Sacchi v. Ihc Health Servs., Inc.
Opinion
Plaintiff-Appellant Karna Sacchi obtained an unpaid internship with Defendant-Appellee IHC Health Services, Inc. (the "Hospital"), but her internship was terminated by Defendant-Appellee Joy Singh before it was scheduled to finish. 1 Aplt. App. 17, 21, 23-24. Ms. Sacchi then filed a complaint alleging: (1) associational discrimination and retaliation under the Americans with Disabilities Act (ADA), (2) sex and religious discrimination under Title VII of the Civil Rights Act, (3) age discrimination under the Age Discrimination in Employment Act (ADEA), (4) breach of contract, and (5) defamation against Ms. Singh. Id. at 13-14. The district court dismissed Ms. Sacchi's federal claims pursuant to Fed. R. Civ. P. 12(b)(6) because it concluded that she was not an employee and therefore not protected under the antidiscrimination statutes. 1 Aplt. App. at 43. The district court also declined to exercise supplemental jurisdiction over her non-federal claims and dismissed them without prejudice. Id.
On appeal, Ms. Sacchi asks the court to hold that, in an internship setting, access to professional certification, a path to employment, or both can constitute indirect, significant job-related benefits and thereby satisfy the "threshold-remuneration" test if those benefits are substantial and not incident
*1157
to the internship. Aplt. Br. at 24-25. In the alternative, Ms. Sacchi asks the court to hold that most unpaid interns are "employees" under federal antidiscrimination statutes.
Id.
at 25. On the facts alleged in Ms. Sacchi's complaint, we conclude that the benefits claimed are too attenuated and speculative to constitute sufficient remuneration for purposes of this circuit's threshold-remuneration test. Accordingly, exercising jurisdiction under
Background
Ms. Sacchi's complaint alleged that she was pursuing a master's degree at Mills College in early childhood education with an emphasis in child life in hospitals, and she sought to become a certified child life specialist. 1 Aplt. App. 16. The Child Life Council requires that applicants for certification complete 480 hours in an internship with an approved institution.
Relevant to this appeal, Ms. Sacchi received no direct payment or other benefits for her work as an intern. Ms. Sacchi alleged, however, that the internship would provide other benefits; namely, it would allow her to satisfy the internship requirement to be certified as a child life specialist, and that it would provide a pathway to employment because "[t]he great majority of newly certified child life specialists obtain paid employment in the field shortly after certification - often with the institutions where they completed their internships."
The district court dismissed Ms. Sacchi's federal claims because it concluded that Ms. Sacchi had not alleged facts sufficient to qualify as an employee for the purposes of the ADA, ADEA, and Title VII and thus did not fall within those statutes' protections.
Discussion
We review a district court's dismissal of a complaint for failure to state a claim de novo.
Young v. Davis
,
A. Whether Ms. Sacchi Satisfies the Threshold-Remuneration Test
We review whether the facts Ms. Sacchi alleged in her complaint established that *1158 she was plausibly an "employee" within the meaning of Title VII, the ADA, and the ADEA. Viewed in the light most favorable to her, the facts she alleged were insufficient to establish a plausible employment relationship under Title VII, the ADA, and the ADEA. For this reason, we conclude that the district court properly dismissed Ms. Sacchi's complaint under Fed. R. Civ. P. 12(b)(6).
In each of the Acts, "employee" is defined as "an individual employed by an(y) employer."
Several other circuits apply the threshold-remuneration test.
See generally
Juino v. Livingston Par. Fire Dist. No. 5
,
In contrast, the Fourth Circuit held that whether benefits are indirect but significant remuneration or merely incidental was for the trier of fact to resolve where the plaintiff firefighter received numerous benefits,
2
including an opportunity to obtain
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certification as an emergency medical technician.
3
Haavistola
,
We conclude that Ms. Sacchi's intern relationship with the Hospital fails to satisfy the threshold-remuneration test as a matter of law for two reasons. First, the claimed benefits were not provided directly by the hospital, and they did not resemble traditional employment benefits like a pension or insurance. Second, the claimed benefits were attenuated: they would only be realized if subsequent events occurred independently of the internship relationship, thereby rendering them too insubstantial or insignificant.
Although an internship was required for Ms. Sacchi to sit for a professional exam, she still had to pass the exam to receive her child life certification. See 1 Aplt. App. 16. For her to have obtained a position thereafter, she still had to find an open position, apply for that position, and then be selected over all other applicants in what Ms. Sacchi noted is a competitive field. Aplee. Br. at 15; 1 Aplt. App. 25. Merely because others have obtained positions after unpaid internships does not constitute a substantial or significant indirect benefit. 4 Thus, even viewing the facts in the light most favorable to Ms. Sacchi, the claimed benefits are too attenuated and conditional to constitute substantial indirect benefits.
Although
Haavistola
recognized that an internship may be the "most practical approach" to establishing eligibility for a professional certification, the plaintiff there also pointed to many other benefits, including benefits under the Federal Public Safety Officers' Benefits Act when on duty and coverage under Maryland's Workers Compensation Act, both of which resemble more traditional employment benefits.
We also decline the invitation to conclude that all interns are protected by Title VII, the ADA, and the ADEA. Aplt. Br. at 24-27. Even if a laudable goal, this is a task for Congress. Moreover, we are not inclined to establish a broader rule than necessary to decide the case before us.
See
Valley Forge Ins. Co. v. Health Care Mgmt. Partners, Ltd.
,
*1160 B. The Hospital's Motion to File Portion of the Record Under Seal
One procedural issue remains. On appeal, the Hospital provided a copy of the contract between it and Ms. Sacchi's school (Mills College) in a sealed supplemental appendix that had also been sealed during the district court proceedings under a standard protective order. See 2 Aplee. Supp. App. 147-54; Aplee. First Suppl. Mot. to Seal Suppl. App., Ex. 1. The Hospital filed a motion to seal the appendix as required by Tenth Circuit Rule 25.6(A). See Aplee. Mot. to Seal Suppl. App. The Hospital also filed two supplemental motions, urging that the contract should remain under seal because it contained a confidentiality clause and involved a non-party. Aplee. First Suppl. Mot. to Seal Suppl. App. at 2; Aplee. Second Suppl. Mot. to Seal Suppl. App. at 2-3.
We will not grant a motion to seal unless the moving party overcomes a presumption in favor of access to judicial records by "articulat[ing] a real and substantial interest that justifies depriving the public of access to the records that inform our decision-making process."
Eugene S. v. Horizon Blue Cross Blue Shield of N.J.
,
AFFIRMED.
The Supreme Court has explained that when Congress uses the term "employee" without defining it precisely, courts should presume Congress contemplated "the conventional master-servant relationship as understood by common-law agency doctrine."
Nationwide Mut. Ins. Co. v. Darden
,
They included (1) a state-funded disability pension, (2) survivors' benefits for dependents, (3) scholarships for dependents upon disability or death, (4) a state flag to family upon death in the line of duty, (5) benefits under the Federal Public Safety Officers' Benefits Act when on duty, (6) group life insurance, (7) tuition reimbursement for courses in emergency medical and fire service techniques, (8) coverage under Maryland's Workers Compensation Act, (9) tax exemptions for unreimbursed travel expenses, (10) the ability to purchase a special registration plate at lower cost, and (11) access to a method by which one may obtain a certification as a paramedic.
Haavistola
,
Similarly, Ms. Sacchi argues that a child life internship presents the only option for obtaining a child life certification. Aplt. Br. at 21.
The same could be said for the general benefits students receive through unpaid internships including "practical experience, exposure to a career field, networking, and the esteem of potential employers." See Aplt. Br. at 1-2.
We also asked the parties for supplemental briefs addressing "[w]hether 42 U.S.C. § 2000e-2(d), entitled 'Training programs,' contemplates the type of internship at issue in this case." We have discretion to reach issues sua sponte in limited circumstances.
See
Planned Parenthood of Kan. & Mid-Mo. v. Moser
,
Reference
- Full Case Name
- Karna SACCHI, Plaintiff-Appellant, v. IHC HEALTH SERVICES, INC.; Joy Singh, Defendants-Appellees.
- Cited By
- 24 cases
- Status
- Published