Court overrules jury on race, national origin claims, nullifies multimillion-dollar verdict

The U.S. 6th Circuit Court of Appeals (whose rulings apply to all Michigan employers) found a former employee’s claims for national origin and racial harassment and retaliation should never have reached a jury, thereby erasing a multimillion-dollar damages award.

Facts

Between 1999 and 2015, Faisal G. Khalaf, Ph.D., worked for Ford Motor Company as a process engineer with various levels of managerial oversight and duties. Unfortunately, much of his supervision proved unsuccessful:

• Khalaf's leadership assignment in Brazil ended early because of his “lack of management skills” and negative effect on team morale;
• His next department was “in [t]urmoil” with “shocking[ly] low” levels of subordinate engagement and satisfaction; and
• He refused to use leadership-specific resources provided by Ford, denying responsibility for his own shortcomings.

Ford placed Khalaf on a performance enhancement plan (PEP) in 2014. The PEP was extended given his failure to demonstrate significant improvement. He sought a leave of absence on the day his second PEP was scheduled to conclude, claiming he was “totally disabled from working” because of the “emotional strain he had experienced at work.”

In accordance with Ford’s disability and leave policies, Khalaf remained on paid leave for approximately one year, during which he obtained a teaching job. At the conclusion of the leave, the employer offered him an open and comparable position, which he declined. He then rejected the company's proposed severance package, and his employment was separated.