Tuesday, February 16, 2010

Appraise This!

The Sixth Circuit has ruled a former Kmart Corp. store associate who was selected for a reduction in force while she was out on six weeks of medical leave is entitled to a jury trial to decide whether the company interfered with her rights under the Family and Medical Leave Act and retaliated against her for taking leave.

Reversing a lower court's grant of summary judgment to Kmart, the appeals court finds in an unpublished opinion that a reasonable juror could reject Kmart's contentions that Susan Cutcher's performance was problematic and instead find that her status on FMLA leave affected her RIF appraisal ratings, leading to her selection for termination.

The key issue: the court points out that Cutcher's RIF appraisal was significantly lower than her annual performance review given just 20 days earlier and that none of the reasons given for the lower score had been documented previously.

This case is a reminder to HR: Handle workforce reductions for those on medical leave with care. Whether in times of force reductions or simply standard business operations, attention must be paid to how managers evaluate their employees. It will always be the case that certain managers rate high or low as a practice, so if you can’t train the manager to rate in a more realistic manner, then at least document that particular manager’s practice. This will help avoid the post-hoc allegation Kmart confronted and also lay the groundwork for later explaining potential differences in appraisals made by others.

At the least, remember, a "leave of absence" notation on the section of a reduction in force form identifying the reason for a termination decision will beg a court to deny summary judgment.

Cutcher v. Kmart Corp., 6th Cir., No. 09-1145, unpublished opinion 2/1/10