Where the record showed that an employer terminated over 65 employees after it concluded they were dishonest – by submitting virtually identical forms claiming they were injured – it prevailed on their claims for discrimination under federal and state law.

Background

On June 16, 2017, CSX Transportation Inc., or CSXT, issued furlough notices to employees at its facility in Huntington, West Virginia. Over the following weeks, over 65 employees submitted forms requesting to take medical leave based on claimed minor soft-tissue injuries sustained while off duty. The forms were similar in content; all were signed by one of two chiropractors; and all called for medical leave of eight weeks or more.

Under CSXT’s benefit plans, if an employee were furloughed while on medical leave, the employee would receive health and welfare benefits for up to two years. Otherwise, a furloughed employee would receive such benefits for only four months. Suspecting benefits fraud, CSXT charged the employees with violating its workplace rule against dishonesty and, following hearings, terminated their employment.

Multiple employees then commenced this action against CSXT alleging violations of their rights under federal and state law. The district court granted CSXT summary judgment on all claims.

Discrimination and retaliation

As to the plaintiffs’ claims that CSXT discriminated and retaliated against them, in violation of their rights under ERISA, the Rehabilitation Act, the West Virginia Human...

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