California Supreme Court Expands Employers’ Liability for Disability Discrimination: City of Moorpark v. Superior Court
As most employers know, if an employer terminates or otherwise discriminates against an employee due to the employee’s disability,
the employer can be liable for disability discrimination under the California Fair Employment and Housing Act ("FEHA"). As
most employers also know, if an employee is injured on the job, he/she has the right to speedy, no-fault compensation for
his/her injury in the form of worker’s compensation benefits. If an employer retaliates or discriminates against an employee
for asserting his/her rights under the worker’s compensation laws or for suffering a work-related injury, the employee can
also file a retaliation claim under the worker’s compensation laws. These claims (found in the Labor Code) are known as "section
132a claims."
What happens, however, if an employee’s on-the-job injury results in a "disability", as that term is defined in FEHA, and
the employee believes that the employer discriminated against him/her on the basis of that injury? Can the worker also sue
for retaliation or discrimination in civil court under FEHA, or is he/she limited to recovery under section 132a by the exclusive
remedy provisions of the worker’s compensation laws?
The California Supreme Court recently answered this question in City of Moorpark v. Superior Court, 18 Cal. 4th 1143 (1998), when it held that employees who believe they have suffered discrimination or retaliation due to
a disability that was caused by an industrial injury can maintain claims for violation of both FEHA in civil court and section
132a claims before the Worker’s Compensation Appeals Board. Under prior law, employees were restricted to section 132a claims.
Since remedies under FEHA include emotional distress and punitive damages, this represents a significant expansion of potential
liability for employers.
Besides describing the decision in City of Moorpark, this Commentary will also examine a recurring fact situation faced by employers that this decision now makes more difficult&emdash;when is
it permissible to terminate an employee who is industrially injured or disabled? At the end, we provide guidance for employers
on how to handle these issues.
If you are interested in receiving the full text of this publication, please send an e-mail request to info@mofo.com.
