OPINION BY Senior Judge JAMES GARDNER COLINS.
The issue before this Court is whether an employee alleging a claim for wrongful discharge in violation of the clear mandate of public policy embodied in the Workers' Compensation Act
On December 2, 2013, Brenda A. Owens (Appellant) filed a second amended complaint (complaint) alleging one count of wrongful discharge in violation of public policy. Pennsylvania does not recognize a claim for wrongful discharge; where not
In an attached opinion, the Trial Court relied upon Landmesser v. United Air Lines, Inc., 102 F.Supp.2d 273 (E.D.Pa. 2000), wherein the federal district court concluded that once the Pennsylvania Supreme Court had an opportunity to define the elements necessary to establish a prima facie case for wrongful discharge, it would adopt the test applied in Title VII
Before this Court, Appellant argues that the Trial Court erred in interpreting Shick to require that an employee must file a claim petition with the Bureau
Employer argues that Appellant has pled only vague allegations that she reported her injuries to Employer and that Employer paid her medical bills. Employer argues that, as the Trial Court concluded, these allegations are insufficient to establish that Appellant engaged in a protected activity. Employer contends that in order to state a claim under our Supreme Court's narrow holding in Shick, a plaintiff must allege that a claim petition seeking compensation for a work-related injury was filed with the Bureau. In the alternative, Employer argues that under the Title VII test applied by the Trial Court, Appellant has failed to plead a causal connection between any alleged protected activity and her dismissal.
Our Supreme Court first recognized in Geary v. U.S. Steel Corp., 456 Pa. 171, 319 A.2d 174 (1974), that an at-will employee may have a cause of action against an employer for wrongful discharge when the discharge threatens a clear mandate of public policy.
From Geary forward the courts of the Commonwealth have repeatedly underscored that deference is owed to how an employer operates it business and addresses disruption.
Shick was the first instance where our Supreme Court both recognized a claim for wrongful discharge in violation of a clear mandate of public policy and held that the plaintiff had stated a claim for which relief may be granted.
In analyzing the judiciary's role in identifying a clear mandate of public policy, the Court reviewed a series of cases where it had been asked to make public policy determinations and concluded that "we recognized the independent authority of the courts to discern public policy in the absence of legislation. Where the legislature has spoken, however, we will not interpret statutory provisions to advance matters of supposed public interest." Id. at 1237. The Court also concluded that it was appropriate for the judiciary to act as the voice of the community to make public policy pronouncements "only when a given policy is so obviously against the public health, safety, morals or welfare that there is a virtual unanimity of opinion in regard to it." Shick, 716 A.2d at 1236 (quoting Mamlin v. Genoe, 340 Pa. 320, 17 A.2d 407, 409 (1947)). The Court cautioned that public policy is to be ascertained from laws and legal precedents, not general considerations of public interest. 716 A.2d at 1236.
Our Supreme Court again examined a claim by an employee alleging his employer had discharged him in violation of the public policy articulated in the Workers' Compensation Act in Rothrock v. Rothrock Motor Sales, Inc., 584 Pa. 297, 883 A.2d 511 (2005). In Rothrock the employee was not himself a workers' compensation claimant, but alleged that he was discharged for failing to dissuade a subordinate employee from filing a workers' compensation claim. Id. at 514. Our Supreme Court held "as a necessary corollary to the policy established in [Shick], that a Pennsylvania employer may not seek to have a supervisory employee dissuade a subordinate employee from seeking [workers' compensation] benefits. If an employer does so, the supervisory employee shall have a cause of action for wrongful discharge from employment." Rothrock, 883 A.2d at 517.
While Appellant contends that Shick and Rothrock directly support her claim, Employer contends that a line of cases where the Court rejected an exception to the at-will employment doctrine are dispositive. In these cases, the Court rejected a common law claim for wrongful discharge in violation of public policy where administrative remedies were not exhausted, Clay v. Advanced Computer Applications, Inc., 522 Pa. 86, 559 A.2d 917 (1989), where statutory remedies exist but permissibly exclude the particular employee seeking to bring a common law claim, Weaver v. Harpster, 601 Pa. 488, 975 A.2d 555 (2009), and where the public policy was not the policy of this Commonwealth but derived from another source, McLaughlin v. Gastrointestinal Specialists, Inc., 561 Pa. 307, 750 A.2d 283, 288-289 (2000).
The first of these cases, Clay, concerned a claim brought by a husband and wife alleging that they had been discharged because the wife had "rebuffed sexual advances made by one of the employer's management level employees." 559 A.2d at 918. The Court held that because husband and wife had failed to seek redress through the Pennsylvania Human Relations Commission, they were barred from seeking redress in court. Id. The Court examined the Pennsylvania Human Relations Act
In Weaver, our Supreme Court again examined a claim for wrongful discharge in violation of the clear public policy articulated in the PHRA and held that the PHRA did not provide a public policy exception to the at-will employment doctrine for sex discrimination by an employer not covered by the PHRA.
Much as Clay held that a common law claim will not lie where administrative remedies provided by statute have not been exhausted and Weaver held that a common law claim will not lie where the General Assembly has made clear public policy determinations when fashioning a statutory right that exclude a class of employees, our Supreme Court expressly addressed the boundaries of a common law claim for wrongful discharge in violation of a clear public policy in McLaughlin v. Gastrointestinal Specialists, Inc., 561 Pa. 307, 750 A.2d 283 (2000), when it held that a wrongful discharge claim will not lie where the public policy of this Commonwealth is not the policy relied upon for the violation alleged. Id. at 288-289. McLaughlin concerned an employee who brought a claim against her employer alleging that she was discharged for making internal complaints that workplace chemical exposure violated the maximum allowed by the federal Occupational Health and Safety Act
Id. at 289 (emphasis in original). Before McLaughlin reached the Supreme Court, the Superior Court also concluded that the employee had failed to state a claim, but for different reasons. McLaughlin, 696 A.2d 173, 178 (Pa.Super.1997), affirmed in part by McLaughlin. The Superior Court held below that because the employee had not filed a claim pursuant to OSHA and had only reported the violations to her employer, disrupting the orderly management of the employer's business in the process, the employer had a legitimate reason to discharge the employee. Id. at 178. The Superior Court distinguished Shick on the basis that OSHA, unlike the Workers' Compensation Act, did not provide a statutory prohibition against discharging an employee who reports a violation. Id. Our Supreme Court affirmed the dismissal of the wrongful discharge claim on the grounds that the employee relied upon federal regulations alone as the source for the alleged violation of public policy. McLaughlin, 750 A.2d at 286. In its discussion, however, the Court stated that "at most she made an internal complaint to her employer, and not to any public agency within the Commonwealth. She points to no Pennsylvania statutory scheme that her discharge would undermine," and that she "had not shown any policy of this Commonwealth that is violated, and has not established how a private report to an employer would undermine the workings of any Commonwealth agency or any statutory scheme within the Commonwealth." Id. at 288. The Court also relied upon, in a footnote to this discussion, Fox v. MCI Communications Corp., 931 P.2d 857 (Utah 1997), where the Utah Supreme Court held that a private report of criminal conduct to an employer, rather than a public agency, could not give rise to a claim for wrongful discharge because there was no averment that the public was at potential risk of harm and therefore only private interests were at stake. McLaughlin, 750 A.2d at 289 n. 11.
Here, Employer argues that McLaughlin's discussion of the implications of an internal versus external complaint, as well as Clay and Weaver's emphasis on the lack of a common law claim for employees who have failed to take advantage of or been deliberately excluded from statutory remedies, supports its position that Appellant has failed to state a common law claim for wrongful discharge because she did not file a claim petition with the Bureau. Appellant argues that Employer's position is contrary to our Supreme Court's holdings
Appellant alleges in her second amended complaint that she suffered a work-related injury, that she reported this injury to her employer, that she was paid short-term disability in lieu of workers' compensation, and that she was discharged when her short-term disability ended due to an accumulation of claims for work-related injuries. Appellant does not allege that she currently has a compensable work-related injury. Instead, Appellant alleges that she was discharged for past claims. As a result of these allegations, Appellant is quite unlike the employees in Clay and Weaver. Contrary to the employee in Clay, there are no administrative procedures that she can and must exhaust. Contrary to the employee in Weaver, Appellant's Employer is covered by the Workers' Compensation Act.
The Workers' Compensation Act provides that the running of the three-year statute of limitation for filing a claim petition will be tolled if payments in lieu of workers' compensation have been made with the intent to compensate an employee for a work-related injury, allowing the employee to file a claim petition within three years of the time the most recent payment was made. Section 315 of the Workers' Compensation Act, 77 P.S. § 602. This provision recognizes that payment to an employee for a work-related injury by an employer may be made without a claim petition being filed, and that such agreements do not deprive an employee of the statutory right to file a claim petition should the agreement fail to sufficiently compensate the employee. See, e.g., Schreffler v. Workers' Compensation Appeal Board (Kocher Coal Co.), 567 Pa. 527, 788 A.2d 963, 969 (2002); Bergmeister v. Workmen's Compensation Appeal Board (PMA Ins. Co.), 134 Pa.Cmwlth. 104, 578 A.2d 572, 574 (1990) (holding short-term disability payments were made in lieu of workers' compensation and tolled the statute of limitation for filing a claim petition), affirmed by, 529 Pa. 1, 600 A.2d 531 (1991).
Employer relies on Section 315 of the Workers' Compensation Act, 77 P.S. § 602, for the argument that Appellant should have filed a claim petition. Yet, Appellant does not allege that she is seeking compensation because of her previous work-related injuries, which would necessitate the filing of a workers' compensation claim petition; taking the allegations in her complaint as true, Appellant would not have an adequate remedy under the Act, much unlike the employees in Clay, as the Workers' Compensation Act does not provide a statutory remedy for wrongful discharge. What Section 315 does do is demonstrate that Appellant, unlike the employee in Weaver, was intended to fall within the ambit of the Workers' Compensation Act. Whereas the unambiguous public policy determination made by the General Assembly under the PHRA excluded the employee in Weaver, the public policy determination here clearly intended employees like Appellant to have recourse under the Workers' Compensation Act for work-related injuries that result in a loss of compensation.
However, whether Appellant could or could not file a claim for workers' compensation benefits now has no bearing on whether she can bring her common law claim, as our Supreme Court made clear in
As discussed in Shick and Rothrock, the Workers' Compensation Act reflects both the historical quid pro quo between employers and employees, and the public policy of the Commonwealth. If an employer could discharge an employee for a work-related injury because the employee received payment in lieu of compensation, rather than compensation administered by the Bureau, the public policy embodied by the Workers' Compensation Act would be undermined as surely as it would have been in Shick and Rothrock. Such a holding would create an incentive for employers to steer employees away from filing workers' compensation petitions in order to retain the right to discharge the employee due to the injury, the exact harm the General Assembly intended to prohibit by enacting the Workers' Compensation Act. Appellant may ultimately be unable to carry her burden to establish that her injury was work-related and that the payments she received were for this injury. Employer may be able to demonstrate that there was a separate, plausible, and legitimate reason for Appellant's discharge. However, these are considerations beyond the reach of preliminary objections; on demurrer, Appellant's claim is sufficient.
In the alternative, Employer argues that under the Title VII analysis endorsed by the Trial Court, Appellant has failed to plead a causal connection between any alleged protected activity and her dismissal. We disagree. Appellant alleges that she was discharged because of her work-related injuries and subsequent claims for compensation based upon those work-related injuries. While the complaint lacks detail, it is clear from the factual allegations that Appellant has alleged a sufficient causal connection.
Moreover, the Trial Court should not have used Title VII to analyze the sufficiency of Appellant's claim. In Rothrock the Supreme Court concluded that the Superior Court's adoption of a test utilized in Washington State to determine whether a plaintiff has adequately pled a claim for wrongful discharge in violation of public policy was misplaced.
Accordingly, we hold that a cause of action exists under Pennsylvania law for wrongful discharge of an employee who files a claim for workers' compensation benefits with an employer but has not filed a claim petition with the Bureau. The order of the Trial Court granting preliminary objections in the nature of a demurrer is reversed and this case is remanded to the Trial Court for further proceedings.
AND NOW, this 7th day of November, the order of the Lehigh County Court of Common Pleas in the above-captioned matter is REVERSED and the matter is REMANDED to the Lehigh County Court of Common Pleas for further proceedings consistent with the attached opinion.
Jurisdiction relinquished.