Two nonminority employees filed multiple grievances over derogatory racial comments about African Americans made by their supervisor. The employer investigated, and although it found some evidence of derogatory racial remarks, it ultimately concluded the employees’ grievances were without merit. Both employees were subsequently terminated with the approval of the vice president and the CEO, neither of whom had any discriminatory or retaliatory intent. Nevertheless, a jury found the employer liable. Read on to see why the U.S. Court of Appeals for the 8th Circuit (whose rulings apply to Missouri employers) upheld the jury’s verdict under the cat’s-paw theory.

Internal grievance and investigation

Riceland Foods, Inc., is a farmer-owned company that sells rice. Randy Bennett and Richard Turney, who are both white, were maintenance workers at Riceland. In April 2009, Turney filed a grievance with the company alleging that his supervisor used the “n” word on numerous occasions and said that a black maintenance worker “smelled like a n____r.” The complaint listed Bennett as one of two witnesses.

Martin Jones, the director of warehousing, investigated Turney’s grievance. The supervisor who was accused of the offensive behavior stated that he had “no recollection of having made [the] statements.” Jones also interviewed Bennett, who corroborated Turney’s account. According to Bennett, Jones asked him if Turney was trying to ruin the supervisor’s career. Another maintenance worker who was listed as a witness couldn’t recall what the supervisor said. At some point, Jones attempted to convince Turney to withdraw his grievance, but he was unsuccessful.

Although Bennett specifically remembered the supervisor making the statement and the other witness didn’t recall what happened, Jones deemed the witnesses’ statements inconsistent and concluded that the supervisor committed no offense. He told a coworker during the investigative process that he was unable to convince Turney “to drop the grievance.” The coworker testified that Turney’s refusal to halt the process made Jones “angry and upset.”

The grievance was denied without any meaningful investigation. Turney appealed the denial, but management affirmed Jones’ decision.

Read more...Missouri Employment Law Letter (PDF)