Edward Yashenko v. Harrah's Nc Casino Company, LLC

446 F.3d 541, 11 Wage & Hour Cas.2d (BNA) 708, 2006 U.S. App. LEXIS 10469, 2006 WL 1098803
CourtCourt of Appeals for the Fourth Circuit
DecidedApril 27, 2006
Docket05-1256
StatusPublished
Cited by283 cases

This text of 446 F.3d 541 (Edward Yashenko v. Harrah's Nc Casino Company, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Edward Yashenko v. Harrah's Nc Casino Company, LLC, 446 F.3d 541, 11 Wage & Hour Cas.2d (BNA) 708, 2006 U.S. App. LEXIS 10469, 2006 WL 1098803 (4th Cir. 2006).

Opinion

Affirmed by published opinion. Judge MOTZ wrote the opinion, in which Judge TRAXLER and Judge JONES joined.

OPINION

DIANA GRIBBON MOTZ, Circuit Judge:

This case presents two questions of first impression for this circuit. First, does the Family and Medical Leave Act (“FMLA”), 29 U.S.C.A. § 2601 et seq. (West 1999 & Supp.2005), provide a covered employee with an absolute right to be restored to his previous job after taking approved leave? And second, is a private employer that contracts with an Indian tribe subject to suit for race discrimination under 42 U.S.C.A. § 1981 (West 2003) when it enforces a contractual tribal preference policy? For the reasons that follow, we believe we must answer both questions in the negative and so affirm the judgment of the district court.

I.

In June 1996, the Eastern Band of Cherokee Indians (“Tribe”) entered into a Management Agreement with Harrah’s North Carolina Casino Company (“Har-rah’s”) concerning the operations of the Tribe’s gaming enterprise. Under the terms of the Agreement, the Tribe granted Harrah’s “the exclusive right and obligation to develop, manage, operate and maintain the Enterprise and any expansion thereof.” The Tribe delegated its own “obligations and rights under this Agreement” to the Tribal Casino Gaming Enterprise (“TCGE”), an “instrumentality of the Tribe” with authority to conduct the business of the casino on behalf of the Tribe. The Agreement thus functioned as an employment contract under which Har-rah’s worked as the manager for the Tribe’s delegate, the TCGE. Through this arrangement, Harrah’s provided its “experience and expertise” in managing the gaming operation and training the tribal members.

As part of this Management Agreement, Harrah’s received “the exclusive responsibility and authority to direct the selection, hiring, training, control and discharge of all employees performing regular services for the Enterprise in connection with the maintenance, operation, and management of the Enterprise and the Facility and any activity upon the Property.” The Agreement provided that Harrah’s would “give preference in recruiting, training and employment to qualified members of the Tribe and their spouses and adult children in all job categories of the Enterprise.” Accordingly, Harrah’s assented to the following order of preference: “(a) Enrolled Tribal members; (b) Spouse, parent or children of Tribal members; (c) Other Native Americans; (d) Others from the Cherokee community; (e) Others from the region; and (f) Others from the state of North Carolina.”

All employees hired by Harrah’s to staff the ■ casino pursuant to this Agreement were considered employees of the TCGE, although Harrah’s maintained supervisory authority over them. Harrah’s and TCGE classified many of these employees as “leased” employees; leased employees worked at the casino, Harrah’s paid their salaries and benefits, and TCGE reimbursed Harrah’s for these expenses. In the years after the Agreement went into effect, there was a gradual shift in posi *545 tions from Harrah’s to the TCGE. By 2003, all employees that Harrah’s hired were TCGE, rather than Harrah’s, employees.

In 1994, Harrah’s hired Edward Yashen-ko to work for the parent company in Louisiana; in 1997, he transferred to the North Carolina casino, where he became a “leased” employee. In 1999, Yashenko received a promotion to the position of Manager — Employee Relations, a job he held until his discharge in July 2003. During his tenure at the North Carolina casino, Yashenko requested and was granted several medical leaves of absence, all of which were approved and most of which were taken under the FMLA. Specifically, Yash-enko received approximately ten weeks leave from December 19, 2000, until February 26, 2001; approximately fifteen weeks leave from May 1 until August 23, 2001; six weeks leave from March 13 until April 23, 2002; and fourteen weeks leave from May 1 until August 12, 2002. After each leave of absence, Yashenko returned to the same job, with no reduction in pay or benefits.

In early May 2003, Yashenko requested another medical leave of absence for a serious health problem related to heart surgery. Harrah’s approved the leave as FMLA leave, and Yashenko remained on leave for eleven more weeks, until July 21, 2003. While Yashenko was out, Harrah’s informed him that the company was reorganizing in a way that eliminated his position (a Harrah’s position), as well as the position of Employment Manager (a TCGE position). In their stead, Harrah’s created two new TCGE positions that consolidated the responsibilities of the eliminated jobs. The company’s goal was to form “a synergy ... by having ... one manager responsible for the life of the employee from hiring to termination.” Tom Fagg, the Human Resources director at Harrah’s, invited Yashenko to apply for the new positions, as well as other available TCGE jobs. (There were no available jobs at Harrah’s because the Agreement “prevented [Harrah’s] from hiring new employees to work for Harrah’s.”) Despite the invitation and the many descriptions of job openings Fagg sent him, Yash-enko decided not to apply for any position because, he explained, he was taking medication, and did not feel up to it, and because his doctors assertedly recommended that he not do so. Upon his return from FMLA leave on July 21, 2003, Harrah’s discharged him.

Yashenko then filed suit in state court against Harrah’s alleging violations of his rights under the FMLA because Harrah’s did not restore him to his job at the end of his leave. Harrah’s removed the case to federal court. After both parties moved for summary judgment, the district court granted Yashenko permission to file an amended complaint in which he added claims of race discrimination under § 1981 and of wrongful discharge in violation of North Carolina public policy. The parties then filed cross motions for summary judgment on these additional claims. On January 20, 2005, the district court granted summary judgment to Harrah’s on both the FMLA and § 1981 claims, and dismissed the wrongful discharge claim without prejudice. Yashenko noted a timely appeal.

II.

In recognition of the growth of “single-parent households and two-parent households in which the single parent or both parents work,” the importance of parental participation “in early childrearing” and “care of family members who have serious health conditions,” the inadequacy of “employment policies to accommodate working parents,” and the lack of “job security for *546 employees who have serious health conditions,” 29 U.S.C.A. § 2601(a), Congress enacted the Family and Medical Leave Act in 1993. In this legislation, Congress sought “to balance the demands of the workplace with the needs of families, to promote the stability and economic security of families, ... to promote national interests in preserving family integrity,” and “to entitle employees to take reasonable leave for medical reasons, for the birth or adoption of a child, and for the care of a child, spouse, or parent who has a serious health condition.” Id. § 2601(b)(l)-(2). The legislature sought to “accomplish” these purposes “in a manner that accommodates the legitimate interests of employers.” Id. § 2601(b)(3).

The FMLA provides covered employees with two types of rights and protections.

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446 F.3d 541, 11 Wage & Hour Cas.2d (BNA) 708, 2006 U.S. App. LEXIS 10469, 2006 WL 1098803, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edward-yashenko-v-harrahs-nc-casino-company-llc-ca4-2006.