Sixth Circuit Issues Decision in Sybrandt v. Home Depot

The Sixth Circuit Court of Appeals recently held in Sybrandt v. Home Depot that mere ambiguity in a company policy was insufficient to create a genuine issue of material fact sufficient to withstand summary judgment. In doing so, the Court underscored the need for employers to conduct thorough investigations of allegations of employee wrongdoing.

The Plaintiff, a long term employee, was discharged for violating Home Depot’s “no self-service” policy which prohibited employees from being the cashier on their own, personal transactions. The sole issue addressed in the Court’s opinion was whether the Plaintiff had offered sufficient evidence that Home Depot’s proffered rationale for the Plaintiff’s termination was a pretext designed to mask discrimination.

Though the Plaintiff argued with Home Depot’s interpretation of its “no self-service” and complained that Home Depot did not communicate their interpretation to its employees, the Court held that disputes about the interpretation of a company policy do not typically create genuine issues of material fact. Even if later proved incorrect, if the employer has an honest belief in its proffered reason for the discharge, pretext generally cannot be shown.

Critical for the Court was that Home Depot’s decision to discharge the Plaintiff was reasonably informed and reflected a “considered” judgment. Immediately upon learning that the Plaintiff may have violated the policy, Home Depot conducted a thorough investigation. Further, Home Depot had a documented history of discharging employees for violating the policy. These two facts led the Court to conclude that the decision to discharge the Plaintiff was both reasonable and considered and, therefore, not a pretext.

This case stresses the importance for employers to properly investigate allegations that employees have engaged in wrongful behavior. Employers must be consistent in their treatment of those employees and in their interpretations of company policies.

For assistance or training in proper discharge procedures or more information about recent developments in the law, please contact any of the attorneys in Frost Brown Todd’s Labor and Employment Department.

Posted by: Jeffrey N. Lindemann