Scheer v. Sisters of Charity

CourtCourt of Appeals for the Tenth Circuit
DecidedJuly 21, 2025
Docket24-1055
StatusPublished

This text of Scheer v. Sisters of Charity (Scheer v. Sisters of Charity) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Scheer v. Sisters of Charity, (10th Cir. 2025).

Opinion

Appellate Case: 24-1055 Document: 55-1 Date Filed: 07/21/2025 Page: 1 FILED United States Court of Appeals PUBLISH Tenth Circuit

UNITED STATES COURT OF APPEALS July 21, 2025

Christopher M. Wolpert FOR THE TENTH CIRCUIT Clerk of Court _________________________________

BETHANY SCHEER,

Plaintiff - Appellant,

v. No. 24-1055

SISTERS OF CHARITY OF LEAVENWORTH HEALTH SYSTEM, INC.,

Defendant - Appellee.

------------------------------

EQUAL EMPLOYMENT OPPORTUNITY COMMISSION,

Amicus Curiae. _________________________________

Appeal from the United States District Court for the District of Colorado (D.C. No. 1:20-CV-03793-DDD-MEH) _________________________________

Ralph E. Lamar, Allentown, Pennsylvania, for Plaintiff-Appellant.

David C. Gartenberg (Kelsey A. VanOverloop, with him on the brief), Littler Mendelson, P.C., Denver, Colorado, for Defendant-Appellee.

Karla Gilbride, General Counsel (Jennifer S. Goldstein, Associate General Counsel, Dara S. Smith, Assistant General Counsel, and Gail S. Coleman, Attorney, with her on the brief), Equal Employment Opportunity Commission, Washington, D.C., for Amicus Curiae. _________________________________ Appellate Case: 24-1055 Document: 55-1 Date Filed: 07/21/2025 Page: 2

Before MORITZ, MURPHY, and EID, Circuit Judges. _________________________________

EID, Circuit Judge. _________________________________

Bethany Scheer contends that her former employer, Sisters of Charity of

Leavenworth Health System, Inc. (“SCL”), unlawfully conditioned her employment

on a willingness to participate in mental health counseling—a condition which she

refused. After SCL terminated Scheer’s employment, Scheer sued under the

Americans with Disabilities Act Amendments Act and the Rehabilitation Act,

alleging she had suffered discrimination based on a perceived disability with respect

to the “terms, conditions, and privileges of [her] employment.” 42 U.S.C.

§ 12112(a). The district court granted SCL summary judgment on the ground that the

mandatory referral to counseling did not cause a “significant change” to Scheer’s

employment status, as our precedents required. App’x Vol. VI at 982 (citing Sanchez

v. Denver Pub. Schs., 164 F.3d 527, 532 (10th Cir. 1998)).

The Supreme Court’s recent decision in Muldrow v. City of St. Louis, 601 U.S.

346 (2024)—which was issued after the district court’s order—compels

reconsideration of this case. There, the Court rejected the significance test set forth

in our precedents. Id. at 350, abrogating Sanchez, 164 F.3d at 532. It held instead

that plaintiffs must show they suffered “some harm respecting an identifiable term or

condition of employment” as a result of an employer’s action. Id. at 355 (emphasis

added). In light of this new test, we vacate the district court’s grant of summary

judgment and remand this case for the court to decide in the first instance whether

2 Appellate Case: 24-1055 Document: 55-1 Date Filed: 07/21/2025 Page: 3

Scheer has suffered “some harm”—and not a “significant change,” as our precedents

previously required—as a result of SCL’s actions.

I.

From 2014 to 2019, SCL employed Bethany Scheer as a representative in its

Physician Billing Department. Although Scheer’s official title at SCL changed

throughout her employment, her responsibilities remained essentially the same: She

researched and appealed outstanding medical claims, contacted insurance companies,

and took on special projects from her supervisors.

Scheer’s job performance at SCL was inconsistent. Within the first four years

of her employment, SCL issued Scheer seven corrective actions—all based on her

failure to hit productivity targets. During the same period, SCL also counseled

Scheer for professional and behavioral issues. Eventually, Scheer’s supervisors

recommended placing her on a performance improvement plan (“PIP”) aimed at

increasing her consistency at work. Scheer’s immediate supervisor (Kathy Orsborn)

sent a draft of the PIP to SCL’s human resources director (Karen Oxenford) on

August 23, 2019.

On August 22, 2019—one day before Orsborn drafted the PIP—Scheer

expressed to a coworker (Angela Diaz), a supervisor (Lani Rasmussen), and her

department manager (Danielle Stowell) that she was struggling with personal issues.

All three subsequently reported concerns for Scheer’s mental well-being and safety.

Stowell emailed Oxenford with a “summary of the talks of suicide,” App’x Vol. II at

265, and Oxenford adjusted the PIP to include a second component addressing

3 Appellate Case: 24-1055 Document: 55-1 Date Filed: 07/21/2025 Page: 4

Scheer’s behavioral concerns. The revised PIP imposed an “action plan” consisting

of a mandatory referral to SCL’s employee assistance program (“EAP”) for

counseling.1 Id. at 210.

On August 28, 2019, Stowell, Orsborn, and Oxenford presented the revised

PIP to Scheer. They first addressed concerns with Scheer’s productivity, which

Scheer disputed. Scheer protested that she did not need a PIP because she had met

the minimum standards for the past five months leading up to the meeting. After

Scheer’s supervisors insisted the PIP was necessary, Scheer became upset and left the

room. Ten or fifteen minutes later, Scheer returned to the meeting and said she

would try the PIP.

The supervisors then turned the conversation to Scheer’s behavioral concerns.

They explained that, as part of the PIP, “visiting with the EAP was a condition of

[Scheer’s] continued employment.” App’x Vol. I at 66. Scheer stated that she was

not opposed to seeing a counselor, but that she did not want anyone to have access to

her medical records. After Oxenford explained that a third-party provider (New

Directions) would administer the EAP and that no one at SCL would have access to

Scheer’s records, Scheer agreed to the terms of the PIP and signed it.

1 An EAP is a free program offering “telephonic counseling and referrals for everyday challenges, in-person counseling with behavioral health professionals, [and] financial and legal support services.” App’x Vol. II at 231. At the time this dispute arose, SCL’s EAP was facilitated by a third party called New Directions.

4 Appellate Case: 24-1055 Document: 55-1 Date Filed: 07/21/2025 Page: 5

Later that day, Oxenford presented Scheer with New Directions’s EAP Formal

Referral Form. The Form would authorize New Directions to disclose to SCL

whether Scheer (1) attended counseling sessions and (2) complied with the EAP’s

recommendations. Oxenford explained that the Form was a term of Scheer’s

employment, and that if she did not sign it, her employment would be terminated.

After consulting an attorney, Scheer refused to sign the form and was subsequently

fired.

Scheer sued under the Americans with Disabilities Act Amendments Act and

the Rehabilitation Act, alleging SCL had fired her “based upon its erroneous

perception that she suffers from a disability of mental illness.” Id. at 6. The district

court granted SCL summary judgment. It concluded the mandatory referral to

counseling was not an adverse employment action because it did not cause a

“significant change” to Scheer’s employment status. App’x Vol. VI at 982 (citing

Sanchez, 164 F.3d at 532). And because the court found the mandatory referral was

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Scheer v. Sisters of Charity, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scheer-v-sisters-of-charity-ca10-2025.