Opinion ID: 705181
Heading Depth: 4
Heading Rank: 1

Heading: Does the CBA govern the actions giving rise to the state claim?

Text: 37 Mobil's CBA with the Union does not satisfy the first prong of the Miller test. As the Supreme Court recently noted in Livadas v. Bradshaw, --- U.S. ----, ----, 114 S.Ct. 2068, 2078, 129 L.Ed.2d 93 (1994), it is the legal character of a claim, as 'independent' of rights under the collective-bargaining agreement (and not whether a grievance arising from 'precisely the same set of facts' could be pursued) that decides whether a state cause of action may go forward. Id. at ----, 114 S.Ct. at 2078 (quoting Allis-Chalmers, 471 U.S. at 213, 105 S.Ct. at 1912, and Lingle, 486 U.S. at 410, 108 S.Ct. at 1883). Jimeno's prima facie case can be evaluated without construing the CBA. Although Article XIV of the CBA governs physical disability determinations for Mobil employees (by establishing physical fitness examinations as a condition of employment, requiring certification of physical fitness after periods of disability, providing a procedure for independent medical assessment of an employee's fitness, and permitting grievance and binding arbitration to settle disputes about the fitness determination process), the agreement is silent regarding possible management responses when an employee is determined to be unfit to continue in a position without work restrictions. 38 Mobil's potential defenses are also relevant to the preemption analysis. See Lingle, 486 U.S. at 407, 108 S.Ct. at 1882 (concluding that both the prima facie elements of the retaliatory discharge claim and the potential defenses involve purely factual questions that do not require the court to interpret the CBA). Here, Mobil asserts a statutory affirmative defense, which requires that the employer demonstrate that after reasonable accommodation ... the employee cannot perform the essential job functions of the position in question in a manner which would not endanger his or her health or safety because the job imposes an imminent and substantial degree of risk to the ... employee. Cal.Code Regs. tit. 2, Sec. 7293.8(c). The CBA here does not contain provisions governing this defense. Thus, Jimeno's case is unlike the situation discussed in Perugini v. Safeway Stores, Inc., 935 F.2d 1083 (9th Cir.1991). There, the court held that Sec. 301 of the LMRA preempted an employee's emotional distress claim, to the extent that the claim was based on the employer's refusal to provide light duty, because the CBA specifically provided for employment of workers with disabilities in suitable positions upon mutual agreement between the Union and employer. Id. at 1087-89. 39 The crucial inquiry is whether the CBA must serve as the measuring rod in determining whether Mobil acted reasonably in its blanket policy of refusing to make any adjustments to employee workload or work environment in order to accommodate those with work restrictions. See Moreau v. San Diego Transit Corp., 210 Cal.App.3d 614, 258 Cal.Rptr. 647, 650-55 (1989) (finding that the LMRA preempted an employee's claims for emotional distress and wrongful discharge based on employer entrapment because it was necessary to interpret the contract to determine the reasonableness of the entrapment), review denied (1989). Although it is within the power of the parties to determine what would constitute 'reasonable' performance of their [contractual] obligations, Allis-Chalmers, 471 U.S. at 216, 105 S.Ct. at 1913-14, no reasonableness inquiry is needed when the CBA, as in this case, is silent regarding the ways that management may either restructure positions to modify workload or design special arrangements, possibly with mutual agreement from the Union, to accommodate employees who are capable of working with minimal restrictions. 40 Thus, while we acknowledge that employers and unions in a business such as Mobil's may establish as part of the CBA reasonable procedures for the routine assessment of employees' physical fitness to continue to perform their current jobs safely and efficiently, we hold that the CBA in this case falls short of establishing a comprehensive framework for challenging those determinations, for job modification, or for the transfer or termination of unfit employees. There is no general provision prohibiting discrimination based on physical disability, nor does the agreement discuss reasonable accommodation. 3 See Martin Marietta Corp., Aero & Naval Systems v. Maryland Comm'n on Human Relations, 38 F.3d 1392, 1400-02 (4th Cir.1994) (finding that the LMRA does not preempt a state-law disability discrimination claim in the absence of CBA provisions providing for reasonable accommodation and reinstatement after disability, in the context of a permissive arbitration clause encompassing grievances involving interpretation or application of the CBA). 4 A discrimination claim need not be preempted merely because certain aspects of the collective bargaining agreement govern work assignments and discharges. Miller, 850 F.2d at 548. 41 Mobil claims that its acknowledged practice of administratively terminating employees who are physically unfit to continue their jobs and who have not been able to find a new position in the company through the bidding process is an implied term of the CBA, under United Steelworkers v. Warrior & Gulf Navigation Co., 363 U.S. 574, 580-81, 80 S.Ct. 1347, 1351-52, 4 L.Ed.2d 1409 (1960) (suggesting that the labor contract includes both express and implied terms, such as established practices and policies adopted pursuant to the agreement). Although there is no written policy, Mobil points to evidence suggesting Union acquiescence in the practice which Mobil has followed for more than a decade. 42 We are not persuaded that this unilaterally adopted managerial policy constitutes an implied term of the contract. Union acceptance of such a policy would constitute a waiver of its members' rights under state law. As the Lingle Court noted, we would require 'clear and unmistakable' evidence in order to conclude that such a waiver had been intended. Lingle, 486 U.S. at 409 n. 9, 108 S.Ct. at 1883 n. 9. In this matter, however, there is no evidence of any such waiver. Uncontroverted testimony at trial established that Mobil's unwritten policy had never been the subject of negotiation between Mobil and the Union. The Union grieved the practice and the application of the policy in Jimeno's case, and Union officials met with management to seek Jimeno's reinstatement. The Union withdrew the grievance because it had limited resources and because there was no explicit protection under the CBA for employees with disabilities. Also, the fact that Mobil did not rigidly adhere to its policy indicates that it was not a binding part of the contract and that there may have been reasonable means of accommodation available. Evidence at trial established that Mobil developed an appropriate management policy to accommodate temporary work restrictions in March 1991 and changed its policy regarding accommodation of work restrictions in July 1992, the effective date of the Americans with Disabilities Act. Similarly, uncontroverted testimony established that Mobil could accommodate disabilities: through mutual agreement between the Union, the company, and the employee involved, it had previously done so for at least one other hourly employee who had work restrictions. In addition, evidence at trial established that contract mechanics in the same garage performed the same work as the Mobil mechanics, but with work restrictions imposed by their contracting company limiting weight lifting, as is required for Jimeno. Therefore, we conclude that Mobil's policy is not an implied term of the CBA representing a negotiated resolution that determines what constitutes reasonable accommodation. 43 Mobil also asserts that the CBA requires resolution of physical fitness disputes through the grievance mechanism, thus mandating preemption under Evans v. Southern Pac. Transp. Co., 213 Cal.App.3d 1378, 262 Cal.Rptr. 416 (1989) (finding Railway Labor Act preemption when the CBA requires resolution of physical fitness questions through an exclusive grievance and arbitration process), review denied (1989), cert. denied, 496 U.S. 936, 110 S.Ct. 3213, 110 L.Ed.2d 661 (1990). Unlike the language in at least one other section of the CBA, however, the language of the physical fitness grievance provision is permissive. 5 It does not require resolution of physical fitness questions through the exclusive grievance procedure. In a similar case, the Third Circuit considered the permissive nature of the arbitration clause in concluding that the LMRA did not preempt a state law physical disability discrimination claim. Martin Marietta, 38 F.3d at 1401-02. Evans is also distinguishable because it deals with a claim under the Railway Labor Act, which was thought, at the time, to provide[ ] a stronger case for preemption than the NLRA. Garibaldi v. Lucky Food Stores, Inc., 726 F.2d 1367, 1371 n. 6 (9th Cir.1984), cert. denied, 471 U.S. 1099, 105 S.Ct. 2319, 85 L.Ed.2d 839 (1985); see also Croston v. Burlington & Northern R.R., 999 F.2d 381, 388 n. 3 (9th Cir.1993). But see Hawaiian Airlines, Inc. v. Norris, --- U.S. ----, ----, 114 S.Ct. 2239, 2249, 129 L.Ed.2d 203 (1994) (changing RLA preemption analysis by holding that the Lingle LMRA preemption standard provides an appropriate framework for addressing pre-emption under the RLA). In addition, dispute resolution pursuant to the CBA would not resolve the same issues that Jimeno's state-law physical disability discrimination claim addresses. Because Mobil's CBA with the Union does not determine Mobil's conduct in response to a finding that an employee is unfit nor provide a contractual standard for reasonable accommodation of employees who are physically unfit to continue their current jobs, neither the FEHA prima facie claim nor the statutory defense of no reasonable accommodation without undue hardship is inextricably intertwined with the CBA. 44 2. Has the State Articulated a Sufficiently Clear Standard that the State Claim Can Be Evaluated without Considering the Overlapping Provisions of the CBA? 45 Moreover, even if we were to conclude that the CBA governs the actions giving rise to Jimeno's suit (the first Miller question), to be successful Mobil must demonstrate 6 that the state right is not based on a sufficiently clear standard (the second Miller question), so that the discrimination claim is so intertwined with the operation of the CBA that it cannot be assessed without consideration of the CBA's overlapping provisions. See Miller, 850 F.2d at 548. We conclude that Mobil cannot satisfy this prong of the Miller test. 46 Jimeno does not claim that Mobil breached its contractual agreement with him in the way that the company administered the provisions of the CBA regarding evaluation of physical fitness or availability of the grievance process as a dispute resolution mechanism: such a claim would clearly fall under the LMRA and preempt any state-based remedy. See Allis-Chalmers, 471 U.S. at 218 & n. 12, 105 S.Ct. at 1914 & n. 12 (holding that in employee's suit for breach of the duty of good faith and fair dealing, it was necessary to interpret the parties' agreement regarding the manner in which claims would be handled to determine whether management had departed substantially from the standard manner of processing such claims under the CBA). Instead, Jimeno challenges what he contends is Mobil's unilateral managerial policy of ignoring state-law requirements to accommodate disabled employees through reasonable means that do not impose undue hardship on the enterprise. 7 Jimeno claims that he has not forfeited his state-law right merely by participating in an agreement with an arbitration clause. See Livadas, --- U.S. at ----, 114 S.Ct. at 2082. His state-law claim does not sidestep available grievance procedures, Lingle, 486 U.S. at 411, 108 S.Ct. at 1884 (quoting Allis-Chalmers, 471 U.S. at 220, 105 S.Ct. at 1915-16); rather, its only source is an independently adjudicable employment right, see Hawaiian Airlines, Inc. v. Norris, --- U.S. at ----, 114 S.Ct. at 2246 (finding that a whistleblower claim is not preempted by the Railway Labor Act when the only source of the right asserted is state law). 47 First, Jimeno's prima facie FEHA claim can be evaluated without reference to the CBA, see supra, even though the factual inquiry deals with the same underlying factual situation that is governed by Article XIV's fitness examination provisions. 48 Second, clear statutory and regulatory standards provide a means to determine reasonable accommodation without reference to the CBA. The FEHA regulations provide three categories to be considered in assessing the employer's efforts to accommodate disabled employees: accessibility, job restructuring, and alteration of premises. Cal.Code Regs. tit. 2, Sec. 7293.9(a)(1)-(3). Job restructuring may also entail reassignment, transfer, modified work schedules and acquisition of equipment to assist disabled employees. Id. Sec. 7283.9(a)(2). Although the bidding process established by the CBA limits the ability of management to transfer Jimeno to a position governed by the bidding process, see Davis v. United States Postal Serv., 675 F.Supp. 225 (M.D.Pa.1987) (holding that in the context of the Rehabilitation Act, reasonable accommodation does not mean that an employer is required to transfer a disabled employee in violation of a CBA's seniority provision), such a transfer is merely one of various options that would satisfy Mobil's duty to accommodate. Evidence established that Mobil makes no effort to ensure that workers who have been placed on disability status are informed about bidding possibilities, even though this minimal effort to facilitate transfer would not conflict in any way with the CBA. In addition, Mobil offered no evidence at trial that it considered Jimeno's interest in supervisory positions, which are not covered by the bidding process. As already discussed, Mobil refused as a matter of company policy to consider any of the other job restructuring options outlined in the state regulation, which we interpret[ ] flexibly to encourage employers to remov[e] obstacles for employees with disabilities. Sargent v. Litton Systems, Inc., 841 F.Supp. 956, 961 (N.D.Cal.1994). As in Sargent, we note that [t]he real flaw in defendants' assertion that no reasonable accommodation was possible ... is that they apparently terminated [the plaintiff] without exploring any other options with [the plaintiff] in a meaningful way. Id. at 962. 49 Third, the regulations also specify factors to be considered in assessing the hardship on the employer. These include facility size, number of employees, composition of workforce, budget, type of operation, and cost of accommodation. Cal.Code Regs. tit. 2 Sec. 7293.9(b). Again, the CBA is only peripherally relevant to this evaluation and, as such, does not mandate preemption. See Lingle, 486 U.S. at 413, n. 12, 108 S.Ct. at 1885, n. 12; Martin Marietta, 38 F.3d at 1401 (holding that even though the CBA involves provisions defining when an employee is qualified to work, claim involves no real issue of interpretation of the CBA or at most some tangential[ ] interpretation, which would be governed by federal law). Accordingly, since the state has articulated a standard sufficiently clear that the state claim can be evaluated without considering the provisions of the CBA, the answer to the second Miller question must be yes. 50 3. Has the State Shown an Intent Not to Allow Its Prohibitions to be Altered or Removed by Private Contract? 51 The third prong of the Miller test, requiring an analysis of whether the state has shown an intent not to allow its prohibition to be altered or removed by private contract, also mandates a finding of no preemption in this matter. Not only does the FEHA explicitly establish the right to employment without discrimination based on physical handicap as a public policy of the state, Cal.Gov't Code, Sec. 12920 (Deering, 1982 & Supp.1994), but in the context of a whistleblower discharge, we have held that there is no preemption when the tort of wrongful discharge in violation of public policy exists independent [sic] of any contractual right. Paige v. Henry J. Kaiser Co., 826 F.2d 857, 863 (9th Cir.1987), cert. denied, 486 U.S. 1054, 108 S.Ct. 2819, 100 L.Ed.2d 921 (1988). Thus, the California FEHA is unlike the Missouri anti-discrimination provision which requires consideration of the employer's authority under the CBA to make accommodations. See Davis v. Johnson Controls, Inc., 21 F.3d 866, 868 (8th Cir.), cert. denied, --- U.S. ----, 115 S.Ct. 426, 130 L.Ed.2d 340 (1994). Therefore, Mobil cannot assert that the state is indifferent to negotiation and alteration of the right by private contract, and the answer to the third Miller question must be yes. 52 We conclude that resolution of Jimeno's FEHA claim requires a purely factual inquiry. Lingle, 486 U.S. at 407, 108 S.Ct. at 1882. We need not consult the CBA to determine whether Mobil's decision to terminate Jimeno because of his physical condition constitutes a prima facie claim under the FEHA nor whether Mobil's refusal to consider minor modifications to Jimeno's work requirements in these circumstances is reasonable. Therefore, we reverse the district court's ruling that the LMRA preempts Jimeno's FEHA claim.