No, Really ... We Love Kids!

by David Kelly

If your company is involved in the baby products industry, then more babies should equal more money. However, rather than seeing the pregnancy of one of its sales associates as a boon, a federal lawsuit charges that Buy Buy Baby Inc. elected to lower the boom.

Bye bye baby

Buy Buy Baby Inc. hired Erika Flores as a probationary employee on August 24, 1998. She worked as a sales associate at Buy Buy Baby's Scarsdale, New York store under the direct supervision of the department manager, Marianne LaBella-Lajos.

After her 90-day probation, Flores was evaluated by LaBella-Lajos and retained as a regular employee. Soon after her evaluation, Flores informed LaBella-Lajos that she was pregnant. Flores claims that, upon hearing the news of her pregnancy, LaBella-Lajos became "very cold" and "very distant."

Soon thereafter Flores was granted a request to become a part-time employee as well as a request for a two-week unpaid vacation to begin on December 20th. However, on December 28th, when Flores called to request her work schedule for the following week, she was informed that she was scheduled to work that very day. Flores argued that she was still supposed to be on vacation. When she returned to work on December 31st, she was fired.

The baby boom?

In a suit filed in the Southern District Court of New York, Flores claims that Buy Buy Baby violated the Pregnancy Discrimination Act of 1978. In order to show that Buy Buy Baby lowered the baby boom, she must establish each of the following four elements of a prima facie case of pregnancy discrimination:

  • She is a member of a protected class (i.e., she was pregnant);
  • She satisfactorily performed the duties required by her position;
  • She was discharged; and
  • Her discharge "occurred in circumstances giving rise to an inference of unlawful discrimination," or her position remained open and was ultimately filled by a nonpregnant employee.

In this case Buy Buy Baby disputes elements two and four. Regarding element two, the court sides with Flores, noting that "[t]here is no written record of any complaints, disciplinary actions, warnings, or problems with respect to the plaintiff. And she was retained after her 90-day probationary period." The court also sides with Flores regarding element four because "the temporal proximity of these events is adequate to raise an inference of discrimination."

The explanation

Buy Buy Baby counters with the following two legitimate, nondiscriminatory reasons for firing Flores: (1) she did not show up to work when scheduled and (2) her job performance was sub-par. To buffer its argument the company points to Flores' termination notice that reads:

"Erika had said she needed time off from 12/20-12/27 and was on the schedule for the 28th. She did not come back until the 31st. Also, Erika's performance while she is here is not up to Buy Buy Baby's standards. Erika's employment is being terminated as of 12/31/98 due to her performance."

However, Buy Buy Baby is unable to produce evidence to back up reasons proffered in its termination notice. LaBella-Lajos claims to have made a written record of the agreed upon dates for Flores' vacation, though she subsequently misplaced the document.

Furthermore, according to Buy Buy Baby's HR manual, while probationary employees can be fired without warning, regular employees must receive two warnings prior to termination. Yet, aside from the termination notice itself, Flores' file is free from "any complaints, warnings, or disciplinary actions related to performance problems."

Therefore the court ordered the case to trial.

But she lied!

In addition to compensatory and punitive damages, Flores is seeking reinstatement and/or front pay. However, after having fired Flores, Buy Buy Baby learned that she had lied on her employment application. Specifically, Flores concealed the fact that she was pregnant at the time of hire.

The company asserts that Flores' deception provides grounds for lawful termination. Therefore, according to Buy Buy Baby, even if Flores proves discrimination, she is not entitled to relief beyond November 15, 1999 -- the date that Buy Buy Baby became aware of her untruth.

On this issue, the district court is guided by the following U.S. Supreme Court ruling: "Where an employer seeks to rely upon after-acquired evidence of wrongdoing, it must first establish that the wrongdoing was of such severity that the employee in fact would have been terminated on those grounds alone had the employer known of it at the time of discharge." (McKennon v. Nashville Banner Publ'g Co.)

In the Flores case, the court is unconvinced that Buy Buy Baby would have fired Flores solely on the basis of her falsified employment application. Although not addressed by this court, there is also the underlying issue of whether Flores had an obligation to reveal and/or Buy Buy Baby had the right to ask whether she was pregnant at the time she applied for the job (both of which appear to be doubtful).

Therefore, in addition to compensatory and punitive damages, Flores may proceed to trial with her claim for front pay and reinstatement.

Put it in writing

Clearly, if Buy Buy Baby had delivered and documented prior reprimands, then its motion for summary judgment would have been successful. As it stands, "[Buy Buy Baby's] claim that Flores performed poorly conflicts with its failure to warn her or terminate her at the end of her probationary period."

At the trial level "[Buy Buy Baby] will have the opportunity to convince the jury that [Flores] failed to return to work on time, and that [its] failure to follow its own disciplinary policies in this case does not necessarily mean that [Flores] was a stellar employee."

However, if the company had documented legitimate reasons for dismissal, such as alleged verbal warnings and information regarding Flores' two-week vacation, then there would be no trial to speak of.

CASEFACTS

Court: U.S. District Court for Southern District of New York
Date: Oct. 25, 2000
Citation: Flores v. Buy Buy Baby, Inc., No. 99 Civ. 4792(CM), 2000 WL 1612204

Court: United States Supreme
Court Date: Jan. 23, 1995
Citation: McKennon v. Nashville Banner Publ'g Co., 513 U.S. 352


This article is courtesy of HRWire. All rights reserved.

 

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