Thursday, March 26, 2015

U.S. Supreme Court Creates New Standard for Proving Pregnancy Discrimination: What Does This Mean for Employers?


The Background.  Young was a part-time driver for the United Parcel Service (UPS). When she became pregnant, her doctor advised her that she should not lift more than 20 pounds. UPS, however, required drivers like Young to be able to lift up to 70 pounds. UPS told Young that she could not work while under a lifting restriction.  Young filed a lawsuit under the Pregnancy Discrimination Act (she did not allege an ADA disability) and claimed that UPS accommodated workers who were injured on the job, had disabilities covered by the ADA, or had lost Department of Transportation (DOT) certifications.  She argued that these policies showed that UPS discriminated against its pregnant employees because it had a light-duty-for-injury policy for numerous “other persons,” but not for pregnant workers.  UPS responded that, since Young did not fall within the on-the-job injury, ADA, or DOT categories, it had not discriminated against Young on the basis of pregnancy, but had treated her just as it treated all “other” relevant “persons.” 

This dispute made it to the U.S. Supreme Court who, on March 25, 2015, issued a ruling on the case granting relief to neither party, setting forth a new standard for how to consider pregnancy claims, and remanding for the trial court to consider the evidence based on the new standard.

The Supreme Court’s Ruling.  The Court departed from the normal discrimination analysis to craft something new for pregnant workers.  The Court now held that a pregnant employee can prove discrimination by showing that (1) she is pregnant; (2) she sought an accommodation for her pregnancy—like the 20 pound lifting restriction Young requested, and (3) that the employer did accommodate others “similar in their ability or inability to work.”  This standard is a departure from the analysis used by courts to consider other forms of discrimination.  In particular, there had never been a duty under the PDA to “accommodate” a pregnant employee before but there now appears to be.  Further, in a traditional discrimination analysis, the courts generally consider how other employees who perform the same or similar work are treated.  The new Young analysis seems to broaden this by considering any employee who is similar in his or her ability or inability to work.  This new standard remains murky and it will probably take several years for courts to make rulings on what exactly this means.

The analysis, however, does not end there.  If a pregnant employee can meet the above factors, the employer may then seek to justify its refusal to accommodate the plaintiff by relying on “legitimate, nondiscriminatory” reasons for denying accommodation.  That reason normally cannot consist simply of a claim that it is more expensive or less convenient to add pregnant women to the category of those whom the employer accommodates.  If the employer offers a “legitimate, nondiscriminatory” reason, the plaintiff may show that it is in fact pretextual.  The plaintiff may reach a jury on this issue by: (1) providing sufficient evidence that the employer’s policies impose a significant burden on pregnant workers, and that the employer’s “legitimate, nondiscriminatory” reasons do not justify the burden; and (2) by providing evidence that the employer accommodates a large percentage of non-pregnant workers while failing to accommodate a large percentage of pregnant workers.  As Justice Scalia noted in his dissent, this standard may merge the disparate treatment and disparate impact analyses.  For the uninitiated, disparate impact does not require proof of discrimination, only that a company policy has an unwarranted negative impact on a protected group.  For instance, laying off the highest salaried employees in a company may lead to termination of most of the older workers, who tend to have higher salaries due to longer tenure. 

In sum, the new standard creates a duty to accommodate pregnant workers that never existed before, articulates a new standard that could require several test cases to clarify, and arguably imports the dreaded “disparate impact” analyses into a pregnancy discrimination case.  Justice Scalia described the Court’s holding as “inventiveness posing as scholarship—which gives us an interpretation that is as dubious in principle as it is senseless in practice.”


What this means for Employers.  There is now, essentially, a duty to accommodate pregnant workers under the Pregnancy Discrimination Act.  In addition, under the ADAAA, almost all ailments are potential “disabilities” as a matter of law, including some “temporary conditions” depending on their severity.  The bottom line for employers, it will be far less expensive to treat pregnant employees the same as you would any other employee who is able to work with similar restrictions as the pregnant employee.  Therefore, if you give employees on workers’ compensation light-duty, you must now also offer available light-duty to pregnant workers.

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