Suppose an employee sues one of your clients or customers. Then, when you insist that the employee drop the lawsuit because it’s bad for your business, the employee refuses. Can an employee fired in this situation sue you for wrongful termination? In a new case, a California appeals court said a hospital-employer was within its rights in terminating a worker who sued a patient.
Hospital Worker Won’t Give Up Lawsuit Against Patient
Ester Jersey worked for John Muir Medical Center in Walnut Creek in various nursing assistant and technician jobs. She went out on workers’ comp leave after being assaulted by a patient in the rehabilitation unit who suffered from a head trauma. She then filed a personal-injury lawsuit against the patient.
Jersey’s supervisors wrote her a letter demanding that she dismiss the action or she would be considered to have resigned her position. The letter stated that head-trauma patients often exhibit erratic behavior and suing a patient who cannot be held accountable for their actions because of their medical condition conflicted with the hospital’s mission and values. When Jersey didn’t abandon the suit, the hospital considered her to have resigned.
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Employee Claims Wrongful Termination
Jersey sued the hospital. She claimed that public policy prohibits employers from firing employees for exercising their legal right to sue a patient, client or customer for injuries inflicted during the course of employment. The hospital argued that the termination was justified because it had a legitimate interest in not having its employees sue patients. The hospital also pointed out that Jersey’s employment was at-will, as the employee handbook and other employment documents she signed spelled out.
Employers Can Restrict Workers’ Right To Litigate
A California appeals court threw out Jersey’s lawsuit. Although an employer may discharge an at-will employee for any reason, the discharge cannot violate a fundamental public policy such as the right to file a lawsuit against an employer for workplace discrimination. However, said the court, no public policy bars an employer from insisting that its employees not sue its customers, clients or patients. The court also said that nothing in California’s workers’ comp law restricts an employer’s right to preclude employees from suing third parties for work-related injuries.
Caution Required
While this case involved an at-will employee, your right to terminate someone who isn’t at-will may be more limited. To bolster your right to do so, state in your employee handbook that suing clients, customers or patients could be grounds for discipline, including termination, to the extent law permits.
Whether employees are or aren’t at-will, taking prompt steps to address and resolve employee concerns regarding third parties can prevent such disputes from mushrooming into litigation.