Chiles v. Machine Shop, Inc

606 N.W.2d 398, 238 Mich. App. 462
CourtMichigan Court of Appeals
DecidedFebruary 23, 2000
DocketDocket 207395
StatusPublished
Cited by91 cases

This text of 606 N.W.2d 398 (Chiles v. Machine Shop, Inc) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chiles v. Machine Shop, Inc, 606 N.W.2d 398, 238 Mich. App. 462 (Mich. Ct. App. 2000).

Opinion

*465 Per Curiam.

In this action brought under the Persons with Disabilities Civil Rights Act (pwdcra), 1 MCL 37.1101 et seq.\ MSA 3.550(101) et seq., and the Worker’s Disability Compensation Act, (wdca) MCL 418.101 et seq.] MSA 17.237(101) et seq., defendant Machine Shop, Inc., appeals as of right a jury award of $18,000 2 in favor of plaintiff and from the trial court’s denial of defendant’s motion for a directed verdict, judgment notwithstanding the verdict (jnov), or a new trial. We affirm in part, reverse in part, and remand for further proceedings consistent with this opinion.

In 1973, plaintiff began working for Morbark Industries, Inc., in its machine shop division. In 1988, Morbark Industries, Inc., split into several separate corporations. Plaintiff became classified as an employee of Forestry Products, Inc. However, plaintiff actually worked for defendant, Machine Shop, Inc., a similarly created offshoot of Morbark Industries, Inc. In December 1991, plaintiff sustained a work-related back injury. Despite this injury, plaintiff continued working as defendant’s sole Blanchard grinder operator until February of 1993, when he took a disability leave. Plaintiff received full worker’s compensation benefits from February until June of 1993, when he returned to work in a “favored” position.

While plaintiff was on disability leave, another employee, Jim Zeneberg, was moved to plaintiff’s shift and assigned to operate the Blanchard grinder. However, in July 1994, as part of progressing from the *466 favored position to a work-hardening program, plaintiff was reassigned to the Blanchard grinder. Plaintiff initially operated the grinder four hours a day, but eventually increased to full-time. During this period, Zeneberg was temporarily assigned to other machines.

While plaintiff participated in the work-hardening program, he was paid $6 an hour and a supplemental worker’s compensation wage-loss differential. He was told that he would resume earning his regular wage of $11.75 an hour when his doctor lifted his work restrictions. On February 24, 1995, plaintiff’s treating physician provided documentation to defendant indicating that plaintiff could return to work without restrictions. On February 27, plaintiff resumed earning his regular wage. The next day, February 28, 1995, plaintiff was laid off and notified that he would not be rehired. Craig Price, the health and human services director for all of Morbark Industries, agreed that plaintiff was misled into believing that once his restrictions were lifted, he would return to his full-time position as a grinder operator. According to defendant’s president, Gary Cotter, plaintiff was laid off because he was not as productive as Zeneberg, the replacement operator.

On May 4, 1995, plaintiff filed suit alleging that he was laid off and not recalled in retaliation for filing his worker’s compensation claim and because he was perceived as suffering from a disability (impaired back). In November 1995, following Zeneberg’s unfortunate death, plaintiff was called back to work as the Blanchard grinder operator. Upon his return, plaintiff was classified as defendant’s employee.

*467 i

For its first claim of error, defendant contends that because it was not technically plaintiff’s employer when the alleged retaliatory and discriminatory actions occurred, it was not a proper party to this suit. We disagree. At the onset of trial, the named defendants included defendant Machine Shop, Inc., Morbark Industries, Inc., Morbark Maintenance Company, and Forestry Products, Inc. Before jury deliberations, plaintiff offered to stipulate the dismissal of all entities except defendant. In response, defense counsel indicated that he was “not going to object.” Consequently, the jury considered only defendant’s liability. Under the facts in this case, we find that the jury properly considered defendant’s liability under the wdca and the pwdcra.

This Court applies the economic-reality test to determine whether an employer-employee relationship exists for purposes of the wdca. James v Commercial Carriers, Inc, 230 Mich App 533, 537; 583 NW2d 913 (1998). The test involves four basic factors: (1) control of the worker’s duties, (2) payment of wages, (3) the right to hire, fire, and discipline, and (4) performance of the duties toward the accomplishment of a common goal. Id. In applying these factors, the totality of the circumstances must be examined, with no single factor controlling. Id. Under this test, defendant was plaintiff’s employer for purposes of the wdca. At the time plaintiff participated in the work-hardening program and when he was laid off, he was working for defendant as a loaned employee. Defendant directed his activities. Further, defendant clearly had the right to hire, fire, and discipline plaintiff because, in making the decision to lay off plaintiff *468 and not recall him for over eight months, defendant exercised these rights. With respect to factor four, plaintiff performed work that was part of a “common objective integral to [defendant’s] business” and work that would “normally follow the usual path of an employee.” Id. The only factor that arguably does not weigh in favor of the finding of an employment relationship is the payment of wages. However, we note that defendant paid plaintiff’s actual employer, Forestry Products, Inc., for the right to use plaintiff’s services. Thus, under the economic-reality test, we find that defendant was plaintiff’s employer.

With respect to the PWDCRA, we hold that because liability under the act is not dependent on the actual existence of an employer-employee relationship at the time of the adverse employment action but, rather, on the ability to affect adversely the terms and conditions of an individual’s employment or potential employment, defendant’s position lacks merit. The act addresses the conduct of an “employer” who takes adverse employment action against an “individual” because of a handicap that is unrelated to the individual’s ability to perform the duties of a particular job. MCL 37.1202(1)(a); MSA 3.550(202)(1)(a). The act does not limit the definition of “employer” to the plaintiff’s employer but, instead, simply defines it as a “person who has 1 or more employees.” MCL 37.1201(b); MSA 3.550(201)(b). The scope of the act clearly encompasses actions taken by an employer before an employment relationship even exists, e.g., discriminatorily refusing to hire an applicant on account of a disability. Our reading of the plain language of the statute does not require that an employment relationship exist, but simply that the *469 employer/defendant have the authority to affect a plaintiff’s employment or potential employment. Consequently, we find that the act was intended to encompass the relationship present in this case.

n

Defendant also claims that the trial court erred in denying its motions for a directed verdict and JNOV with respect to plaintiff’s worker’s compensation retaliation claim.

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606 N.W.2d 398, 238 Mich. App. 462, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chiles-v-machine-shop-inc-michctapp-2000.