Friday, December 21, 2007

Supreme Court Strictly Limits Public Policy Wrongful Discharge Claims

*By Stephen S. Zashin

In a 5-2 decision issued yesterday, the Ohio Supreme Court held that an at-will employee who is terminated from employment while receiving workers’ compensation benefits may not pursue a common law tort action against the employee’s employer for wrongful discharge based on public policy. In Bickers v. W. & S. Life Ins. Co., 2007-Ohio-6751, the Court held that recovery pursuant to the anti-retaliation provision of Ohio’s workers’ compensation statute, R.C. 4123.90, is the exclusive remedy for plaintiffs who allege wrongful termination while receiving workers’ compensation benefits.

The decision distinguishes the court’s previous ruling in Coolidge v. Riversdale Local School Dist., 100 Ohio St. 3d 141, 2003-Ohio-5357. In Coolidge, the Court held that a teacher who was terminated while receiving workers’ compensation benefits could sue her employer based on a violation of public policy. As a public school teacher, Coolidge was not an at-will employee and could be terminated only with “good and just cause” pursuant to R.C. 3319.16.

The Bickers decision limits the application of Coolidge to public policy claims brought by public school teachers, and others similarly situated. As noted by the Court, “the Coolidge court decided a very limited issue. Specifically, the Coolidge court held that judicial inquiry is warranted into whether an employer acted contrary to public policy when it discharged an employee when R.C. 3319.16 is implicated. *** Coolidge does not create a cause of action for an at-will employee who is terminated for nonretaliatory reasons while receiving workers’ compensation.”

Plaintiffs, seeking to evade the limitations period and more limited remedies contained in the workers’ compensation statute, have relied on Coolidge to allege a common law claim of wrongful discharge against employers who terminate employees while they receive workers’ compensation benefits. The Bickers decision eliminates this cause of action with respect to at-will employees and allows only claims brought by public school teachers and presumably others with statutory employment protection.

While Bickers is a favorable decision for Ohio employers, employers are cautioned to continue to comply with the nonretaliation provision contained in Ohio’s workers compensation statute.

*Stephen S. Zashin is an OSBA Certified Specialist in Labor and Employment Law and has extensive experience in all aspects of workplace law, including wrongful discharge litigation. For more information about defending allegations of public policy discrimination, please contact Stephen at 216.696.4441 or ssz@zrlaw.com.