Yardley v. Hospital Housekeeping Systems, Llc.

470 S.W.3d 800 (2015)

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Nature Of The Case

This section contains the nature of the case and procedural background.

Facts

Yardley (P) worked as a housekeeping aide and was hurt on the job and began receiving workers' compensation benefits. P received medical treatment for her injury. As of July 1, 2012, she was performing light-duty work for the Hospital's materials management group with the expectation that when released to full duty, she would return to her job as a housekeeping aide. On January 1, 2012, the Hospital entered into a contract with Hospital Housekeeping Systems (D), whereby D agreed to provide housekeeping services for the Hospital beginning July 1, 2012. D agreed to interview the Hospital's current housekeeping employees and, at D's discretion, hire the employees to continue in their positions. D hired most of the Hospital's housekeeping staff. As of July 1, 2012, P had neither been interviewed nor hired because she was still on light duty. P was released to full duty and sought to return to work in the housekeeping department. P spoke with D's Division Vice President, Michael Cox, who told her that D would not hire anyone receiving workers' compensation benefits or who was likely to receive them. Cox advised D not to hire P. P was not hired and sued D. The court certified the question. In Tennessee, there is no statutory or common law cause of action for retaliatory failure to hire. P argues that if employers can lawfully refuse to hire job applicants because the applicants have filed, or are likely to file, workers' compensation claims, such action by employers will have a chilling effect on workers' decisions to file claims and obtain their rightful remedies under the Act. P claims it would frustrate the purpose of the Second Injury Fund, see Tenn. Code Ann. § 50-6-208 (2014), which the Legislature established to encourage the hiring of workers who have suffered previous injuries. Amicus curiae, Tennessee Employment Lawyers Association, argues that an employer's failure to hire a job applicant because the applicant asserted a claim for compensation against a previous employer constitutes a device that would relieve an employer of an obligation under the Act; such devices are prohibited by Tennessee Code Annotated section 50-6-114 (2014). D argues that there was no employer-employee relationship and that Tennessee's employment-at-will doctrine should be protected, that employers should be free to hire and fire as they choose, and that an exception to the employment-at-will doctrine should not be made under these facts.

Issues

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Holding & Decision

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Legal Analysis

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