Ford Motor Company had a tagline to promote its cars and trucks that asked, “Have you driven a Ford…Lately?” A recent United States Appellate Court decision, Peters v. Gilead Sciences, 533 F.3d 594 (7th Cir. 2008), gives rise to the question, “Have you checked your Employee Handbook…lately?”
THE FACTS:
Steven Peters marketed products to healthcare professionals for Gilead Sciences, Incorporated, a pharmaceutical company. One day while working, Peters hurt his neck and right shoulder.He then took a short medical leave to have corrective surgery. Peters’ condition did not improve when he returned to work, so he took another leave. During his second absence, Gilead filled his job with another employee. When Peters came back to work after his second leave, he was offered a different job. Peters refused and was fired. Peters then sued, claiming, among other things, that he was protected under the Family and Medical Leave Act (“FMLA”).
THE LAW:
The FMLA provides medical leave to eligible employees for serious medical conditions. To be eligible, among other criteria, the employer must have at least 50 employees within a 75-mile radius of the work site (the “50/75” Rule). Gilead’s employee handbook, however, made no mention of the 50/75 Rule.The handbook did detail other aspects of FMLA that Peters met.Peters argued that because he met all criteria in the employee handbook for FMLA as written, he should prevail.
THE DECISION:
The U.S. Court of Appeals agreed with Peters, stating that even though Peters did not meet the federal statutory definition for FMLA, he nonetheless was eligible for FMLA-like benefits as a matter of contract law based on the handbook.Many employers have general legal “disclaimers” stating that their employee handbooks are not contracts. However, under principles of contract law, general terms can be trumped by specific terms. If a handbook gives employees specific rights, like in Gilead, chances are they are enforceable against the employer.
CONSIDER THIS:
Today it is easy to find handbooks, policies, and procedures on the Internet.Resist the temptation to “copy, cut and paste.” Make sure your handbook passes legal scrutiny. Have it reviewed by a professional today.
