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Sterling Transit Co. v. Fair Employment Practice Commission

Citations: 121 Cal. App. 3d 791; 175 Cal. Rptr. 548; 1 Am. Disabilities Cas. (BNA) 262; 1981 Cal. App. LEXIS 1980; 28 Empl. Prac. Dec. (CCH) 32,543; 28 Fair Empl. Prac. Cas. (BNA) 1351Docket: Civ. 22896

Court: California Court of Appeal; July 21, 1981; California; State Appellate Court

Narrative Opinion Summary

The case involves an appeal by Sterling Transit Company, Inc. against a court decision upholding the California Fair Employment Practice Commission's ruling of unlawful discrimination in Sterling's hiring practices. The issue arose when Sterling denied Jose Bustamante permanent employment due to his scoliosis, after he had worked temporarily without issues. The Commission found that Sterling's hiring policy, which disqualified individuals with back deficiencies, constituted discrimination under the California Fair Employment Practice Act (FEPA), unless justified by a bona fide occupational qualification (BFOQ) or safety necessity. An administrative law judge initially sided with Sterling, but the Commission determined that Sterling failed to demonstrate that its exclusion policy was essential for safety or that individuals with similar conditions could not perform job duties safely. The trial court applied the substantial evidence test to uphold the Commission's decision, emphasizing the need for individualized assessments rather than blanket exclusions of handicapped persons. The ruling highlighted that potential financial liabilities from job-related injuries do not justify discriminatory practices. The decision was affirmed, and Sterling's petition for a Supreme Court hearing was denied, reinforcing the legislative intent to protect equal employment opportunities for handicapped individuals under both state and federal law.

Legal Issues Addressed

Bona Fide Occupational Qualification (BFOQ) Defense

Application: The court found Sterling's exclusion policy did not meet the BFOQ criteria as it failed to prove that Bustamante's condition posed substantial or immediate dangers that justified disqualification.

Reasoning: The trial court determined that the evidence did not support a substantial or immediate danger to Bustamante's health, rejecting Sterling's argument for independent scrutiny of the Commission's ruling.

Employment Discrimination under California Fair Employment Practice Act (FEPA)

Application: Sterling's policy of disqualifying individuals with back deficiencies was deemed discriminatory under FEPA unless justified by bona fide occupational qualifications (BFOQ) or safety needs.

Reasoning: Sterling's policy outright disqualified individuals with back deficiencies, which it acknowledged would typically constitute discrimination under the California Fair Employment Practice Act (FEPA), unless justified.

Impact of Insurance Costs on Employment Decisions

Application: The court rejected Sterling's argument that financial liabilities from potential injuries could justify its exclusionary policy, aligning with federal guidelines against using insurance costs as a basis for discrimination.

Reasoning: Federal guidelines explicitly reject insurance costs as a valid reason for denying employment to individuals with disabilities.

Prohibition of Blanket Exclusions for Handicapped Individuals

Application: The Commission emphasized that blanket exclusions of physically handicapped individuals are impermissible without individualized assessments, which Sterling failed to provide.

Reasoning: The precedent set in Weeks v. Southern Bell, while relevant, does not permit blanket exclusions of physically handicapped individuals without individualized assessments unless proven impractical.

Substantial Evidence Test in Employment Discrimination

Application: The court applied the substantial evidence test, affirming the Commission’s decision as it was based on reasonable evidentiary findings, despite Sterling's arguments for independent review.

Reasoning: Instead, the court employed the substantial evidence test, affirming that its decision must stand if based on reasonable evidentiary findings, regardless of the presence of equally or more persuasive evidence.