Harrison, K. v. Health Network Lab, Aplts

Supreme Court of Pennsylvania·Decided June 16, 2020·No. 51 MAP 2019·Published

Opinion

[J-98-2019]

IN THE SUPREME COURT OF PENNSYLVANIA MIDDLE DISTRICT

SAYLOR, C.J., BAER, TODD, DONOHUE, DOUGHERTY, WECHT, MUNDY, JJ.

KAREN HARRISON, : No. 51 MAP 2019 :

Appellee : Appeal from the Order of the : Superior Court at No. 365 EDA 2018 : dated December 12, 2018 Affirming v. : in Part and Vacating in Part the : Order of the Lehigh County Court of : Common Pleas, Civil Division, at HEALTH NETWORK LABORATORIES : No. 2016-C-1469 dated December LIMITED PARTNERSHIPS, AND LEHIGH : 19, 2017 and Remanding. VALLEY HEALTH NETWORK, INC., :

: ARGUED: November 19, 2019 Appellants :

OPINION

JUSTICE DOUGHERTY DECIDED: June 16, 2020 We granted discretionary review to consider whether the Superior Court erred in

holding the Pennsylvania Human Relations Act (PHRA), 43 P.S. §§951-963, does not preclude a wrongfully terminated employee from filing a court action for retaliatory discharge under the Pennsylvania Whistleblower Law (Whistleblower Law), 43 P.S. §§1421-1428, when the plaintiff reported discriminatory conduct made unlawful by the PHRA, but was not herself the subject of the underlying discrimination. After careful review, we conclude the Superior Court did not err in so holding, and we therefore affirm.

I. Background

Appellee Karen Harrison (Harrison) held an administrative position for appellants, Health Network Laboratories Limited Partnerships and Lehigh Valley Health Network, Inc. (collectively Health Network), or one of their acquired organizations, for approximately

eighteen years.1 Amended Complaint at ¶¶6-9. From 2012 until her discharge, Harrison’s title was “Manager, Quality,” a position which, according to Harrison, required her to meet with coworkers to ensure they were performing in a satisfactory and safe working environment. Id. at ¶¶10-11. In March of 2015, Harrison received a complaint from a Health Network employee expressing concerns about allegedly abusive, discriminatory, and harassing conduct by an IT department supervisor, which was known to and went unchecked by the supervisor’s immediate superior. Id. at ¶¶13-14. Harrison initially reported the concerns to Health Network’s Chief Operating Officer/Chief Compliance Officer, without identifying the complainant or supervisors by name, and requested the appointment of an ombudsman to address the concerns. Id. at ¶¶18-19. No ombudsman was appointed, and the concerns went unaddressed. Id. at ¶¶20-21. In October of 2015, the complainant employee resigned, providing a letter which memorialized her experience with the IT supervisor’s conduct and identified the offending supervisor by name; she forwarded the letter to Harrison as well as other Health Network employees. Id. at ¶¶21, 23. Harrison shared the letter with her chain of command on October 19, 2015, but no corrective action was taken with the IT supervisor. Id. at ¶¶24-25. On November 19, 2015, Health Network terminated Harrison. Id. at ¶26. Health Network’s stated reason for firing Harrison was for use of foul language at an after-hours banquet; however, Harrison averred this explanation was pretextual in light of her exemplary personnel record, and her firing was instead retaliation for her attempts to “intervene in and deter the illegal, threatening, abusive and discriminatory conduct” of the IT supervisor. Id. at ¶¶28-30.

1 Harrison worked for Muhlenberg Hospital from 1992 until October 1, 1998, at which time the hospital merged with Lehigh Valley Health Network, Inc., the general partner of Health Network Laboratories Limited Partnerships. Amended Complaint at ¶¶6-9.

Harrison filed an action in the court of common pleas alleging a single count of retaliation pursuant to Pennsylvania’s Whistleblower Law.2 The Whistleblower Law provides a civil remedy for employees who are discharged or otherwise retaliated against for making a good faith report of, inter alia, wrongdoing by a publicly-funded employer.3 See 43 P.S. §§1423-24. The Whistleblower Law includes violations of federal or state statutes or regulations “which [are] not of a merely technical or minimal nature” as types of reported wrongdoing that support a claim of actionable retaliation. Id. at §1422. Specifically, Harrison alleged she was fired as retaliation for reporting wrongdoing she witnessed, i.e., discriminatory and abusive conduct by one co-employee against another, which constituted violations of the PHRA.4 Amended Complaint at ¶¶30, 37-38. Health Network filed preliminary objections raising, in pertinent part, legal insufficiency of the complaint to state a claim upon which relief may be granted, see Pa.R.C.P. 1028(a)(4), and seeking dismissal of the case with prejudice. Preliminary Objections to Amended Complaint at ¶¶36, 63. According to Health Network, the PHRA is the exclusive state law remedy for unlawful workplace discrimination, and contains its own specific provision

2 Harrison’s initial complaint additionally alleged the supervisor’s conduct violated Title VII of the Civil Rights Act of 1964, 42 U.S.C. §§2000e-2000e-17, which caused the matter’s removal to federal district court. Harrison v. Health Network Labs. Ltd. P’ships, No. 16- 3530, unpublished memorandum at 1 (E.D. Pa. filed May 18, 2017). Upon Harrison’s amendment of the complaint to remove reference to the embedded federal claim, the federal court removed the case back to the court of common pleas. Id. at 3. 3 Harrison avers, and Health Network does not dispute, as a recipient of Medicare and other forms of public assistance payments, Health Network is a “public body” “which is funded in any amount by or through Commonwealth or political subdivision” as defined by the Whistleblower Law. Amended Complaint at ¶¶33-34; see also 43 P.S. §1422 (defining “public body”). 4 Relevant to this appeal, the PHRA prohibits employers who fall within the act from discriminating against their employees on the basis of race, color, religious creed, ancestry, age, sex, national origin, or disability, and from discriminating against individuals who oppose practices forbidden by the PHRA. See 43 P.S. §§955(a), (d).

prohibiting retaliation for opposing practices forbidden by the PHRA; Health Network therefore argued Harrison could only pursue her retaliation claim under the PHRA, which requires claimants to exhaust their administrative remedies first — i.e., file an administrative charge of discrimination with the Pennsylvania Human Relations Commission (PHRC) and submit to its investigation, conciliation, and adjudication procedures — before advancing a claim in court. Id. at ¶¶43-51, citing, inter alia, 43 P.S. §955(d) (PHRA provision prohibiting discrimination by employer against “any individual because such individual has opposed any practice forbidden by this act”), Weaver v. Harpster, 975 A.2d 555, 567 n. 10 (Pa. 2009) (“[T]he legislature has made the PHRA the exclusive state law remedy for unlawful discrimination, preempting the advancement of common law claims for wrongful discharge based on claims of discrimination.”).

The trial court sustained Health Network’s preliminary objections, determining Harrison was required to file her complaint with the PHRC and exhaust all administrative remedies before seeking redress under the PHRA in court. See Trial Court Opinion, 2/9/2018, at 3. The court further explained it viewed proceeding on the Whistleblower Law claim as thwarting the intent of the PHRA because it would permit Harrison to skip the mandatory PHRC investigation into her retaliation claim, and would deny Health Network the opportunity to reach a conciliation agreement before the PHRC. Id. at 4. In dismissing Harrison’s complaint, the court concluded Health Network’s alleged retaliation against Harrison for her opposition to illegal workplace discrimination fell within the exclusive jurisdiction of the PHRA, thus she failed to state a claim upon which relief could be granted under the Whistleblower Law and failed to exhaust administrative remedies under the PHRA. Id.

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