In: Operations Management
AB Distribution, Inc., employed QY, Inc., to run its tire mounting and distribution operation in Mount Valley, Ohio. Robert Chase worked for QY as a second-shift supervisor at Titan. He suffered a heart attack in 2000 and underwent heart bypass surgery in 2001. He also had arthritis. In July 2006, AB Distribution decided to terminate QY. Chase applied to work at AB Distribution, Inc. On his application, he described himself as having a disability. After a physical exam, AB’s doctor concluded that Chase could work in his current capacity, and he was notified that he would be hired. Despite the notice, Natalia Baron, an AB employee, wrote “not pass px” at the top of Chase’s application, and he was not hired. He took a job with APCO Systems, a parking ramp management company. This work involved walking up to five miles a day and lifting more weight than he had at AB. In September 2008, AB eliminated its second shift. Chase filed a suit in a federal district court against AB, in part, under the Americans with Disabilities Act (ADA). AB Distribution argued that the reason it had not hired Chase was not that he did not pass the physical, but no one—including Baron—could explain why she had written “not pass px” on his application. Later, AB claimed that Chase was not hired because the entire second shift was going to be eliminated
5-A. What must Chase establish to make his case under the ADA? Can he meet these requirements? Explain.
5-B. In employment-discrimination cases, punitive damages can be appropriate when an employer acts with malice or reckless indifference to an employee’s protected rights. Would an award of punitive damages to Chase be appropriate in this case? Discuss.
5-4 Chase must establish that there was no plan of AB to eliminate the second shift at the time he was about to be hired and he was rejected for a cause that was never there ( he passed the physical examination). As the company (AB) conducted his medical examination and notifid that he will be hired, it can be established that there was a vacancy and an intent of hiring on part of the company. The only cause of rejection was the writing " not pass px" on the application by an employee who probably had nothing to do with recruitment process. However, Chase can not claim relief under ADA because no disability was notified by the doctor.
5-5 Yes. The employer rejected the application of Chase, despite notifying him of recruitment after being cleared by the doctor for any known reasons. The circumstances indicate that the reason for rejection was the false note written by an employee who presumably had nothing to do with recruitment, indicating his failure in the test. The company is liable for negligence of not verifying the facts and acting on wrong information that led to the rejection. The claim of eliminating the second shift does not hold because had it been so, why medical examination and other formalities were conducted on Chase. In the light of the facts, Chase must get punitive awards.