Kenneth Savage v. Federal Express Corp.

856 F.3d 440, 2017 FED App. 0102P, 2017 WL 1902241, 209 L.R.R.M. (BNA) 3021, 2017 U.S. App. LEXIS 8267, 101 Empl. Prac. Dec. (CCH) 45,792
CourtCourt of Appeals for the Sixth Circuit
DecidedMay 10, 2017
Docket16-5244
StatusPublished
Cited by17 cases

This text of 856 F.3d 440 (Kenneth Savage v. Federal Express Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kenneth Savage v. Federal Express Corp., 856 F.3d 440, 2017 FED App. 0102P, 2017 WL 1902241, 209 L.R.R.M. (BNA) 3021, 2017 U.S. App. LEXIS 8267, 101 Empl. Prac. Dec. (CCH) 45,792 (6th Cir. 2017).

Opinions

STRANCH, J., delivered the opinion of the court in which DONALD, J., joined, and BATCHELDER, J., joined in part. BATCHELDER, J. (pp. 454-56), delivered a separate opinion concurring in part and dissenting in part.

OPINION

JANE B. STRANCH, Circuit Judge.

Kenneth Savage worked as an aviation mechanic for FedEx, while simultaneously serving as a lieutenant in the United States Naval Reserve. He was terminated by FedEx for violating its reduced-rate shipping policy and acceptable conduct policy. Savage brought claims against Federal Express Corporation d/b/a FedEx Express, FedEx Corporation Employees’ Pension Plan, and FedEx Corporation Retirement Savings Plan (collectively “FedEx”) for discrimination, retaliation, and improper benefit calculations under the Uniformed Services Employment and Reemployment Rights Act (USERRA), 38 U.S.C. § 431 et seq. The district court granted summary judgment to the defendants. For the following reasons, we AFFIRM in part and REVERSE in part the judgment of the district court.

I. BACKGROUND

Kenneth Savage worked as a Senior Aircraft Mechanic at FedEx’s Memphis hub from August 2001 to September 2012. He had a strong record as an employee during his tenure at FedEx, earning top performance reviews and various awards and was never formally disciplined prior to his termination. During that time, Savage also served as a lieutenant in the United States Naval Reserve, where he served as an aircraft maintenance officer. Over the course of his eleven years at FedEx, Savage was allowed to: take time off to fulfill his military duties; fly on cargo planes to military sites to perform those duties; and use FedEx computers to complete military training while at work. Savage was one of many current or former service members employed by FedEx.

Savage participated in the FedEx Corporation Employees’ Pension Plan (“pension plan”), a defined benefit plan covering all eligible and participating employees. At the time, Mercer, an actuarial and retirement benefits administrative firm separate from FedEx, calculated and administered retirement benefits under the pension plan. Savage states that in late May or early June 2012, he notified his manager, human resources advisor, and other individuals in FedEx’s benefit department about a discrepancy in his pension calculations. He also raised the issue with the FedEx Retirement Center, which is not a FedEx entity but a specific group of Mer[444]*444cer employees. Savage states that he continued to make complaints through July and August.

Savage was not the first to complain about the calculation of pension benefits. Cliff Cunningham, another service member and FedEx employee in Savage’s work group, also stated that he believed his military service had resulted in FedEx incorrectly crediting his retirement accounts. In 2008, FedEx settled a dispute with its pilots’ union over “FedEx’s failure to make the correct USERRA pension contributions for pilots serving in the military.” Savage and other FedEx mechanics were participants in the same pension plan as the pilots.

FedEx allowed employees, their spouses, and dependents to utilize shipping services at a reduced rate, though this discount could not be used for any type of commercial benefit or commercial purpose not related to FedEx Express, or for any commercial enterprise or business, either non-profit or for-profit. FedEx’s acceptable conduct policy states that “[violation of guidelines and policy for employee reduced rate shipping ... may result in severe disciplinary action up to and including termination.” These policies are listed in FedEx manuals and handbooks that Savage had access to throughout the course of his employment. At the time Savage signed up for his reduced-rate shipping account, he agreed to the terms and conditions of the policy. Savage states' that the policy allowed FedEx employees to use reduced shipping rates for their personal benefit, and was revised on September 2, 2012, to explicitly prohibit employees from using the discount to ship merchandise sold on eBay. Savage asserts that he was not notified of this change, and on September 4, his wife used the employee discount to ship one or two items she had sold on eBay. Savage and his wife had previously used the discounted shipping rate to transport various items they had sold through websites like eBay and Craigslist.

FedEx routinely investigates whether employees abuse their shipping privileges. In 2012, Savage used his reduced-rate shipping discount 90 times between March and August, and appeared on FedEx’s audit for this high volume of shipments. Savage’s name did not appear on the initial quarterly audit list, but was added as part of an additional pull made because many of the employees on the. first list were already under investigation. Patricia Williams, a FedEx security specialist, investigated Savage’s use of the discount. After reviewing the nature and volume of his shipments, Williams interviewed Savage on September 12. He told her that he was aware of the shipping policy and that he and his wife sold items online using his discount. Specifically, Savage said that he and his wife would buy products, like saddles and bridles, from sellers at online auctions. They would then fix up the merchandise for resale, list the goods for resale online, and ship the merchandise to buyers using his employee discount. Savage later clarified that he and his wife “ ‘resold’ items that [they] currently owned,” and did not “buy and re[sell] these items to make a profit.” Savage also maintained that he was not running a business with these transactions. He asserts that many employees found the shipping policy vague and confusing, in part because “FedEx constantly changed its discount shipping policy, often without given notice to its employees.”

At the end of the interview, Savage was suspended with pay pending investigation. The suspension occurred 34 days after he had completed a period of military service, and less than a month after he complained to the FedEx Retirement Center about the calculation of his retirement benefits. Sav[445]*445age submitted a statement a few days later, expressing his belief that his use of the policy had been for a permissible purpose under the FedEx policy in place prior to September 2. Williams concluded that' Savage had violated the shipping policy by selling merchandise and using his discount to ship the items to buyers. Williams testified that at the time of her investigation and the interview, she was not aware that Savage was in the military or had made complaints about how FedEx treated military employees. Williams provided her conclusions to Thomas Lott, the human resources advisor for aviation mechanics at the Memphis hub, who forwarded the results to Maureen Patton, the managing director. Savage was terminated on September 20, 42 days after completing military service and a little over a month after he contacted the FedEx Retirement Center about his benefits. Savage unsuccessfully appealed his termination through FedEx’s internal appeal process.

Savage argues that FedEx had “no black-and-white rule or requirement that any employee who violates its discount shipping policy will or must be terminated,” but that such a decision was discretionary. He also states that other non-protected FedEx employees violated the reduced-rate shipping policy and received only warnings letters as discipline.

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856 F.3d 440, 2017 FED App. 0102P, 2017 WL 1902241, 209 L.R.R.M. (BNA) 3021, 2017 U.S. App. LEXIS 8267, 101 Empl. Prac. Dec. (CCH) 45,792, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kenneth-savage-v-federal-express-corp-ca6-2017.