Nordquist v. City Finance Co.

173 F. Supp. 2d 537, 2001 U.S. Dist. LEXIS 22612, 82 Empl. Prac. Dec. (CCH) 41,015, 2001 WL 1503285
CourtDistrict Court, N.D. Mississippi
DecidedJanuary 19, 2001
Docket1:00CV43-S-A
StatusPublished
Cited by1 cases

This text of 173 F. Supp. 2d 537 (Nordquist v. City Finance Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nordquist v. City Finance Co., 173 F. Supp. 2d 537, 2001 U.S. Dist. LEXIS 22612, 82 Empl. Prac. Dec. (CCH) 41,015, 2001 WL 1503285 (N.D. Miss. 2001).

Opinion

OPINION

SENTER, Senior District Judge.

In this case, plaintiff alleges that she was terminated because she exercised her rights under the Family and ' Medical Leave Act (FMLA). Presently before the court is defendant’s motion for summary judgment.

BACKGROUND

Although not crucial to the court’s ruling, a brief recitation of the facts is warranted. The plaintiff, Deadria Nordquist, was the manager of the Columbus, Mississippi, branch of defendant, City Finance Company. In July, 1999, plaintiff went on maternity leave for the birth of her first child. While plaintiff was on leave, defendant discovered what it believed to be several lending irregularities committed by plaintiff, including making loans to family members. Plaintiff was summarily terminated. Plaintiff now maintains that defendant, which had designated her leave as FMLA-qualifying, violated the FMLA because it terminated her in retaliation for exercising her rights under the FMLA and because it did not return her to the same or an equivalent position at the expiration of her leave.

DISCUSSION

Of critical importance is the question of whether this cause is properly before the court. Defendant maintains that because it did not have fifty employees at or within seventy-five miles of the Colum *539 bus, Mississippi, office where plaintiff was employed, it does not meet the statutory definition of “employer,” and therefore, subject matter jurisdiction is missing. In response, plaintiff does not contest that this is a jurisdictional issue but argues instead that defendant did indeed employ the requisite number of people.

Under the FMLA, a statutory employer is, in pertinent part, “any person engaged in commerce or in an industry or activity affecting commerce who employs 50 or more employees.... ” 29 U.S.C. § 2611(4)(A)(i). By its own calculations, defendant meets this definition since it employs approximately 100 people at approximately 27 different locations within the Northern District of Mississippi alone. Though the court would agree that in all likelihood the failure of an employer to meet the statutory requirements would deprive this court of subject matter jurisdiction, see Greenlees v. Eidenmuller Enterprises, Inc., 32 F.3d 197, 198 (5th Cir.1994) (in the context of Title VII, status as “employer” is jurisdictional prerequisite to suit); Womble v. Bhangu, 864 F.2d 1212, 1213 (5th Cir.1989) (same), in this court’s view, the question is not whether defendant is an “employer” but rather whether plaintiff was, at the time she gave notice of the need for leave, see 29 C.F.R. § 110(f), an “eligible employee.” In that regard, the FMLA excludes from “eligible employee” status “any employee of an employer who is employed at a worksite at which such employer employs less than 50 employees if the total number of employees employed by that employer within 75 miles of that worksite is less than 50.” 29 U.S.C. § 2611(2)(B)(ii). It is defendant’s obligation to determine the employee’s eligibility for coverage. See generally 29 C.F.R. § 110. Without a doubt, defendant employed only approximately thirty-seven employees within seventy-five miles of Columbus. That figure includes the Tuscaloosa, Alabama, office but excludes the Philadelphia, Pontotoc, Grenada, and Wi-nona, Mississippi, offices, as they are outside the seventy-five mile radius. Clearly then, plaintiff was not, under usual circumstances, eligible for FMLA leave.

However, because of defendant’s actions, this case does not present the usual circumstances. Here, upon plaintiffs notification that she needed to take FMLA leave for the birth of her child, plaintiff received the following letter from defendant:

On 07/12/1999, we were notified of your need to take leave covered under the Family and Medical Leave Act (FMLA). You notified us that you need this leave beginning 07/07/1999 and you expect to return on or around 08/30/1999. This letter is to inform you that you are eligible for Federal FMLA leave under our policy.

(Emphasis added.) Clearly, as discussed supra, defendant was in error when it determined that plaintiff was an “eligible employee” under the FMLA. In this court’s mind, the question thus becomes whether an employer is estopped from denying eligibility once it has bestowed such status. Though plaintiff alludes to this as an issue, she does not phrase it in the same terms and indeed cites to an inapplicable regulation for support. See 29 C.F.R. § 208(c) (if employer knows paid leave is for FMLA reason and fails to designate leave as FMLA leave, employer may not designate leave as FMLA leave retroactively).

Nevertheless, the Department of Labor has actually contemplated the occurrence of this situation, though in the context of a different portion of the definition of “eligible employee.” Under subsection 2611 (2)(A)(ii), to be an “eligible employee,” the employee must have been em *540 ployed by the employer for at least 1,250 hours during the previous 12-month period. As noted previously, the determination of whether the employee meets this definition is made by the employer. Under 29 C.F.R. § 825.110(d), which is referred to as the estoppel provision, “If the employer confirms eligibility at the time the notice for leave is received, the employer may not subsequently challenge the employee’s eligibility.” Furthermore, under the notice provision of the regulation, if the employer does not timely notify the employee of its eligibility determination, the employee is deemed eligible. 29 C.F.R. § 825.110(d). With the exception of one court, every court which has considered this regulation has struck it down as an invalid interpretation of the FMLA. See Brungart v. BellSouth Telecommunications, Inc., 231 F.3d 791 (11th Cir.2000) (notice provision of 825.110(d) is invalid); Dormeyer v. Comerica Bank-Illinois, 223 F.3d 579 (7th Cir.2000) (notice provision of 825.110(d) is invalid though recognizing employee’s right to invoke es-toppel if detrimental reliance is shown); Scheidecker v. Arvig Enterprises, Inc., 122 F.Supp.2d 1031 (D.Minn.2000) (notice provision of 825.110(d) is invalid); McQuain v. Ebner Furnaces, Inc., 55 F.Supp.2d 763 (N.D.Ohio 1999) (same); Seaman v. Downtown Partnership of Baltimore, Inc., 991 F.Supp. 751 (D.Md.1998) (estoppel provision of 825.110(d) invalid); Wolke v. Dreadnought Marine, Inc., 954 F.Supp.

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Bluebook (online)
173 F. Supp. 2d 537, 2001 U.S. Dist. LEXIS 22612, 82 Empl. Prac. Dec. (CCH) 41,015, 2001 WL 1503285, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nordquist-v-city-finance-co-msnd-2001.