Olsen v. Costco Wholesale Corp.

District Court, E.D. California·Decided August 21, 2025·No. 2:22-cv-02294·Unknown

Opinion

MEGAN OLSEN, No. 2:22-cv-02294-DJC-JDP Plaintiff, v. ORDER GRANTING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT CORPORATION; and DOES 1 through 50, inclusive, Defendant(s). While working for Defendant, Plaintiff injured her foot and was left with physical limitations. After taking unpaid medical leave for approximately two years, Plaintiff obtained permanent medical restrictions. Plaintiff presented these restrictions to Defendant, and both parties agreed that Plaintiff could not return to her prior position. Plaintiff and Defendant engaged in an interactive process but ultimately failed to find an available position for which Plaintiff was qualified. After Defendant terminated Plaintiff’s employment, Plaintiff brought suit for state law claims, including failure to accommodate, discrimination, and retaliation. Defendant now moves for summary judgment, arguing that it complied with its legal duties before terminating Plaintiff’s employment. For the reasons stated below, the Court GRANTS Defendant’s Motion for Summary Judgment (ECF No. 60).

Plaintiff Megan Olsen began working for Defendant Costco Wholesale

Corporation in 2002. (Molineaux Decl., Ex. 17, Olsen Dep. 20:15–17, ECF No. 74-21.)1

On February 21, 2018, Plaintiff suffered a workplace injury to her foot. (Id. 34:24–

35:1.) On June 18, 2018, Plaintiff took unpaid medical leave. (Id. 81:14–21.) In

January 2021, while still on leave, Plaintiff obtained from her medical provider permanent restrictions, which were sent to Defendant. (Id., Ex. 12.) Plaintiff and Defendant thereafter met on two occasions to discuss her return to work, and they concluded that she was unable to return to the position she held when she was injured. (Id., Exs. 13, 25.) Defendant sent Plaintiff available positions, though Plaintiff never applied for any position or requested an accommodation to perform any available position. (Id., Exs. 15–20.) Because Plaintiff had exhausted her medical leave and there was no available position for which she was qualified, Defendant terminated Plaintiff’s employment on April 19, 2022 — nearly four years after she went on medical leave. (Id. 140:21–141:4.) Plaintiff originally filed her complaint (“the Complaint”) in the County of Solano Superior Court, and Defendant timely removed the case to this Court under diversity jurisdiction. (Notice of Removal, Ex. A, ECF No. 1.) Based on the parties’ stipulation that was granted by the Court, five causes of action were dismissed with prejudice. (Order Granting Joint Stipulation, ECF No. 58.) Accordingly, Plaintiff maintains six state law claims, largely pursuant to California’s Fair Employment and Housing Act (“FEHA”): (1) retaliation; (2) discrimination; (3) failure to provide reasonable accommodation; (4) failure to engage in the interactive process; (5) failure to prevent discrimination; and (6) wrongful termination.2 (Complaint at 1, ECF No. 1.)

1 For some portions of Olsen’s deposition, see Emrani Decl., Ex. A, ECF No. 60-2.

2 Plaintiff technically maintains seven causes of action, but she brings two claims each for discrimination and retaliation. As explained below, the Court only conducts one discrimination analysis and one retaliation analysis. See infra Discussion Parts III, V. Defendant now moves for summary judgment as to all claims. (Mot., ECF No.

60.) Plaintiff opposed, albeit two days late. (See Opp’n, ECF No. 74; Minute Order,

ECF No. 68.) While Defendant urges the Court to construe Plaintiff’s failure to file a

timely opposition as a non-opposition to the Motion, the Court declines Defendant’s

request and considers Plaintiff’s brief in reaching its decision. (See Reply at 1, ECF No.

76.) Accompanying its Reply, Defendant submitted a list of evidentiary objections. (Evidentiary Objections, ECF No. 76-3.) Because the Court reaches its decision in favor of Defendant even when considering the totality of Plaintiff’s evidence, these objections are rendered moot. The matter is fully briefed. On August 7, 2025, the Court heard oral argument from the parties on this motion and took the matter under submission. (ECF No. 90.) Summary judgment is appropriate when the record, read in the light most favorable to the non-moving party, indicates “that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a). A genuine dispute of fact exists only if “there is sufficient evidence favoring the nonmoving party for a jury to return a verdict for that party.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249 (1986). If the nonmoving party fails to make this showing, “the moving party is entitled to a judgment as a matter of law.” Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). The Court discusses the following issues: (1) reasonable accommodation; (2) interactive process; (3) discrimination; (4) failure to prevent discrimination; (5) retaliation; and (6) wrongful termination. I. Reasonable Accommodation The Court first discusses the factual timeline underlying this claim before analyzing the legal merits. //// A. Timeline

1. Plaintiff’s Injury and Return to Work

On February 21, 2018, Plaintiff suffered a workplace injury that resulted in

damage to her right foot. (Olsen Dep. 34:24–35:1.) Two days later, Plaintiff saw her

medical provider, Dr. Phillip Wagner, who placed Plaintiff on modified activity such

that Plaintiff could only stand up to 25% of her shift and walk up to 25% of her shift. (Olsen Dep., Ex. 5.) Plaintiff testified that in the weeks after her injury, Defendant did not adhere to these work restrictions. (Id. 65:1–21.) On March 8, 2018, Dr. Wagner took Plaintiff off work. (Molineaux Decl., Amended Ex. 2 at 32, 42–43, ECF No. 78-2.) On April 12, 2018, Dr. Wagner allowed Plaintiff to return to work with the same modified restrictions as issued in February. (Id. at 41.) Plaintiff testified that her restrictions were once again violated. (Olsen Dep. 73:23–74:10.) In June 2018, Plaintiff “called workmen’s comp and complained” about Defendant not following her restrictions. (Id. 77:3–12.) The day after making the complaint, Defendant’s employees held a meeting with Plaintiff, at which Plaintiff represents she was told, “we think that it’s best that you go back out on leave until you are fully recovered and can come back to work with no accommodations.” (Id. 79:21–81:21.) Plaintiff does not testify that she disagreed with Defendant’s recommendation or otherwise expressed concerns with the suggestion she take unpaid leave. (See id.) Instead, Plaintiff accepted Defendant’s recommendation, and her last day of work was June 18, 2018. (See id.; Golston Decl. ¶ 13, ECF No. 60-3.) 2. Permanent Restrictions and the First Job Assessment Meeting Plaintiff remained on unpaid medical leave for nearly two years without any evidence of communication between her and Defendant, though Defendant did routinely receive notes from Dr. Wagner that alternated between Plaintiff being placed on modified activity and being placed off work due to injury. (Emrani Decl., Ex. H at 114–126, ECF No. 76-1; Molineaux Decl., Amended Ex. 2 at 24–28.) On June 3, 2020, Dr. Wagner concluded that Plaintiff had reached Maximal Medical Improvement and therefore was deemed Permanent and Stationary, meaning that Plaintiff was

unlikely to further recover from her injuries. (Molineaux Decl., Amended Ex. 5 at 10,

ECF No. 78-4.) On June 23, 2020, Defendant’s third-party coordinator contacted

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Olsen v. Costco Wholesale Corp., (E.D. Cal. 2025).

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