Legal Update on Employer Liability

April 2003

 

 

Workers’ Compensation & Employment Liability

 

 

 

In This Issue:

 

                       

 

 

 

 

 

 

 


 


Employee’s Request to “Sniff” New Employees Denied by Employer

 

Termination of the employee soon after her EEOC filing is enough to force a complete trial on ADA retaliation issue

 

An employee with a history of seasonal allergies complained to her employer of adverse reactions to a various co-workers’ perfumes and body lotions.  The employer permitted the employee to move her seat multiple times, a supervisor agreed to contact the employee only by telephone, the employee was permitted to leave work early multiple times due to symptoms, and the employee was even given a two week paid absence because of her complaints of irritation caused by a co-worker’s skin lotion during a two week “buddy system” training program. 

 

Because the employer denied the employee’s request to “sniff” new employees, adopt a perfume-free policy, or give the claimant an enclosed cubical with a special air filtration device, employee filed an EEOC complaint for failure to accommodate her under the Americans With Disabilities Act (“ADA”).  According to the employer, the employee was fired two months later for insubordination in a meeting where she accused the employer of poisoning her through the air.  The claimant alleged that the employer in that meeting told her “I know you’re taking the legal route.”  The claimant then filed a suit for, among other things, ADA retaliation.

 

The trial court found that the claimant did not have a disability under the ADA, and dismissed the case under the employer’s Motion for Judgment as a Matter of Law.  The Third Circuit Court of Appeals reversed and remanded the matter back to the trial court for a complete trial on the case.  The Court found, among other things, that the timing of the firing (10 days after the alleged “legal route” comment and two months after the plaintiff’s filing of an EEOC complaint) was enough for the retaliation issue to be tried before a jury. 

 

The Court implied that absent these two facts, that the matter would have been dismissed without the necessity of a complete and costly trial.  Although an employer has the right to terminate an employee for cause, regardless of an ADA or other discrimination/harassment claim, employers must keep in mind the fact that the timing of any such firing as it relates to a discrimination/harassment complaint/filing will often be enough to force the employer to go through a complete and costly trial in order to prove that the termination was in fact for cause.

 

Sally Shellenberger vs. Summit Bank Corp., 2003 WL 187109 (3rd Cir. 2003)

 

 

 


Good Samaritan Employer

Stung in WC

 

Employee’s WC benefits automatically reinstated following layoff because employer allowed late acceptance of light duty job offer

 

The employer in this case filed a Suspension Petition, as the claimant had refused a light duty job made available by the employer.  After receiving another six months of wc wage benefits,  the wc claimant decided to accept the light duty job offer.  Although the employer had no legal responsibility to hold that light duty job open, the employer allowed the claimant to return to work in that light duty position. 

 

The Judge then granted the Suspension Petition for the six months between the date the job was offered and the date the claimant actually returned to work.  Under Pennsylvania law, the claimant was allowed to keep the wage benefits he had received during that period.  The claimant was then laid off, as light duty was no longer available.

 

Ordinarily, following a Judge’s Order Suspending a claimant’s benefits for “bad faith” failure to return to a light duty position, a claimant would have to prove an actual worsening in his physical condition in order to reinstate his wc wage benefits.  He would have to prove that his work injury has deteriorated to such a point that he could no longer perform the light duty job offered. 

 

However, because the employer here kindly allowed this claimant to return to light duty work six months after the light duty position was offered, the employer in effect allowed the claimant to cure that “bad faith.”  Accordingly, the claimant only had to show essentially  that he was laid off in order to restart his total disability wc wage benefits.

 

Accordingly, employers should consider making light duty job offers open for only a limited period of time, and not permit employees to later accept the position when their wc benefits are threatened by a Suspension Petition.

 

Douglas v. WCAB (Stroh Companies) 2003 WL 347157 (Pa. Cmwlth. 2003)

 

 

 


ADA Damages Cap Fails

to Protect Employer

 

Employer is subject to unlimited damages under companion State claim

 

An employee with multiple sclerosis sued her employer for discrimination under the Americans With Disabilities Act (“ADA”) and the Pennsylvania Human Relations Act (“PHRA”).  The jury entered a verdict for the employee, and awarded her $2,000,000 in compensatory damages and $500,000 in punitive damages.  The trial court reduced the punitive damages to the $300,000 cap that applies to punitive and compensatory damages under the ADA, and apportioned all of the $2,000,000 in compensatory damages to the PHRA claim.  The employer appealed, arguing that the $300,000 cap should apply to all similar claims in a single lawsuit.

 

In the first decision from the 3rd Circuit on this issue, the Appellate Court determined that the ADA damages cap does not affect the damages that can be awarded and/or apportioned to a state claim, even if a state claim is based on the same set of facts and allegations as the ADA claim.  Importantly, the ADA contains an express prohibition against limiting state remedies.  Further, the PHRA provides a cause of action which is almost identical to the ADA.  The court determined that since the PHRA specifically omitted the damages cap that was contained in the ADA, the PHRA intended to provide a remedy beyond that which could be awarded under the ADA.

 

Gagliardo v. Connaught Laboratories, Inc. 2002 WL 31618506 (3rd Cir. 2002)

 

 

 


Commonwealth Court Eviscerates WC Impairment Ratings (“IREs”)

 

IRE must be requested on WC claims within 60 days of the expiration of 104 weeks of total disability wage benefits,  or employer will forever lose right to IRE on the Claim

 

In an extremely strict reading of Section 106(a.2)(a) of the Workers’ Compensation Act,  the Commonwealth Court has held that if an initial IRE is not requested within 60 days of the expiration of 104 weeks of Claimant’s receipt of total disability benefits, the Employer / Insurer is forever barred from securing an IRE.  In a dissent from the majority opinion, Judge Cohn reasoned that this interpretation “creates a hypertechnical requirement not intended by the legislature.”

 

We have confirmed with the defense attorney in that case that the employer has requested an appeal with the Pennsylvania Supreme Court.  We are hopeful that the Supreme Court will agree with Judge Cohn’s dissent, and overturn the Commonwealth Court’s Decision.  In the meantime, we recommend that all accepted workers’ compensation claims be diaried for the expiration of the 104 weeks of TTD.  The claims handler or defense counsel should request an IRE at the appropriate time on all cases where an IRE might be appropriate.

 

Gardner v. WCAB (Genesis Health Ventures) 2003 WL 124234 (Pa. Commw. 2003)

 

 

 


Funded Employment Lives on in Pennsylvania WC 

 

WC Vocational Interviews Retain Validity

 

Prior case law had limited the duration of the reduction in a claimant’s workers’ compensation wage benefits on a Modification Petition based on funded employment.  The Court in Myers[1] held that if the funded position could guarantee funding for no more than 90 days, then the WC employer funding that position was entitled to only a 90-day reduction in the WC claimant’s benefits, if the claimant failed to accept that job within his physical limitations. 

 

Here, the vocational expert testified that the position was to be funded indefinitely.  Accordingly, the Court held that Myers did not apply, and the claimant’s wage benefits were accordingly modified for his failure to accept the funded employment.

 

The claimant also argued that the modification was not valid because the vocational expert had not been approved by the Bureau, as required in Caso and Walker.[2]  The Court responded that Caso and Walker only hold that a Claimant cannot be compelled to attend an interview with an unapproved expert.  Here, Claimant attended the vocational interview without objection.  Accordingly, any challenge based on those cases had been waived. 

 

Henry v. WCAB (Keystone Foundry) 2002 WL 31973684 (Pa. Cmwlth. 2003)

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

 

 

 

Kunz & Associates defends employers and their insurance carriers against workers’ compensation and employment law claims throughout Pennsylvania.

 

 

Questions?  Please call or email.

 

David R. Kunz, Esq.

(215) 875-1400     dkunz@kunzlaw.com

 

Caroline H. Rieker, Esq.

(215) 875-1410     crieker@kunzlaw.com

 

 

This advisory is for general information and is not intended as legal advice or opinion.  The application of the laws discussed can vary depending on the specific facts or circumstances of a claim.  If you have a question as to a specific claim or situation, please call or email with the details of same, so that a complete review and analysis can be provided, allowing for a fully informed decision on the matter.

 


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                          I am still fuming over how the Caso and Walker cases may have ruined the whole Labor Market Survey process in wc – I don’t need any more bad news!

 

 

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[1] General Electric v. WCAB (Myers), 793 A.2d 191 (Pa. Cmwlth. 2002), appeal granted, 805 A.2d 527 (Pa. 2002).

 

[2] Caso v. WCAB (Sch. Dist. of Phila.), 790 A.2d 1078 (Pa. Cmwlth. 2002), appeal granted, 805 A.2d 526 (Pa. 2002); Walker v. WCAB (Temple Univ. Hosp.), 792. A.2d 628 (Pa. Cmwlth 2002).