Plymouth House nursing home slammed for ‘bad faith’ — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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Plymouth House nursing home slammed for ‘bad faith’

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in FMLA Guidelines,Human Resources,Leaders & Managers,Management Training,Maternity Leave Laws

A federal jury has awarded $74,000 to Melissa Brown, a former food service director at Plymouth House nursing home in Plymouth Meeting, after the contractor employing her dismissed her when she sought maternity leave.

But that was just the beginning. The judge overseeing the case determined the employer, Nutrition Management, did not negotiate in good faith. Therefore, she added interest and then doubled the award—and then tacked on another $145,000 in attorneys’ fees.

The problems started when the company that owned the nursing home outsourced food services to Nutrition Management. Brown had worked directly for the nursing home before the outsourcing and continued in the same job for Nutrition Management. When she informed Nutrition Management she was pregnant, it told her she had not been on the job long enough to qualify for maternity leave under the FMLA.

She filed suit, claiming Nutrition Management was a successor in interest as defined by the FMLA regulations. If so, her time when she was directly employed by the nursing home would count as time on the job for computing FMLA eligibility.

Nutrition Management was adamant, based on its in-house attorney’s opinion, that it was right in denying the leave. Federal District Judge Norma Shapiro disagreed.

In her opinion, Shapiro wrote the employer “presented no evidence that it researched or had an attorney research the requirements of the FMLA.” This, Shapiro opined, showed a lack of good faith, justifying the doubling of the award. In all, the employer will shell out $306,311 for its lack of effort.

Note: Employers that keep employees in substantially the same positions they held under previous employers are considered successors in interest under the FMLA. This part of the reg was put in place to prevent companies from simply changing names to avoid providing FMLA leave. Successors in interest must count all employee time with the previous company when calculating FMLA eligibility.

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