D'Alia v. Allied-Signal Corp.

• Decision Date: 20 October 1992
• Docket Number: ALLIED-SIGNAL
• Parties: , 60 Fair Empl.Prac.Cas. (BNA) 662, 60 Empl. Prac. Dec. P 41,989, 16 Employee Benefits Cas. 1203 Celeste D'ALIA, Plaintiff-Appellant, v.CORPORATION, Defendant-Respondent.
• Court: New Jersey Superior Court — Appellate Division

Page 1

260 N.J.Super. 1

614 A.2d 1355, 60 Fair Empl.Prac.Cas. (BNA) 662,

60 Empl. Prac. Dec. P 41,989,

16 Employee Benefits Cas. 1203

Celeste D'ALIA, Plaintiff-Appellant, v. ALLIED-SIGNAL CORPORATION, Defendant-Respondent.

Superior Court of New Jersey,

Appellate Division.

Argued Oct. 1, 1992.

Decided Oct. 20, 1992.

Michael K. Fielo, West Orange, for plaintiff-appellant (Roberts, Pedicini & Fielo, attorneys; Stephen M. Higgins on the brief).

Theresa Donahue Egler, Florham Park, for defendant-respondent (Pitney, Hardin, Kipp & Szuch, attorneys; Ms. Egler on the brief).

Before Judges BILDER, BAIME and WALLACE.

The opinion of the court was delivered by

BAIME, J.A.D.

This appeal presents novel questions under the Family Leave Act ( N.J.S.A. 34:11B-1 through -16). The Act guarantees the right of an employee to take a period of leave upon the birth of a child or other family emergency without incurring the risk of losing his or her employment. Upon the expiration of the leave, the employee is entitled to be restored to his or her former job or to an equivalent position.

Pregnant with her second child, plaintiff Celeste D'Alia apprised her employer Allied-Signal Corporation of her intent to take disability and maternity leave under the company's health insurance plan. She claims that she was demoted when she attempted to return to her position following her recuperation from a cesarean section. Plaintiff instituted this action to recover compensatory and punitive damages as well as attorney's fees under the Act. Although discovery had not yet been completed, the Law Division granted defendant's motion for summary judgment. The court determined that plaintiff's request for disability entitlements and maternity leave did not constitute adequate notice of an intention to invoke her rights under the Act. Alternatively, the court found as a matter of law that plaintiff was offered an equivalent position. We reverse.

I.

Because this case was decided in summary fashion, the record before us is somewhat meager. Plaintiff commenced her employment with defendant on a temporary basis while attending college. After her graduation in 1981, she was hired as a full-time employee. Plaintiff initially held the position of Coordinator of the Personnel Resource Data Center at a salary of $14,500. In 1984, she obtained a lateral transfer to the position of Specialist--Stock Options at a grade 6 compensation level. Plaintiff continued in that position until 1986, when she was promoted to the position of Supervisor--Stock Options. Her compensation increased commensurately to a grade 8 level. After plaintiff's first pregnancy, she returned to her position and shortly thereafter was promoted to a salary grade 10 position based upon her assumption of additional duties involving defendant's Section 401(K) savings plan. At that point, her job title became Supervisor--Special Compensation and her salary increased to $43,600.

Effective February 1, 1990, plaintiff formally assumed supervisory responsibility for administering executive compensation. The former supervisor had been promoted and was about to be reassigned to another office. This organizational change was discussed with plaintiff in late December 1989 and was formally announced in two directives issued on January 9, 1990. In her new role, plaintiff had supervisory responsibility over two additional employees. According to plaintiff's deposition testimony, she was promised that she would be promoted to a salary grade 11 as soon as her predecessor assumed her new assignment. Although the evidence is conflicting, plaintiff claims she was told that her salary would be increased and that it "was just a matter of paperwork."

At that point, plaintiff suffered complications in her pregnancy and requested a maternity leave of absence on May 16, 1990. Based on a disability certification by plaintiff's doctor, defendant anticipated that this leave would continue through September 1990. In addition to signing the company's health insurance disability form, plaintiff engaged in several conversations with her immediate supervisor. These discussions apparently concerned the manner in which other employees would assume plaintiff's responsibilities in her absence. In particular, it was agreed that administrative responsibility for executive compensation would be temporarily assigned to an employee then under plaintiff's supervision. Plaintiff fully expected that this "highly visible" and important function would be returned to her following expiration of her leave.

On July 12, 1990, however, plaintiff, who was still convalescing, was told that her former male subordinate would retain the responsibility for executive compensation upon her return. Plaintiff objected to the reassignment of her supervisory responsibilities and alleged that she was the victim of discrimination. In a series of letters, defendant's Director of Human Resources asserted that the staffing change was made out of business necessity and had nothing to do with plaintiff's pregnancy. He further noted that the company intended to reinstate plaintiff to a position having the same grade and salary as her former job. Defendant later offered plaintiff a choice of two positions: Supervisor--Corporate Payroll or Supervisor--Special Compensation. Both positions carried the same salary grade level 10, but did not include executive compensation duties and supervisory responsibilities over the same number of employees as plaintiff's former position. Plaintiff continued to object, claiming that the positions offered by defendant involved only "half of [her former] job," and no opportunity for advancement. Moreover, under the staffing change, plaintiff was to report to an employee who had previously been under her supervision. The employee was later promoted to a salary grade 11 level. When defendant refused to correct these problems, plaintiff resigned and commenced this action.

It is against this factual backdrop that we consider plaintiff's arguments. Plaintiff contends that her request for disability benefits emanating from her pregnancy and for maternity leave was sufficient to place defendant on notice of its obligations under the Act. She also claims that genuine issues of material fact exist concerning whether she was offered an equivalent position following expiration of her family leave.

II.

A brief description of the Act and its legislative history is necessary for a complete understanding of the questions presented. The Act was adopted in 1989 and represents the culmination of a comprehensive legislative effort to maintain the integrity of the family unit and promote flexibility and productivity in the work place. The purpose of the legislation is to adjust public and private policy to accommodate the changing needs of the modern family.

This objective is clearly articulated in the legislative findings and declarations. Citing the well-documented increase in the number of families in which all adults are employed outside of the home, the Legislature observed that "many individuals are forced to choose between job security and parenting or providing care for ill family members." N.J.S.A. 34:11B-2. The Legislature found it necessary "to promote the economic security of families by guaranteeing jobs to wage earners who choose to take a period of leave upon the birth ... of a child or serious health condition of a family member." Ibid. The purpose was to permit employees to contend with problems common to all family members "without risk of termination of employment or retaliation by employers and without loss of certain benefits." Ibid.

In furtherance of this objective, the Act provides that employees with a newly born, adopted or ill child or a sick parent or spouse may take family leave from employment for a period not to exceed 12 weeks during any 24 month period. N.J.S.A. 34:11B-3i; N.J.S.A. 34:11B-4. In the case of a newly born or adopted child, leave may be commenced at any time within one year of the date of birth or placement by adoption. N.J.S.A. 34:11B-4c. As to an ill family member, leave may be taken intermittently when medically necessary. N.J.S.A. 34:11B-4a(1), (2) and (3). With respect to a newly born or adopted child, leave may be taken intermittently only if agreed to by the employer and employee. N.J.S.A. 34:11B-4b. Family leave required by the Act may be paid, unpaid or a combination of the two. N.J.S.A. 34:11B-4d. If an employer provides paid leave for fewer than 12 work weeks, the additional period required by the Act may be unpaid. Ibid. Leave may be denied only where (1) the employee falls into a narrow category of highly salaried individuals, N.J.S.A. 34:11B-4h(1), (2) denial is necessary to prevent "substantial and grievous economic injury" to the employer's operation, N.J.S.A. 34:11B-4h(2), and (3) timely notice is given to the employee, N.J.S.A. 34:11B-4h(3).

In addition to the 12 week period, the Act provides job security for employees by requiring that they be "restored by the employer ... to the position [they] held when the leave commenced or to an equivalent position of like seniority, status, employment benefits, pay, and other terms and conditions of employment." N.J.S.A. 34:11B-7. The only exception granted by the Act is where during the leave period a reduction in force has occurred and the employee would have lost his or her job in any event. Ibid. However, even in the case of a reduction in force, the employee retains all rights to a recall that he or she would have had if he or she had not taken the leave. Ibid. The Act also requires the employer to continue group health insurance coverage to the employee and his or her dependents as if leave had not been taken. N.J.S.A. 34:11B-8. The Act makes it clear that the right to family leave is in addition to those granted under the Temporary Disability Benefits Law ( N.J.S.A. 43:21-25 through -55). Under the Law, pregnancy is...