- within Compliance, Government and Public Sector topic(s)
Originally appeared in Labor and Employment Newsletter - February 2002
The U. S. Court of Appeals for the Second Circuit recently held that an employer’s good faith belief of an employee’s fraud in connection with an application for disability benefits may serve as the legitimate, nondiscriminatory reason for the termination of the employment of the employee sufficient to defeat his claim of age discrimination. In Roge v. NYP Holdings, Inc., plaintiff, Robert Roge, failed to show that his employer’s proffered reasons for terminating his employment were merely a pre-text for age discrimination.
Disability Claim
In 1996, the New York Post launched a new Sunday edition that would require Roge to begin working on Saturdays. Roge expressed his lack of enthusiasm about this change and went on disability the day following the announcement due to chest pains. Roge and his doctor subsequently submitted disability forms stating his inability to return to work.
After reviewing his proposed long-term disability benefits, however, Roge, decided to return to work. The employer was dubious about Roge’s claim for disability benefits given both the suspicious timing of the claim and Roge’s immediate return to work. Meanwhile, the Post eliminated 23 positions from its staff, including Roge’s job. One of the bases for selecting Roge for termination was the belief that his claim for disability benefits was fraudulent.
Good Faith Belief
In affirming the lower court’s grant of summary judgment for the Post, the Second Circuit held that Roge failed to meet the burden of proof applied in age discrimination cases. Once the employer offers a non-discriminatory reason for the termination, it is for the plaintiff to show that the proffered reason was a mere pretext for discrimination. The Court noted that "[e]ven within the context of a legitimate reduction-in-force, however, an employer may not discharge an employee ‘because’ of his age."
The Post offered two reasons for the discharge: (1) its ongoing restructuring plan and (2) the belief that Roge was engaging in disability fraud. Roge was unable to prove that the restructuring plan was discriminatory because of the 23 positions eliminated, 12 were held by people over age 40 and 11 were held by those under age 40. This virtually even split in ages of terminated employees tended to show a lack of age discrimination. Further, the Court held that a good faith belief that the employee had engaged in fraud relating to the employment is a sufficient basis for discharge "whether or not the fraud actually occurred." The Post met its burden without having to prove that Roge actually engaged in disability fraud.
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