Equal Employment Opportunity Commission v. Grane Healthcare Co.

2 F. Supp. 3d 667, 29 Am. Disabilities Cas. (BNA) 655, 2014 U.S. Dist. LEXIS 28477
CourtDistrict Court, W.D. Pennsylvania
DecidedMarch 6, 2014
DocketCivil Action No. 3:10-250
StatusPublished
Cited by2 cases

This text of 2 F. Supp. 3d 667 (Equal Employment Opportunity Commission v. Grane Healthcare Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Equal Employment Opportunity Commission v. Grane Healthcare Co., 2 F. Supp. 3d 667, 29 Am. Disabilities Cas. (BNA) 655, 2014 U.S. Dist. LEXIS 28477 (W.D. Pa. 2014).

Opinion

MEMORANDUM OPINION

KIM R. GIBSON, District Judge.

I. INTRODUCTION

This matter comes before the Court on cross-motions for summary judgment filed by the parties pursuant to Fed. R. Civ. Pro. 56. (ECF Nos. 92, 95). The Plaintiff seeks partial summary judgment on threshold issues relating to liability. (ECF No. 95). The' Defendants move for summary judgment with respect to all claims brought against them. (ECF No. 92). For the reasons that follow, the Plaintiff’s motion for partial summary judgment (ECF No. 95) will be granted in part and denied in part, and the Defendants’ motion for summary judgment (ECF No. 92) will be denied.

[675]*675II. BACKGROUND

Grane Healthcare Company (“Grane”) is an organization maintaining management contracts with several different entities. (ECF No. 115 at 1-2 ¶1.) Ross Nese (“Nese”) serves as Grane’s President. (Id. at 2 ¶ 6). Len Oddo (“Oddo”) is Grane’s Chief Operating Officer. (Id. at 2 ¶ 2). In that capacity, Oddo implements Grane’s management contracts. (Id. at 2 ¶ 4). He also serves as the Vice President of the Ebensburg Care Center, LLC (“ECC”). (Id. at 2 ¶ 3). Oddo reports to Richard Graciano (“Graciano”), who serves as Grane’s Chief Executive Officer (“CEO”). (Id. at 2 ¶ 5).

During the fall of 2009, Grane purchased the LaurelCrest Nursing and Rehabilitation Center (“LCNRC”) from Cambria County. (ECF No. 115 at 2 ¶7). In connection with the purchase, the ECC was designated to become the owner and operator of a new facility known as the Cambria Care Center (“CCC”). (Id. at 2-3 ¶ 8). This arrangement was scheduled to become effective on January 1, 2010. (Id.).

Grane has a management consulting agreement with the CCC. (ECF No. 115 at 3 ¶ 9). According to the agreement, Grane was responsible for recruiting and hiring more than 300 employees to staff the CCC and care for its 200 residents. (Id. at 5 ¶¶ 16-17). To fulfill that obligation, Grane invited the LCNRC’s employees to apply for positions with the CCC. (Id. at 5 ¶ 18). The application process began in October 2009, when the LCNRC’s employees were informed of the impending sale. (Id. at 6-7 ¶¶ 20, 23). Beth Lengle (“Lengle”), Grane’s Vice President of Nursing Services, was in charge of processing the applications. (Id. at 5-6 ¶ 19). Individuals interested in applying for positions with the CCC were instructed to report to a conference room located within the LCNRC in order to complete the required paperwork. (Id. at 8 ¶28). Pennsylvania’s Older Adults Protective Services Act [35 Pa. Stat. § 10225.101 et seq.\ requires covered healthcare facilities to consider the “criminal history record[s]” of all prospective employees in connection with the application process. 35 Pa. Stat. § 10225.502(a)(1). In accordance with that mandate, Lengle reviewed the “criminal history record” of each individual seeking employment with the CCC. (ECF No. 115 at 18 ¶¶ 56-57).

Grane typically requires every applicant to undergo a test for illegal drugs. (ECF No. 115 at 10 ¶ 33). Registered nurse Deborah Hoover (“Hoover”), a nurse consultant for Grane, was responsible for administering the tests conducted on the LCNRC employees seeking employment with the CCC. (Id. at 10 ¶34). Urine samples submitted by the applicants were screened for illicit substances. (Id. at 11 ¶¶ 37-39). Forms provided to the applicants requested information about their medications. (Id. at 115 ¶ 35). When an applicant’s drug test yielded a positive result, Lengle cross-checked the test result with the list of the applicant’s medications to determine whether the positive finding was attributable to a prescribed medication. (Id. at 12 ¶ 41). An applicant was deemed to have passed the drug test if his or her disclosed medications corresponded with the positive test result. (Id. at 12 ¶ 42). Grane maintained a policy of refusing to hire any applicant who was using a controlled substance without a prescription. (Id. at 11 ¶¶ 40).

Corporate Care Services (“CCS”) was contracted to conduct pre-employment physical examinations of the CCC’s incoming employees. (ECF No. 115 at 8-9 ¶ 29). LCNRC employees interested in being considered for positions with the CCC were instructed to complete pre-placement [676]*676evaluation forms provided by CCS. (Id. at 9 ¶30). Each form solicited information about an applicant’s medical history. (Id. at 9 ¶ 31). A separate portion of the form was designed to record the results of a physical examination. (Id. at 9 ¶ 31). Every applicant was required to undergo a medical examination, regardless of whether he or she was seeking to become a member of the CCC’s medical staff. (Id. at 19 ¶ 60). Charlene McFeeley (“McFee-ley”), a nurse practitioner employed by CCS, performed physical examinations of the LCNRC employees who were seeking employment with the CCC. (Id. at 20 ¶¶ 63-64). After examining each prospective employee, McFeeley provided a written indication as to whether the individual was able to perform the “essential functions” of his or her desired position. (Id. at 20-21 ¶ 65). Healthcare facilities such as the CCC are required to screen employees and contractors “with direct consumer contact” for tuberculosis. 35 Pa. Stat. § 448.806(D.1)(5). Tuberculosis screenings were performed as a part of the CCC’s application process. (ECF No. 115 at 18 ¶ 55).

More than 300 LCNRC employees applied for positions with the CCC. (ECF No. 115 at 21 ¶ 68). The applicants were examined by McFeeley during the fall of 2009. (ECF No. 98-3 at 5). Grane ultimately hired roughly 225 of the applicants to work for the CCC. (ECF No. 115 at 21 ¶ 68). Although most of the successful applicants were offered positions in person, there were situations in which individuals were offered positions by telephone. (Id. at 21 ¶ 69).

The CCC began its operations on January 1, 2010. (ECF No. 115 at 5 ¶ 16). Shortly thereafter, several unsuccessful applicants for employment filed charges of discrimination with the Equal Employment Opportunity Commission (“EEOC”), alleging that Grane and the ECC had violated the Americans with Disabilities Act of 1990 (“ADA”) [42 U.S.C. § 12101 et seq.] by conducting pre-offer medical examinations of prospective employees and declining to hire some of them because of actual or perceived disabilities. (ECF No. 116-24). The EEOC commenced this action against Grane and the ECC on September 30, 2010, seeking injunctive and monetary relief to remedy the alleged violations of the ADA. (ECF No. 1). Grane and the ECC answered the EEOC’s complaint two months later. (ECF No. 8). On September 14, 2012, the EEOC filed a motion for partial judgment on the pleadings. (ECF No. 60). Grane and the ECC responded to the motion by seeking permission to amend their answer. (ECF No. 64). The motion for partial judgment on the pleadings was denied without prejudice in a memorandum opinion and order dated March 15, 2013, 2013 WL 1102880. (ECF No. 86). Grane and the ECC filed their amended answer three days later. (ECF No. 87). The parties filed cross-motions for summary judgment on July 8, 2013. (ECF Nos. 92, 95). Those motions are the subject of this memorandum opinion.

III. STANDARD OF REVIEW

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2 F. Supp. 3d 667, 29 Am. Disabilities Cas. (BNA) 655, 2014 U.S. Dist. LEXIS 28477, Counsel Stack Legal Research, https://law.counselstack.com/opinion/equal-employment-opportunity-commission-v-grane-healthcare-co-pawd-2014.