DOLOn November 24, 2015, the ARB adopted an expansive interpretation of what constitutes an adverse action for claims asserted under the Federal Railroad Safety Act of 1982 (FRSA), holding that a reduced performance rating with no compensation-related consequences and a failure to pay medical bills in connection with a work-related accident are actionable. Fricka v. National Railroad Passenger Corp., ARB Case No. 14-047 (Nov. 24, 2015).

Background

Complainant was injured while traveling to perform work-related duties on his personal motorcycle. He reported the accident as work-related, but the Company classified the injuries as not work related and declined to pay his medical expenses. Shortly after he returned to work in 2011, he received a “Needs Development” rating on his annual review, which was lower than the score he received for his mid-year review. Complainant filed a complaint with OSHA, alleging that he was retaliated against after he reported a workplace injury in violation of the FRSA whistleblower-protection provision. OSHA and then an ALJ rejected his claims. The ALJ found that Complainant did not suffer an adverse employment action.  Complainant appealed to the ARB.

The ARB’s Decision

The ARB focused on whether the Company’s refusal to pay Complainant’s medical bills and his performance appraisals constituted adverse actions under FRSA. The ARB held that although the definition of an adverse action under Title VII can be a helpful guide, it is not determinative in cases asserting claims under FRSA. Finding that the statutory language of the FRSA was more analogous to that of Sarbanes-Oxley (SOX) than Title VII, the ARB concluded that an adverse action for purposes of FRSA claims included “unfavorable employment actions that are more than trivial, either as a single event or in combination with other deliberate employer actions alleged.” Using this standard, the ARB concluded that the Company’s classification of Complainant’s injury as non-work related was unfavorable and more than trivial, noting that this decision allowed the Company to avoid paying for significant medical bills. The ARB also concluded that the 2011 performance rating constituted an adverse action, holding that a performance review does not need to have a tangible or material impact on salary to be considered adverse.

Implications

This is another example of the applying a fairly loose standard of what constitutes an adverse employment action, consistent with cases like those under SOX that apply the frame work under the Wendell H. Ford Aviation Investment and Reform Act for the 21st Century (AIR 21). Indeed, this decision shows that conduct that may not be actionable under Title VII suit could potentially give rise to liability under statutes like FRSA and SOX.

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Photo of Steven J. Pearlman Steven J. Pearlman

Steven J. Pearlman is a partner in the Labor & Employment Law Department, where he is Head of the Restrictive Covenants, Trade Secrets & Unfair Competition Group and Co-Head of the Whistleblowing & Retaliation Group.

Employment, Restrictive Covenant & Trade Secret, and Whistleblower

Steven J. Pearlman is a partner in the Labor & Employment Law Department, where he is Head of the Restrictive Covenants, Trade Secrets & Unfair Competition Group and Co-Head of the Whistleblowing & Retaliation Group.

Employment, Restrictive Covenant & Trade Secret, and Whistleblower Practice. Steven’s national practice focuses on defending companies in federal and state courts and in arbitration fora against the full spectrum of employment-related claims, including claims of executives; restrictive covenant violations; employee raiding; theft of trade secrets; whistleblower retaliation under the Sarbanes-Oxley Act, the Dodd-Frank Act and similar state laws; and wage-and-hour violations, including class, collective and PAGA actions.

Steven has successfully handled trials in multiple jurisdictions; prevailed in seeking and defending against applications for temporary restraining orders and preliminary injunctions; defended one of the largest Illinois-only class actions in the history of the federal courts in Illinois (over 90k putative class members); and prevailed following his oral arguments before federal and state appellate courts. He brings his litigation experience (beginning in 1998) to bear in counseling clients to minimize risk and avoid or prepare for success in litigation.

Investigations. Reporting to boards of directors, their audit committees, CEOs and in-house counsel, Steven conducts sensitive investigations and has the unusual experience of testifying in federal court in connection with investigations. His investigations have involved complaints of sexual harassment involving C-suite officers; systemic violations of employment laws and company policies; and fraud, compliance failures and unethical conduct.

Thought Leadership and Accolades. Steven was named Lawyer of the Year for Chicago Labor & Employment Litigation in the 2023 edition of The Best Lawyers in America. He is a Fellow of the College of Labor and Employment Lawyers. Chambers has reported:

  • Steven is “one of the best in the country and has a lot of experience”;
  • Steven is as an “outstanding lawyer” who is “very sharp and very responsive,” a “strong advocate,” and an “expert in his field”;
  • He is thoughtful, attentive and demonstrates an acute understanding of matters top of mind for business-minded general counsel; and
  • “He is someone who can navigate the twists and turns of litigation without difficulty.”

Steven was 1 of 12 individuals selected by Compliance Week as a “Top Mind.” Earlier in his career, he was 1 of 5 U.S. lawyers selected by Law360 as a ”Rising Star Under 40” in the area of employment law and 1 of “40 Illinois Attorneys Under Forty to Watch” selected by Law Bulletin Publishing Company. Steven is a U.S. Library of Congress Burton Award Winner for “Distinguished Legal Writing.”

Steven was appointed to Law360’s Employment Editorial Advisory Board and selected as a Contributor to Forbes.com. He has appeared on Bloomberg News (television and radio) and Yahoo! Finance, and is often quoted in leading publications such as The Wall Street Journal. The U.S. Chamber of Commerce has engaged Steven to serve as lead counsel on amicus briefs to the U.S. Supreme Court and federal circuit courts of appeal.

In 2024, Steven received the Excellence in Pro Bono Service Award from the United States District Court for the Northern District of Illinois and the Chicago Chapter of the Federal Bar Association.