United States v. State of Kansas Department of Health & Environment

Court of Appeals for the Tenth Circuit·Decided December 30, 2025·No. 24-3041·Published

Opinion

FILED

United States Court of Appeals PUBLISH Tenth Circuit

UNITED STATES COURT OF APPEALS December 30, 2025 Christopher M. Wolpert

FOR THE TENTH CIRCUIT Clerk of Court

UNITED STATES OF AMERICA, Plaintiff - Appellant, v. No. 24-3041

STATE OF KANSAS DEPARTMENT OF HEALTH AND ENVIRONMENT,

Defendant - Appellee.

Appeal from the United States District Court for the District of Kansas (D.C. No. 2:22-CV-02250-TC)

Janea L. Lamar (Kristen Clarke, Assistant Attorney General, with her on the briefs), U.S. Department of Justice, Civil Rights Division, Appellate Section, Washington, D.C., for Plaintiff–Appellant.

David R. Cooper, Fisher, Patterson, Sayler & Smith, L.L.P., Topeka, Kansas (Crystal B. Moe, Fisher, Patterson, Sayler & Smith, L.L.P., Topeka, Kansas, and Anthony J. Powell, Solicitor General, Office of Kansas Attorney General Kris W. Kobach, Topeka, Kansas, with him on the brief), for Defendant–Appellee.

Before HOLMES, Chief Judge, MURPHY, and McHUGH, Circuit Judges.

MURPHY, Circuit Judge.

I. INTRODUCTION The Uniformed Services Employment and Reemployment Rights Act of 1994 (“USERRA”) prohibits employers from discriminating against servicemembers because of their uniformed service. See Pub. L. No. 103-353, 108 Stat. 3149 (codified as amended at 38 U.S.C. §§ 4301-33). It defines “employer” as “any person, institution, organization, or other entity that pays salary or wages . . . or that has control over employment opportunities.” 38 U.S.C. § 4303(4)(A).

The federal government (or “the government”) brought suit on behalf of Stacy Gonzales, a member of the United States Army National Guard, against the State of Kansas, claiming a violation of USERRA by the Kansas Department of Health and Environment (“KDHE”). 1 Upon cross-motions for summary judgment, the district court dismissed the suit, ruling Kansas could not be liable because it was not Gonzales’s “employer” under USERRA. The government appeals the order and judgment of dismissal, arguing the district court erred by not only adopting an overly narrow construction of the term “employer,” but also failing to apply the correct summary judgment standard in reviewing the record evidence.

1 The complaint filed in district court named the “State of Kansas (Department of Health and Environment)” as the defendant. Consequently, the district court characterized this case as one in which “[t]he United States sued the State of Kansas, alleging the Kansas Department of Health and Environment violated [USERRA].” App. Vol. III at 709. The district court’s framing of this case is not disputed on appeal. Notwithstanding the defendant-appellee identified in the caption, the court refers to Kansas as the party raising arguments on appeal.

The plain text of USERRA lacks any language to suggest only those who exercise direct or absolute control of employment opportunities may be considered an employer. See Muldrow v. City of St. Louis, 601 U.S. 346, 355 (2024) (refusing to adopt a “heightened” statutory requirement for Title VII discrimination claim by “add[ing] words . . . to the statute Congress enacted”). The statutory language further implies entities that share or co-determine matters constituting employment opportunities can each concurrently be considered employers. See 38 U.S.C. § 4303(4)(A)(i). Whether Kansas, through KDHE, maintained sufficient control over Gonzales’s employment opportunities is ultimately a factual determination. The record evidence, when considered in the light most favorable to the non-moving party, allows a reasonable finding that KDHE retained the requisite level of control over Gonzales’s employment opportunities to be a USERRA employer. 2 Therefore, exercising jurisdiction pursuant to 28 U.S.C. § 1291, the court reverses the district court’s order and remands the case for further proceedings consistent with this decision. II. BACKGROUND KDHE is a state agency that provides services related to health and environment. The agency has, within its organizational structure, various divisions,

2 In the district court, the parties stipulated KDHE “was a subdivision of the government of the State of Kansas.” App. Vol. I at 24. On appeal, the parties agree that if KDHE is found to have been Gonzales’s USERRA employer, Kansas would also have been her USERRA employer.

bureaus, and sections. The Sexually Transmitted Disease Intervention Section 3 focuses its work on those affected by sexually transmitted infections and the Human Immunodeficiency Virus.

During the relevant time period, the Sexually Transmitted Disease Intervention Section received federal grants from the Center for Disease Control and Prevention (“CDC”) in the form of the Sexually Transmitted Disease Prevention Award. Under the supervision of KDHE, the Section used the grant in two primary ways: 1) it hired disease intervention specialists (“state disease intervention specialists”) and 2) it distributed a portion of the fund as Aid-to-Local grants 4 to counties within its jurisdiction.

State disease intervention specialists were each assigned to a clinic. Their primary task was to interview people who were diagnosed with a communicable disease. By conducting interviews, state disease intervention specialists were able to identify others at risk of infection or disease transmission, inform them of their health risk, and refer them to medical services. Depending on the circumstance, a state disease intervention specialist may assist individuals who voluntarily walk into a

3 The Sexually Transmitted Disease Intervention Section operates within the Bureau of Disease Control and Prevention. Through the Bureau of Disease Control and Prevention, a subdivision within the Division of Public Health, KDHE provides disease intervention and prevention services.

4 KDHE distributed Aid-to-Local grants to multiple counties for various services, not limited to disease prevention services. Relevant to this appeal is only the Aid-to-Local grants administered through the Sexually Transmitted Disease Section for disease prevention.

health clinic or be deployed to specified areas based on guidance from KDHE. Each state disease intervention specialist was provided a copy of the Field Services Manual, a document written by KDHE, which identified job expectations, protocols, and metrics by which their performance was evaluated.

KDHE also offered Aid-to-Local grants to county-level agencies in exchange for localized assistance in disease prevention. Accompanying the grant was the Notice of Grant Award Amount & Summary of Program Objectives (“Notice of Grant Award”) which outlined the terms, objectives, and purposes of the grant. Acceptance of the grant fund constituted acceptance of its terms. KDHE decided every fiscal year whether to renew the grant or reallocate its resources.

Finney County Health Department (or “Finney County”) was a recipient of an Aid-to-Local grant from 1998 to 2010. The Notice of Grant Award identified objectives to be satisfied by a disease intervention specialist, which resembled expectations set out in the Field Services Manual. Finney County dedicated a county- level disease intervention specialist (“local disease intervention specialist”) to fulfill the terms of the Aid-to-Local grant. The position was funded in part by the Aid-to- Local grant, with Finney County making up any shortfall. The technical job responsibilities of a local disease intervention specialist essentially mirrored that of a state disease intervention specialist.

From 2001 to 2010, Stacy Gonzales served as Finney County’s local disease intervention specialist. During this time, Gonzales was also an active member of the

United States Army National Guard. She intermittently had military obligations, during which she was absent from her local disease intervention specialist position.

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