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17
Jan
2023

Constructive Discharge: Credit Union Violates Employee’s Rights

Minneapolis Telco Credit Union violated employee rights with “constructive discharge” in violation of Credit Union Employee’s Civil Rights.
 
In this case the appellate court affirmed a determination of the Commission of Civil Rights, finding that Minneapolis Telco Credit Union [Telco] violated its employee’s civil rights.

Here, Deborah Witherspoon was employed at Telco when she learned that she had multiple sclerosis, a progressive and debilitating disease. Witherspoon’s doctor warned her not to walk more than one city block at a time.

When Witherspoon became aware of her disease, she could conveniently walk one block from home to the Telco branch where she was stationed.

About one year after this diagnosis, the employee was transferred to a branch office in Brooklyn Center, which would require her to walk six blocks to her bus route.

Witherspoon protested the transfer, but her request to remain at the first branch was denied. About three weeks after her reassignment to the Brooklyn Center branch, she resigned. Witherspoon then filed a complaint with the Commission alleging that Telco unlawfully discriminated against her due to her disability.

The Civil Rights Commission found that Telco forced Witherspoon to resign by transferring her to a location which could effectively jeopardize her health. Consequently, Witherspoon could not continue employment.

The Commission found that Telco intentionally discriminated due to its concern that this employee’s disease would result in raising the costs of her health insurance premiums.

In addition, the court noted that Telco replaced Witherspoon with a nondisabled woman. The executive vice president of Telco also allegedly requested Witherspoon’s supervisor not to hire an applicant with no arms and legs because his appearance might be offensive to others.

The court found that there was substantial evidence to support the Civil Rights Commission’s findings that Telco’s motive for discrimination was to save money on health insurance premiums. Witherspoon’s request for attorney’s fees on appeal was also granted.  Deborah Witherspoon v. Minneapolis Telco Credit Union, Minn. Court of Appeals, No. C5-92-727.

EDITOR’S COMMENT

Credit union management should also be aware of the recent enactment of the Handicappers Act that, in part, prohibits the discrimination against handicapped individuals in the place of employment.

Actions based upon wrongful discharge, or in the above case, constructive discharge, could result in significant liability to the credit union. Actions of this nature have also resulted in the employer being forced to reinstate the employee or pay large damages. Reinstatement would most likely result in creating a hostile work environment for all concerned.

Author: Charles R. Harroun, Attorney at Law



This entry was posted on Tuesday, January 17th, 2023 at 4:33 pm and is filed under Employees, National. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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