On March 1, 2011, the United States Supreme Court held in Staub v. Proctor Hospital, No. 09-400, 2011 U.S. LEXIS 1900 (Mar. 1, 2011), that an employer can be held liable for discrimination where an adverse employment decision is influenced by a supervisor's discriminatory intent, even where the ultimate decision maker had no discriminatory animus. In Staub, the plaintiff sued his former employer under the Uniformed Services Employment and Reemployment Rights Act of 1994 ("USERRA"), claiming that the human resources executive who fired him was merely the "cat's paw" of his direct supervisors, who had openly expressed anti-military sentiment. The Court found that if an action by a biased supervisor is the proximate cause of an employee's termination, then the employer can be held liable for discrimination, even if the ultimate decision maker had no discriminatory intent and was unaware of the supervisor's bias.
Although the Court allowed for the possibility that an employer could escape liability by conducting an independent investigation, it provided little guidance to employers regarding the circumstances under which such an investigation could insulate them. In this regard, the Court stated that "if the employer's investigation results in an adverse action for reasons unrelated to the supervisor's original biased action ... then the employer will not be liable. But the supervisor's biased report may remain a causal factor if the independent investigation takes it into account without determining that the adverse action was, apart from the supervisor's recommendation, entirely justified." Thus, the Court seemed to suggest that a jury can consider the actions and statements of an allegedly biased supervisor unless the employer can demonstrate that such supervisor played no role and had no input regarding the adverse employment action.
The rationale underlying the Supreme Court's decision presumably applies equally to discrimination claims brought under Title VII, the Americans with Disabilities Act and other federal statutes prohibiting employment discrimination. The decision highlights the importance of training all supervisors with respect to their equal employment opportunity/non-discrimination obligations. It illustrates that biased or discriminatory input from even one supervisor can taint a disciplinary/termination process involving multiple supervisors and layers of review.
Day Pitney Alert
Day Pitney Alert
Day Pitney Alert
Heather Weine Brochin and Gregory Tabakman authored an article entitled "Third Circuit Advises that Employer Must Pay Employees for Short Rest Breaks," which was published by the New Jersey Law Journal.
Day Pitney partner Francine Esposito will speak at the upcoming webinar "Workplace Leave Laws: Strategies to Navigate the Changing Landscape in the U.S." Taking place on Sept. 14 at 2 p.m., the webinar is the first in a series of webinars hosted by the Employment Law Alliance (ELA) on workplace leave laws around the globe.
John McLafferty was quoted in an article, "Employment Lawyers Leery of Bill Banning NDAs, Arbitration," published by Massachusetts Lawyers Weekly.
Heather Weine Brochin was quoted in an article, "Confidentiality Disqualifies Harassment Settlement Tax Deductions," published on the Society for Human Resource Management (SHRM) website.
John McLafferty was quoted in an article, "How Employers' Haunted House and Fright Night Went Way Wrong," published on the Society for Human Resource Management (SHRM) website.
Michael Furey was quoted in an article, "The Biggest New Jersey Cases of 2016," which was published in Law360.
Michael Furey was quoted in an article, "NJ Panel Grills Hospitals Over Discovery In Horizon Row," in Law360. Day Pitney is representing five New Jersey hospitals in a lawsuit against Horizon Healthcare, relating to its new, multi-tiered health plan called OMNIA. Furey advocated on behalf of the five hospitals on Wednesday before a New Jersey appeals court that Horizon should turn over a consultant's report and certain agreements relating to how Horizon categorized hospitals under its controversial OMNIA Alliance program and the impact of OMNIA on the hospitals. These Tier 2 hospitals are alleging various claims, including breach of contract and citing concerns that being ranked in the lower tier of the program will cost them business. Horizon contends the sought-after materials, including a financial analysis, strategic alliance agreements and rate agreements between the insurer and OMNIA network hospitals, contain trade secret and confidential information. "If we're going to prove our hospitals should be Tier 1 alliance members, we need the documents and the information," Furey said.