This case study examines two employment grievances arising at Gizmo Inc. The first involves Becky, an employee terminated after requesting maternity leave, whose case raises significant Family and Medical Leave Act (FMLA) violations that override her employment contract's arbitration clause and give her standing in court. The second involves Sydney, an employee fired for refusing a mandatory drug test required under his employment contract, whose grievance is appropriately directed to arbitration. The paper analyzes whether each grievance would be heard in court or arbitration, and evaluates the likely outcome for each party based on applicable law, contractual provisions, and available evidence.
Two employees at Gizmo Inc. — Becky and Sydney — each face employment grievances arising from different circumstances. Becky was terminated after requesting maternity leave during a pregnancy complication, while Sydney was fired after refusing to submit to a mandatory drug test. These two situations involve distinct legal frameworks: one implicates statutory protections under federal law, and the other is governed primarily by the terms of an employment contract.
Becky's case has a realistic possibility of being heard in court. Her termination occurred at a time when she was experiencing complications during her pregnancy, and she had already requested and been initially granted maternity leave. Under these circumstances, she can claim that Gizmo Inc. failed to comply with the provisions of the Family and Medical Leave Act (FMLA) by terminating her employment after she had properly requested leave.
Crucially, this statutory violation supersedes the arbitration clause in her employment contract. When an employer's conduct directly violates a federal statute such as the FMLA, the employee may seek relief in court rather than being limited to contractual dispute resolution mechanisms (Cihon, 2013).
Under the FMLA, eligible employees may take up to 12 weeks of unpaid leave without fear of retribution, demotion, or termination. To qualify, an employee must provide at least 30 days' advance notice when the need for leave is foreseeable. The Department of Labor provides the following guidance to employers and employees:
"Employees must comply with their employer's usual and customary requirements for requesting leave and provide enough information for their employer to reasonably determine whether the FMLA may apply to the leave request. Employees generally must request leave 30 days in advance when the need for leave is foreseeable. When the need for leave is foreseeable less than 30 days in advance or is unforeseeable, employees must provide notice as soon as possible and practicable under the circumstances." (The Family Medical Leave Act, 2014)
"Why Sydney's dispute goes to arbitration"
"Predicted results for Becky and Sydney"
The two disputes at Gizmo Inc. illustrate how the forum for resolving employment grievances depends heavily on whether a statutory right overrides a contractual clause. Becky's FMLA protections give her standing to pursue her claim in court, where her documented evidence of proper leave notification may well result in a favorable judgment or settlement. Sydney, by contrast, faces arbitration over his refusal to comply with a valid contractual drug testing requirement — a dispute in which the arbitrator is likely to rule in the company's favor.
You’re 45% through this paper. Sign up to read the remaining 2 sections.
Sign Up Now — Instant Access Already a member? Log inAlways verify citation format against your institution’s current style guide requirements.