Employer’s Honest Belief of FMLA Leave Abuse Justifies Termination
In Davis v. Subaru of Indiana Automotive, Inc., the U.S. District Court for the Northern District of Indiana ruled that the employer did not violate the FMLA when it terminated an employee because it had an honest belief, based on reports from private investigators that it hired and from statements by the employee himself, that the employee was selling auto parts from his home during FMLA leave in violation of an employer rule prohibiting gainful employment while on non-occupational medical leave.
Practice Tip: Under certain circumstances, employers may terminate employees during or after FMLA leave if the employer has an honest belief that the employee did not take leave for the intended purpose. This principle is based on the fact that FMLA leave does not confer any right, benefit, or position of employment other than any right, benefit, or position to which the employee would have been entitled had the employee not taken the leave. In other words, taking FMLA leave does not give an employee free reign to disregard employer policies, such as a policy prohibiting gainful employment while on leave. A word of caution is in order. If you plan to claim an honest belief of FMLA leave abuse, make sure your claim is credible. This case provides a good illustration. The employer relied on evidence provided by anonymous phone calls, two investigators, and admissions by the employee himself. The employer did not simply rely on the anonymous calls.