Rochelle FLYNN, Plaintiff-Appellant v. DISTINCTIVE HOME CARE, INCORPORATED, doing business as Distinctive Healthcare Staffing, Incorporated, Defendant-Appellee.
No. 15-50314.
United States Court of Appeals, Fifth Circuit.
Feb. 1, 2016.
812 F.3d 422
Michael David McQueen; Kemp Smith, L.L.P., El Paso, TX, Paul W. Mengel, III (argued), Nichole De Vries Atallah, Esq., Litigation Counsel, PilieroMazza, P.L.L.C., Washington, DC, for Defendant-Appellee Distinctive Home Care, Incorporated, doing business as Distinctive Healthcare Staffing, Incorporated.
James Michael Kimbell, Esq., Attorney, Katherine T. Garber, Esq., Strasburger & Price, L.L.P., Houston, TX, for Defendant-Appellee Spectrum Healthcare Resources, Incorporated.
Dara S. Smith, Esq. (argued), Daniel B. Kohrman, Senior Attorney, AARP Foundation Litigation, Washington, DC, for Amicus Curiae American Association of Retired Persons.
Brian D. East, Senior Attorney, Disability Rights Texas, Austin, TX, for Amicus Curiae Disability Rights Texas.
Before DAVIS, BARKSDALE, and DENNIS, Circuit Judges.
W. EUGENE DAVIS, Circuit Judge:
In this case, we must decide whether Section 504 of the Rehabilitation Act authorizes employment discrimination suits by independent contractors. We conclude that it does. We therefore vacate the district court‘s judgment in part and remand for further proceedings.
I.
The parties do not dispute the facts essential to the resolution of this appeal. Plaintiff-Appellant Dr. Rochelle Flynn is a contract pediatrician. Spectrum Health
Spectrum‘s contract with the Government terminated in March 2013. Defendant-Appellee Distinctive Home Care, Inc., d/b/a Distinctive Healthcare Staffing, Inc. (“Distinctive“) took over Spectrum‘s duties to provide medical services at Lackland. However, Distinctive “retained Spectrum as a subcontractor” on the government contract, such that “Spectrum continued to directly communicate with the independent contractors” providing medical services at the base, including Flynn.
Distinctive entered into a new contract with Skwids & Skwiggles in April 2013. Pursuant to the new agreement, Skwids & Skwiggles “agree[d] to provide a physician, specifically [Flynn], to perform clinical professional pediatric services” at the San Antonio facility “for at least 936 hours per year.” Like the agreement between Flynn and Spectrum, the agreement between Skwids & Skwiggles and Distinctive explicitly provided that “[t]he relationship between [Distinctive] and [Skwids & Skwiggles]/[Flynn] shall be that of independent
On May 15, 2013, Flynn‘s psychologist diagnosed Flynn with Autism Spectrum Disorder-Mild (“ASD-M“), a condition formerly known as “Asperger‘s Syndrome.” ASD-M is a psychological disorder characterized by significant difficulties in nonverbal communication and social interaction, as well as restricted and repetitive patterns of behavior and interests.
Around that same date, David Warner, the government officer responsible for overseeing Distinctive‘s contract with the Air Force, contacted Distinctive‘s president. Warner “raised several concerns with Dr. Flynn‘s performance, including several complaints from patients and coworkers, Dr. Flynn‘s failure to report to work on time and her failure to timely complete patient charts.” Warner “stated that it was in the best interest of the Government if Dr. Flynn was removed from providing services” under Distinctive‘s contract with the Air Force.
On May 16, 2013, a Spectrum employee named Dr. Richard Takao informed Flynn that the clinic was concerned about her performance. In response, Flynn informed Takao that her psychologist had diagnosed her with ASD-M the previous day. Flynn believes that her condition “would explain many of the issues that were of concern to” Distinctive and Spectrum. No one at Distinctive or Spectrum knew that Flynn had ASD-M before May 16, 2013.
On or about May 30, 2013, Warner sent Distinctive an e-mail containing documentation that purportedly “substantiat[ed] the allegations of poor performance and patient complaints” against Flynn. Warner, “on behalf of the Government,” again “directed that Dr. Flynn be removed from” her duties as an independent contractor.
Flynn, Spectrum, and Distinctive held a conference call on June 7, 2013, during which Flynn asked to be reinstated with accommodations. Distinctive and Spectrum discussed Flynn‘s requested accommodations with the Air Force. On June 28, 2013, the Government responded that it could not accommodate Flynn‘s request. Spectrum and Distinctive therefore informed Flynn that they would not retain her as an independent contractor.
Flynn sued Spectrum and Distinctive for employment discrimination under the Rehabilitation Act.1 She claims that Spectrum and Distinctive “discriminated against [her] on the basis of her disability, subjected [her] to a hostile work environment based on her disability, and denied her a reasonable accommodation.”
The district court concluded that Flynn could not sue Spectrum or Distinctive for employment discrimination under the Rehabilitation Act because she was an independent contractor, not an employee. The court accordingly granted summary judgment in Spectrum and Distinctive‘s favor on Flynn‘s Rehabilitation Act claims.
Flynn now appeals. The AARP and Disability Rights Texas have filed a joint amicus brief in support of Flynn.
The parties jointly moved to dismiss the appeal as to Spectrum, and we granted
II.
We review a district court‘s order granting summary judgment de novo.2 “The court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.”3
III.
This appeal concerns an issue of first impression in our Circuit: May an independent contractor who lacks an employer-employee relationship with the defendant sue that defendant for employment discrimination under Section 504 of the Rehabilitation Act? Our sister Circuits have split on that issue,4 and the Supreme Court has not resolved the split.5 We turn now to that question.
A.
1.
The Rehabilitation Act of 1973 “was the ‘first major federal statute designed to protect the rights of the handicapped people of this country.‘”6 The current form of Section 504 of the Rehabilitation Act, codified at
No otherwise qualified individual with a disability in the United States... shall, solely by reason of her or his disability, be excluded from the participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance or under any program or activity conducted by any Executive agency or by the United States Postal Service.7
Thus, Section 504 “broadly prohibit[s] discrimination“—including employment discrimination—“against disabled persons in
2.
Because Section 504 of the Rehabilitation Act “bars discrimination only in programs that receive federal financial assistance,” it does not broadly “protect[] the disabled from discrimination in the private sector.”9 To fill that gap, Congress enacted the Americans with Disabilities Act (“ADA“) in 1990.
Title I is the subchapter of the ADA that prohibits employment discrimination.10 Title I prohibits any “covered entity” from “discriminat[ing] against a qualified individual on the basis of disability in regard to job application procedures, the hiring, advancement, or discharge of employees, employee compensation, job training, and other terms, conditions, and privileges of employment.”11 The term “covered entity” includes any “employer.”12 However, not every entity that hires employees counts as an “employer” within the meaning of Title I; Congress defined that term to exclude entities with fewer than fifteen employees;13 the United States and corporations wholly owned by the United States;14 Indian tribes;15 and a limited subset of tax-exempt organizations.16
3.
Soon after Congress enacted the ADA, it became concerned about potential inconsistencies between the Rehabilitation Act and the ADA. The Senate Subcommittee on Disability Policy held a hearing at which numerous witnesses “testified repeatedly regarding the importance of the passage of the Americans with Disabilities Act and the need to include the philosophies embodied in the ADA in the Rehabilitation Act.”17 To assuage these concerns, Congress added subsection (d) to Section 504 of the Rehabilitation Act, which incorporated portions of the ADA by reference:
The standards used to determine whether [Section 504 of the Rehabilitation Act] has been violated in a complaint alleging employment discrimination under this section shall be the standards applied under title I of the Americans with Disabilities Act of 1990 (
42 U.S.C. 12111 et seq. ) and the provisions of sections 501 through 504, and 510, of the Americans with Disabilities Act of 1990 (42 U.S.C. 12201 to 12204 and12210 ), as such sections relate to employment.18
As Senator Harkin, the sponsor of the Senate bill, explained,
Now those who are covered by title V of the Rehabilitation Act will know that these are the definitions of reasonable accommodation and discrimination that
apply. They will also know that the standards governing preemployment inquiries and examinations, and inquiries of current employees apply. Incorporating the ADA standards into the Rehabilitation Act will assure that there will be consistent, equitable treatment for both individuals with disabilities and businesses under the two laws.19
B.
Although this Circuit has not directly addressed the issue, other federal circuit and district courts overwhelmingly agree that a plaintiff may only sue a defendant under Title I of the ADA if the plaintiff is an employee, rather than an independent contractor, of the defendant.20 Flynn concedes she was an independent contractor, not an employee, of Distinctive. As a result, Flynn cannot sue Distinctive under Title I of the ADA.
Flynn instead sued Distinctive for employment discrimination under Section 504 of the Rehabilitation Act. Distinctive does not dispute that it receives federal financial assistance, so Distinctive is subject to suit under the Rehabilitation Act. The question, then, is whether Section 504(d) of the Rehabilitation Act incorporates Title I‘s prohibition on employment discrimination suits brought by independent contractors. If it does, then we must affirm the judgment in Distinctive‘s favor. If, by contrast, the Rehabilitation Act does not incorporate this limitation, then Flynn‘s Rehabilitation Act claims may proceed even though she was not Distinctive‘s employee.
C.
For the following reasons, we conclude that Section 504(d) does not incorporate this limitation in Title I of the ADA.
We agree with the Ninth and Tenth Circuits that the Rehabilitation Act does not incorporate Title I‘s requirement that the defendant be the plaintiff‘s “employer” as that term is defined in the ADA.21 Unlike Title I of the ADA, Section 504 of the Rehabilitation Act is not limited to the employment context. To reiterate, Title I prohibits discrimination “in regard to job application procedures, the hiring, advancement, or discharge of employees, employee compensation, job training, and other terms, conditions, and privileges of employment.”22 Section 504 of the Rehabilitation Act, by contrast, is far broader.23
It prohibits discrimination “under any program or activity receiving Federal financial assistance,”24 and “program or activity” is defined to include “all of the operations of...an entire corporation, partnership, or other private organization, or an entire sole proprietorship.”25 Thus, based on the plain language of the statute, the Ninth Circuit reasoned that “the Rehabilitation Act covers ‘all of the operations’ of covered entities, not only those related to employment.”26
The Ninth and Tenth Circuits’ conclusion that the Rehabilitation Act does not completely incorporate the terms of the ADA is consistent with our opinion in Soledad v. United States Department of Treasury, 304 F.3d 500 (5th Cir.2002). In that case, we considered whether Section 504(d) of the Rehabilitation Act incorporates Title I‘s causation standard in employment discrimination cases. “Under the ADA, ‘discrimination need not be the sole reason for the adverse employment decision‘” as long as the discrimination “‘actually play[s] a role in the employer‘s decision making process and ha[s] a determinative influence on the outcome.‘”27 Section 504(a) of the Rehabilitation Act, by contrast, explicitly provides that discrimination is actionable only if it occurs “solely by reason of” the plaintiff‘s disability.28
We concluded in Soledad that Section 504(a)‘s explicit sole causation language trumped the more general incorporation language in Section 504(d). “A provision must be considered in its context and the more specific provision within a statute prevails. The causation standard of [Section 504(a) of the Rehabilitation Act] requiring that the discrimination be ‘solely by reason of her or his disability,’ is clearly...more specific” than Section 504(d)‘s more general language incorporating standards from Title I.29 Thus, Section 504(d) does not incorporate standards from Title I that would conflict with the Rehabilitation Act‘s plain language.
In this case, Section 504(a) contains explicit language specifically authorizing discrimination suits against “any program or activity receiving Federal financial assistance.”30 Importing Title I‘s requirement that the plaintiff and the defendant have an employee-employer relationship would therefore conflict with the plain language of the Rehabilitation Act, which broadly authorizes discrimination suits against a wide variety of entities, including non-employers. Thus, Section 504(d) does not incorporate this limitation.
We also agree with our sister Circuits that the language of Section 504(d) does not incorporate Title I in its entirety. Instead, Section 504(d) specifies that the ADA‘s “standards” are to be used “to determine whether [the Rehabilitation Act] has been violated.”31 The Rehabilitation Act “does not state...that the standards of the ADA are to be used to determine
Because the Rehabilitation Act does not incorporate Title I‘s standards for determining which entities may be held liable for employment discrimination, it does not incorporate Title I‘s requirement that the defendant be the plaintiff‘s employer. Consequently, the fact that a plaintiff is an independent contractor of the defendant is not fatal to the plaintiff‘s Rehabilitation Act claim.
D.
Distinctive raises several arguments in support of the district court‘s order dismissing it on the grounds that Flynn, as an independent contractor, cannot assert a claim under the Rehabilitation Act. We consider those arguments below.
1.
Distinctive relies on Wojewski v. Rapid City Regional Hospital, Inc., 450 F.3d 338 (8th Cir.2006), in which the Eighth Circuit ruled that the Rehabilitation Act does indeed incorporate Title I‘s bar on employment discrimination suits by independent contractors. However, with respect to our colleagues on the Eighth Circuit, we find the Wojewski decision unpersuasive.
The Eighth Circuit gave three reasons for its holding. First, the court reasoned that the ADA and the Rehabilitation Act are “similar in substance,” such that “cases interpreting either are applicable and interchangeable.”34 Because “[t]he ADA requires an employee-employer relationship,” the court ruled that the Rehabilitation Act does as well.35 However, as we explained above, Section 504 of the Rehabilitation Act materially differs from Title I of the ADA because it “specifically defines the entities to which it applies, and does not address employers.”36 To reiterate, the Rehabilitation Act prohibits discrimination “under any program or activity receiving Federal financial assistance,”37 where “program or activity” is defined to include “all of the operations of...an entire corporation, partnership, or other private organization, or an entire sole proprietorship.”38 Title I and Section 504 do not cover the same entities, so the two statutes are not perfectly interchangeable.39
Second, the Wojewski court observed that, as of 2006, no other court had yet decided that “a non-employee can be a qualified individual under § 504” of the Rehabilitation Act.40 Thus, “absent authori-ty to the contrary,” the court “construe[d] both” the ADA and the Rehabilitation Act
Finally, the Wojewski court relied upon an earlier Eighth Circuit decision interpreting a regulation promulgated by the Department of Health and Human Services, which provides that the term “qualified handicapped person” means, “[w]ith respect to employment, a handicapped person who, with reasonable accommodation, can perform the essential functions of the job in question.”43 The court concluded that “the relevant portion of the regulations couches the scope of the Rehabilitation Act in terms of employment.”44 Respectfully, we fail to see how this definition of “qualified handicapped person” has any bearing on whether the Rehabilitation Act authorizes suits by independent contractors or the degree to which Section 504(d) incorporates Title I of the ADA.
Thus, we find the Ninth Circuit‘s opinion in Fleming more persuasive than the Eighth Circuit‘s opinion in Wojewski.45
2.
According to Distinctive, this Court‘s opinion in Lollar v. Baker, 196 F.3d 603 (5th Cir.1999) holds that “a plaintiff cannot bring a Section 504 employment discrimination claim against a defendant that is not the plaintiff‘s employer.” Distinctive misunderstands our decision in that case. Lollar holds that a plaintiff may not sue her supervisor individually for employment discrimination under Section 504 of the Rehabilitation Act, not because the supervisor is not the plaintiff‘s employer, but rather because the individual supervisor does not herself receive federal financial assistance.46 Distinctive does not dispute that it receives federal funds. Thus, our decision in Lollar does not bar Flynn‘s suit against Distinctive.
3.
Distinctive also cites our statement in Frame v. City of Arlington, 657 F.3d 215 (5th Cir.2011) (en banc), that “[t]he ADA
However, Frame does not hold that Section 504 of the Rehabilitation Act adopts Title I‘s limitation on employment discrimination suits by independent contractors. Frame was not an employment discrimination case at all; the plaintiffs in Frame were city residents with disabilities who were unable to use their motorized wheelchairs on the city‘s non-handicap-accessible sidewalks. Thus, the relevant question in Frame was the degree to which Section 504 of the Rehabilitation Act incorporates the provisions of Title II—not Title I—of the ADA in cases challenging “disability discrimination in the provision of public services.”48 Frame has no bearing on the issue before this panel.
In any event, even if “[t]he ADA and the Rehabilitation Act generally are interpreted in pari materia,”49 that does not mean that the two statutes are always interpreted identically. As we explained above, we agree that the Rehabilitation Act generally adopts “the substantive standards for determining what conduct violates” Title I of the ADA.50 We merely hold—as our sister Circuits have held—that Section 504 does not incorporate “the definition of who is covered under” Title I.51
4.
Finally, the district court relied on our unpublished per curiam opinion in Luna v. Roche, 89 Fed.Appx. 878 (5th Cir.2004) when it granted summary judgment in Distinctive‘s favor. In that case, a former Air Force employee alleged that “the Air Force discriminated against him” in violation of Section 504 of the Rehabilitation Act “when it terminated his disability retirement benefits.”52 This Court ruled that the former employee “lacked standing to pursue his discrimination claims involving his terminated benefits” because he “was neither an employee of the Air Force, nor an applicant for employment with the Air Force, when his disability retirement benefits were terminated.”53 The Court stated, with no analysis or citation to authority, that employment discrimination claims under the Rehabilitation Act “require the existence of an employer-employee relationship.”54 To the extent Luna bears on the issue before this panel, we decline to follow it for the reasons described above.55
IV.
In sum, we conclude that Section 504 of the Rehabilitation Act permits employment discrimination suits by independent contractors. Flynn‘s discrimination, hostile work environment, and accommodation claims against Distinctive may therefore proceed to a merits determination.
Distinctive maintains that it is nonetheless entitled to summary judgment on the merits because “(1) Dr. Flynn did not establish her disability substantially limits one or more of her major life activities; (2) there is no evidence Dr. Flynn‘s contract was terminated solely because of her condition; and (3) the decision to terminate Dr. Flynn‘s contract was made by the Government, not [Distinctive].” However, the district court did not reach the merits or rule on those issues. The district court should have an opportunity to consider the merits in the first instance. We therefore vacate the judgment in part56 and remand for further proceedings.
VACATED in part and REMANDED for further proceedings.
