Employment and Appellate Law Alert July 2008 Authors: Linda J. Shorey 717.231.4510 linda.shorey@klgates.com Amy L. Groff 717.231.5876 amy.groff@klgates.com K&L Gates comprises approximately 1,700 lawyers in 28 offices located in North America, Europe and Asia, and represents capital markets participants, entrepreneurs, growth and middle market companies, leading FORTUNE 100 and FTSE 100 global corporations and public sector entities. For more information, visit www.klgates.com. www.klgates.com Abortion-Related Discrimination Violates The Federal Pregnancy Discrimination ACT In a case of first impression in its jurisdiction, the U.S. Court of Appeals for the Third Circuit held that the Pregnancy Discrimination Act (“PDA”) prohibits discrimination against an employee for having had an abortion. See Doe v. C.A.R.S. Protection Plus, Inc., Nos. 06-3625, 06-4508 (3d Cir. May 30, 2008). In addition to recognizing a new type of employment discrimination claim in the Third Circuit, this case underscores the importance of written leave policies that are enforced consistently. Background As the Third Circuit noted in its opinion, Doe did not involve a “typical” pregnancy discrimination claim, such as disparate treatment of a pregnant woman or termination of an employee during maternity leave. Rather, the plaintiff alleged that she was terminated because she had an abortion. Ms. Doe had worked as a graphic designer for a company that insures used cars, and she reported to the company’s Vice President. In May of 2000, she learned she was pregnant and informed the Vice President. He indicated that they would play it by ear with respect to making up missed work due to medical appointments. In August, Ms. Doe’s physician discovered that her baby had severe deformities and recommended that the pregnancy be terminated. Five days after Ms. Doe terminated her pregnancy, on the day of the baby’s funeral, the Vice President discharged Ms. Doe. The employer asserted Ms. Doe was discharged for job abandonment, since she did not return to work the week following the abortion. There was conflicting testimony as to whether employees were required to call in and report each day that they could not work due to illness or a health condition. Ms. Doe claimed her husband called the Vice President, notified him that she would be having an abortion the next day, and received his approval for Ms. Doe to take one week of vacation the following week. Claim of Abortion-Based Discrimination The threshold issue in the case was whether, as a matter of law, the PDA covers this type of discrimination claim. The PDA amended Title VII of the Civil Rights Act to provide that discrimination “because of sex” or “on the basis of sex” includes discrimination because of or based on “pregnancy, childbirth, or related medical conditions” and that “women affected by pregnancy, childbirth, or related medical conditions shall be treated the same for all employment-related purposes … as other persons not so affected but similar in their ability or inability to work.” See 42 U.S.C. § 200e(k). The legislative history of the PDA indicates that Congress intended abortion to come within the meaning of these terms: Because [the PDA] applies to all situations in which women are “affected by pregnancy, childbirth, and related medical conditions,” its basic language covers women who chose to terminate their pregnancies. Thus, no employer may, for example, fire or refuse to hire a woman simply because she has exercised her right to have an abortion. H.R. Conf. Rep. No. 95-1786 at 4 (1978). Employment and Appellate Law Alert The Equal Employment Opportunity Commission (“EEOC”), which enforces Title VII, also takes the position that an abortion is covered by the PDA. See 29 C.F.R. pt. 1604 App. (1986) (“A woman is therefore protected against such practices as being fired, or refused a job or promotion, merely because she is pregnant or has had an abortion.”). The court gave a “high degree of deference” to the EEOC guidelines interpreting that section of the PDA. This is a level of deference that is not given to positions taken by the EEOC in adjudications or in its Compliance Manual. See Ledbetter v. The Goodyear Tire & Rubber Co., Inc., 127 S. Ct. 2162, 2177 n.11 (2007) (declining to extend Chevron deference to EEOC’s adjudicatory position and Compliance Manual). Based on the plain language of the statute, legislative history and EEOC guidelines, the Third Circuit held that the term “related medical condition” includes an abortion. It is interesting that the court cited both the plain language of the statute and the legislative history, as the presumptive rule is that courts are not to consider legislative history unless the language of the statute is ambiguous. But it is not atypical for them to do so. For example, the Sixth Circuit, which reached the same conclusion as the Third Circuit, also looked to the PDA’s legislative history even though it found the language of the statute to be plain. See Turic v. Holland Hospitality, Inc., 85 F.3d 1211, 1214 (6th Cir. 1996) (relying on plain language of statute, legislative history and EEOC guidelines to conclude that employer may not discriminate against employee because she “exercised right to have an abortion”), cited in Doe v. C.A.R.S. Protection Plus, Inc., Slip. Op. at 9. But see Turic, 85 F.3d at 1216 (Batchelder, J., concurring) (“it is not readily apparent from the statute that the status of having had an abortion is a protectable attribute”). The Third Circuit’s holding is not surprising. The U.S. Court of Appeals for the Sixth Circuit – the only other federal appellate court to examine the issue – reached the same conclusion. And the Third Circuit’s own dicta in Curay-Cramer v. Ursaline Academy of Wilmington, Delaware, 450 F.3d 130 (3d Cir. 2006), indicated it was leaning towards that conclusion. In Curay-Cramer, an employee who signed a prochoice advertisement in a local newspaper brought a claim of retaliation under Title VII’s opposition clause. She alleged she was terminated for publicly opposing her employer’s practice involving employees who considered abortions. The court dismissed the claim after finding that pro-choice advocacy does not constitute opposition to an illegal employment practice, but in doing so, cited, with approval, the Sixth Circuit’s Turic decision and the EEOC’s position. Summary Judgment Having concluded that Ms. Doe’s claim was legally cognizable, the Third Circuit proceeded to review the grant of summary judgment for the employer based on the factual record. The court applied the traditional McDonnell Douglas burden-shifting analysis, under which an employee must first establish a prima facie case, the employer must articulate a legitimate non-discriminatory reason for its decision, and the employee must then show that the articulated reason was a pretext for discrimination. The court focused on the aspect of a prima facie case that requires a nexus between the pregnancy and the termination. To establish this nexus, Ms. Doe had put forth evidence of disparate treatment – i.e., that she was treated less favorably than similarly situated employees who were not affected by pregnancy or a related medical condition. She showed that another employee who had a heart attack was not required to call in and report daily while he was in the hospital; an employee who left work and admitted himself to a psychiatric hospital was called by the Vice President and told to return to work or face termination; and the same employee also went to the emergency room for a hernia and back problems, missed three days of work, and called the Vice President only two times. None of these incidents resulted in termination. The court rejected the employer’s attempt to distinguish treatment of these employees on the basis that they reported to different supervisors because the Vice President had testified that he alone had discretion to grant or deny permission to miss work and that all employees needed his permission to take off sick. In addition, the Vice President’s secretary testified that there was a separate set of rules for each employee, that there was no uniformly enforced rule regarding use of vacation or sick time, and that there was no rule requiring sick employees to report to the company each day that they would miss work due to illness. The court found this evidence of disparate treatment sufficient to create July 2008 | 2 Employment and Appellate Law Alert the inference of discrimination required for a prima facie case.1 The employer articulated a legitimate, nondiscriminatory reason for its decision – that Ms. Doe’s employment was terminated because she abandoned her job by failing to report to work. However, there was enough evidence from which a jury could infer the articulated reason was a pretext, and the court reversed the grant of summary judgment. Conclusion From a practical standpoint, this case underscores the importance of written leave policies that are enforced consistently and that make employees aware of notice requirements and consequences for failure to comply with those requirements. When granting sick or personal leave, it can be tempting to stray from policies in an attempt to be sympathetic to an individual employee’s situation; however, employers who make decisions on a case-by-case basis do so at 1 their peril. As seen in this case, inconsistencies can serve as evidence of disparate treatment from which one could infer discrimination. On the other hand, rigid adherence to the requirements of a leave policy could create problems when an exception might be necessary to accommodate a disabled employee under state or federal discrimination laws. Decisions involving leave policies should be weighed carefully and, in many cases, should involve consultation with legal counsel. From an appellate review standpoint, this case highlights the importance of legislative history and agency interpretation of statutes even where the statutory language seems clear. Appellate courts will often look to legislative history and agency interpretation, even when they believe that the language of a statute is clear, to bolster their conclusion. And even if an opinion does not mention legislative history, it can influence the outcome of a case. The court also described additional evidence that supported Ms. Doe’s claim. This included a conversation between the Vice President and another employee concerning coverage of Ms. Doe’s duties while she was off work (which contradicted the Vice President’s claim that he did not know she would be off the following week); the Vice President’s disparaging comment that Ms. Doe “didn’t want to take responsibility;” and the temporal proximity between Ms. Doe’s abortion and the termination of her employment, which the court found to be “unusually suggestive” of discrimination. 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