Texas Federal Court Decision Addresses ADA and FMLA Issues Arising From Employee's Return From Alcohol Rehab

The recent decision out of Texas in Sechler v. Modular Space Corporation highlights a recurring issue for employers -- managing employees who return to work following rehabilitation for substance abuse. In Sechler, the plaintiff, a recovering alcoholic, was by all accounts an excellent employee for approximately 10 years until he experienced a relapse. He requested EAP services and, as a result received outpatient treatment for about a month.

Upon returning to work, he was asked to sign a "Return-to-Work” agreement, outlining the requirements with which he had to comply as a condition of his return to work. The Agreement specified that Sechler was to attend weekly Alcoholics Anonymous meetings and provide proof of attendance, as well as submit to at-will drug and alcohol screenings. He also agreed that a positive result on any screening would result in his termination.

Upon his return to work, Sechler asked that he be given permission to leave work early to attend his AA meetings, but was told he needed to schedule them on his own time. He then was scheduled for and passed a drug screening. A few weeks later, he then began exhibiting what his coworkers described as unusual behavior; that his speech was slurred and that he smelled of alcohol. One co-worker said that he thought he had seen Sechler go to the passenger side of his car and take a drink.

As a result, ModSpace scheduled Sechler for another screening and, out of a concern for his and others' safety, insisted that he not drive there himself. He refused to go unless he could drive himself to the screening. ModSpace's chief human resources officer, Sean McManus, then offered to pay for a taxi to take Sechler to the testing facility, which Sechler also refused. Because Sechler refused to allow someone to drive him to the facility, he could not produce a complying test result, and McManus made the decision to terminate his employment.

Sechler's lawsuit against ModSpace alleged violations of both the ADA and the FMLA, and ModSpace moved for summary judgment. The court had little difficulty disposing of the ADA and FMLA retaliation claims. Specifically, the court found that ModSpace reasonably accommodated any disability Sechler might have by giving him time off work to obtain treatment and by keeping his treatment confidential. In addition, regardless of whether he was disabled under the ADA or took FMLA leave, Sechler violated the terms of his return-to-work agreement (as well as the company's drug-free workplace policy) by refusing to be screened for drugs or alcohol.

With respect to the FMLA interference claim, however, the court found sufficient material issues of fact to go to trial as to whether ModSpace complied with the FMLA-notice requirements. In fact, the court noted that ModSpace's employee handbook did not contain the general notice, and Sechler testified without rebuttal from ModSpace that the FMLA was never discussed at the time he took his leave. He testified that, had he known about FMLA leave, he would have participated in an aftercare program that had been recommended to him, which would have taken about four hours of his time each week. According to Sechler, he did not believe he was entitled to take this further time off. The court concluded that Sechler's belief that ModSpace would not allow him to take further time off was reasonable, in light of the fact that his request to attend the mandatory AA meetings during work hours was denied. Finally, Sechler testified that his participation in the aftercare program “would have made a difference” in whether he relapsed. Based on all of this evidence, the Court denied ModSpace's motion for summary judgment on the FMLA interference claim (pending reconsideration if ModSpace was able to establish that it was not a covered employer under the FMLA.)

Interestingly, after it filed its summary judgment motion, ModSpace claimed that Sechler was not an eligible employee under the FMLA because ModSpace did not have the requisite 50 employees within 75 miles of his workplace at the time Sechler requested his leave. This might help explain why FMLA leave might not have been discussed with Sechler (though it of course would not explain the lack of a general notice unless of course ModSpace did not have 50 employees in total.)

From my perspective, other than the potential FMLA notice failings, the employer really seemed to have done everything right in responding to the employee's need for rehab and managing his return to work. But, the case also highlights the need for employers that hover around the thresholds for FMLA coverage and eligibility to make sure they stay on top of their employee counts to ensure they offer FMLA leave when appropriate and provide all necessary notices. 

Drug Rules for Commercial Motor Vehicle Drivers Updated

The Federal Motor Carrier Safety Administration ("FMCSA") has published another final rule which takes effect today, February 29, 2012. This rule addresses the drug use of commercial motor vehicles drivers, and the FMCSA aims to eliminate inconsistencies in at least three areas.

First, the final rule amends the physical qualifications for commercial motor vehicle ("CMV") drivers to clarify that drivers may not, under any circumstances, use Schedule I drugs and be qualified to drive a CMV. This change aligns the language with that used by the Drug Enforcement Agency ("DEA") in its regulations. The final rule now cites to 21 CFR part 1308, making it clear that the rule applies to the drugs and substances on the DEA's controlled substance schedules.

The prior rule did not differentiate between Schedule I and non-Schedule I drugs for purposes of the prescription exception, so the Agency amended §391.41 to clarify that the exception that allows a CMV driver to use a substance or drug if it is prescribed by a licensed medical practitioner, applies only to non-Schedule I prescribed substances, amphetamines, narcotics, or other habit-forming drugs.

Secondly, the FMCSA amends §§382.201 and 382.215 because it found the use of the term "actual knowledge" throughout certain sections of the rule was incorrect. The words "actual knowledge" have been replaced with the word "knowledge," clarifying that the relevant prohibitions refer to the knowledge of test results, not employer observation of prohibited conduct.

Lastly, prior to this final rule, §382.211 only prohibited drivers from refusing to submit to post-accident, random, reasonable suspicion, or follow-up drug or alcohol tests. The final rule amends this section to include pre-employment and return-to-duty testing as additional provisions. The final rule makes the regulation consistent with DOT-wide drug and alcohol testing rules.

In addition to the changes in terminology already mentioned, the final rule includes the following additional changes:

  • The term "controlled substance" has been replaced by the words "drug or substance" in §§382.213 and 391.41(b)(12);
  • The language in §§382.213 and 391.41(b)(12)(ii) that references non-Schedule I drugs or substances has been replaced with the phrase, "that is identified in the other Schedules in 21 CFR part 1308;"
  • The phrase "pursuant to the instructions of" has been eliminated and the words "prescribed by" are now used; and
  • The words on pages 4 and 8 of the Instructions to the Medical Examiner have been updated. More specifically, the form now states "If a driver uses an amphetamine, a narcotic or any other habit-forming drug, it may be cause for the driver to be found medically unqualified. If a driver uses a Schedule I drug or substance, it will be cause for the driver to be found medically unqualified." The words Schedule I drug or other substance have been removed from the medical examiner instructions.

Employers must advise drivers of the final rule change, and medical examiners will need to familiarize themselves with the Schedule I and non-Schedule I drug lists, so that they are up-to-date with the changes as well.
 

Refresher on Alcohol Testing and the ADA

Many employers may be surprised to learn that the ADA's prohibition of medical examinations treat alcohol tests differently from tests for illegal drugs.

Under the ADA, employers may not require employees to undergo medical examinations or inquiries unless they are job-related and consistent with business necessity. Unlike tests for illegal drug use, the EEOCs' enforcement guidance considers "blood, urine, and breath analyses to check for alcohol use" to be a medical examination under the ADA. Case law is sparse, but courts have generally followed the EEOC guidance.

So, if employers want to ensure their workers aren't under the influence of alcohol, what should they do? 

  • The ADA allows employers to administer alcohol tests or other medical examinations where required by another federal law or regulation. An often-cited example is Department of Transportation (DOT) regulations that require safety-sensitive transportation employees undergo regular drug and alcohol testing.
  • Even if their employees don't fall within an exception like the DOT regs, employers may still implement and enforce policies that prohibit employees from working under the influence of alcohol. They may administer alcohol tests to enforce such a policy when "job related and consistent with business necessity."
  • Medical examinations like alcohol tests are job related and consistent with business necessity when the employer has objective medical evidence or reasonable suspicion that the employee's ability to perform his essential job functions is impaired, or the employee is a direct threat to himself or others.
  • When conducting an investigation into an employee's use of alcohol on the job, an employer may always ask the employee if he has been drinking. If an employee admits to drinking in violation of the employer's policy, it may not be necessary to administer an alcohol test.

To stay within the strictures of the ADA when testing for alcohol use, employers are best-served by treating each situation case-by-case and avoiding blanket "one-size-fits-all" testing policies. Consideration should be given to the signs of the employee's impairment, any observed impact on their essential job functions or performance, and what else may explain his behavior beyond alcohol use. Internal guidance and training on the signs of alcohol impairment may also be appropriate.
 

Sixth Circuit Holds That Employee Must Be "Qualified Individual With A Disability" to Challenge Termination Under Drug Testing Program

Earlier this week, we reported on a New York Times article about employer efforts to address the impact of prescription drugs in the workplace. The article profiled workers at the Dura Automotive Systems Inc. plant in Lawrenceburg, Tennessee who were terminated for testing positive for prescription drugs that Dura considered to raise safety issues. Yesterday, the Sixth Circuit handed down a decision in a case that challenged the company's drug testing policy. 

In that decision, the Court held that several of the workers could not challenge their terminations under that policy because they were not "qualified individuals with a disability" under the ADA. The employees had claimed that under Section 12112(b)(6), the drug testing policy constituted a “qualification standard, employment test, or other selection criteria” that “screen out or tend to screen out” persons with disabilities. But, the court held that “a straightforward reading of this statute compels the conclusion that only a ‘qualified individual with a disability' is protected from the prohibited form of discrimination described in subsection (b)(6)—the use of qualification standards and other tests that tend to screen out disabled individuals.” The Court distinguished Section (b)(6) the ADA from Section (d)(4), which provides that employers may not require a medical examination and shall not make inquiries of an employee as to whether such employee is an individual with a disability or as to the nature or severity of the disability, unless such examination or inquiry is shown to be job-related and consistent with business necessity. Many courts have held that an employee does not need to have an ADA-protected disability to pursue a lawsuit under Section (d)(4). 

The Sixth Circuit's decision is certainly good news for employers, particularly for those in Ohio, which lies within the Sixth Circuit. But in order to avoid lawsuits challenging the testing itself, employers must still be able to demonstrate that any drug testing for prescription drugs is not only job-related but also required by business necessity. In separate litigation brought by the EEOC against Dura, Dura apparently is attempting to defend its testing program based on evidence that suggests that the Lawrenceburg facility has a higher accident rate than other comparable facilities. In addition, the New York Times article suggests that there was evidence of drug use and sales going on at the plant.   It will be interesting to see how the Sixth Circuit addresses that issue if the EEOC case gets that far.

Employers Raise Stakes In Battle Against Workplace Drug Use

Over the last week or so, two stories about drugs in the workplace caught my eye. First was the NY Times article on employer efforts to respond to the increasing use of prescription drugs in the workplace. The article appropriately addressed the conflict between employer needs to ensure a safe workplace and employee rights to privacy and the protections afforded by the ADA. As a result, some employers have begun testing employees for prescription painkillers and other prescription drugs and terminating employees that test positive. 

The second issue in the media this past week involved the disclosure that officials from the Houston Texans last month conducted a search of the team's locker room for evidence of performance enhancing drugs. Earlier this season, two Houston players had been suspended under the NFL's substance abuse policy. Surprisingly, neither the Texan players nor the NFLPA seem to have (at least publicly) complained about the search.  (You can read more about this story here.)

 

These two stories show the lengths to which employers are going to combat drugs in their workplaces. Before taking any drastic approaches towards addressing a drug problem in their workplace, employers would be wise to consult their labor and employment counsel to ensure that their approach is lawful.

DOT Direct Observation Requirements Go Into Effect on August 31st

On July 30, 2009, the Department of Transportation issued a final rule reinstating the direct observation drug testing procedures recently approved by the U.S. Court of Appeals for the District of Columbia. The final rule, which goes into effect on August 31, 2009, requires that all return-to-duty and follow-up tests be conducted in a manner that permits the direct observation of specimen collection to prevent the use of prosthetic or other cheating devices.

D.C. Circuit Upholds "Direct Observation" Requirements for USDOT Return to Duty and Follow Up Testing

In a decision released May 15, 2009, the U.S. Court of Appeals for the District of Columbia upheld a Department of Transportation (DOT) regulation that requires employees who are returning to safety-sensitive duties after having completed a drug treatment program due to failing or refusing to take a drug test, to submit to return to duty and follow up testing under "direct observation" conditions. This decision and the regulation it upholds applies to employers in the aviation, rail, motor carrier, mass transit, maritime and pipeline industries that are subject to the DOT drug-testing regime. Under the regulation’s "direct observation" procedures, the employer must require a same-gender observer to “watch the urine go from the employee’s body into the collection container.” To comply, employees must raise their shirts above the waist and lower their clothing so as to expose their genitals and allow the observers to verify the absence of any devices that would permit the employee to cheat the test. 

Previously, the employer had the option to require direct observation, but this was not mandatory under the former regulation. Concerned that employers were reticent to require direct observation and in light of the rise in commercially available devices, such as the "Whizzinator," that enable people to cheat on their drug tests, the DOT promulgated this new regulation requiring direct observation for all return to work and follow up tests conducted under the DOT's auspices as of November 1, 2008.

Several transportation industry unions and the BNSF Railway Company challenged the new regulation, and the D.C. Circuit issued a stay of the direct observation requirement back on November 12, 2008. Impressed with evidence that demonstrated the growth of an entire industry focused on circumventing drug tests, coupled with evidence that employees that previously had tested positive or refused drug testing presented an elevated risk of cheating, the court in its May 15th decision found that the DOT had justified the direct observation requirement.  From a constitutional standpoint, the court also found that "given the combination of the vital importance of transportation safety, the employees’ participation in a pervasively regulated industry, their prior violations of the drug regulations, and the ease of obtaining cheating devices capable of defeating standard testing procedures, ... the challenged regulations [are]facially valid under the Fourth Amendment."

At the conclusion of its decision, the court emphasized that, because this case presented only a facial challenge to the direct observation requirement, the court considered only “whether the tests contemplated by the regulations can ever be conducted.” The court expressed no view on either the merits of "any as-applied challenge to this rule" or the constitutionality of any other rule. As such, employers that will be governed by the direct observation requirement would be wise to ensure that, given the intrusion into privacy necessarily associated with the requirement, all persons or entities that conduct such tests on their behalf are properly trained in the DOT regulations and procedures and that they conduct such tests consistent with those regulations and procedures in a professional manner that preserves as best as possible the dignity of the testing subject.

Court Stays DOT's Mandatory Direct Observation for Return-to-Duty and Follow-up Testing

The U.S. Department of Transportation’s (DOT’s) previously announced mandatory direct observation of specimen collection for return-to-duty and follow-up controlled substances test (see my October 28th post) has been stayed. The United States Court of Appeals for the District of Columbia Circuit has issued an administrative stay, which temporarily delays implementation of DOT’s direct observation requirement. As a result of the court-ordered stay, DOT has announced that direct observation by DOT-regulated employers for these two types of tests will remain optional and at the employer’s discretion. We will keep you posted on further developments.

 

Employers Subject to the U.S. Department of Transportation's Substance Abuse Testing Requirements Must Now Conduct Direct Observation for Return to Duty and Follow-up Testing

Beginning November 1, 2008, employers covered by the United States Department of Transportation’s controlled-substance testing regulations must conduct direct observation collection for “return to duty” and “follow-up” controlled substance tests. These regulations apply to employers governed by the Federal Highway Administration (such as private motor carriers), the Federal Railroad Administration (which regulates railroad operators), the Federal Aviation Administration (which regulates airlines and related industries), the Federal Transit Authority (which regulates companies doing business with mass transit providers), and the Research and Special Programs Administration (which regulates pipeline industries).

Part of the DOT’s rationale for requiring direct observation for these two types of tests is the fact that the individuals subject to these two tests have already tested positive or refused to submit to testing in violation of DOT’s controlled-substance testing requirements. The DOT believes the individuals in these categories have a greater than average likelihood of using illegal drugs in the future and, consequently, higher than average motivation to cheat on a test. In addition, the Department has studied the dramatic increase in available cheating products on the market, which are solely designed to help illegal drug users defeat drug tests. Some of these products that are now sold to help employees avoid detection include prosthetic devices that look like real human anatomy, even color matched.

The DOT is implementing this observation requirement while attempting to strike an appropriate balance between the safety of employees and the public and individual privacy concerns. Thus, for example, the direct observation collection of urine specimens will require the use of a same-gender observer.

Employers subject to the DOT’s new direct observation requirements for return to duty and follow-up testing should consult with their collection facilities regarding these requirements. In addition, employers should consider how best to notify the employees in their work force who potentially will be subject to this requirement. That way, if and when a direct observation test arises down the road, the employee in question will not be shocked or surprised by the requirement.