Opinion ID: 2641219
Heading Depth: 4
Heading Rank: 1

Heading: Progressive Discipline

Text: Lobato first argues that NMED failed to follow its unwritten policy of using “progressive discipline”—i.e., a rule that an employee must receive informal discipline such as a verbal warning or a letter before being terminated. For this argument to succeed, Lobato must show, first, that NMED had such a policy, and second, that NMED did not follow that policy when dismissing -11- Lobato. See Kendrick v. Penske Transp. Servs. Inc., 220 F.3d 1220, 1230 (10th Cir. 2000); see also Timmerman v. U.S. Bank, N.A., 483 F.3d 1106, 1119–20 (10th Cir. 2007). Lobato cannot point to any written policy that said NMED mandated progressive discipline with probationary employees. To the contrary, NMED’s written policy stated that probationary employees were employed at will and could be fired for any lawful reason. In particular, that policy, which was promulgated by the State Personnel Board, permitted probationary employees to be “suspended, demoted, or dismissed effective immediately with written notice and without right of appeal to the Board.” App. 90. Further, Lobato cannot rely on NMED’s treatment of other probationary employees to establish a general practice that probationary employees were entitled to progressive discipline. Neither Bentley nor anyone else in management ever said that NMED had a mandatory policy of progressively disciplining any employees, probationary or otherwise. Indeed, Bentley described five separate instances in which probationary employees were terminated for infractions she described as “of a similar nature to the conduct that resulted in Mr. Lobato’s termination.” Id. at 125–26. There is no indication that any of these probationary employees were given progressive discipline before termination. Lobato has not challenged this testimony, nor has he pointed to -12- other instances where probationary employees have been treated differently from him after similar instances of misconduct. Instead, Lobato points to Lundstrom’s deposition in which Lundstrom says NMED practiced progressive discipline. When asked whether he was trained to progressively discipline probationary employees in particular, Lundstrom replies that he cannot recall a “separate training” for whether to progressively discipline probationary employees, but that he did not have the authority to hire or fire employees when he managed Lobato. App. 349. Lobato interprets this testimony as demonstrating that NMED had a rigid unwritten policy to first warn an employee in person or through a letter before formal discipline. But this deposition testimony falls short of showing that NMED had an unwritten policy (contrary to its written policy) of requiring progressive discipline with probationary employees. In fact, Carlos Romero and Bentley affirmed, and the employment records demonstrated, that serious misconduct could lead to dismissal. And, in any event, Lundstrom, by his own admission, had no authority to dismiss employees during Lobato’s employment. Lobato also points to one statement by Carlos Romero in which Romero says it was his “practice generally” to talk to employees about inappropriate behavior and that “it would be important to get [Lobato’s] side of the story” when addressing complaints against him. App. 345. Lobato claims these statements show that NMED had an official policy to inform employees about any problems -13- before taking disciplinary action, and that NMED had an official policy to ask for the employee’s perspective when a co-worker complains about him. But these comments do not show that NMED had a policy contrary to or conflicting with the state rule that probationary employees could be terminated at will. Indeed, Romero says nothing about whether his general practice applied specifically to probationary employees. And, in any event, NMED did attempt to get Lobato’s side of the story, including Bentley’s interview with Lobato about his per diem request and his complaints against management. There is no inconsistency here rising to the level of a genuine dispute about pretext. We recognize in certain circumstances that an employer’s practice of applying progressive discipline with more than just a few probationary and nonprobationary employees could establish a policy that all employees should be progressively disciplined. Under such circumstances, a failure to follow progressive discipline, even with a probationary employee, might give rise to evidence of pretext. But that is not the case here. Rather, the record shows that NMED did not deviate from applying its written policy to terminate probationary employees without additional process. And where “progressive discipline [is] entirely discretionary,” and the employer “did not ignore any established company policy in its choice of sanction, the failure to implement progressive discipline is not evidence of pretext.” Timmerman, 483 F.3d at 1120. Cf. Berry v. T-Mobile USA, -14- Inc., 490 F.3d 1211, 1223 (10th Cir. 2007) (finding no jury question whether an unwritten policy of progressive discipline existed because the employee handbook contained no reference to progressive discipline and “the evidence demonstrate[d] many employees were fired without progressive discipline”). In sum, even if Lobato was dismissed without prior discipline, that does not show pretext.