individuals. The ADEA, in contrast, has no qualified individual element. Compare 42 U.S.C. § 12112(a) ("No covered entity shall discriminate against a qualified individual on the basis of disability. . . ." (emphasis added)) with 29 U.S.C. § 623(a) ("It shall be unlawful for an employer . . . to . . . discriminate against any individual . . . ." (emphasis added)).

Moreover, the employer in McKennon did not attempt to use after-acquired evidence to rebut the plaintiff's prima facie case. It instead argued that after-acquired evidence could provide a retroactive, legitimate justification for the employee's admittedly discriminatory discharge. Id. at 355-  56. The Supreme Court disagreed that after-acquired evidence of a nondiscriminatory basis for firing could be used to avoid liability. The Court reasoned that the employer "could not have been motivated by knowledge it did not have" and therefore "[could not] now claim that the employee was fired for the nondiscriminatory reason" that it discovered only after-the-fact. Id. at 360. It defies logic to say that an employee was terminated for a reason that the employer was not even aware of at the time.

The same is not true of the qualification inquiry. An employer's ignorance cannot create a credential where there is none. Here, Anthony lacked a bachelor's degree at the time she was terminated regardless of whether TRAX was aware of this fact. Furthermore, under the burden-shifting standard applicable to ADA claims at summary judgment, we reach the question addressed in McKennon—whether there was a legitimate, nondiscriminatory reason for the plaintiff's discharge—only after Anthony establishes her prima facie case, including the qualified individual element. See McDonnell Douglas Corp. v. Green, 411 U.S. 792, 802 (1973); Snead v. Metro. Prop. & Cas. Ins. Co., 237 F.3d 1080, 1093 (9th Cir. 2001) (applying the McDonnell Douglas framework to ADA discrimination cases).

Consistent with McKennon, we previously held that, "[a]lthough it is questionable whether [an employer] could justify [a challenged employment decision] . . . based on evidence obtained after its decision [was made], the admissibility of post-decision evidence is not necessarily forbidden for all purposes." Mantolete v. Bolger, 767 F.2d 1416, 1424 (9th Cir. 1985) (citation omitted). For example, a defendant employer sued under the Rehabilitation Act may use after-acquired evidence "to rebut [an applicant's] claim that she was qualified for the position, but . . . [not] to  enlarge the basis upon which the employer relied to reject the [applicant] at the time that decision was made." Id. It follows that an employer may likewise use after-acquired evidence to rebut an employee's claim that she is a qualified individual under the ADA. See Zukle v. Regents of Univ. of Cal., 166 F.3d 1041, 1045 n.11 (9th Cir. 1999) ("[C]ourts routinely look to Rehabilitation Act case law to interpret the rights and obligations created by the ADA."); Collings v. Longview Fibre Co., 63 F.3d 828, 832 n.3 (9th Cir. 1995) ("The legislative history of the ADA indicates that Congress intended judicial interpretation of the Rehabilitation Act be incorporated by reference when interpreting the ADA."). Notably, our holding in Mantolete is consistent with that later reached by the Supreme Court in McKennon: both opinions conclude that after-acquired evidence of an employee's wrongdoing cannot be used to establish an alternative motivation for a challenged employment action. See McKennon, 513 U.S. at 360.

In sum, McKennon held that after-acquired evidence cannot establish a superseding, non-discriminatory justification for an employer's challenged actions. But as we held in Mantolete, after-acquired evidence remains available for other purposes, including to show that an individual is not qualified under the ADA.

i. The limited out-of-circuit authority on the breadth of the Supreme Court's holding in McKennon is either in accord or unpersuasive.

Rooney v. Koch Air, LLC, 410 F.3d 376 (7th Cir. 2005), on which amicus EEOC relies, is unpersuasive. In Rooney, the plaintiff alleged that his employer had constructively discharged him because of his disability, in violation of the  ADA. Id. at 378. The defendant learned during discovery that the plaintiff did not have a valid driver's license, which necessarily meant that he could not satisfy all of the prerequisites of his job. Id. at 382. The Seventh Circuit did not "place any weight" on this after-acquired evidence in concluding that Rooney was not a qualified individual. Id. at 378, 382. According to the Seventh Circuit, McKennon held that "after-acquired evidence . . . does not bar all relief," and the Seventh Circuit could "see no distinction for this purpose between an age discrimination claim like the one in McKennon and an ADA claim." Id. at 382. This conclusion overlooks the distinction between the use of after-acquired evidence to negate an element of a plaintiff's prima facie case and its use to establish a nondiscriminatory motive for the adverse employment action. It is also in some tension with other Seventh Circuit precedent. See Teahan v. Metro-North Commuter R.R. Co., 80 F.3d 50, 55 (7th Cir. 1996) (holding that "the rule announced in McKennon ha[d] no application" in a Rehabilitation Act case in which the employer offered after-acquired evidence not "to present an alternative, 'legitimate' motive for dismissing [an employee]" but to show why he was not otherwise qualified).

Bowers v. National Collegiate Athletic Association, 475 F.3d 524 (3d Cir. 2007), another out-of-circuit case on which Anthony relies, provides no support for her position. Bowers addressed whether the National Collegiate Athletic Association (NCAA) and two universities discriminated against a high school student because of his learning disability by deeming him a "nonqualifer"—meaning he did not meet the NCAA's initial eligibility requirements—and ceasing recruitment efforts. Id. at 530, 536. During the discovery process, the defendants learned that Bowers had abused drugs. They moved for summary judgment on the  basis that his drug abuse rendered him a nonqualifier and that he therefore was not a qualified individual under the ADA. Id. at 533-34.

The Third Circuit held that the evidence of drug abuse did not render Bowers an unqualified individual not because the evidence of his drug use was acquired after the alleged discriminatory action but because the drug use itself occurred after, and as a result of, the alleged discriminatory action. Id. at 537. At the time the discriminatory action occurred there was no evidence of drug use; it was only after Bowers was deemed ineligible for athletic recruiting that Bowers plunged into addiction and depression. His subsequent drug use had no bearing on whether Bowers was qualified at the time the athletic recruiters deemed him ineligible, or whether they did so on a discriminatory basis. Separately, the Third Circuit reasoned that, under McKennon, the defendants could not claim "that Bowers was deemed a nonqualifier because of his drug abuse." Id. Here, in contrast, Anthony lacked a bachelor's degree when the alleged discrimination occurred, and TRAX does not argue that this was the reason for her termination.

In circumstances far more similar to Anthony's, the Third Circuit deemed McKennon inapplicable. See McNemar v. Disney Store, Inc., 91 F.3d 610 (3d Cir. 1996), abrogated on other grounds by Cleveland v. Policy Mgmt. Sys. Corp., 526 U.S. 795 (1999). In McNemar, the plaintiff sued his employer under the ADA, alleging that he was fired because of a disability. Id. at 616. After he was fired, the plaintiff applied for state and federal disability benefits. Id. at 615. In those applications, the plaintiff represented under penalty of perjury that he became totally disabled and unable to work on a date falling at least five weeks before he was fired. Id. In other words, the plaintiff admitted that he was  not a "qualified individual" at the time he was terminated. Id. at 618 ("[A] person unable to work is not intended to be, and is not, covered by the ADA."). The district court granted summary judgment in favor of the employer, reasoning that the plaintiff was judicially estopped from contending that he is a qualified individual under the ADA in light of these representations. Id. at 616, 618-19.

On appeal, amicus EEOC raised the precise argument it asserts in this case: that McNemar's disability applications were "after-acquired evidence" with "no bearing on the prima facie issue of McNemar's status as a qualified individual with a disability." Id. at 620-21. The Third Circuit rebuffed the EEOC's argument: "[T]he EEOC wants to mix apples—a plaintiff's prima facie case—with oranges—a defendant's non-discriminatory-reason." Id. According to the Third Circuit, McKennon's holding did not apply to the plaintiff's prima facie case. Id. "[T]he EEOC's assertion that '[a] plaintiff's claim cannot be defeated by an issue of qualifications that has nothing to do with the employer's motivation for the adverse action' becomes irrelevant . . . because that assertion has to do with [the employer's] putative pretext for firing McNemar, which is not a proper concern for the court unless McNemar first has established a prima facie case that he was qualified for the job." Id. (footnote omitted).

The Fifth and Sixth Circuits have similarly interpreted McKennon as precluding only the use of after-acquired evidence to show a legitimate, nondiscriminatory basis for the adverse action.

In McConathy v. Dr. Pepper/Seven Up Corporation, the Fifth Circuit reviewed the dismissal of an employee's ADA claim "on the basis of judicial estoppel, in that the information given in [her social security] application was  inconsistent with her claims." 131 F.3d 558, 561 (5th Cir. 1998) (per curiam). The plaintiff argued that her social security application was after-acquired evidence that could not be used to bar relief. Id. at 563. The Fifth Circuit disagreed, reasoning that the after-acquired evidence was being used "in relation to [her] job qualifications, a matter which has nothing to do with the motivation behind her employer's action." Id.

The Sixth Circuit made a similar distinction in the context of a discrimination claim under the FMLA, 29 U.S.C. § 2612. Bauer v. Varity Dayton-Walther Corp., 118 F.3d 1109, 1112 (6th Cir. 1997). In Bauer, the Sixth Circuit held that McKennon permits relying on after-acquired evidence to determine that the plaintiff did not have a "serious health condition," and that he therefore did not qualify for protection under the FMLA. Id. According to the Sixth Circuit, McKennon held that after-acquired evidence was irrelevant for the purpose of establishing "the employer's motive for the discharge." Id. Whether a plaintiff can "establish the objective existence of a serious health condition" is unrelated to motive. Id. Therefore, McKennon had no application. Id. McKennon likewise has no application to the objective qualified individual inquiry, a matter which has nothing to do with TRAX's motivation for firing her.

ii. Allowing employers to use after-acquired evidence to show that an ADA plaintiff is not a qualified individual will not usher in the parade of horribles Anthony conjures. Anthony argues the rule we adopt here will lead employers to scour a plaintiff's employment history for even the most minor of missing qualifications in an effort to avoid liability for discrimination. But employers sued for discrimination  already have reason to hunt for such disqualifiers since, at the very least, McKennon permits the use of after-acquired evidence to limit damages. See McKennon, 513 U.S. at 360-63. And employers are unlikely to purposefully expose themselves to significant liability on the off-chance that they might discover some obscure, missing qualification during the already costly discovery process. Moreover, employers will not be able to invent new requirements to avoid liability, since the employer must actually require the ostensibly missing qualification at the time of the allegedly discriminatory action. In contrast, accepting Anthony's argument would extend coverage to those who do not in fact satisfy a job's prerequisites—including those who successfully deceived their employer as to their qualifications. Such an outcome would be at odds with Congress's express decision to limit the ADA's protections to qualified individuals.

As previously mentioned, Anthony does not dispute that a bachelor's degree was an actual, mandatory requirement for the Technical Writer I position. We need not and do not decide the extent to which McKennon might apply to circumstances in which an ostensible job prerequisite is not regularly enforced, or a technical requirement like a degree could be satisfied by the functional equivalent in experience. --------

Finally, to the extent the EEOC wants us to disregard the prerequisites step of its two-step inquiry for determining who is a qualified individual under the ADA, it could reconsider its own implementing regulations and interpretive guidance that elaborated upon the statutory definition of "qualified individual." 

C. Anthony separately argues that the district court erred in granting summary judgment because there is a genuine dispute as to whether TRAX engaged in good faith in the interactive process. We disagree.

"The ADA prohibits employers from discriminating against a disabled employee by 'not making reasonable accommodations to the known physical or mental limitations of an otherwise qualified individual with a disability who is an applicant or employee, unless such covered entity can demonstrate that the accommodation would impose an undue hardship on the operation of the business of such covered entity.'" Barnett v. U.S. Air, Inc., 228 F.3d 1105, 1110-11 (9th Cir. 2000) (en banc) (footnote omitted) (quoting 42 U.S.C. § 12112(b)(5)(A)), vacated on other grounds sub nom. US Airways, Inc. v. Barnett, 535 U.S. 391 (2002). From this, we have held that an employer has a mandatory obligation "to engage in an interactive process with employees in order to identify and implement appropriate reasonable accommodations," which can include reassignment. Id. at 1111; Dark v. Curry Cty., 451 F.3d 1078, 1088 (9th Cir. 2006). "[A]n employer cannot prevail at the summary judgment stage if there is a genuine dispute as to whether the employer engaged in good faith in the interactive process." Barnett, 228 F.3d at 1116.

Importantly, however, an employer is obligated to engage in the interactive process only if the individual is "otherwise qualified." Id. at 1110-11; 42 U.S.C. § 12112(b)(5)(A). Anthony argues that she is "otherwise qualified," despite her failure to meet the prerequisites for the Technical Writer position, because she met the requirements for available reassignment positions. 

We have held that an employee is "otherwise qualified" if he could perform the essential functions of his job once provided the reasonable accommodation of reassignment. See Barnett, 228 F.3d at 1111. We need not "consider reasonable accommodation in determining whether [an employee] satisfied the job prerequisites," however. Johnson, 666 F.3d at 565 (emphasis added); 29 C.F.R. pt. 1630, app. to § 1630.9 ("[T]he obligation to make reasonable accommodation is owed only to an individual with a disability who . . . satisfies all the skill, experience, education and other job-related selection criteria."). Thus, "unless a disabled individual independently satisfies the job prerequisites, she is not 'otherwise qualified,' and the employer is not obligated to furnish any reasonable accommodation." Johnson, 666 F.3d at 565-66.

It is undisputed that Anthony did not satisfy the prerequisites for the Technical Writer position. Because Anthony needed to satisfy those requirements without reasonable accommodation, whether she met the job prerequisites for available reassignment positions is irrelevant. Accordingly, she is not "otherwise qualified," and TRAX was not obligated to engage in the interactive process.

IV. McKennon's limitation on the use of after-acquired evidence does not extend to evidence used to show an ADA plaintiff is not a qualified individual. Under the two-step qualified individual test promulgated by the EEOC and embedded in our precedent, "an individual who fails to satisfy the job prerequisites cannot be considered 'qualified' within the meaning of the ADA unless she shows that the prerequisite is itself discriminatory in effect." Johnson, 666 F.3d at 567. Because Anthony did not have the requisite  bachelor's degree at the time she was terminated, she was not qualified within the meaning of the ADA, and TRAX had no obligation to engage in the interactive process.

AFFIRMED.
Anxiety Disorder in the Workplace

Anxiety Disorder
Colucci v. T-MOBILE USA, INC.


SOURCE: 

KEY WORDS:
Accomodation, Disability, Disorder, Anxiety Disorder

AGENCY:
COURT OF APPEAL, FOURTH APPELLATE DISTRICT, DIVISION ONE, STATE OF CALIFORNIA


ACTION:

Modified and Certified for Publication


Document Citation:

D075932


STEPHEN COLUCCI, Plaintiff and Respondent,


v.


T-MOBILE USA, INC., Defendant and Appellant.


D075932


(Super. Ct. No. CIVDS1502822)


APPEAL from a judgment of the Superior Court of San Bernardino County, Super. Ct. No. CIVDS1502822, Keith D. Davis, Judge. Affirmed in part, reversed in part, and remanded with directions.
Allen Matkins Leck Gamble Mallory & Natsis and Amy Wintersheimer Findley; Paul Hastings, Paul W. Cane, Jr., and Andrea Dicolen, for Defendant and Appellant.
Barrera & Associates, Patricio T.D. Barrera, Ashley A. Davenport; McCormick, Barstow, Sheppard, Wayte & Carruth and Scott M. Reddie for Plaintiff and Respondent.

CERTIFIED FOR PUBLICATION

DATO, J.

T-Mobile USA, Inc. (T-Mobile) appeals a judgment entered on a $5 million jury verdict in favor of former employee Stephen Colucci in a workplace retaliation case.

T-Mobile primarily challenges the $4 million punitive damages award, arguing there is insufficient evidence that a managing agent engaged in retaliatory conduct or that the managing agent's actions were malicious or oppressive (Civ. Code, § 3294, subd. (b)). Alternatively, it argues the punitive damages award is constitutionally excessive and must be reduced. Finally, T-Mobile contends the jury's $200,000 award of damages for future emotional distress is not supported by sufficient evidence.

For the reasons discussed below, we reduce the punitive damages award to an amount that is one and one-half (1.5) times the amount awarded in compensatory damages, and otherwise affirm the judgment.

FACTUAL AND PROCEDURAL BACKGROUND

"In summarizing the facts, we view the evidence in favor of the judgment." (Roby v. McKesson Corp. (2009) 47 Cal.4th 686, 693-694 (Roby).)

T-Mobile, headquartered in the State of Washington, sells wireless telephones and plans to consumers at retail store locations. There are hundreds of T-Mobile retail stores in California, which the company groups into smaller geographic regions and districts.

Colucci worked for T-Mobile from 2007 until 2014 as the manager of a store in Ontario, California, known as the Milliken store. As store manager, he supervised around 10 employees, participated in hiring and training these employees, conducted physical inventories, and completed other tasks to support sales. Colucci was a good employee and garnered positive performance reviews. His direct supervisor was the district manager of "Inland Empire West." Inland Empire West was comprised of about nine stores including Milliken.

In February 2014, Brian Robson became the new district manager of Inland Empire West. Robson was responsible for operating his district's stores and roughly 100 employees. His job duties included coaching and developing individual retail store managers; making final decisions on hiring and firing employees; and handling a wide range of operational issues in partnership with personnel from other T-Mobile departments, such as human resources (HR) and loss prevention.

As the new district manager, Robson planned to transfer Colucci from the Milliken store to a kiosk located inside the Ontario Mills mall (mall location), which had no store manager at the time. However, Colucci suffered from a medical disability—an anxiety disorder—that prevented him from performing his job in the crowded mall location. When Robson told Colucci of his plans, Colucci informed him of his disability and requested an accommodation (accommodation request). Colucci was willing to transfer to a different store not located inside a mall. Robson was highly skeptical of Colucci's condition ("this is the most ridiculous thing I've ever heard") but referred the matter to HR. An HR representative was likewise doubtful and requested a doctor's note from Colucci that described his precise limitations. Colucci obtained a medical diagnosis and physician's letter confirming his limitations. HR ultimately advised Robson that Colucci could not be transferred to the mall location due to his protected medical condition.

Several months later, in July 2014, Colucci learned that one or more of the Milliken retail sales associates was spreading inflammatory rumors and/or making defamatory statements about him (defamation incident), and Colucci asked Robson to investigate. Robson agreed to do so but allowed the investigation to languish, telling Colucci he should "quit complaining" and that he had been "nothing but problems."

In the same time frame, Robson heard from a part-time Milliken sales associate (associate) that Colucci had an outside business (Auto Compound) in which he was licensed to sell used cars. The associate had recently been disciplined by Colucci due to work performance issues and was looking to transfer out of the Milliken store. According to the associate, Colucci had, at some time during the past year, used T-Mobile's resources to support Auto Compound, including occasionally using T-Mobile's fax machine and requiring the associate to answer an Auto Compound cell phone while he was on the clock at T-Mobile.[1] Based on the associate's report, Robson promptly initiated an investigation of Colucci with the help of a loss prevention manager.[2]

On July 21, 2014, Colucci called T-Mobile's "integrity line" (a designated means for employees to report workplace issues) to notify the company of the unresolved defamation incident. After the defamation incident, the work environment in the store had been tense and uncomfortable.

Around noon on July 22, 2014, Robson and the loss prevention manager visited the Milliken store, intending to interview Colucci about Auto Compound. However, they did not have an opportunity to complete any interview or tell Colucci why they were there. Colucci was experiencing severe back pain that day, for which he later required surgery. His back pain was aggravated by anxiety over the tense work environment. Colucci complained to Robson, stating his (1) distress over Robson's failure to resolve the defamation incident and (2) his belief that Robson was treating him unfairly due to his medical condition and accommodation request. Colucci requested that he be permitted to go on a medical leave of absence. Robson responded that it was Colucci's "right" to take medical leave, and he approved Colucci's taking the rest of the day off. Colucci left the premises.

Unknown to Colucci, about two hours after he left the Milliken store premises, Robson recommended to HR that T-Mobile terminate Colucci for "cause"—a conflict of interest. In making this decision, Robson admittedly bypassed T-Mobile's progressive discipline policy, which might have included a warning or less severe consequence before resorting to termination. Information about the alleged conflict of interest had come almost entirely from the associate; at no point did anyone speak to Colucci about a purported conflict. Robson claimed that Colucci knowingly refused to be interviewed about it. Robson and HR exchanged communications about the pending termination.

Between July 23 and 24, consistent with his last conversation with Robson and still unaware of any pending termination, Colucci submitted a formal request to HR for a medical leave of absence. Colucci also lodged a second complaint to the integrity line, reporting that Robson was discriminating against him and neglecting to resolve the defamation incident. Undeterred, Robson proceeded with processing Colucci's termination.

On July 25, Robson prepared and mailed Colucci a letter informing him of his employment termination, bearing an effective date of July 22, 2014, per HR's instructions.[3] On July 28, the loss prevention manager who had been assisting Robson reported to his colleagues during a weekly staff call that Colucci had been "turned into a customer" (internal company jargon for firing an employee) because of his complaints or the way he had acted. The loss prevention manager made no mention on the call that Colucci was terminated due to a conflict of interest.

In February 2015, Colucci filed a complaint against T-Mobile. Of relevance here, he alleged a cause of action for retaliation in violation of the Fair Employment and Housing Act (FEHA) (Gov. Code, § 12940, subd. (h)). In 2017, the cause was tried to a jury, which received evidence regarding the workplace events we have described. In addition, the jury received evidence regarding Colucci's post-termination life, including the immense, ongoing toll of the termination on his mental and physical health, and his struggle to find comparable employment. Finally, the jury heard expert witness testimony regarding (a) the prognosis on Colucci's mental condition, and (b) his past and future economic losses, i.e., lost earnings and benefits.

The jury returned a unanimous verdict in Colucci's favor on his claim of retaliation. It awarded $1,020,042 in total compensatory damages as follows: (A) $130,272 for past economic losses; (B) $189,770 for future economic losses;[4] (C) $500,000 for past noneconomic damages and/or emotional distress; and (D) $200,000 for future noneconomic damages and/or emotional distress.

In a bifurcated proceeding on punitive damages, the parties stipulated that the jury would receive certain information about T-Mobile's financial condition. For 2015 and 2016, respectively, T-Mobile had: total revenue of $32.1 and 37.2 billion; net income of $733 million and $1.460 billion;[5] free cash flow of $690 million and $1.433 billion; and total assets of $62.4 and $65.9 billion. Colucci's counsel argued that T-Mobile generated $4 million in net income in one day, based on its 2016 net income of $1.460 billion divided by 365 days.

The jury awarded $4 million in punitive damages, and the trial court entered judgment accordingly. Later, the court denied T-Mobile's motions for new trial and for judgment notwithstanding the verdict. This appeal followed.[6]

DISCUSSION

I. Substantial Evidence Supports an Award of Punitive Damages

At trial, Colucci argued that Robson was a managing agent of T-Mobile and that Robson's actions were committed with malice or oppression. The jury agreed, finding clear and convincing evidence that Colucci was entitled to punitive damages. On appeal, T-Mobile contends there is insufficient evidence to support either (1) that Robson was a managing agent of T-Mobile, or (2) that he engaged in acts of malice or oppression.

A. Standard of Review

A jury may award punitive damages in a tort action "where it is proven by clear and convincing evidence that the defendant has been guilty of oppression, fraud, or malice." (Civ. Code, § 3294, subd. (a).) On appeal, a jury's decision to award punitive damages must be upheld if it is supported by substantial evidence. (Egan v. Mutual of Omaha Ins. Co. (1979) 24 Cal.3d 809, 821 (Egan) ["Determinations related to assessment of punitive damages have traditionally been left to the discretion of the jury"].) Because our review is for substantial evidence, we are bound to consider the evidence in the light most favorable to the prevailing party, giving him the benefit of every reasonable inference, and resolving conflicts in support of the judgment. However, since the jury's findings were subject to a heightened burden of proof, we review the record in support of these findings in light of that burden. Thus, we inquire whether the record contains "`"substantial evidence to support a determination by clear and convincing evidence. . . ."'" (In re Marriage of Rossi (2001) 90 Cal.App.4th 34, 40.)

B. Managing Agent

Civil Code section 3294, subdivision (b), provides in pertinent part: "An employer shall not be liable for damages pursuant to subdivision (a), based upon acts of an employee of the employer, unless the employer . . . was personally guilty of oppression, fraud, or malice. With respect to a corporate employer, the . . . act of oppression, fraud, or malice must be on the part of an officer, director, or managing agent of the corporation." (Italics added.) At issue in this case is whether Robson was a "managing agent"—a term with no statutory definition.

In the seminal case of White v. Ultramar (1999) 21 Cal.4th 563 (White), our high court construed managing agent as follows: "[T]he Legislature intended that principal liability for punitive damages not depend on employees' managerial level, but on the extent to which they exercise substantial discretionary authority over decisions that ultimately determine corporate policy. Thus, supervisors who have broad discretionary powers and exercise substantial discretionary authority in the corporation could be managing agents. Conversely, supervisors who have no discretionary authority over decisions that ultimately determine corporate policy would not be considered managing agents even though they may have the ability to hire or fire other employees. In order to demonstrate that an employee is a true managing agent under section 3294, subdivision (b), a plaintiff seeking punitive damages would have to show that the employee exercised substantial discretionary authority over significant aspects of a corporation's business." (Id. at pp. 576-577.)

The White court went on to discuss how "Salla," who supervised the wrongfully terminated plaintiff/employee, was a managing agent of corporate defendant Ultramar. Ultramar owned convenience stores at gas stations throughout California. (White, supra, 21 Cal.4th at p. 577; id. at p. 580.) Salla was a "zone manager," responsible for managing eight stores in the San Diego area and at least 65 employees. (Id. at p. 577.) Individual store managers reported to her. (Ibid.) Salla's superiors "delegated most, if not all, of the responsibility for running these stores to her. The fact that Salla spoke with other employees and consulted the human resources department before firing plaintiff does not detract from her admitted ability to act independently of those sources." (Ibid.) In managing numerous stores on a daily basis and making significant decisions affecting both store and company policy, the court concluded that "Salla exercised substantial discretionary authority over decisions that ultimately determined corporate policy. . . ." (Ibid.; see also id. at pp. 583-584 (conc. opn. of Mosk, J.) ["Salla had sufficient discretion to take actions that necessarily resulted in the ad hoc formulation of policy over the aspect of the corporation's business giving rise to plaintiff's cause of action"].)

The facts of White are practically indistinguishable from the facts of this case. Robson was a district manager, responsible for managing nine retail stores and 100 employees. Individual store managers reported to him, and he in turn reported to a more senior manager. Robson had independent, final authority to hire or fire employees within his district; indeed, he alone decided to fire Colucci. Further, as in White, Robson had substantial discretionary authority over daily store operations, which led to the ad hoc formulation of policy. For example, Robson decided whether and where to transfer employees; whether to institute disciplinary measures; and whether and how to investigate employees' reported concerns. These decisions affected company policy over a significant aspect of T-Mobile's business.

T-Mobile's primary counterargument is that Robson was not in a high enough position to determine official corporate policies, i.e., he was not a corporate policymaker. T-Mobile posits that managing agents must be corporate policymakers and "policies" in this context refers only to "formal policies that affect a substantial portion of the company and that are the type likely to come to the attention of corporate leadership." (Roby, supra, 47 Cal.4th at p. 715.) In its reply brief, T-Mobile argues that the California Supreme Court's decision in Roby, at pages 714-715, limited or disapproved White on this precise point.

In Roby, which was a harassment and discrimination case, the supervisor in question (Schoener) worked at one of the company's distribution centers and supervised four employees in a company of over 20,000. (Roby, supra, 47 Cal.4th at p. 714.) The court, in addressing White, was not reviewing whether substantial evidence supported the jury's decision to award punitive damages, but rather the constitutionality of the amount of the jury's award. (Id. at pp. 712, 714.) In deciding whether the award was excessive under the due process clause, the court analyzed the corporation's degree of reprehensibility, noting that Schoener did not have "broad authority" in determining formal corporate policies. (Id. at p. 715.) However, two mid-level managers, one of whom was the head of the distribution center where plaintiff and Schoener worked, had become aware of Schoener's discriminatory conduct and did nothing to correct it. (Ibid.) The court therefore assumed without deciding that at least one of the mid-level managers was a managing agent. (Ibid.) Although that person's inaction was wrongful, the court concluded the corporation's reprehensibility, in totality, was on the low end of the range of wrongdoing. (Id. at p. 717.)

Read in context and considering what was actually at issue in Roby, we do not believe the California Supreme Court intended to modify or limit White's careful formulation of the managing agent test. Before White, our high court already rejected the view that a managing agent must be involved in "`high-level policymaking.'" (Egan, supra, 24 Cal.3d at p. 822.) Instead, the "determination whether employees act in a managerial capacity . . . does not necessarily hinge on their `level' in the corporate hierarchy. . . . [T]he critical inquiry is the degree of discretion the employees possess in making decisions that will ultimately determine corporate policy." (Id. at pp. 822-823.) In Egan, the court upheld the finding that two claims managers were managing agents of the defendant insurance company. The court opined that a corporate defendant "`should not be allowed to insulate itself from liability by giving an employee a nonmanagerial title and relegating to him crucial policy decisions.'" (Id. at p. 823.)

We have considered all the cases cited by T-Mobile and are not persuaded by its argument that only T-Mobile's corporate leaders who played a role in setting official corporate policies—e.g., those contained in an employee handbook—could be considered managing agents. (See, e.g., Cruz v. HomeBase (2000) 83 Cal.App.4th 160, 164, 168 [security guard and his immediate supervisor, both of whom were subordinate to the store's general manager, were not managing agents]; Gelfo v. Lockheed Martin Corp. (2006) 140 Cal.App.4th 34, 63 [no substantial evidence presented regarding vice-president's duties or authority].) Courts evaluate numerous factors in the "managing agent equation . . . in determining whether the supervisor was a managing agent whose conduct could justify awarding punitive damages against his employer." (White, supra, 21 Cal.4th at p. 574, citing with approval Kelly-Zurian v. Wohl Shoe Co. (1994) 22 Cal.App.4th 397.) Managing agents are not limited to those individuals with the ability to set handbook policies. (E.g., White, supra, 21 Cal.4th at p. 577 [manager of eight retail stores]; Davis v. Kiewit Pacific Co. (2013) 220 Cal.App.4th 358, 370 [onsite project manager for construction company]; Hobbs v. Bateman Eichler, Hill Richards (1985) 164 Cal.App.3d 174, 193 [office manager of brokerage firm].)

T-Mobile argues that Robson could not be considered a policy setting managing agent based solely on his deviations from T-Mobile's official company policy, such as discharging Colucci despite the company's progressive discipline policy or sending Colucci a termination letter even though managers were not supposed to communicate with employees who had requested medical leave. However, based on our review of the record, Robson had substantial discretionary authority to override these general policies. For example, T-Mobile's progressive discipline policy arguably might have prevented Colucci's firing had it been followed, but Robson testified that discipline was not required to be progressive under the policy and that he decided the appropriate action to take, depending on the circumstances. Likewise, Robson testified that management "typically" would not communicate with employees once they requested leaves of absences, but he could situationally deviate. Robson suffered no consequences for deviating from these policies and indeed, was authorized to do so. Accordingly, Robson formulated operational policies through his discretionary decisions. (White, supra, 21 Cal.4th at p. 577.)

In summary, we conclude substantial evidence supports the jury's finding that Robson was a managing agent whose conduct could justify an award of punitive damages against T-Mobile.

C. Malice or Oppression

T-Mobile next contends that, even assuming Robson was a managing agent, there was insufficient evidence to show he acted with malice or oppression as required to support an award of punitive damages. (Civ. Code, § 3294, subd. (a).) In this context, our task is to determine whether substantial evidence supports the jury's finding, by clear and convincing evidence, that Robson's actions were malicious or oppressive. (Tomaselli v. Transamerica Ins. Co. (1994) 25 Cal.App.4th 1269, 1287-1288 (Tomaselli).)

"Malice" is defined as "conduct which is intended by the defendant to cause injury to the plaintiff or despicable conduct which is carried on by the defendant with a willful and conscious disregard of the rights or safety of others"; "oppression" is "despicable conduct that subjects a person to cruel and unjust hardship in conscious disregard of that person's rights." (Civ. Code, § 3294, subd. (c).) "`Despicable conduct' "is "`conduct which is so vile, base, contemptible, miserable, wretched or loathsome that it would be looked down upon and despised by ordinary decent people.'" (Tomaselli, supra, 25 Cal.App.4th at p. 1287.) "`The mere carelessness or ignorance of the defendant does not justify the imposition of punitive damages. . . . Punitive damages are proper only when the tortious conduct rises to levels of extreme indifference to the plaintiff's rights, a level which decent citizens should not have to tolerate.'" (Ibid.)

Based on our review of the record, we conclude substantial evidence supports the jury's finding that Robson acted with malice or oppression. "Malice and oppression may be inferred from the circumstances of a defendant's conduct." (Monge v. Superior Court (1986) 176 Cal.App.3d 503, 511.) Here, the jury could reasonably infer from the evidence that Robson became angered by Colucci's complaints and decided to concoct a reason for termination, all the while knowing Colucci was in a weak physical and mental state. None of Robson's actions strike us as inadvertent or careless; even if his initial termination recommendation was hasty, he had several days to reevaluate and reverse his decision. He did not. Moreover, the jury could consider it despicable of Robson to allow Colucci, who was suffering severe back pain, to leave the store under the belief that he was permitted to go on medical leave, and then turn around and use Colucci's inability to complete an interview that day as a basis for firing him. The record supports that Robson willfully and consciously retaliated against Colucci, in violation of Colucci's right to complain of discrimination. (Cf. Commodore Home Systems, Inc. v. Superior Court (1982) 32 Cal.3d 211, 220-221 [punitive damages recoverable under Civ. Code § 3294 in racially-motivated terminations].)

T-Mobile cites Scott v. Phoenix Schools, Inc. (2009) 175 Cal.App.4th 702 (Scott), in support of its position that Robson did not act with requisite malice or oppression. The plaintiff in Scott was a preschool teacher who was terminated by the employer/school due to her decision not to enroll one child in the school, which was part of her job duties. (Id. at p. 707.) At trial, the plaintiff established that enrolling the child would have violated the state mandated teacher-student ratio, e.g., one teacher for every 12 children. (Id. at pp. 709-711.) The jury found that it was wrong to terminate plaintiff for this reason and awarded punitive damages. (Id. at pp. 708, 715.) The Court of Appeal affirmed the judgment but reversed the award of punitive damages, explaining that the school's conduct did not rise to the level of malice or oppression: "[W]rongful termination, without more, will not sustain a finding of malice or oppression. There was no evidence [the school] attempted to hide the reason it terminated Scott. It admitted to terminating her because she would not enroll the [particular] child. Likewise, there was no evidence [the school] engaged in a program of unwarranted criticism to justify her termination." (Id. at p. 717.)

The facts of Scott are readily distinguishable. There, the employer was forthright about its reason for terminating the plaintiff, but the reason was found improper because it would violate a significant public policy of protecting children. (Scott, supra, 175 Cal.App.4th at pp. 714-715.) In contrast, there is evidence in this case that T-Mobile attempted to hide its reason for terminating Colucci. Supervisor Robson did not ever admit he was retaliating against Colucci because Colucci had complained about him; Robson maintained that the only reason Colucci was terminated was due to a conflict of interest. As we have noted, the jury could infer that the conflict-of-interest rationale was contrived for many reasons, including that no one at T-Mobile had even asked Colucci about the underlying facts of the supposed conflict prior to firing him.[7] Consequently, the jury in this case could reasonably find that Robson's retaliatory conduct was malicious or oppressive. (Cloud v. Casey (1999) 76 Cal.App.4th 895, 912 [evidence that a decision maker attempted to hide an improper basis for termination with a false explanation is contemptible and supports a finding of willful conduct].)

II. The Amount of Punitive Damages Is Excessive and Must Be Reduced

Even if the jury was entitled to award some amount of punitive damages, T-Mobile contends that the jury's $4 million award is constitutionally excessive in violation of the federal due process clause. Our review is de novo. (Simon v. San Paolo U.S. Holding Co., Inc. (2005) 35 Cal.4th 1159, 1172 (Simon).)

"The due process clause of the Fourteenth Amendment to the United States Constitution places constraints on state court awards of punitive damages." (Roby, supra, 47 Cal.4th at p. 712.) An award of grossly excessive or arbitrary punitive damages is constitutionally prohibited because due process entitles a defendant to fair notice of both the conduct that will subject it to punishment and the severity of the penalty that may be imposed for the conduct. (State Farm Mutual Automobile Insurance Co. v. Campbell (2003) 538 U.S. 408, 416-417 (State Farm); Simon, supra, 35 Cal.4th at p. 1171.) "Eschewing both rigid numerical limits and a subjective inquiry into the jury's motives," the Supreme Court set forth "a three-factor weighing analysis looking to the nature and effects of the defendant's tortious conduct and the state's treatment of comparable conduct in other contexts." (Simon, at pp. 1171-1172.)

In reviewing the amount of a punitive damages award, a court must "consider three guideposts: (1) the degree of reprehensibility of the defendant's misconduct; (2) the disparity between the actual or potential harm suffered by the plaintiff and the punitive damages award; and (3) the difference between the punitive damages awarded by the jury and the civil penalties authorized or imposed in comparable cases." (State Farm, supra, 538 U.S. at p. 418.) We address these guideposts in turn.

A. Degree of Reprehensibility

"`[T]he most important indicium of the reasonableness of a punitive damages award is the degree of reprehensibility of the defendant's conduct.' [Citation.] We have instructed courts to determine the reprehensibility of a defendant by considering whether: [(1)] the harm caused was physical as opposed to economic; [(2)] the tortious conduct evinced an indifference to or a reckless disregard of the health or safety of others; [(3)] the target of the conduct had financial vulnerability; [(4)] the conduct involved repeated actions or was an isolated incident; and [(5)] the harm was the result of intentional malice, trickery, or deceit, or mere accident." (State Farm, supra, 538 U.S. at p. 419.) "It should be presumed a plaintiff has been made whole for his injuries by compensatory damages, so punitive damages should only be awarded if the defendant's culpability, after having paid compensatory damages, is so reprehensible as to warrant the imposition of further sanctions to achieve punishment or deterrence." (Ibid.)

With respect to the first of these reprehensibility factors, the harm to Colucci was "physical" in the sense that it negatively impacted his emotional and mental health, rather than being a purely economic harm. (Roby, supra, 47 Cal.4th at p. 713.) With respect to the second reprehensibility factor, it was objectively reasonable to assume that employer T-Mobile's retaliation against Colucci would affect his emotional well-being, and therefore T-Mobile's "`conduct evinced an indifference to or a reckless disregard of the health or safety of others.'" (Ibid.)

Colucci does not meaningfully address the third or fourth reprehensibility factors. He does not contend he was financially vulnerable. As to whether T-Mobile's conduct was repeated or isolated, we conclude Robson's retaliatory conduct toward Colucci was an isolated incident. There is no indication in the record that T-Mobile engaged in repeated acts of retaliation. (See Roby, supra, 47 Cal.4th at pp. 713-714.)

With respect to the fifth reprehensibility factor, the jury necessarily determined that Colucci's harm was the result of T-Mobile's intentional malice; that is, Robson's malice was imputable to T-Mobile through his managing agent status. This distinguishes our case from Roby, where the court explained that the conduct of the managing agents was not intentional and amounted at most to a conscious disregard of the rights of others. (Roby, supra, 47 Cal.4th at p. 716.) Nevertheless, we are convinced, as in Roby, that T-Mobile's conduct in this case did not rise to the kind of oppressive or malicious conduct that has in the past justified large punitive damages awards. (Id. at p. 717 [summarizing egregious conduct causing deaths or severe injuries, and a case involving repeated outrageous acts of sexual harassment].) Notwithstanding the harm to Colucci from Robson's actions, there is no hint in the record that T-Mobile engaged in a calculated pattern of retaliation against its employees. In fact, it was undisputed that T-Mobile maintained an integrity line to receive employee complaints; the company had a variety of policies and procedures ostensibly designed to prevent workplace misconduct; and managers and employees were trained on T-Mobile's employment policies.

Taking into account all five reprehensibility factors set out in State Farm, supra, 538 U.S. at page 419, we conclude that T-Mobile's conduct warrants the imposition of sanctions to achieve punishment or deterrence, but the reprehensibility of T-Mobile's conduct was in the low to moderate range of wrongdoing that can support an award of punitive damages under California law.

B. Ratio of Punitive Damages to Actual or Potential Harm

Regarding the second guidepost, the Supreme Court has "been reluctant to identify concrete constitutional limits on the ratio between harm, or potential harm, to the plaintiff [i.e., compensatory damages] and the punitive damages award." (State Farm, supra, 538 U.S. at p. 424.) Yet "in practice, few awards exceeding a single-digit ratio between punitive and compensatory damages, to a significant degree, will satisfy due process." (Id. at p. 425.) In general, a higher ratio might be necessary where the plaintiff's injury was hard to detect, or the monetary value of noneconomic harm might have been difficult to determine. But "[w]hen compensatory damages are substantial, then a lesser ratio, perhaps only equal to compensatory damages, can reach the outermost limit of the due process guarantee. The precise award in any case, of course, must be based upon the facts and circumstances of the defendant's conduct and the harm to the plaintiff." (State Farm, supra, 538 U.S. at p. 425, italics added.)

Here, the jury's award of compensatory damages was substantial. The jury decided Colucci was entitled to a total of $1,020,042 in compensatory damages, the substantial majority of which was for noneconomic harm and/or emotional distress ($700,000). The jury's award for noneconomic harm "may have reflected the jury's indignation at [T-Mobile's] conduct, thus including a punitive component."[8] (Roby, supra, 47 Cal.4th at p. 718.) We are cognizant that a large amount of damages awarded for emotional distress may itself serve as a deterrent to further corporate misconduct. (Ibid.) In Roby, at page 719, the court applied a one-to-one ratio between punitive and compensatory damages where there was relatively low corporate reprehensibility and a substantial award of noneconomic damages. Given the low to moderate range of reprehensibility of T-Mobile's conduct here, we conclude that a 1.5-to-one ratio between punitive and compensatory damages is the federal constitutional maximum.

C. Comparable Civil Penalties

The final guidepost requires us to compare the difference between the punitive damages award and the "`civil penalties authorized or imposed in comparable cases.'" (State Farm, supra, 538 U.S. at p. 428.) T-Mobile points us to the $300,000 maximum award for combined emotional distress and punitive damages in a federal Title VII case. Colucci responds convincingly that a Title VII claim is not an appropriate comparison due to the lower standard of proof to prevail on such a claim. In Roby, the court looked to the maximum administrative fine the plaintiff could have obtained had she pursued her FEHA claim before the Fair Employment and Housing Commission (Gov. Code, § 12970, subd. (a)(3)), which is $150,000. (Roby, supra, 47 Cal.4th at pp. 718-719.) The parties have not briefed whether such an administrative fine is a fair comparison, and accordingly, we do not consider it. T-Mobile has not established a relevant civil penalty for comparison purposes.

D. Conclusion

Based on the foregoing, we conclude that a 1.5-to-one ratio between punitive and compensatory damages is the federal constitutional maximum in this case. We are primarily guided by T-Mobile's low to moderate degree of reprehensibility. In addition, Colucci's compensatory award appeared to already contain a punitive component. Finally, we have reviewed evidence of T-Mobile's financial condition and are satisfied that a $1,530,063 punitive damages award (1.5 times compensatory damages of $1,020,042) achieves an appropriate deterrent effect. (Roby, supra, 47 Cal.4th at p. 719.)

III. Substantial Evidence Supports the Award of Damages for Future Emotional Distress

T-Mobile's final argument on appeal is that no evidence supports the jury's $200,000 award for future noneconomic harm and/or emotional distress. We disagree.

To recover future damages, a plaintiff must prove that his or her detriment is reasonably certain to result in the future. (Civ. Code, § 3283; Bihun v. AT&T Information Systems, Inc. (1993) 13 Cal.App.4th 976, 995, disapproved on other grounds in Lakin v. Watkins Associated Industries (1993) 6 Cal.4th 644, 664.) "While there is no clearly established definition of `reasonable certainty,' evidence of future detriment has been held sufficient based on expert medical opinion which considered the plaintiff's particular circumstances and the expert's experience with similar cases." (Bihun, at p. 995.) However, expert testimony is not required in all cases. For example, it is unnecessary if the injury is such that the jury could conclude, based on all the evidence and relying upon its own experiences and common knowledge, that the future harm is reasonably certain to occur. (Mendoza v. Rudolf (1956) 140 Cal.App.2d 633, 636 [involving future pain and suffering from car accident].) Courts have affirmed a jury's finding of future damages based on the plaintiff's testimony of continued pain and suffering at the time of trial. (Loper v. Morrison (1944) 23 Cal.2d 600, 611 [plaintiff's testimony that at the time of trial she was still suffering from headaches, nervousness and pain]; Parsell v. San Diego Consol. Gas & Electric Co. (1941) 46 Cal.App.2d 212, 216 [plaintiff's testimony that two years after accident she still had little, if any, use of her hand and arm].)

In this case, Colucci's expert psychologist testified that Colucci had, in 2016, reported symptoms associated with depression and/or a "thought disorder," which the psychologist attributed to Colucci's termination from T-Mobile. The psychologist opined at trial that Colucci was "improved" insofar as his "depression all the time" had turned to "periodic depression" and that Colucci "hadn't quite recovered, but he was doing much better[.]" Importantly, the psychologist believed that Colucci would continue to suffer "residual issues" until he could "reconstitut[e] his work in a [more fulfilling] situation. . . ."

The jury heard from Colucci at trial that he had gained up to 100 pounds after being terminated by T-Mobile in 2014; he became depressed, lethargic, and sad; without a job, he was inactive and engaging in unhealthy eating habits; and he suffered stomach problems that disturbed his sleep. Colucci subsequently found a new job, but he made significantly less money, the job had limited growth potential, and he had to travel for his new job, which he viewed as a "big sacrifice" to his home life. As of trial, Colucci testified he had lost "some" but not all the weight he had gained and was still stressed and "depressed at times" about his wrongful termination from T-Mobile. His emotional distress was continuing to manifest physically in the form of stomach discomfort, sleeplessness, and rashes. The jury heard Colucci's testimony first-hand, evaluated his physical appearance, and was shown pictures of his stress-induced rashes.

Based on all this evidence, a jury could reasonably infer that Colucci would continue to suffer emotional distress after the trial concluded. Consistent with the evidence, the jury awarded substantially less in damages for future harm than it did for past harm. T-Mobile mischaracterizes the state of the evidence, arguing that Colucci's psychologist admitted Colucci was "fully recovered" by the time of trial. The psychologist did not state that Colucci was "fully recovered"; moreover, the jury was free to discount any of the psychologist's minimizing statements and credit Colucci instead, who testified unequivocally that he was continuing to suffer depression, stress, sadness, and anxiety over being terminated. His testimony was not esoteric; based on its own experiences, the jury could fairly evaluate the extent of Colucci's future suffering over his derailed career. Substantial evidence supports the jury's award of damages for future noneconomic harm and/or emotional distress.

T-Mobile speculates that the reason the jury awarded any amount of damages for future harm was because of non-discharge-related reasons, e.g., because of Colucci's anxiety disorder that predated his discharge. These were factual disputes to be resolved by the jury, and T-Mobile does not contend any instructions were erroneous. Because the award for future damages is supported by substantial evidence, we have no basis to reverse it.

DISPOSITION

The punitive damages portion of the judgment against T-Mobile is reversed, and the matter is remanded to the trial court with directions to modify the punitive damages award to $1,530,063, representing a ratio of 1.5 times the amount awarded in compensatory damages. In all other respects, the judgment is affirmed. The parties are to bear their own costs on appeal.

BENKE, Acting P.J. and GUERRERO, J., concurs.

[1] At trial, the associate's statements were largely discredited. The associate had never been an employee of Auto Compound and was not required to do any Auto Compound work.
[2] Colucci's prior supervisor at T-Mobile was aware of Auto Compound and had even referred someone to Colucci for advice on used cars. This supervisor never had any concerns about Colucci's side business or that Colucci was misusing T-Mobile's resources.
[3] According to T-Mobile, Colucci's termination was made effective on July 22 because that was the date Robson recommended termination. According to Colucci, T-Mobile backdated his termination date to July 22 so that it appeared as if he was terminated prior to his second integrity line complaint.
[4] The jury's award for economic losses, totaling $320,042, corresponded to figures that Colucci's expert economic witness provided in his testimony.
[5] The reporter's transcript of the party's stipulation contains an error. The reporter's transcript, volume 7, page 1591, line 15, states that T-Mobile's 2016 net income was $28,460,000,000, or $28.460 billion. However, Colucci's counsel repeatedly stated, without any objection or correction from defense counsel, that T-Mobile's net income for 2016 was $1.460 billion. $1.460 billion divided by 365 days equals $4 million of net income per day, which is not coincidentally what the jury awarded in punitive damages. Thus, we believe the parties stipulated that T-Mobile's net income for the year 2016 was $1.460 billion.
[6] On appeal, T-Mobile has requested judicial notice of three briefs filed by Colucci's counsel's law firm in three completely unrelated cases. The matter is not relevant. T-Mobile's request for judicial notice is denied.
[7] Colucci established at trial that numerous T-Mobile employees had side businesses. We have not attempted to summarize all the facts Colucci adduced to discredit T-Mobile's conflict-of-interest rationale; suffice it to say, the factual justification for a conflict of interest was highly tenuous. For example, T-Mobile's electronic access policy actually allowed employees to occasionally use T-Mobile's equipment for personal reasons. In addition, multiple witnesses testified that they had never seen Colucci selling used cars during work hours.
[8] We discuss in section III, infra, that substantial evidence supports the jury's award of $200,000 for future damages.
Opioid Discrimination in the Workplace

Opioid Discrimination
United States Equal Employment Opportunity Commission


SOURCE: 

KEY WORDS:
Drug Use, Opioid, Codeine, Oxycodone, Information

AGENCY:

UNITED STATES EEOC


Document:

Use of Codeine, Oxycodone, and Other Opioids: Information for Employees


If you are using opioids, are addicted to opioids, or were addicted to opioids in the past, but are not currently using drugs illegally, you should know that under the Americans with Disabilities Act (ADA) you may have the right to get reasonable accommodations and other protections that can help you keep your job.[1]


“Opioids” include prescription drugs such as codeine, morphine, oxycodone (OxyContin®, Percodan®, Percocet®), hydrocodone (Vicodin®, Lortab®, Lorcet®), and meperidine (Demerol®), as well as illegal drugs like heroin. They also include buprenorphine (Suboxone® or Subutex®) and methadone, which can be prescribed to treat opioid addiction in a Medication Assisted Treatment (“MAT”) program.


The following questions and answers from the Equal Employment Opportunity Commission (EEOC) briefly explain these rights. This information is not new policy; rather, this document applies principles already established in the ADA’s statutory and regulatory provisions as well as previously-issued guidance.  The contents of this guidance do not have the force and effect of law and are not meant to bind the public in any way.  This guidance is intended only to provide clarity to the public regarding existing requirements under the law.  You may also have additional rights under other laws not discussed here, such as the Family and Medical Leave Act (FMLA) and state or local laws.[2]


Disqualification from a Job


1. Could I be automatically disqualified for a job because I use opioids, or because I used opioids in the past?
The ADA allows employers to fire you and take other employment actions against you based on illegal use of opioids, even if you do not have performance or safety problems.[3] Also, employers are allowed to disqualify you if another federal law requires them to do it.[4] But if you aren’t disqualified by federal law and your opioid use is legal, an employer cannot automatically disqualify you because of opioid use without considering if there is a way for you to do the job safely and effectively (see Questions 4–13).[5]


2. What if I am in a MAT program for opioid addiction that requires me to take opioid medication?
If you are taking an opioid medication as directed in a MAT program, then you have a valid prescription and your use of the medication is legal. Under the ADA, you cannot be denied a job or fired from a job because you are in a MAT program unless you cannot do the job safely and effectively, or you are disqualified under another federal law.


3. What if a drug test comes back positive because I am lawfully using opioid medication?

An employer should give anyone subject to drug testing an opportunity to provide information about lawful drug use that may cause a drug test result that shows opioid use. An employer may do this by asking before the test is administered whether you take medication that could cause a positive result, or it may ask all people who test positive for an explanation.


Performance and Safety

4. What if my employer thinks that my opioid use, history of opioid use, or treatment for opioid addiction could interfere with safe and effective job performance?
If you aren’t using opioids illegally and aren’t disqualified for the job by federal law the employer may have to give you a reasonable accommodation before firing you or rejecting your job application based on opioid use. If the employer has let you know about its concern, then you need to ask for a reasonable accommodation if you want one. (See Question 9, below.) A reasonable accommodation is some type of change in the way things are normally done at work, such as a different break or work schedule (e.g., scheduling work around treatment), a change in shift assignment, or a temporary transfer to another position. These are just examples; employees may ask for, and employers may suggest, other modifications or changes. However, an employer never has to lower production or performance standards, eliminate essential functions (fundamental duties) of a job, pay for work that is not performed, or excuse illegal drug use on the job as a reasonable accommodation.[6] 

5. Could I get a reasonable accommodation because I take prescription opioids to treat pain?
You may be able to get a reasonable accommodation if the medical condition that is causing pain qualifies as a “disability” under the ADA. A medical condition does not need to be permanent or stop you from working to be an ADA “disability.”[7] Many conditions that cause pain significant enough for a doctor to prescribe opioids will qualify. You may also qualify for a reasonable accommodation if the opioid medication you are taking interferes with your everyday functioning. It is your responsibility to ask for a reasonable accommodation if you want one. (See Question 9, below).

6. Could I get a reasonable accommodation because of an addiction to opioids?
Yes, opioid addiction (sometimes called “opioid use disorder” or “OUD”) is itself a diagnosable medical condition that can be an ADA disability. You may be able to get a reasonable accommodation for OUD. But an employer may deny you an accommodation if you are using opioids illegally, even if you have an OUD.

7. What if I have recovered from an opioid addiction, but still need a reasonable accommodation to help me avoid relapse?
You can get reasonable accommodations that you need because of a disability that you had in the past.[8] You might be able to get an altered schedule, for example, if you need it to attend a support group meeting or therapy session that will help you avoid relapse. 

8. Could I get reasonable accommodations for a medical condition related to opioid addiction?
Yes, if the condition is a disability. Medical conditions that are often associated with opioid addiction, such as major depression and post-traumatic stress disorder (PTSD), may be disabilities. For more information on mental health conditions and the ADA, see Depression, PTSD, & Other Mental Health Conditions in The Workplace: Your Legal Rights at https://www.eeoc.gov/laws/guidance/depression-ptsd-other-mental-health-conditions-workplace-your-legal-rights, and The Mental Health Provider’s Role in a Client’s Request for a Reasonable Accommodation at Work at https://www.eeoc.gov/laws/guidance/mental-health-providers-role-clients-request-reasonable-accommodation-work.

9. What should I do if I need a reasonable accommodation?
Ask for one. Tell a supervisor, HR manager, or other appropriate person that you need a change at work because of a medical condition. Check to see whether your employer has procedures for requesting reasonable accommodations.  Following these procedures may make the process go faster, although employers can’t deny you a reasonable accommodation just because you did not follow specific procedures. You are allowed to make a request at any time. You don’t need to have a particular accommodation in mind, but you can ask for something specific if you know what it is. You can also have someone else ask for you, such as a doctor or counselor, although your employer will still probably want to discuss the accommodation directly with you as soon as possible. Because an employer does not have to excuse poor job performance, even if it was caused by a medical condition or treatment for a medical condition, it is generally better to ask for a reasonable accommodation before problems occur or become worse. (Many people choose to wait to after they receive a job offer, however, because it may be hard to prove illegal discrimination that takes place before a job offer.)

10. What will happen after I ask for a reasonable accommodation?
Your employer might ask you to put your request in writing or to fill out a form, and to generally describe how your work is affected by your disability. Your employer may also ask you to submit a letter from a health care provider that shows your ADA disability (see Questions 6–9 above), and that explains why you need a reasonable accommodation because of it. You can help your health care provider by showing him or her a copy of the EEOC publication How to Help Current and Former Patients Who Have Used Opioids Stay Employed at https://www.eeoc.gov/laws/guidance/how-health-care-providers-can-help-current-and-former-patients-who-have-used-opioids. Your employer cannot legally fire you, or refuse to hire or promote you, simply because you asked for a reasonable accommodation or because you need one.[9]

11. If I need a reasonable accommodation because of an ADA disability, does the employer have to give it to me?
If a reasonable accommodation would allow you to perform the job safely and effectively, and does not involve significant difficulty or expense, the employer must give you one.[10] If more than one accommodation would work, the employer can choose which one to give you. The employer is not allowed to charge you for the accommodation.

12. What if I think I can do the job safely (with a reasonable accommodation, if one is necessary), but the employer disagrees?
Assuming you aren’t disqualified by federal law or using opioids illegally, the employer must have objective evidence that you can’t do the job or pose a significant safety risk, even with a reasonable accommodation. To remove you from the job for safety reasons, the evidence must show that you pose a significant risk of substantial harm—you can’t be removed because of remote or speculative risks.[11]  To make sure that it has enough objective evidence about what you can safely and effectively do, the employer might ask you to undergo a medical evaluation.[12]

13. What if I really can’t do the job safely or reliably right now, but I may be able to do it safely again in the future?
Your employer might still be required to hold your job while you take leave for treatment or recovery. If you need leave because of an ADA disability (see Questions 6–9), you should be allowed to use sick and accrued leave like anyone else, unless you are using opioids illegally. You should also check your employer's leave policy to see whether it provides leave for substance abuse treatment. Even if you have no employer-provided leave available, you still may be able to get unpaid leave. If you have worked at least 1,250 hours during the past 12 months and your employer has 50 or more employees, you may be entitled to unpaid leave under the FMLA. The FMLA is enforced by the United States Department of Labor. More information about this law can be found at www.dol.gov/whd/fmla. You might also be entitled to unpaid leave as a reasonable accommodation if you need the time off because of a disability, are not using drugs illegally, and are expected to recover the ability to do your job. If you are permanently unable to do your regular job, you may ask your employer to reassign you to a job that you can do as a reasonable accommodation, if one is available. For more information on reasonable accommodations in employment, including reassignment, see Reasonable Accommodation and Undue Hardship Under the Americans with Disabilities Act, available https://www.eeoc.gov/laws/guidance/enforcement-guidance-reasonable-accommodation-and-undue-hardship-under-ada.

Protect Your Rights

14. What should I do if I think my rights have been violated?
The Equal Employment Opportunity Commission (EEOC) can help you decide what to do next.  If you decide to file a charge of discrimination with the EEOC, it conducts an investigation. Because you must file an EEOC charge within 180 days of the alleged violation in order to take further legal action (or 300 days if the employer is also covered by a state or local employment discrimination law), it is best to begin the process early. It is illegal for your employer to retaliate against you for contacting the EEOC or filing a charge. For general information, visit the Equal Employment Opportunity’s (EEOC’s) website (https://www.eeoc.gov), or call the EEOC at 1-800-669-4000 (voice), 1-800-669-6820 (TTY), or on our sign language access line at 1-844-234-5122 (ASL Video Phone).  For more information about filing a charge, visit https://www.eeoc.gov/how-file-charge-employment-discrimination.  If you would like to begin the process of filing a charge, go to our Online Public Portal at https://publicportal.eeoc.gov, contact us at one of the above phone numbers, or visit your local EEOC office (see https://www.eeoc.gov/field-office for contact information).


[1] 42 U.S.C. § 12112, et seq.; 29 C.F.R. §§ 1630.1 – 1630.16.  The various facets of nondiscrimination, reasonable accommodation, and other protections under Title I of the ADA are addressed in different sections of the statute and regulations.  See, e.g., 29 C.F.R. § 1630.2(g) –(k) (current disability and record of a past disability) and 1630.9 (reasonable accommodation generally); see also 42 U.S.C. § 12114 (exclusions relating to current illegal use of drugs).
[2] The FMLA, 29 U.S.C. § 2601, et seq., is enforced by the U.S. Department of Labor (DOL).  More information about the FMLA is available in the DOL FMLA regulations at 29 C.F.R. part 825, and on DOL’s website at www.dol.gov. 
[3] 42 U.S.C. § 12114, 12210; 29 C.F.R. § 1630.3, 1630.16(b) and (c).
[4] 29 C.F.R. § 1630.16(e).
[5] 42 U.S.C. § 12111(3); 29 C.F.R. § 1630.2(r), 1630.15(2).
[6] 42 U.S.C. § 12114(c)(4); 29 C.F.R. § 1630.16(b); see also 1630.2(m) and (n).
[7] 42 U.S.C. § 12102; 29 C.F.R. 1630.2(g)-(k).
[8] 29 C.F.R. § 1630.2(k)(3).
[9] 42 U.S.C § 12203; 29 C.F.R § 1630.12.
[10] 42 U.S.C. § 12112(b)(5); 29 C.F.R. §§ 1630.2(o) and (p), and 1630.9. For more information about reasonable accommodation, see the EEOC publication Enforcement Guidance on Reasonable Accommodation and Undue Hardship Under the ADA, available at https://www.eeoc.gov/laws/guidance/enforcement-guidance-reasonable-accommodation-and-undue-hardship-under-ada.
[11] 42 U.S.C. § 12113(b); 29 C.F.R. § 1630.2(r).
[12] 42 U.S.C. § 12112(d); 29 C.F.R. § 1630.14.
CA Lactation Requirements

Lactation
CA Senate Bill No. 142


SOURCE: 

KEY WORDS:
Accomodation, Lactose Intolerant, Health Issue, Health Condition, Lactation

AGENCY:

CA Senate


Document:
Senate Bill No. 142
CHAPTER 720

An act to amend Sections 1030, 1031, and 1033 of, and to add Section 1034 to, the Labor Code, relating to employment.
[ Approved by Governor  October 10, 2019. Filed with Secretary of State  October 10, 2019. ]

LEGISLATIVE COUNSEL'S DIGEST
SB 142, Wiener. Employees: lactation accommodation.

Existing law prohibits an employer, who is required by law to give an employee a rest period during a workday, from requiring the employee to work during the rest period. Existing law requires an employer to pay the employee one additional hour of pay, at the employee’s regular rate of compensation, for each rest period not provided. Existing law requires employers to provide a reasonable amount of break time to employees desiring to express milk for the employee’s infant child. Existing law also requires an employer to make reasonable efforts to provide the employee with the use of a room, or other location, other than a bathroom, in close proximity to the employee’s work area, for the employee to express milk in private. Existing law exempts an employer from the break time requirement if the employer’s operations would be seriously disrupted by providing that time to employees desiring to express milk. Existing law subjects employers who violate these provisions to a civil penalty of $100 per violation and authorizes the Labor Commissioner to issue citations for those violations.

This bill would instead require an employer to provide a lactation room or location that includes prescribed features and would require an employer, among other things, to provide access to a sink and refrigerator in close proximity to the employee’s workspace, as specified. The bill would deem denial of reasonable break time or adequate space to express milk a failure to provide a rest period in accordance with state law. The bill would prohibit an employer from discharging, or in any other manner discriminating or retaliating against, an employee for exercising or attempting to exercise rights under these provisions and would establish remedies that include filing a complaint with the Labor Commissioner. The bill would authorize employers with fewer than 50 employees to seek an exemption from the requirements of these provisions if the employer demonstrates that the requirement posed an undue hardship by causing the employer significant difficulty or expense, as specified. The bill would require an employer who obtains an exemption to make a reasonable effort to provide a place for an employee to express milk in private, as specified.

The bill would require an employer to develop and implement a policy regarding lactation accommodation and make it available to employees, as specified.

DIGEST KEY
Vote: majority   Appropriation: no   Fiscal Committee: yes   Local Program: no 

BILL TEXT
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1030 of the Labor Code is amended to read:

1030. Every employer, including the state and any political subdivision, shall provide a reasonable amount of break time to accommodate an employee desiring to express breast milk for the employee’s infant child each time the employee has need to express milk. The break time shall, if possible, run concurrently with any break time already provided to the employee. Break time for an employee that does not run concurrently with the rest time authorized for the employee by the applicable wage order of the Industrial Welfare Commission shall be unpaid.

SEC. 2. Section 1031 of the Labor Code is amended to read:

1031. (a) An employer shall provide an employee with the use of a room or other location for the employee to express milk in private. The room or location may include the place where the employee normally works if it otherwise meets the requirements of this section.
(b) A lactation room or location shall not be a bathroom and shall be in close proximity to the employee’s work area, shielded from view, and free from intrusion while the employee is expressing milk.

(c) A lactation room or location shall comply with all of the following requirements:
(1) Be safe, clean, and free of hazardous materials, as defined in Section 6382.
(2) Contain a surface to place a breast pump and personal items.
(3) Contain a place to sit.
(4) Have access to electricity or alternative devices, including, but not limited to, extension cords or charging stations, needed to operate an electric or battery-powered breast pump.

(d) The employer shall provide access to a sink with running water and a refrigerator suitable for storing milk in close proximity to the employee’s workspace. If a refrigerator cannot be provided, an employer may provide another cooling device suitable for storing milk, such as an employer-provided cooler.

(e) Where a multipurpose room is used for lactation, among other uses, the use of the room for lactation shall take precedence over the other uses, but only for the time it is in use for lactation purposes.

(f) (1) An employer in a multitenant building or multiemployer worksite may comply with this section by providing a space shared among multiple employers within the building or worksite if the employer cannot provide a lactation location within the employer’s own workspace.

(2) Employers or general contractors coordinating a multiemployer worksite shall either provide lactation accommodations or provide a safe and secure location for a subcontractor employer to provide lactation accommodations on the worksite, within two business days, upon written request of any subcontractor employer with an employee that requests an accommodation.

(g) An agricultural employer, as defined in Section 1140.4, shall be deemed to be in compliance with this section if the agricultural employer provides an employee wanting to express milk with a private, enclosed, and shaded space, including, but not limited to, an air-conditioned cab of a truck or tractor.

(h) An employer may comply with this section by designating a lactation location that is temporary, due to operational, financial, or space limitations. These temporary spaces shall not be a bathroom and shall be in close proximity to the employee’s work area, shielded from view, free from intrusion while the employee is expressing milk, and otherwise compliant with this section.

(i) An employer that employs fewer than 50 employees may be exempt from a requirement of this section if it can demonstrate that a requirement would impose an undue hardship by causing the employer significant difficulty or expense when considered in relation to the size, financial resources, nature, or structure of the employer’s business. If that employer can demonstrate that the requirement to provide an employee with the use of a room or other location, other than a bathroom, would impose such undue hardship, the employer shall make reasonable efforts to provide the employee with the use of a room or other location, other than a toilet stall, in close proximity to the employee’s work area, for the employee to express milk in private.

SEC. 3. Section 1033 of the Labor Code is amended to read:

1033. (a) The denial of reasonable break time or adequate space to express milk in accordance with this chapter shall be deemed a failure to comply for purposes of Section 226.7. An aggrieved employee may file a complaint under this subdivision with the Labor Commissioner pursuant to Section 98.

(b) An employer shall not discharge, or in any other manner discriminate or retaliate against, an employee for exercising or attempting to exercise any right protected under this chapter. This subdivision is not intended to limit or expand an employee’s rights pursuant to Section 98.6. An aggrieved employee may file a complaint under this subdivision with the Labor Commissioner pursuant to Section 98.7.

(c) An employee may report a violation of this chapter to the Labor Commissioner’s field enforcement unit. If, upon inspection or investigation, the Labor Commissioner determines that a violation of this chapter has occurred, the Labor Commissioner may issue a citation and may impose a civil penalty in the amount of one hundred dollars ($100) for each day that an employee is denied reasonable break time or adequate space to express milk in violation of this chapter. The procedures for issuing, contesting, and enforcing judgments for citations or civil penalties issued by the Labor Commissioner for violations of this chapter shall be the same as those set forth in Section 1197.1.

(d) Notwithstanding any other provision of this code, violations of this chapter shall not be misdemeanors under this code.

SEC. 4. Section 1034 is added to the Labor Code, to read:

1034. (a) An employer shall develop and implement a policy regarding lactation accommodation that includes the following:
(1) A statement about an employee’s right to request lactation accommodation.
(2) The process by which the employee makes the request described in paragraph (1).
(3) An employer’s obligation to respond to the request described in paragraph (1) as outlined in subdivision (d).
(4) A statement about an employee’s right to file a complaint with the Labor Commissioner for any violation of a right under this chapter.

(b) The employer shall include the policy described in subdivision (a) in an employee handbook or set of policies that the employer makes available to employees.

(c) The employer shall distribute the policy described in subdivision (a) to new employees upon hiring and when an employee makes an inquiry about or requests parental leave.

(d) If an employer cannot provide break time or a location that complies with the policy described in subdivision (a), the employer shall provide a written response to the employee.
Opioid Background Info

Opioid Background Information
United States Equal Employment Opportunity Commission


SOURCE: 

KEY WORDS:
Drug Use, Opioid, Codeine, Former Use, Employment, Information

AGENCY:

UNITED STATES EEOC


Document:

How Health Care Providers Can Help Current and Former Patients Who Have Used Opioids Stay Employed

Your patients with a history of opioid use or misuse may have the right, under the Americans with Disabilities Act (ADA), to get reasonable accommodations that will help them to stay employed and in treatment.[1]  You may sometimes be asked to provide limited medical documentation to help your patient get a reasonable accommodation. Even if a patient who uses prescription opioids or who has been addicted to opioids in the past does not need an accommodation to continue working, his or her employer may still ask you for medical documentation under the ADA to decide if the person can safely and effectively work in a particular job.

This fact sheet provides a brief explanation of the health provider’s role under the ADA when a patient who uses opioids needs a reasonable accommodation and when questions arise about a patient’s ability to perform a job safely.  This information is not new policy; rather, this document applies principles already established in the ADA’s statutory and regulatory provisions as well as previously-issued guidance. The contents of this publication do not have the force and effect of law and are not meant to bind the public in any way.  This publication is intended only to provide clarity to the public regarding existing requirements under the law.

Background Information About Reasonable Accommodation

1. What is a reasonable accommodation?
A reasonable accommodation is some type of change in the way things are normally done at work, such as an altered break or work schedule (e.g., scheduling work around treatment), a change in shift assignment, or a temporary transfer to another position. These are just examples; employees are free to request, and employers are free to suggest, other modifications or changes. However, an employer never has to lower production or performance standards, eliminate essential functions (fundamental duties) of a job, pay for work that is not performed, or excuse illegal drug use on the job as a reasonable accommodation.[2] Employers must give reasonable accommodations to job applicants and employees who need them because of a medical condition that qualifies as a “disability” under the ADA, unless doing so would impose significant difficulty or expense.[3]

2. Could a patient who is taking prescription opioids to treat pain from a medical condition get a reasonable accommodation?
If the patient’s pain requires ongoing opioid medication, the underlying medical condition likely qualifies as an ADA disability. The ADA’s definition of “disability” is different from the one used for Social Security disability benefits—having an ADA disability does not mean that someone can’t work. Conditions like cancer, muscular dystrophy, and multiple sclerosis should easily qualify, and other conditions may also qualify, like orthopedic conditions that cause pain for which someone is prescribed opioids.[4]

3. Could a patient who is addicted to opioids get a reasonable accommodation?
Opioid use disorder (OUD) is itself a diagnosable medical condition that is likely to qualify as an ADA disability.
There is an exception for people who are using heroin or opioid medication without a valid prescription—the ADA doesn’t stop employers from firing employees, denying employment to job applicants, or taking other negative employment actions based on the current illegal use of drugs.

4. Could a patient who is no longer addicted to opioids, but who needs treatment to avoid relapse, get a reasonable accommodation?
A patient who had a past addiction to opioids can get a reasonable accommodation if he or she needs one because of the past addiction. Your patient might be able to get an altered schedule, for example, to attend support group meetings or therapy sessions that help avoid relapse. 

5. Could a patient get reasonable accommodations for a medical condition related to opioid addiction?
Yes, if the related condition is an ADA disability. Common comorbid conditions such as major depression and post-traumatic stress disorder (PTSD) are disabilities, and other conditions may qualify as well. For more information on mental health conditions and the ADA, see Depression, PTSD, & Other Mental Health Conditions in The Workplace: Your Legal Rights at https://www.eeoc.gov/laws/guidance/depression-ptsd-other-mental-health-conditions-workplace-your-legal-rights and The Mental Health Provider’s Role in a Client’s Request for a Reasonable Accommodation at Work at https://www.eeoc.gov/laws/guidance/mental-health-providers-role-clients-request-reasonable-accommodation-work.

6. What if my patient can’t return to work right now, even with a reasonable accommodation?
If your patient can’t perform all the essential functions of the job safely and up to the standards required for the job, and he or she has no paid leave available, unpaid leave may be a reasonable accommodation if it helps him or her recover the ability to perform essential job functions. Your patient may also qualify for leave under the Family and Medical Leave Act (FMLA). The United States Department of Labor Wage and Hour Division enforces the FMLA. More information about this law can be found at www.dol.gov/whd/fmla. If your patient is permanently unable to do his or her regular job, reassignment to a different job may be a reasonable accommodation if one is available.[5]

Helping Your Patients Seek Reasonable Accommodations

7.  What if my patient needs to learn about the ADA and reasonable accommodation?
Because some patients may not know about the ADA, it may be helpful to refer them to EEOC resources, such as Use of Codeine, Oxycodone, and Other Opioids: Your Employment Rights, available at https://www.eeoc.gov/laws/guidance/use-codeine-oxycodone-and-other-opioids-information-employees.

8. How can I help my patient get a reasonable accommodation?
If your patient decides to ask for a reasonable accommodation, the employer may need medical documentation that will help it to decide whether the patient has an ADA disability and needs a reasonable accommodation. You can provide that documentation. It does not need to be extensive, and you do not need to be a medical doctor to provide it. Employers are required to keep all information related to reasonable accommodation requests confidential.[6] Documentation is most likely to support your patient’s request if, using plain language, it explains the following: Your professional qualifications and the nature and length of your relationship with the patient. A brief statement is sufficient. The nature of the patient’s medical condition.
If the patient needs an accommodation because of an underlying medical condition, or because of an opioid medication’s side effects, you should identify the underlying condition. If the accommodation is needed because of OUD, it is sufficient to state that the patient has been diagnosed with OUD. If the patient needs an accommodation because of a comorbid condition, you should identify the comorbid condition. If your patient asks you not to reveal that his or her problems at work are due to opioid use or an underlying condition related to opioid use, the employer might be satisfied with a more general description of the individual’s medical status (e.g., that he or she is being “treated for addiction” or has a mental health condition).  The patient’s functional limitations in the absence of treatment. Describe the extent to which the condition would limit a “major life activity” such as walking, sleeping, lifting, concentrating, or caring for oneself, in the absence of treatment. If the effects on functioning would come and go, describe what they would be when the symptoms are at their worst. You only need to establish a substantial limitation of one major life activity. The need for a reasonable accommodation. Explain how the patient’s medical condition makes changes at work necessary. For example, explain why your patient may need a schedule change (e.g., to attend a medical appointment during the workday) or unpaid time off (e.g., to receive treatment or recover). If your patient needs an accommodation to perform a particular job function, explain how the patient’s symptoms—as they actually are, with treatment—make performing the function more difficult. You can include side effects of the patient’s medication if they also make work more difficult. If necessary, ask your patient for a description of his or her job duties. Limit your discussion to the specific problems in that particular job that may be helped by a reasonable accommodation.
Suggested Accommodation(s). If you are aware of an effective accommodation, you may suggest it. Don’t overstate the need for a particular accommodation in case an alternative is necessary. The ADA does not alter your ethical or legal obligations as a health care provider. You should request a reasonable accommodation on behalf of an individual or provide an employer with medical information about the patient, only if the individual asks you to do so and authorizes the release. Again, employers are required to keep all information related to reasonable accommodation requests confidential.

9. How will the medical documentation be used?
The employer, perhaps in consultation with a health care professional, will use this information to evaluate whether to provide a reasonable accommodation, and, if so, which one. The person evaluating the request also may contact you to ask for clarification of what you have written, or provide you with additional information to consider. For example, if the requested accommodation would be too difficult or costly to provide, he or she may ask whether a different accommodation would be effective. The information you provide can’t legally be used to justify a negative employment action unless it shows that your patient is disqualified for the position under federal law, using drugs illegally, or incapable of performing essential job functions safely and competently even with a reasonable accommodation.[7]

Safety Concerns

10. What if the employer asks whether my patient would pose a safety risk?
For a small number of jobs, federal law requires the employer to verify that its employees meet certain medical standards for safety reasons. But for most jobs, the decision to suspend someone’s duties because of a disability must be based on an objective assessment of the accompanying safety risks, under actual working conditions. If an employer asks whether your patient poses a safety risk, it is likely asking you for medical information that will help it to decide whether the patient’s disability creates a safety risk significant enough to justify suspension or other adverse action under the law. Safety concerns will only justify a suspension of duties or other adverse action if the risk rises to the level of a “direct threat,” which means a significant risk of substantial harm to self or others that cannot be eliminated or reduced to an acceptable level with a reasonable accommodation.[8]

11. Is it enough to provide the employer with restrictions, such as “no operating heavy machinery”?
No. To decide if an employee poses a “direct threat,” employers need information that will help them assess the level of risk posed by a disability, taking into account the probability that harm will occur, the imminence of the potential harm, the duration of the risk, and the severity of the potential harm.[9] 

12. What type of information should I provide an employer to make a proper safety determination?
You should describe relevant medical events or behaviors that could occur on the job (e.g., a loss of consciousness or nausea), and state the probability that they will occur. (If it is difficult to quantify the probability, it may still be useful to provide informal estimates, for example by saying that a loss of consciousness on the job would be “very unlikely” or “quite likely” during the next two months.) The estimates should be based on the most current available medical information, and should take into account the treatment regimen and medical history of the individual being evaluated. You should also describe any safety precautions that would reduce the chances that the medical event or behavior will occur. Where relevant, consider and assess any risks your patient’s condition may present in light of the type of work your patient performs on a day-to-day basis; the type of equipment he or she uses; his or her access to harmful objects or substances; any safeguards in place at the worksite; the type of injury or other harm that may result if one of the identified medical events or behaviors occurs; and the likelihood that injury or other harm would in fact occur as a result of the event or behavior. If you don’t have this information but think you need it to make an accurate assessment, you should ask the employer for it.

Further Information

For general information, visit the Equal Employment Opportunity’s (EEOC’s) website (https://www.eeoc.gov), or call the EEOC at 1-800-669-4000 (voice), 1-800-669-6820 (TTY), or on our sign language access line at 1-844-234-5122 (ASL Video Phone). 


[1] 42 U.S.C. § 12112, et seq.; 29 C.F.R. §§ 1630.1 – 1630.16.  The various facets of nondiscrimination, reasonable accommodation, and other protections under Title I of the ADA are addressed in different sections of the statute and regulations.  See, e.g., 29 C.F.R. § 1630.2(g) –(k) (current disability and record of a past disability) and 1630.9 (reasonable accommodation generally); see also 42 U.S.C. § 12114 (exclusions relating to current illegal use of drugs).
[2] 42 U.S.C. § 12114, 12210; 29 C.F.R. § 1630.3, 1630.16(b) and (c).
[3] 42 U.S.C. § § 12111(10), 12112(b)(5); 29 C.F.R. §§ 1630.2(o) and (p), and 1630.9.
[4] 42 U.S.C. § 12102; 29 C.F.R. § 1630.2(g)-(k).
[5] 42 U.S.C. §§ 12111(8), 12111(9)(B); 29 C.F.R. §§ 1630.2(m)-(p).
[6] 42 U.S.C. § 12112(d); 29 C.F.R. § 1630.14(d)(4).
[7] 42 U.S.C § 12203; 29 C.F.R § 1630.12.
[8] 42 U.S.C. § 12113(b); 29 C.F.R. § 1630.2(r).
[9] Id.

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