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BMD Obtains Supreme Court Victory on Behalf of Sterilite of Ohio, LLC

Client Alert
August 28, 2020

Columbus, Ohio – On August 26, 2020, the Supreme Court of Ohio issued its opinion in Lunsford v. Sterilite of Ohio, LLC, Slip Op. No. 2020-Ohio-4193. The Supreme Court’s 4-3 decision reversed an Ohio Court of Appeals ruling that had reinstated a putative class action against Sterilite brought by a group of current and former employees claiming that Sterilite’s use of “direct observation” urinalysis screening violated their common law right to privacy.

BMD originally obtained dismissal of the case in the Stark County Court of Common Pleas, which was reversed by a decision of the Ohio Fifth District Court of Appeals in August 2018. Following the Fifth District’s adverse ruling, BMD successfully petitioned the Supreme Court of Ohio to accept jurisdiction and hear the case. BMD partner Daniel Rudary argued Sterilite’s appeal to the Supreme Court on January 28, 2020.

In its decision reversing the appellate court, the Supreme Court majority adopted BMD’s argument that the plaintiff employees consented to drug testing under the “direct observation” method when they voluntarily produced urine samples while being observed by a same-sex monitor in a designated restroom facility. The Supreme Court also reaffirmed Ohio’s long standing rule of employment-at-will, holding that because “Sterilite had the legal right to terminate appellees’ employment at any time, appellees’ argument that their consent was involuntary because of their fear of termination necessarily fails.”

BMD Litigation Member John Childs and Partner Daniel Rudary represented Sterilite before the Supreme Court of Ohio. Their brief to the Supreme Court can be read here, and Attorney Rudary’s January 28, 2020 oral argument can be viewed here.

See additional coverage on the decision in the ABA Journal and Bloomberg News.

BMDBrennan Manna DiamondOhio Supreme CourtSterilite of Ohioputative class actionOhio Court of Appealsdirect observationcommon law right to privacyemployment-at-willJohn ChildsDaniel J. RudaryLitigationEmployement Law
Client Alert

Paycheck Protection - Designed to Offer Small Business Owners Relief Over the Next Few Weeks

March 30, 2020The CARES Act is a massive piece of legislation. The emergency loan or Paycheck Protection provisions are one component designed to assist small businesses and keep them afloat during the current crisis. The emergency loans will be made under the United States Small Business Administration (SBA) and are simply an expansion of its already existing 7(a) loan program. The loan process will be administered by the SBA through its local lending partners or approved SBA lenders. Over the next several days it is expected that the actual loan process will be further detailed by the SBA so that loans can be quickly processed.Client Alert

Department of Labor Adds Q&A to FFCRA Guidance: Provider & Emergency Responder Leave Exceptions

March 30, 2020Employer Alert: Excluding healthcare providers and emergency responders from the mandatory paid leave provisions of the Families First Coronavirus Response Act (“FFCRA”), Emergency Family and Medical Leave Expansion Act (“EFMLEA”), and the Emergency Paid Sick Leave Act (“EPSLA”)Client Alert

FFCRA Amnesty, the CARES Act Paycheck Protection Program & the Small Business Viability Exemption Provide Options for Employers

March 30, 2020Over the past few days, employers have received options beyond terminating employees (RIFs, layoffs, furloughs, temporary terminations, etc.) in response to COVID-19 and leave concerns.Client Alert

Stimulus Package Recap - What The CARES Act Means for You, Your Employees & Your Business

March 30, 2020As BMD's Business Crisis Response Team shared in its report this weekend, the Stimulus package was passed by both the Senate and House this week. Phase III of the ‘‘Coronavirus Aid, Relief, and Economic Security Act’’ or the ‘‘CARES Act,’’ offers $2 trillion in economic relief to individuals and businesses affected by the Coronavirus epidemic. We identified the most significant areas of the bill that could impact or benefit your business.Client Alert

Governor DeWine Signs Bill Tolling Statutes of Limitations During COVID-19 Emergency Period

March 27, 2020During his March 27, 2020 press conference on Ohio’s ongoing efforts to respond to COVID-19, Governor Mike DeWine officially signed House Bill 197 into law. HB 197, which passed the Ohio House and Senate with unanimous bipartisan support, contains important provisions affecting the legal rights of litigants whose claims may be subject to the statutes of limitations enacted under the Ohio Revised Code.
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