Fourth Circuit Affirms Employers’ Right to Investigate and Take Action for Suspected FMLA Leave Misuse

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In Shipton v. Baltimore Gas and Electric Company, the Fourth Circuit Court of Appeals affirmed the district court’s summary judgment rulings to dismiss the plaintiff’s Family and Medical Leave Act (FMLA) interference and retaliation claims. The opinion highlights the courts’ reluctance to second guess an employer’s discretion in personnel matters while protecting an employer’s ability to investigate and terminate an employee for suspected FMLA leave misuse.

The plaintiff, Michael Shipton, was terminated following suspected abuse of FMLA leave based on his submission of conflicting medical documentation regarding his uncontrolled diabetes. In August 2017, Shipton requested and was granted intermittent FMLA leave based on a health provider certification that he experienced episodes of hypoglycemia. A few months later, in January 2018, Shipton submitted and was granted a nearly identical certification for his continued FMLA leave.

In April 2018, Shipton took time off due to experiencing neuropathy related to his diabetes. His employer, BGE, requested additional medical documentation from Shipton because the existing FMLA certification established leave only for his diabetes-related hypoglycemia and not for neuropathy. In response, Shipton submitted a letter from his doctor that indicated he had not suffered from hypoglycemia in over two years. Shipton later informed BGE he believed he could use his FMLA certification for any general diabetes symptoms. Shipton then submitted a new medical certification describing his neuropathy symptoms, which BGE approved. However, Shipton was terminated in June 2018 for misuse of FMLA leave.

The Fourth Circuit affirmed the dismissal of the interference claim on the grounds that Shipton submitted conflicting medical documentation, and the FMLA does not prevent an employer from terminating an employee for poor performance, misconduct, or insubordinate behavior. The plaintiff’s later-submitted and approved leave request for neuropathy (when it originally specified leave for hypoglycemia) did not nullify his suspected misconduct based on the conflicting documentation that necessitated BGE’s investigation. The Fourth Circuit reiterated its 2023 holding in Adkins v. CSX Transportation, Inc. that “employers must be able to investigate and address plausible allegations that employees have been dishonest in their medical leave claims.” Like in Adkins, the Shipton Court declined to address the parties’ arguments regarding the application of the “honest belief doctrine,” which states an employer does not interfere with an employee's exercise of FMLA rights when it terminates an employee based on the “honest belief” that the employee is misusing FMLA leave, regardless of whether such belief is correct.

The Fourth Circuit also affirmed summary judgment on the plaintiff’s retaliation claim which required a showing of BGE’s discriminatory intent towards the plaintiff. The court stated that while BGE’s termination reason was related to Shipton’s FMLA leave, it did not serve as direct evidence of discriminatory intent because of BGE’s legitimate basis for its belief that Shipton abused his FMLA leave.

Likewise, Shipton’s proffered indirect evidence could not establish BGE’s reasoning for his termination was pretext for its discriminatory animus under the McDonnell Douglas burden-shifting framework. Again relying on Adkins, whether there existed sufficient evidence of pretext to overcome summary judgment was determined from the “perception of the decisionmaker.” The court determined the undisputed evidence showed that BGE believed Shipton misused his FMLA leave, conducted fact-finding interviews, and terminated Shipton because it could not reconcile the conflicting medical documentation. Shipton’s after-the-fact clarification and explanation of the conflicting paperwork was insufficient to show that BGE’s reason for termination was pretext for discrimination at the time the decision was made.

The Shipton Court stated in a footnote its decision does not provide employers with “carte blanche authority to terminate an employee on the basis of unsubstantiated claims of misconduct related to FMLA leave.” Also, the court emphasized that an employer must have a legitimate basis for believing an employee committed misconduct related to the use of FMLA leave. Where those circumstances exist, an employer may investigate and take action without violating the FMLA.