1. FEATURE STORY:
YES, YOU CAN FIRE AN FMLA-PROTECTED EMPLOYEE WITHOUT VIOLATING THE LAW
An employee's performance problems come to light after they go out on leave under the Family and Medical Leave Act (FMLA). Do you fire the employee based on the performance issues? Or do you retain the employee because the timing of the termination will appear discriminatory?
Despite having a legitimate reason to fire an employee, employers understandably shy away from pulling the termination trigger if the employee is out on FMLA leave. Fear of a lawsuit often leads an organization to retain a poor performer unnecessarily. The following case shows that a healthy fear of the FMLA should not be paralyzing.
FMLA Leave Reveals Performance Problems
When the manager of a service center took FMLA leave, his employer hired several employees to cover for him. The replacement employees uncovered multiple problems, including employees not following procedures, damaged freight hidden in trailers, customer complaints, and overtime not being handled properly.
Also, several shipments that the manager had entered into the system as "waiting for an appointment" were not appointment deliveries; they were actually deliveries that had not been made on time. Other shipments that had been entered as "delivered clear" were, in fact, delivered late, damaged, or incomplete, according to the corresponding freight delivery receipt. (Freight delivery receipts reflect the date and quality of the delivery.)
One of the employees notified the VP of Operations regarding the discrepancies. The VP examined a 30-day sample of freight delivery receipts and compared them to the corresponding computer entries made under the manager's computer log-in code. Not only did he confirm the discrepancies, but he also discovered other, similar problems.
The VP also found that the majority of the manager's computer entries were made late at night and within minutes of each other, leading him to conclude that the entries were not errors, but, rather, were deliberate attempts to hide late and damaged deliveries. The VP spoke to HR, and had the assistant VP of Operations review the records, who agreed with the VP's findings. The day the manager returned from leave, he was fired.
The manager filed an FMLA lawsuit, claiming that the company interfered with his FMLA rights by failing to restore him to his previous position and retaliated against him by firing him. He pointed to the fact that the termination decision was made while he was on FMLA leave; he was fired the day he returned from leave; and he had a 15-year record of positive performance reviews.
Appeals court: Case dismissed. While the timing of the termination may look suspicious, there is no doubt that the company fired the manager because it believed he was covering up shipment problems. "The fact that the leave permitted the employer to discover the problems cannot logically be a bar to the employer's ability to fire the deficient employee."
The existence of positive performance reviews does not prohibit an employer from relying on newly uncovered evidence on which to base a termination decision, the court continued. The relevant inquiry is the employee's job performance at the time of the termination. (Cracco v. Vitran Express, Inc., 7th Cir., No. 07-3827, 2009)
FMLA Fire Fight
Before firing an employee who is on FMLA leave, has recently returned from FMLA leave, or has requested FMLA leave, be sure that the termination is clearly tied to legitimate performance issues and not to the FMLA. Here's what the employer in this case did right.
1. Conducted a thorough investigation. The court found that the company had a reasonable belief that the manager had been covering up shipment problems. The company presented strong evidence that, not only was the termination decision not based on his use of FMLA leave, but also that it would have fired him even if he had not taken leave.
2. Acted in good faith. None of the company's actions suggested to the court that company management acted under a prohibited animus. The manager had no evidence that the reports of delivery issues did not take place or that the investigation into those issues was not a bona fide attempt to assess their accuracy. The case could have gone differently if the company had put the manager's work under the microscope after he went on leave without having an impetus to do so.
Warning: Even if you have an employee's work under a microscope and performance problems documented before they go on leave, the timing of any performance-based discipline will be scrutinized in court. If your company was aware of performance problems, but did not begin an investigation into the incidents or impose discipline at or near the time of the incidents, and imposed discipline only after the employee goes out on FMLA leave, the court could find that taking FMLA leave negatively factored into the discipline decision.
3. Followed past practice. The manager could not show that the company retained another service center manager with similar performance issues who did not take FMLA leave.
Preventive Measures For Avoiding A Similar Situation
Don't end up like this company, which was unaware of the manager's shortcomings until he took a leave of absence. Supervisors need to supervise their employees' work. Don't assume that all is well just because there is no evidence to the contrary.
For positions where lack of oversight could lead to more serious issues than general poor performance (e.g., embezzlement), there should be checks and balances in the work process, including requiring employees to take off at least one full workweek at a time every year.
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