Opinion ID: 3020164
Heading Depth: 3
Heading Rank: 2

Heading: Instant Dispute

Text: Turning to the matter at hand, Maureen Fasano worked in the New York Fed’s East Rutherford, New Jersey office from 5 2000-2002.2 Fasano initially worked as a currency verification operator and junior operator, handling and washing currency. This involved, inter alia, lifting heavy materials one day a week. On August 15, 2001, Fasano realized that she had not been paid for overtime she had recorded on her time sheet. On bringing this to the attention of a supervisor, Fasano saw that her time sheet had been altered and was told that because no other employees had submitted overtime, she would not be paid for it. Fasano met with several supervisors to discuss her complaints, and was told that she would be paid for the overtime; the supervisors allegedly asked her not to speak of the incident with any other employee. Fasano claims a co-worker later told her the supervisors would try to make Fasano quit for causing “trouble.” In September, 2001, Fasano met with the New York Fed’s Human Resources Department to complain that her pay was too low for her seniority, and that she had not received a standard raise. She also met with another supervisor, who asked whether she thought she was being “prejudiced” against; Fasano responded “yes.” In late November, 2001, Fasano was transferred to a “floater” position, where she was assigned to different rooms and did heavy lifting each day. Fasano had a preexisting neck injury that had not previously impacted her employment despite the one-day-a-week heavy lifting, and Type 1 diabetes that 2 For the purpose of this appeal from a motion to dismiss, we recite the facts regarding Fasano’s underlying employment claims as stated in her Complaint. 6 necessitated frequent eating. Fasano believed that her supervisors at the New York Fed knew of each condition, and (1) assigned her to the floater position in the hope that she would injure herself; and (2) prevented her from taking breaks during her shift to eat. At one point, Fasano complained to supervisors that the new position was “killing her.” On December 18, 2001, Fasano injured her back and allegedly went on long-term disability leave. According to the New York Fed, Fasano never fully applied for disability benefits, and never responded to a letter sent to her on July 2, 2002, notifying her that she must either return to work or file a completed benefits application. Fasano was thereafter terminated on July 31, 2002. Fasano then filed this suit in the New Jersey Superior Court against the New York Fed and various employees, both in their official and individual capacities, alleging (1) retaliation, in violation of the New Jersey Conscientious Employee Protection Act (“CEPA”), N.J. Stat. Ann. § 34:19-1 et seq. (West 2006); (2) failure to accommodate, in violation of the New Jersey Law Against Discrimination (“LAD”), N.J. Stat. Ann. § 10:5-1 et seq. (West 2006); and (3) retaliation, in violation of the LAD. The New York Fed removed the case to the United States District Court for the District of New Jersey on February 14, 2003, pursuant to 12 U.S.C. § 632, and filed a motion to dismiss pursuant to Fed.R.Civ.P. 12(b)(1), for lack of subject matter jurisdiction due to preemption by the Federal Reserve Act; and Fed.R.Civ.P. 12(b)(6), for failure to state a claim upon which relief can be granted. 7 On March 31, 2004, the District Court denied the New York Fed’s Rule 12(b)(1) motion, concluding that a Federal Reserve Bank is not a federal instrumentality but is instead treated as a private corporation, and that the Federal Reserve Act did not preempt any state employment laws, even if they imposed additional burdens and liabilities beyond federal law (as did CEPA and LAD). The District Court also denied the New York Fed’s Rule 12(b)(6) motion as to all claims. Following initial discovery, the New York Fed filed counterclaims based on Fasano’s failure to disclose a private business venture before, during, and after her employment.3 The New York Fed then filed a motion for reconsideration, which the District Court denied on August 9, 2005. However, the District Court noted a wide split in authority among courts around the country and a recent contrary holding by a district court in the Eastern District of Pennsylvania finding preemption in a nearly-identical case involving the Federal Reserve Bank of Philadelphia. The District Court thus granted certification of the question for interlocutory appeal pursuant to 28 U.S.C. § 1292(b).4 We 3 These counterclaims are not part of this appeal. We reject Fasano’s argument that by removing the case to the District Court and filing counterclaims, the New York Fed “conceded” that subject matter jurisdiction existed and waived its preemption arguments. 4 The exact question certified by the District Court was “whether the Federal Reserve Bank is immune from state employment discrimination law claims, particularly whether the 8 granted permission to appeal on September 23, 2005. On March 14, 2006, we granted the motion of the other 11 Federal Reserve Banks to proceed as Amici Curiae.