ADA Allows Employer to Dismiss Employee for Good Cause
Barry Zalma
Feb 27, 2024

Transcript

This is Barry Zalma speaking for Claims School Incorporated's blog, Zalma on Insurance.
Today we're going to speak about the American with Disabilities Act, which requires evidence, evidence of intentional discrimination if you are to sue your employer for dismissing you because you're disabled.
The employer does not violate the ADA if he, she, or it dismisses the employee for good cause.
Jennifer Ackridge appealed the entry of summary judgment for her former employer, defendant Alpha Mutual Insurance Company, on her claim brought under the American with Disabilities Act.
Ackridge Contended that Alpha discriminated against her by terminating her to avoid paying health care costs related to her multiple sclerosis and severe migraines.
In a case called Jennifer Ackridge versus Alpha,
The United States Court of Appeal for the Eleventh Circuit on February 16, 2024 applied the quote, but for test to determine if the employer discriminated against a disabled employee.
Alpha responded that most of Akridge's duties had become automated and her position was no longer needed.
Alpha Eliminated It to Cut Business Expenses.
Alpha argued there was no evidence Alpha's decision makers
New Ackridge's Healthcare Costs.
In 1989, Ackridge began working at Alpha, an insurance company, and in 1993, Ackridge was diagnosed with MS and began suffering from severe migraines.
By 2015, Ackridge was promoted to a strategic coordinator position in Alpha's auto underwriting department.
Ackridge's primary task concerned the strategic underwriting program in which she worked with Alpha's agents and district managers to identify profitable policies for struggling agents.
By all accounts, Ackridge excelled at her job with excellent performance reviews.
Alpha was self-insured and paid the health care costs of its employees.
Ackridge estimated that it cost Alpha between $10,000 and $12,000 a month to treat her MS and migraines.
While it was common knowledge at Alpha that Ackridge had MS, no one at Alpha ever said anything to Ackridge about her health care costs.
The decision makers who decided to eliminate Ackridge's position
met for one to two weeks before her termination and ultimately they decided to terminate her because the job no longer existed.
The court entered summary judgment in favor of Alpha.
The court observed that none of Alpha's evidence indicated that the decision makers knew her individual health care costs.
She again was faced with a second summary judgment motion that Alpha filed, which the court also granted.
The court concluded that 1.
While Ackridge was fired and not transferred to a new position, she admitted she never applied to an open position at Alpha, and 2.
The decision makers testified that they were unaware of Ackridge's health care costs.
The ADA Bars Employers from Discriminating Against a Qualified Individual on the Basis of Disability.
On appeal, Ackridge challenged the entry of summary judgment on her claim that Alpha discriminated against her by terminating her to avoid paying her high health care costs.
An ADA plaintiff establishes a prima facie case by showing 1 that she has a disability, 2 she is qualified
Individual under the ADA and three, the employer discriminated against her on the basis of disability.
The ADA imposes a quote but for close quote causation standard that is an adverse employment action would not have occurred but for the plaintiff's disability.
The Supreme Court has instructed the lower courts that the ancient and simple but for common law causation test supplies the rule against which Congress is normally presumed to have legislated including the federal anti-discrimination laws.
The Employee-Friendly Motivating Factor Standard does not apply to ADA claims as the standard is drawn directly from the text of Title VII.
Ackridge cannot resort to the lesser showing.
The ADA's text requires a plaintiff alleging disparate treatment to prove that she was treated less favorably than a similarly situated non-disabled person.
Ackridge's evidence according to the 11th Circuit did not show pretext because Alpha's decision makers eliminated Ackridge's position to reduce business expenses because her position was no longer needed.
Alpha's decision makers eliminated Ackridge's position
Because it would save the company money and was no longer needed.
Alpha produced non-discriminatory reasons for her termination.
Alpha's interest in reducing expenses was supported by the development of the Guidewire program.
Ackridge also failed to present evidence indicating that Alpha's reasons for her firing were pretextual.
In short, Ackridge failed to present evidence that would allow a jury to infer intentional disability discrimination.
If Congress intended to retain, clarify, or add the motivating factors standard to the ADA,
It could have simply added the language, like it did in the 1991 amendments to Title VII.
Instead, in direct contrast to Title VII, Congress chose to not add the motivating factor language to the text of the ADA.
The grant of summary judgment in favor of Alpha and the sanctions awarded against Ackridge were therefore affirmed.
In my opinion, every employer has faced the need to dismiss an XR employee because the work the employee was doing was no longer needed by the employer.
When the Employee is Disabled, the ADA will be raised to say that the reason for dismissal was to avoid paying extensive medical bills.
Ackridge failed to provide any evidence that the dismissal was for any reason that fell within the discrimination requirement
of the ADA.
Since Alpha had a good business reason for the dismissal and had no knowledge of her medical costs, the summary judgment was properly affirmed.
This video was adapted from my blog, Zalma on Insurance, which is available free to anyone who clicks on the URL zalma.com.
You can subscribe to the blog and you'll receive notice of blog postings, usually five or six a week.
and you'll also gain access to the more than 4,700 blog postings.
You can also subscribe to the videos at Rumble.com and or YouTube.com and if you do, since they're both free, I'd appreciate it if you click on the like button on YouTube or the thumbs up button on Rumble.com
Please tell your friends and colleagues about this blog and the videos so that they too can subscribe.
And if you're interested in more detailed information about insurance, insurance law, insurance fraud and insurance claims, please consider subscribing for a very small fee to my Substack publication.
Thank you for your attention.

Share

Leave a comment

Get a group subscription

Read the full article at https://lnkd.in/ggVZpegi, see the full video at https://lnkd.in/grcpH9Ev and at https://lnkd.in/g9JBMYQh and at https://zalma.com/blog plus more than 4700 posts.

Post 4743

Jennifer Akridge appealed the entry of summary judgment for her former employer, defendant Alfa Mutual Insurance Company, on her claim brought under the Americans with Disabilities Act ("ADA" ). Akridge contended that Alfa discriminated against her by terminating her to avoid paying healthcare costs related to her multiple sclerosis ("MS" ) and severe migraines.

In Jennifer Akridge v. ALFA Insurance Companies, ALFA Mutual Insurance Company, No. 22-12045, United States Court of Appeals, Eleventh Circuit (February 16, 2024) the Eleventh Circuit applied the "but for test" to determine if the employer discriminated against a disabled employee.

FACTUAL BACKGROUND

Alfa responded that most of Akridge's duties had become automated and her position was no longer needed Alfa eliminated it to cut business expenses. Alfa argued there was no evidence Alfa's decisionmakers knew Akridge's healthcare costs.

In 1989, Akridge began working at Alfa, an insurance company. In 1993, Akridge was diagnosed with MS and began suffering from severe migraines. By 2015, Akridge was promoted to a strategic coordinator position in Alfa's auto underwriting department. Akridge's primary task concerned the strategic underwriting program, in which she worked with Alfa's agents and district managers to identify profitable policies for struggling agents. By all accounts, Akridge excelled at her job, with excellent performance reviews.

Alfa was self-insured and paid the healthcare costs of its employees. Akridge estimated that it cost Alfa between $10,000 and $12,000 per month to treat her MS and migraines. While it was common knowledge at Alfa that Akridge had MS, no one at Alfa ever said anything to Akridge about her healthcare costs.

Decisionmakers and the Decision to Terminate Akridge

The decisionmakers discussed eliminating Akridge's position for one to two weeks before her termination.

Summary Judgment and First Appeal

Ultimately, the court entered summary judgment in favor of Alfa. The court observed that none of Akridge's evidence indicated that the decisionmakers knew her individual healthcare costs.

Second Summary Judgment Motion

Alfa filed its second motion for summary judgment, which the court granted. The court concluded that (1) while Akridge was fired and not transferred to a new position, she admitted she never applied to an open position at Alfa and (2) the decisionmakers testified that they were unaware of Akridge's healthcare costs.

The ADA bars employers from discriminating against a qualified individual on the basis of disability. On appeal, Akridge challenges the entry of summary judgment on her claim that Alfa discriminated against her by terminating her to avoid paying her high healthcare costs.

An ADA plaintiff establishes a prima facie case by showing (1) she has a disability; (2) she is a qualified individual under the ADA; and (3) the employer discriminated against her "on the basis of disability." The ADA imposes a "but-for" causation standard-that is, an adverse employment action would not have occurred but for the plaintiff's disability.

The Supreme Court has instructed that the ancient and simple “but for” common law causation test supplies the rule against which Congress is normally presumed to have legislated, including for federal antidiscrimination laws.

The employee-friendly, motivating-factor standard does not apply to ADA claims, as this standard is drawn directly from the text of Title VII. Akridge cannot resort to the lesser showing. The ADA's text requires a plaintiff alleging disparate treatment to prove that she was treated less favorably than a similarly situated, non-disabled person.

Akridge's Evidence does not Show Pretext

Alfa's decisionmakers eliminated Akridge's position to reduce business expenses because her position was no longer needed. Alfa produced non-discriminatory reasons for her termination. Alfa's interest in reducing expenses was supported by the development of Guidewire.

Akridge also failed to present evidence indicating that Alfa's reasons for her firing were pretextual. In short, Akridge has failed to present evidence that would allow a jury to infer intentional disability discrimination.

If Congress intended to retain, clarify, or add the motivating-factor standard to the ADA, it could have simply added that language, like it did in its 1991 amendments to Title VII. Instead, and in direct contrast to Title VII, Congress chose to not add the motivating-factor language to the text of the ADA. The grant of summary judgment in favor of Alfa and the sanctions award of $1,918 against Akridge were affirmed.

ZALMA OPINION

Every employer has faced the need to dismiss an excellent employee because the work the employee was doing was no longer needed by the employer. When the employee is disabled the Americans With Disabilities Act will be raised to say that the reason for the dismissal was to avoid paying her extensive medical bills. She failed to provide any evidence that the dismissal was for any reason that fell within the discrimination requirement of the ADA. Since Alfa had a good business reason for the dismissal and had no knowledge of her medical costs, the summary judgment was affirmed.

(c) 2024 Barry Zalma & ClaimSchool, Inc.

Please tell your friends and colleagues about this blog and the videos and let them subscribe to the blog and the videos.

Subscribe to my substack at https://barryzalma.substack.com/publish/post/107007808

Go to Newsbreak.com https://www.newsbreak.com/@c/1653419?s=01

Go to X @bzalma; Go to the podcast Zalma On Insurance at; Go to Barry Zalma videos at Rumble.com at https://rumble.com/c/c-262921; Go to Barry Zalma on YouTube- https://www.youtube.com/channel/UCysiZklEtxZsSF9DfC0Expg;

Go to the Insurance Claims Library – http://zalma.com/blog/insurance-claims-library.