Qlarant v. Guthneck

2025 MT 55, 565 P.3d 1209, 421 Mont. 163
CourtMontana Supreme Court
DecidedMarch 25, 2025
DocketDA 24-0194
StatusPublished

This text of 2025 MT 55 (Qlarant v. Guthneck) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Qlarant v. Guthneck, 2025 MT 55, 565 P.3d 1209, 421 Mont. 163 (Mo. 2025).

Opinion

03/25/2025

DA 24-0194 Case Number: DA 24-0194

IN THE SUPREME COURT OF THE STATE OF MONTANA

2025 MT 55

QLARANT INTEGRITY SOLUTIONS, LLC,

Petitioner and Appellee,

v.

NICHOLAS GUTHNECK,

Respondent and Appellant.

APPEAL FROM: District Court of the First Judicial District, In and For the County of Lewis and Clark, Cause No. ADV-2023-483 Honorable Mike Menahan, Presiding Judge

COUNSEL OF RECORD:

For Appellant:

Torrance L. Coburn, Tipp Coburn Lockwood, PC, Missoula, Montana

For Appellee:

Amy D. Christensen, Vicki Bignell, Christensen & Prezeau, PLLP, Helena, Montana

Submitted on Briefs: October 16, 2024

Decided: March 25, 2025

Filed: ir,-6‘A•-if __________________________________________ Clerk Justice Ingrid Gustafson delivered the Opinion of the Court.

¶1 Nicholas Guthneck (Guthneck) appeals from the March 28, 2024 Order – Petition

for Judicial Review issued by the First Judicial District Court, Lewis and Clark County.

The District Court granted the petition for judicial review filed by Qlarant Integrity

Solutions, LLC (Qlarant), arising from the Montana Human Rights Commission’s (HRC)

June 27, 2023 remand order in Montana Human Rights Bureau (HRB) Case No. 0220091.

The District Court’s Order determined the HRC incorrectly rejected the Office of

Administrative Hearings (OAH) hearing officer’s order dismissing Guthneck’s

discrimination claim and remanded to the HRC with instructions to adopt the hearing

officer’s order to dismiss.

¶2 We address the following restated issues on appeal:

1. Whether the District Court erred when it concluded the Hearing Officer had the authority to determine whether Executive Order 14042 preempted § 49-2-312, MCA.

2. Whether the District Court erred when it concluded the Hearing Officer correctly determined Executive Order 14042 preempted § 49-2-312, MCA, as to employers in Qlarant’s position when Executive Order 14042 was in effect.

¶3 We affirm.

FACTUAL AND PROCEDURAL BACKGROUND

¶4 Guthneck was hired as a health fraud investigator by Qlarant, a Maryland company

which performs services on federally funded contracts, on September 21, 2020. Guthneck

began working for Qlarant on October 12, 2020, and worked remotely from his residence

in Montana.

2 ¶5 On March 11, 2020, the World Health Organization declared COVID-19 a global

pandemic. On January 20, 2021, President Biden was sworn into office and issued

Executive Order 13991. Protecting the Federal Workforce and Requiring Mask-Wearing,

86 Fed. Reg. 7045 (Jan. 25, 2021). EO 13991, as relevant to this appeal, established the

Safer Federal Workforce Task Force (Task Force), which was to “provide ongoing

guidance to heads of agencies on the operation of the Federal Government, the safety of its

employees, and the continuity of Government functions during the COVID-19 pandemic.”

86 Fed. Reg. 7045, 7046 (Jan. 25, 2021). During the 2021 legislative session, the Montana

Legislature passed House Bill 702, which has since been codified as § 49-2-312, MCA.

HB 702 makes it an unlawful discriminatory practice for “an employer to refuse

employment to a person, to bar a person from employment, or to discriminate against a

person in compensation or in a term, condition, or privilege of employment based on the

person’s vaccination status or whether the person has an immunity passport.”

Section 49-2-312(1)(b), MCA (2021 Mont. Laws ch. 418, § 1). Governor Gianforte signed

HB 702 on May 7, 2021, at which time the relevant portions of the bill became immediately

effective. 2021 Mont. Laws ch. 418, § 5.1

¶6 On September 9, 2021, President Biden signed Executive Order 14042. Ensuring

Adequate COVID Safety Protocols for Federal Contractors, 86 Fed. Reg. 50,985 (Sept. 14,

2021). EO 14042 required federal contractors to comply with guidance published by the

Task Force. The Task Force issued COVID-19 Workplace Safety: Guidance for Federal

1 An appropriation providing $200 from the general fund to the department of labor and industry became effective on July 1, 2021. 2021 Mont. Laws ch. 418, §§ 2, 5. 3 Contractors and Subcontractors on September 24, 2021. The September 24 Guidance

required that all “[c]overed contractor employees must be fully vaccinated no later than

December 8, 2021.” A person was considered “fully vaccinated” for COVID-19 “two

weeks after they have received the second dose in a two-dose series, or two weeks after

they have received a single-dose vaccine.” Covered contractors were required to obtain

documentation from their employees showing the record of immunization. Covered

contractors were allowed to provide accommodations, including exceptions to the vaccine

mandate, to those with a disability or a sincerely held religious belief, practice, or

observance. The September 24 Guidance also provided, for those working remotely, such

as Guthneck:

An individual working on a covered contract from their residence is a covered contractor employee, and must comply with the vaccination requirement for covered contractor employees, even if the employee never works at either a covered contractor workplace or Federal workplace during the performance of the contract. A covered contractor employee’s residence is not a covered contractor workplace, so while in the residence the individual need not comply with requirements for covered contractor workplaces, including those related to masking and physical distancing, even while working on a covered contract.

¶7 On October 6, 2021, Qlarant sent a company-wide email detailing its mandatory

vaccination policy. Qlarant’s policy required employees to submit proof of vaccination by

no later than November 24, 2021. On October 22, 2021, Guthneck emailed Qlarant HR

representative Lauren Dulin that he believed Qlarant’s vaccination policy was in violation

of Montana law due to HB 702. Dulin responded on October 25, 2021, noting that Qlarant

performed services on federally funded contracts and was therefore required to comply

with EO 14042 and Task Force guidance, HB 702 was not applicable, and Guthneck was

4 subject to Qlarant’s vaccination policy. On November 3, 2021, Guthneck again emailed

Dulin, stating he remained undecided about sharing his vaccination status with Qlarant and

informing her that Montana Attorney General Austin Knudsen, and nine other state

attorneys general, had filed a lawsuit asserting EO 14042 was unconstitutional.

¶8 On November 4, 2021, Qlarant asked Guthneck for his decision regarding disclosure

of his vaccination status. Guthneck declined to provide his vaccination status to Qlarant.

Qlarant informed Guthneck he was terminated from employment and relieved of all duties,

but would receive pay and benefits through November 24, 2021.

¶9 Guthneck filed a complaint with the HRB on November 4, 2021, alleging he was

discriminated against and unlawfully terminated due to his refusal to disclose his

vaccination status to Qlarant. After an informal investigation, the HRB determined

reasonable cause supported Guthneck’s allegation of discrimination. The matter was set

for a contested case hearing in the OAH. Prior to the hearing, Qlarant moved to dismiss

Guthneck’s complaint for failure to state a claim upon which relief may be granted,

asserting EO 14042 preempted § 49-2-312, MCA, during the relevant time period of

October 6, 2021, when Qlarant informed Guthneck of its vaccination policy, to November

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Bluebook (online)
2025 MT 55, 565 P.3d 1209, 421 Mont. 163, Counsel Stack Legal Research, https://law.counselstack.com/opinion/qlarant-v-guthneck-mont-2025.