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January 2007 SBH Quarterly Newsletter

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By Rebeca Watkins

Individuals cannot be personally liable under ADA.

The Ninth Circuit extended prior case law referring to Title VII claims to find that individuals cannot be personally liable under the ADA. An employee with OCD worked for the state of Nevada. After two years of good reviews, her behavior deteriorated under a new supervisor. The supervisor and the agency failed to meet with employee to discuss accommodation of the disability. When the employee felt compelled to resign, she brought action against both Nevada and two individual supervisors. The Ninth Circuit concluded that the ADA does not provide for individual liability. Walsh v. Nevada Dept of Human Resources, 2006 WL 3704779 (9th Cir 2006).

Terminated for performing important public duties.

Employee, a financial administrator for the County, brought a wrongful discharge claim contending she was terminated for performing important public duties. Employee did not approve of several decisions by a new fire chief concerning training. After a training accident caused the death of an employee, the complaining employee was tasked with assisting in a NIOSH investigation. She confronted the chief with what she believed was a “cover up” of training deficiencies. Soon thereafter she was terminated because she made widespread derogatory remarks and accusations regarding training and a cover up. The Court of Appeals agreed she had raised a genuine factual issue regarding whether she was terminated for exercising an important public duty and allowed the employee’s claim to proceed to a jury trial. Love v. Polk County Fire Dept, 2006 WL 3501338 (Or App 2006).

Employee handbook expressly incorporated into employment contracts.

Two former teachers brought wage claims contending entitlement to unused sick pay and termination pay. The dispute centered on the employee handbook that was expressly incorporated into the employment contracts.

The handbook stated employees were eligible for up to 20 sick days per contract period. It did not define whether the eligibility to the full period occurred at the start of the year, whether sick days carried over into the next year or whether it was paid out on termination. A separate section of the handbook explained that unpaid benefits earned and unused, including vacation or sick days, would be paid out separate from severance payment. Though the trial court granted judgment in favor of the employer, the Court of Appeals reversed, finding more than one plausible interpretation to the contract and thus a factual dispute to be submitted to a jury.

This case presents an unusual and unwanted scenario of the employee handbook becoming in essence a contract. It highlights the clarity needed in drafting pay and benefit provisions to avoid wage lawsuits that may be long and expensive. Madson v. Western Oregon Conference Ass'n of Seventh-Day Adventists, 2006 WL 3501246 (Or App 2006).

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