DocketNumber: A18-2111
Judges: Ross
Filed Date: 7/29/2019
Status: Precedential
Modified Date: 10/19/2024
A city began two employment investigations into a police sergeant's conduct and placed him on administrative, home-bound leave soon after the sergeant filed a union grievance challenging the city's failure to compensate him for overtime work. The leave lasted nine months-seven months longer than the city took to complete its investigations and issue a five-day suspension for one allegation and exonerate the sergeant as to the other. The sergeant sued the city under the Minnesota Whistleblower Act, alleging that the city's actions-beginning the investigations, placing him on leave, issuing a poor performance evaluation and coaching directive after the leave, and reassigning *320him to an unfavorable position-were designed to penalize him for filing his grievance. The district court entered summary judgment in the city's favor, holding that most of the city's conduct was not covered by the act and the sergeant identified no evidence showing that the city's reason for investigating him and placing him on leave was a pretext to veil a retaliatory motive. We reverse because evidence showing that the city maintained the administrative, home-bound leave for a period so long and so inconsistent with its purported reason for commencing the leave creates a material fact dispute as to whether the city's actions "penalized" the sergeant under the Minnesota Whistleblower Act and whether the city's reason is pretextual.
FACTS
Steven Moore, a 29-year veteran of New Brighton's police department, sued the city alleging retaliation under the Minnesota Whistleblower Act, and the district court granted the city's motion for summary judgment. Except where specified otherwise, the following facts are either not in dispute or are construed in favor of Moore as the nonmoving party.
Moore served 21 of his 29 years on the police department as a patrol sergeant. That role required him to supervise officers. Certain allegations about his supervisory service precipitated the events leading to this lawsuit.
In March 2015, the city required all police employees to attend training. Employees attended the training outside their ordinary schedules, but the city did not pay them overtime for attending. Moore filed a grievance asserting that the city's nonpayment of overtime violated its collective-bargaining agreement with the officers' union. Other officers joined Moore's grievance. The police department's deputy director denied Moore's grievance, and Moore administratively appealed that decision. The city eventually agreed to pay all employees overtime for the training.
In early April 2015, within a month after Moore filed his grievance, the department launched an investigation into his alleged improper conduct, followed the next month by another investigation. In the first investigation, the city alleged that Moore had improperly approved a subordinate officer's unscheduled work hours that same month, shortly after Moore filed his grievance. In the second, Moore's supervisor alleged that Moore had fraudulently called in sick based on the supervisor's seeing Moore at a music concert the same evening after he called in. The city placed Moore on administrative paid leave from work on June 3, 2015, pending the investigations. The city ordered Moore to remain in his house during the leave from 8:00 in the morning until 4:00 every afternoon, Monday through Friday. And during the entire period, the city prohibited him from discussing either investigation with anyone.
The city took two months to complete both investigations, finding Moore at fault only in one of them. On July 31, 2015, it informed Moore that his approving of his subordinate officer's unscheduled work hours constituted a departmental violation for which Moore had to serve a five-day unpaid suspension. But the city had learned in its investigation into Moore's alleged sick-time fraud that he had done no wrong; Moore's attendance at the concert did not indicate any fraud because the medical issue for which he had requested time off from duty was a physical injury that would prevent him from serving on patrol but not prevent him from attending a concert. The city never informed Moore, however, that it had exonerated him or even that it had completed the investigation.
*321Instead, despite having finished both investigations and having issued a suspension for one allegation and imposed no discipline for the other, the city kept Moore on the home-bound leave away from his job for another seven months.
After the city finally returned Moore to work after nine months of leave, in March 2016 it ordered him back to work in a different assignment. The city directed him to serve a desk job as an administrative sergeant managing cars and equipment rather than serving as a patrol sergeant managing officers. It also issued Moore a performance evaluation for the previous year. In contrast to all his previous evaluations, Moore's 2015 evaluation asserted that every aspect of Moore's performance was unacceptable, needing improvement, and the city required him to be placed on a "counseling and guidance" remedial plan. On October 12, 2016, six months after he served his suspension, the city reduced the suspension to a written reprimand, repaying him for the pay deduction. Moore performed the duties of administrative sergeant largely without incident for a year and a half, but not without tension. Finally in June 2017, his supervisor issued Moore an oral reprimand for insubordination.
Soon after that reprimand, Moore brought this suit alleging violations of the Minnesota Whistleblower Act. He asserted specifically that the city's post-grievance conduct-commencing the investigations, placing him on leave for nine months, removing him from patrol and reassigning him to an administrative position, issuing a negative performance evaluation, and placing him on a counseling and coaching plan-constituted retaliation against him as a penalty for his having filed the union grievance.
The city moved for summary judgment, and the district court granted the motion. It held that Moore failed to present a prima facie case of retaliation as to some of the city's alleged conduct under the Minnesota Whistleblower Act because those acts did not constitute adverse employment activity, and as to the conduct that the district court held to qualify as adverse actions, it concluded that Moore failed to show that the city's proffered, nonretaliatory justification was a pretext for retaliation.
Moore appeals the district court's summary-judgment decision, and the city cross-appeals, questioning the district court's and this court's subject-matter jurisdiction over the case and otherwise defending the summary-judgment decision on rationale rejected by the district court.
ISSUES
1. Did the district court err by exercising subject-matter jurisdiction over Moore's retaliation claim under the Minnesota Whistleblower Act?
2. Did the district court err by granting the City of New Brighton's motion for summary judgment?
ANALYSIS
Moore appeals from the district court's grant of the City of New Brighton's summary-judgment motion on his whistleblower claim. The city cross-appeals, arguing that the district court should not have considered the claim at all because it lacked subject-matter jurisdiction and that the district court could have based summary judgment on alternative rationale. We begin with the jurisdictional question.
I
The city argues that the district court erred by exercising subject-matter jurisdiction over Moore's claim under the Minnesota Whistleblower Act. We review *322the district court's exercise of subject-matter jurisdiction de novo. Nelson v. Schlener ,
The city maintains that Moore's whistleblower claim really arises from his implied premise that the city breached the collective-bargaining agreement with Moore's union and that this obligated Moore to bring his claim under the Public Employment Labor Relations Act (PELRA) or be bound by PELRA's filing prerequisites. See Minn. Stat. § 179A.01 -.25 (2018). Because the filing of a civil complaint under PELRA requires a claimant to have first exhausted his administrative remedies-remedies that Moore did not seek-the city argues that the district court lacked jurisdiction to hear Moore's whistleblower-disguised PELRA claim. See Edina Educ. Ass'n v. Bd. of Educ. of Indep. Sch. Dist. No. 273 ,
The city asserts specifically, "Because Appellant argues the City retaliated against him for filing a union grievance that alleged only a violation of the [agreement], his exclusive remedy is provided by PELRA." The city identifies no language in PELRA, the Minnesota Whistleblower Act, or its collective-bargaining agreement with Moore's union that suggests that Moore was obligated to exhaust any administrative remedies before availing himself of the remedies afforded to employees under the Minnesota Whistleblower Act. Instead, citing Edina Education Association , the city insists specifically that, "[i]f an employee believes an employer has retaliated against him [or] her for filing a union grievance, the employee has [only] two potential remedies," which are filing an unfair-labor-practice complaint in the district court or pursuing a grievance arbitration under the collective-bargaining agreement. The city errs.
The Edina Education Association decision plainly refutes rather than supports the city's jurisdictional argument. In that appeal, the respondent governmental employer, like the city here, argued that the district court improperly exercised subject-matter jurisdiction to consider an employee's retaliation claim because the claim arose from conduct that violated the labor contract and therefore could have been resolved through the administrative remedies provided under the contract.
In this case, the Minnesota Whistleblower Act is the state law from which Moore's lawsuit derives. And the inclusive language of that act mirrors the Edina Education Association concurrent-remedy rationale and undermines the city's contention: "In addition to any remedies otherwise provided by law, an employee injured by a violation of section 181.932 may bring a civil action to recover any and all damages recoverable at law ...."
II
Moore argues that the district court should have denied the city's motion for summary judgment. The city argues that the district court properly granted the motion and that it could have decided it on alternative grounds by holding that none of the city's conduct can be considered under the Minnesota Whistleblower Act because none of it constituted an adverse employment action. We review a district court's summary-judgment decision de novo, determining whether any genuine issues of material fact exist and whether the district court erred in applying the law. Montemayor v. Sebright Prods., Inc. ,
The United States Supreme Court established in McDonnell Douglas Corp. v. Green ,
To prevail on his claim under the Minnesota Whistleblower Act, Moore must prove that the city "discharge[d], discipline[d], threaten[ed], otherwise discriminate[d] against, or penalize[d]" him regarding his "compensation, terms, conditions, location, or privileges of employment because" Moore, "in good faith, report[ed] a violation, suspected violation, or planned violation of any federal or state law or common law or rule adopted pursuant to law to an employer or to any governmental body or law enforcement official."
The question of whether a retaliation claim can survive summary judgment under the McDonnell Douglas burden-shifting test begins with the employee's need to present a three-element prima facie case: "(1) statutorily-protected conduct by the employee; (2) adverse employment action by the employer; and (3) a causal connection between the two." Hubbard ,
A. Statutorily Protected Conduct
The city challenges the district court's holding that Moore engaged in statutorily-protected conduct by filing his grievance. Whether Moore is entitled to the protection of the statute is a question of law we review de novo. See Wayzata Nissan, LLC v. Nissan N. Am., Inc. ,
Moore's whistleblower claim rests on alleged employer retaliation against him for his having filed a union grievance, a grievance that accused the city of violating its contractual duty to make overtime payments. Moore's grievance was, in essence, therefore a breach-of-contract allegation. See Lyon Fin. Servs., Inc. v. Illinois Paper & Copier Co. ,
The city does acknowledge that breach of contract is a cause of action recognized by common law. But it reasons that "[i]f the ... [l]egislature wanted the [Minnesota Whistleblower Act] to apply to reports of violations of contract, it could have easily stated that in the statute." We *325think it did state so in the statute by including reports of common-law violations, because contract breaches violate the common law just as acts of battery or trespass or negligence violate the common law. See Caldas v. Affordable Granite & Stone, Inc. ,
B. Adverse Employment Action
The district court concluded that Moore made a sufficient showing that some of the city's conduct constitutes adverse employment action, specifically, the city's commencing the investigations and placing Moore on leave for nine months. The city challenges this conclusion on appeal. The district court also concluded that Moore did not make a sufficient showing that the city's other conduct constitutes adverse employment action, specifically, the city's reassigning Moore to an administrative position, issuing him the negative performance evaluation, and placing him on a counseling and coaching plan. Moore challenges that conclusion on appeal.
Investigations and Extensive Administrative Leave
Our review of the record convinces us that the evidence presents a material fact dispute as to whether the city's investigatory and administrative-leave decisions met the adverse-action element of Moore's retaliation claim. The circumstances best fit the "penalize" provision in the whistleblower statute. Moore argues that the city's adverse action was its penalizing him in its commencing the investigations and then placing him on home-bound administrative leave for an oppressively lengthy period detached from the supposed reason for the leave. We must decide whether, as a matter of law, the investigation and assignment to administrative leave can constitute a penalty under the statute, and, if so, whether the facts construed in favor of Moore are sufficient to allow a reasonable factfinder to conclude that the city's actions were penal.
We have no difficulty concluding that, as a matter of law, an employee's assignment to administrative leave might in some circumstances constitute a penalty under the whistleblower statute. The act defines the term "penalize" to include conduct "that might dissuade a reasonable employee from making or supporting a report."
We add that federal caselaw interpreting similar statutes leads to the same conclusion. Our state supreme court has *326recognized the substantial similarities between federal and state antidiscrimination employment laws and has therefore applied principles expressed by federal courts interpreting Title VII to retaliation claims based on Minnesota law. See Hoover ,
For example, in McCoy v. City of Shreveport , the Fifth Circuit Court of Appeals concluded, "[T]he mere fact that [the plaintiff police officer] was placed on paid administrative leave does not necessarily mean that she did not suffer an adverse employment action."
We are not led to a different conclusion by Eighth Circuit Court of Appeals cases that the city urges us to read as "clearly establish[ing] that neither investigating nor placing an employee on paid administrative leave pending an investigation are adverse employment actions." We see no such bright-line rule in the cited cases. The city bases its proposition on two federal appellate opinions. But in citing the first, Singletary v. Missouri Department of Corrections , the city ignores Singletary 's clear emphasis on the fact that, "once the investigation concluded, Singletary was promptly returned to his original position as an Investigator II."
Having decided that assignment to administrative leave supposedly for an investigation can in some cases constitute a penalty under the act, we turn to answer whether the evidence construed in Moore's favor is sufficient to allow a jury to find that the city's actions were penal as a matter of fact. Obviously, yes. An employee who offers evidence showing that his employer commenced an investigation and kept him on administrative, home-bound leave for a lengthy period inconsistent with the alleged investigatory reason for placing him on leave has presented a material fact dispute as to whether the employer's actions "penalize" the employee. The evidence could convince a jury that a reasonable employee in Moore's shoes "might" be dissuaded from challenging his employer's violation of a collective-bargaining agreement if the employee anticipates that, in response to his challenge, the employer will commence an investigation and place him on leave for nine months-far longer than it takes to investigate any plausible misconduct claim-only to return the employee to a less favorable job assignment. We affirm the district court's holding that a material fact question exists as to whether Moore's being subjected to the investigation and administrative leave was dissuadingly punitive.
Reassignment, Performance Evaluation, Coaching Plan
Moore challenges the district court's conclusion that he did not make a sufficient showing that the city's other conduct (reassignment to an administrative position, issuance of the negative performance evaluation, and placement on a counseling and coaching plan) also constitutes adverse employment action.
The district court considered each of these actions independently and, in a well-reasoned analysis, concluded that none meets the adverse-action element of a retaliation claim. In this case, however, where all of the employer's allegedly retaliatory behavior might, as a matter of fact, be construed as a series of related decisions tied to the same triggering, statutorily-protected conduct, we believe that the proper approach at summary judgment is to consider how a factfinder might interpret the circumstances collectively. As the Eighth Circuit has accurately observed concerning the treatment of a retaliation claim under the Minnesota Human Rights *328Act, Minn. Stat. § 363A.15 (2018), the "materially adverse employment action element may be met" based on the cumulative effect on the employee "if the [alleged retaliatory] acts, considered in the aggregate, would dissuade a reasonable employee" from making the protected report. Quinn v. St. Louis County ,
Our analysis above informs us that a factfinder could reasonably infer that the city's decisions to investigate Moore and place him on extended administrative leave share the same retaliatory motive as its decision to reassign him to a less active position when his leave finally ended. The same is so for the "coaching and counseling" directive and poor performance review. That these followed almost immediately after the city allowed Moore to return to work under his reassigned duties tends to support a similar inference about those decisions. The inference is especially reasonable since some evidence suggests that Moore's supervisors never considered disciplining him for alleged performance deficiencies or attitude issues in his decades of service before the grievance. So although the district court may have been correct in deeming the reassignment, performance evaluation, and coaching directive as unlikely, individually, to dissuade a reasonable employee from engaging in protected conduct, we reach a different conclusion by considering these actions as a collective with the city's investigative and leave actions. Under the circumstances, the evidence is sufficient to create a fact dispute as to the city's motives on these things.
C. Causation and Pretext
The district court's thoughtful analysis of the causation element of Moore's prima facie case is sound:
There was approximately one month between the grievance and the investigations and approximately two months between the grievance and the administrative leave. Moore makes a great deal of [public-safety director]'s dislike of grievances. In context, [public-safety director]'s testimony may not constitute direct evidence of a causal link between Moore's grievance and the retaliatory conduct, but it does provide circumstantial and inferential evidence of such a causal link. Moreover, the unique and disproportionate approach to the initiation of an internal affairs investigation in a manner which did not seem to have any precedent or comparison, and the administrative leave which left Moore hanging for months after both investigations had been concluded also create enough evidence of a causal link to avoid summary judgment on the element of causation.
The city argues that the district court was wrong in its causation assessment, maintaining that "many other police employees ... filed the same grievance ... and yet did not experience the same employment issues." Here the city identifies reasonable evidence that might weaken Moore's case for causation, but on summary judgment we do not weigh the *329evidence. We are not deciding whether the evidence reasonably could support a finding favoring the city's position, but whether it could support a finding favoring Moore's. A jury could conclude both that retaliatory motives precipitated the city's treatment of Moore and also that others similarly situated were not similarly treated.
The city also argues that "intervening events occurred between" Moore's filing the grievance and the city's employment actions, undermining the district court's causation holding. The argument fails. The city points to Moore's coworker's complaint about Moore's treatment of overtime for subordinates and also to Moore's admission to his supervisors about his regular approach to overtime approval. These events too are facts the city might offer to persuade a factfinder about the city's true motives, highlighting a disputed fact rather than establishing that no reasonable factfinder could accept Moore's theory about causation. We affirm the district court's holding that Moore has presented sufficient evidence to avoid summary judgment on the question of causation.
The city gave its nonretaliatory reason for its investigation and leave decisions: The city learned that Moore had engaged in a pattern of approving overtime hours that was inconsistent with city policy and suspected that Moore had misused sick time, and it extended the leave for nine months "because [Moore's] union representative and the City were discussing a potential early retirement and severance package." The district court appropriately credited the city's proffer as a nonretaliatory justification for its actions. The proffer shifts the burden to Moore to show that the city's justification is really just a pretext for retaliation. The district court found Moore's showing insufficient. It reasoned, "The temporal proximity of the investigations and administrative leave to the grievance, New Brighton's heavy-handed and disproportionate approach to address Moore's violations, and its rather ham-handed decisions to keep Moore on administrative leave well after the internal affairs investigations were resolved and not to tell Moore of the resolution of the second internal affairs investigation until months after it was resolved, was enough to get Moore past the prima facie stage of the McDonnell Douglas test" but not enough to demonstrate pretext.
We reach a different conclusion for two reasons, both involving fact issues requiring credibility determinations. A plaintiff can satisfy his burden of showing pretext "either directly by persuading the court that a discriminatory reason likely motivated the employer or indirectly by showing that the employer's proffered explanation is unworthy of credence." Sigurdson v. Isanti County ,
DECISION
The district court had subject-matter jurisdiction to hear Moore's whistleblower claim. The undisputed facts and the disputed facts construed in Moore's favor could support a finding that the city treated Moore in a manner that penalized him and would dissuade a reasonable employee from engaging in conduct protected by the Minnesota Whistleblower Act. The facts could also support a finding that the city's justification for one or more of its allegedly adverse actions was a pretext for retaliation. We therefore reverse the summary-judgment decision.
Reversed and remanded.