Nadaf-Rahrov v. the Neiman Marcus Group, Inc.

California Court of Appeal
83 Cal. Rptr. 3d 190, 166 Cal. App. 4th 952, 21 Am. Disabilities Cas. (BNA) 748 (2008)
ELI5:

Rule of Law:

Under the California Fair Employment and Housing Act (FEHA), to prevail on claims of failure to reasonably accommodate or failure to engage in the interactive process, an employee must prove they were able to perform the essential functions of a job with or without accommodation.


Facts:

  • Forough Nadaf-Rahrov began working as a clothes fitter for The Neiman Marcus Group, Inc. (Neiman Marcus) in Dallas, Texas, in April 1985, and later transferred to a fitter position in the San Francisco store in the mid-1990s.
  • Between 1997 and 2003, Nadaf-Rahrov experienced recurrent back and joint pain, and her treating physician, Dr. Joel M. Klompus, informed Neiman Marcus that she needed various accommodations, including time off and a shortened work week, which the company provided.
  • In December 2002, Dr. Klompus diagnosed Nadaf-Rahrov with carpal tunnel syndrome in both hands and osteoarthritis in her fingers.
  • On November 7, 2003, Nadaf-Rahrov requested family medical leave; Dr. Klompus signed a certification stating she was 'unable to perform work of any kind' and 'all' essential job functions, and Neiman Marcus granted leave until December 10, 2003.
  • Dr. Klompus extended Nadaf-Rahrov’s medical leave multiple times through March 5, 2004, with medical notes stating she was 'unable to work.'
  • In January 2004, Nadaf-Rahrov and Dr. Klompus each sent letters to Neiman Marcus requesting reassignment to a position that would not involve bending, standing, or kneeling due to her disability.
  • Neiman Marcus's HR Manager Kelly Butler informed Nadaf-Rahrov that she needed modified medical restrictions to perform some work before they could discuss available positions, and Nadaf-Rahrov agreed to contact Butler when released.
  • Dr. Klompus extended Nadaf-Rahrov’s leave four more times through August 16, 2004, with the final note stating she 'may be able to return to work on 8/16/04 but not in her previous position.'
  • On July 14, 2004, Neiman Marcus terminated Nadaf-Rahrov, citing her lack of a doctor's release for any work, her unqualified status for open positions given her restrictions, and her exhaustion of sick and vacation benefits, and she received no advance notice of the termination.

Procedural Posture:

  • On January 12, 2005, Forough Nadaf-Rahrov sued Neiman Marcus, Kelly Butler, and Kayko Humphrey in trial court for employment discrimination based on disability, national origin, and ethnicity, for retaliation, and for wrongful termination in violation of public policy under the California Fair Employment and Housing Act (FEHA).
  • Nadaf-Rahrov later dismissed her claim against Humphrey.
  • On March 24, 2006, the trial court granted summary judgment in favor of Neiman Marcus and Butler on all claims, finding that Nadaf-Rahrov was unable to perform the essential functions of her job or any other available position, that Neiman Marcus reasonably accommodated her with extended leave, and that there was no evidence of retaliation or other discrimination.
  • Nadaf-Rahrov appealed the summary judgment ruling to the Court of Appeal.

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Issue:

Does an employee pursuing claims for failure to reasonably accommodate or failure to engage in the interactive process under the California Fair Employment and Housing Act (FEHA) bear the burden of proving that a reasonable accommodation enabling them to perform the essential functions of a job was available?


Opinions:

Majority - Reardon, J.

Yes, an employee pursuing claims for failure to reasonably accommodate or failure to engage in the interactive process under FEHA bears the burden of proving that a reasonable accommodation enabling them to perform the essential functions of a job was available. The court reversed in part the summary judgment granted to Neiman Marcus. Regarding the disability discrimination claim under FEHA section 12940, subdivision (a), the court reversed summary adjudication. Neiman Marcus terminated Nadaf-Rahrov because of her disability. The central inquiry was whether she could perform the essential functions of an available vacant position with or without accommodation. The trial court abused its discretion in ruling Dr. Klompus's declaration inadmissible, which clarified that his 'unable to work' statements referred only to her fitter position and that he encouraged her to seek other work. This declaration, along with evidence of her physical restrictions not precluding all desk work and the availability of other non-promotional positions at lower pay (like clerical or customer service roles), created a triable issue of fact regarding her ability to perform other jobs at Neiman Marcus. The court emphasized that the employer must demonstrate no triable issue of fact about the employee's ability to perform an available vacant, non-promotional position. For the claim of failure to make reasonable accommodation under FEHA section 12940, subdivision (m), the court also reversed summary adjudication. The court explicitly disagreed with Bagatti v. Department of Rehabilitation, concluding that 'reasonable accommodation' under FEHA, like under the ADA, means a modification or adjustment enabling the employee to perform the essential functions of the job held or desired. Furthermore, applying the reasoning from Green v. State of California regarding section 12940(a), the court held that the employee bears the burden of proving they were able to perform the essential functions of a job with accommodation under section 12940(m). Concerning the claim of failure to engage in a timely, good faith interactive process under FEHA section 12940, subdivision (n), the court reversed summary adjudication. The court adopted the federal ADA rule that an employer can be liable for failing to engage in the interactive process only if a reasonable accommodation was possible, and the employee bears the burden of proving that such an accommodation was available. This aligns with the legislative intent, which links FEHA's interactive process requirement to the EEOC's articulation. The court found a triable issue of fact as to whether Neiman Marcus caused a breakdown in the interactive process by refusing to provide information about available positions and unreasonably demanding a specific medical release without disclosing job duties. The court also held that Nadaf-Rahrov raised a triable issue of fact about whether the discovery commissioner erred in limiting the geographic scope of discovery for vacant positions. Summary judgment on the retaliation claim was affirmed for Neiman Marcus and Butler. Butler, as an individual, is not personally liable for retaliation under Jones v. The Lodge at Torrey Pines Partnership. For Neiman Marcus, Nadaf-Rahrov failed to rebut the legitimate, non-retaliatory reason for termination (inability to work, exhausted leave) with evidence of pretext or retaliatory motive beyond mere temporal proximity or vague 'hostility.' Finally, summary judgment on the national origin and ethnicity discrimination claim was reversed. Nadaf-Rahrov established a prima facie case with evidence of two non-Middle Eastern disabled employees who were accommodated by reassignment. Neiman Marcus failed to directly address this disparate treatment. Additionally, sworn declarations from other former Middle Eastern employees describing discriminatory treatment provided sufficient (albeit tenuous) indirect evidence to defeat summary judgment on this claim.



Analysis:

This case significantly clarifies the scope and requirements of disability discrimination claims under the California Fair Employment and Housing Act (FEHA), particularly regarding reasonable accommodation (§ 12940(m)) and the interactive process (§ 12940(n)). By explicitly rejecting the holding of Bagatti and aligning FEHA's interpretation with federal ADA standards, the court establishes that a plaintiff must prove not only a failure to accommodate or engage in the interactive process but also the existence of a reasonable accommodation that would have enabled them to perform essential job functions. This shifts a critical burden of proof to the employee, emphasizing that the interactive process is a means to identify a functional accommodation, not merely a procedural step regardless of outcome. The decision also highlights the importance of open communication in the interactive process, placing responsibility on both parties to share information about job duties and medical restrictions.

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