Ragsdale v. Wolverine World Wide, Inc.Ragsdale v. Wolverine World Wide, Inc.
Lead Opinion
delivered the opinion of the Court.
Qualifying employees are guaranteed 12 weeks of unpaid leave each year by the Family and Medical Leave Act of 1993 (FMLA or Act), 107 Stat. 6, as amended,
One of these regulations,
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Ragsdale began working at a Wolverine factory in 1995, but in the following year she was diagnosed with Hodgkin’s disease. Her prescribed treatment involved surgery and months of radiation therapy. Though unable to work during this time, she was eligible for seven months of unpaid sick leave under Wolverine’s leave plan. Ragsdale requested
In September, Ragsdale sought a seventh 30-day extension, but Wolverine advised her that she had exhausted her seven months under the company plan. Her condition persisted, so she requested more leave or permission to work on a part-time basis. Wolverine refused and terminated her when she did not come back to work.
Ragsdale filed suit in the United States District Court for the Eastern District of Arkansas. Her claim relied on the Secretary’s regulation, which provides that if an employee takes medical leave “and the employer does not designate the leave as FMLA leave, the leave taken does not count against an employee’s FMLA entitlement.”
When the parties filed cross-motions for summary judgment, Wolverine conceded it had not given Ragsdale specific notice that part of her absence would count as FMLA leave. It maintained, however, that it had complied with the statute by granting her 30 weeks of leave — more than twice what the Act required. The District Court granted summary judgment to Wolverine. In the court’s view the regulation was in conflict with the statute and invalid because, in effect, it required Wolverine to grant Ragsdale more than
We granted certiorari,
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Wolverine’s challenge concentrates on the validity of a single sentence in
The FMLA’s central provision guarantees eligible employees 12 weeks of leave in a 1-year period following certain events: a disabling health problem; a family member’s serious illness; or the arrival of a new son or daughter.
A number of employers have adopted policies with terms far more generous than the statute requires. Congress encouraged as much, mandating in the Act’s penultimate provision that “[njothing in this Act . . . shall be construed to discourage employers from adopting or retaining leave policies more generous than any policies that comply with the requirements under this Act.” §2653. Some employers, like Wolverine, allow more than the 12-week annual minimum; others offer paid leave. U. S. Dept, of Labor, D. Cantor et al., Balancing the Needs of Families and Employers: Family and Medical Leave Surveys 5-10,5-12 (2001) (22.9% of FMLA-covered establishments allow more than 12 weeks of leave per year; 62.7% provide paid disability leave). As long as these policies meet the Act’s minimum requirements, leave taken may be counted toward the 12 weeks guaranteed by the FMLA. See 60 Fed. Reg. 2230 (1995) (“[Ejmployers may designate paid leave as FMLA leave and offset the maximum entitlements under the employer’s more generous policies”).
With this statutory structure in place, the Secretary issued regulations requiring employers to inform their workers about the relationship between the FMLA and leave granted under company plans. The regulations make it the employer’s responsibility to tell the employee that an absence will be considered FMLA leave.
The penalty is set out in a separate regulation,
“If an employee takes paid or unpaid leave and the employer does not designate the leave as FMLA leave, the leave taken does not count against an employee’s FMLA entitlement.”29 CFR § 825.700(a) (2001).
This provision punishes an employer’s failure to provide timely notice of the FMLA designation by denying it any credit for leave granted before the notice. The penalty is unconnected to any prejudice the employee might have suffered from the employer’s lapse. If the employee takes an undesignated absence of 12 weeks or more, the regulation always gives him or her the right to 12 more weeks of leave that year. The fact that the employee would have acted in the same manner if notice had been given is, in the Secretary’s view, irrelevant. Indeed, as we understand the Sec
The categorical penalty is incompatible with the FMLA’s comprehensive remedial mechanism. To prevail under the cause of action set out in §2617, an employee must prove, as a threshold matter, that the employer violated §2615 by interfering with, restraining, or denying his or her exercise of FMLA rights. Even then, § 2617 provides no relief unless the employee has been prejudiced by the violation: The employer is liable only for compensation and benefits lost “by reason of the violation,” § 2617(a)(l)(A)(i)(I), for other monetary losses sustained “as a direct result of the violation,” §2617(a)(l)(A)(i)(II), and for “appropriate” equitable relief, including employment, reinstatement, and promotion, § 2617(a)(1)(B). The remedy is tailored to the harm suffered. Cf. EEOC v. Waffle House, Inc.,
This position may be reasonable, but the more extreme one embodied in
The challenged regulation is invalid because it alters the FMLA’s cause of action in a fundamental way: It relieves employees of the burden of proving any real impairment of their rights and resulting prejudice. In the case at hand, the regulation permitted Ragsdale to bring suit under § 2617,
In defense of the regulation, the Government notes that a categorical penalty requiring the employer to grant more leave is easier to ádminister than one involving a fact-specific inquiry into what steps the employee would have taken had the employer given the required notice. “Regardless of how serious the problem an administrative agency seeks to address, however, it may not exercise its authority fin a manner that is inconsistent with the administrative structure that Congress enacted into law.’ ” FDA v. Brown & Williamson Tobacco Corp.,
For this reason, the Government’s reliance upon Mourning v. Family Publications Service, Inc.,
Furthermore, even if the Secretary were authorized to reconfigure the FMLA’s cause of action for her administrative convenience, this particular rule would be an unreasonable choice. As we have noted in other contexts, categorical
To the extent the Secretary’s penalty will have no substantial relation to the harm suffered by the employee in the run of cases, it also amends the FMLA’s most fundamental substantive guarantee — the employee’s entitlement to “a total of 12 workweeks of leave during any 12-month period.”
Courts and agencies must respect and give effect to these sorts of compromises. Mohasco Corp. v. Silver,
Although
These considerations persuade us that
The judgment of the Court of Appeals is affirmed.
It is so ordered.
Dissenting Opinion
dissenting.
The Court today holds that the Family and Medical Leave Act of 1993 (FMLA or Act),
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I begin with the question the Court set aside, see ante, at 88, whether the Secretary was justified in requiring individualized notice at all. The FMLA gives the Secretary the notice and comment rulemaking authority to “prescribe such regulations as are necessary to carry out” the Act.
The Secretary has reasonably determined that individualized notice is necessary to implement the FMLA’s provisions. According to the Secretary, to fulfill the FMLA’s purposes, employees need to be aware of their rights and responsibilities under the Act. See 60 Fed. Reg. 2220 (1995) (“The intent of this notice requirement is to insure employees receive the information necessary to enable them to take FMLA leave”). Although the Act requires that each employer post a general notice of FMLA rights,
Individualized notice also informs employees whether the employer plans to provide FMLA and employer-sponsored leave consecutively or concurrently. This can facilitate leave planning, allowing employees to organize their health treatments or family obligations around the total amount of leave they will ultimately be provided.
Given these reasons, the Secretary’s decision to require individualized notice is not arbitrary and capricious. Respondent does not disagree, instead arguing that, whether or not these reasons are valid, requiring individualized notice is contrary to the Act. Because the Act explicitly requires other sorts of notice, such as the requirement that the employer post a general notice,
Even the provision that may seem most similar, the general notice requirement,
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Also at issue before the Court is whether the Secretary may secure compliance with the individualized notice requirement by providing that leave will not count against the employer’s 12-week obligation unless the employer fulfills this requirement. The Court concludes that this means
If this is in fact the Court’s view, it would effectively eviscerate the individualized notice requirement. Under such a scheme, an employer could feel no obligation to provide individualized notice, only an obligation to refrain from otherwise violating the Act’s other provisions. This would seriously impede the Secretary’s goals. While the fear of litigation under
At other times, however, the Court suggests a less extreme view — that the Secretary may be allowed to require individualized notice, but that the remedy for failing to give such notice must also lie under
But there is no reason to restrict the Secretary’s remedy to
Just as the fact that the Act provides for certain sorts of notice does not preclude the Secretary from providing for other sorts, the fact that the Act provides for certain remedies does not tie the hands of the Secretary to provide for others. The Court’s argument to the contrary seems to be based on something like the maxim expressio unius est exclusio alterius — that Congress’ decision to provide for one remedy indicates that it did not intend for the Secretary to have authority to create any others. Because of the deference given to agencies on matters about which the statutes they administer are silent, Chevron,
“[T]he objective sought in delegating rulemaking authority to an agency is to relieve Congress of the impossible burden of drafting a code explicitly covering every conceivable future problem. Congress cannot then be required to tailor civil penalty provisions so as to deal precisely with each step which the agency thereafter finds necessary.”411 U. S., at 376 .
The Court further claims that, even if the Secretary has the power to craft her own remedy for violation of the regulation, the particular remedy she has chosen is unreasonable. See ante, at 92-93. The Court does not take issue with the reasonableness of a categorical remedy, one that is not necessarily tailored to the individual loss of each litigant. See Mourning, supra, at 377 (approving of such “prophylactic” rules). The Court’s argument is instead based on its assertion that the categorical remedy the Secretary has chosen is too harsh. In the Court’s judgment, 12 weeks of additional leave is too great a punishment because few employees will have actually suffered this much harm from the employer’s failure to give individualized notice. See ante, at 93.
We are bound, however, to defer to the Secretary’s judgment of the likely harms of lack of notice so long as it is reasonable. I believe that it is. The Secretary has determined that a variety of purposes will be served through individualized notice, including facilitating employee planning, and enabling enforcement of the Act’s protections and use of its various options by making employees aware that their leave is FMLA qualifying at the moment they take it. For those employees who ultimately bring suit for denial
The Court further suggests that the Secretary’s remedy is contrary to the statute in two other ways. First, it claims that the penalty would exceed the FMLA’s guarantee of 12 weeks of leave under
Moreover, providing this notice is not at all onerous. In most situations, notice will require nothing more than informing the employee of what the employer already knows: that the leave is FMLA qualifying. The employer will eventually have to make this designation to comply with the Act’s recordkeeping requirements.
Second, the Court claims that the penalty would discourage employers from voluntarily providing more leave than the FMLA requires, contrary to the Act’s assertion that “[n]othing in this Act . . . shall be construed to discourage employers from adopting or retaining [more generous] leave policies,” §2653. See ante, at 95. This section sets out a general interpretive principle, however, and should not be construed as removing from the Secretary the power to craft any regulation that might have even a small discouraging effect, no matter how otherwise important. Moreover, because of the ease with which an employer may meet its obligation to provide individualized notice, this effect will be minimal.
For these reasons, I would reverse the judgment of the Court of Appeals and remand the case for appropriate proceedings.