Jeffrey Steidle v. United States Liability Insurance Co Inc

PRECEDENTIAL

UNITED STATES COURT OF APPEALS

FOR THE THIRD CIRCUIT

_____________

No. 24-2999

_____________

JEFFREY STEIDLE,

Appellant

v.

UNITED STATES LIABILITY INSURANCE CO., INC.

_______________

On Appeal from the United States District Court for the Eastern District of Pennsylvania (D.C. No. 2:22-cv-04972)

District Judge: Honorable Juan R. Sanchez _______________

Argued November 12, 2025

Before: RESTREPO, McKEE, and AMBRO, Circuit Judges.

(Filed: June 24, 2026)

_______________

Wayne A. Ely [ARGUED]

59 Andrea Drive

1

Richboro, PA 18954 Counsel for Appellant John T. McDonald Reed Smith

506 Carnegie Center Suite 300

Princeton, NJ 08540 Counsel for Appellee Mariah H. McGrogan [ARGUED] Reed Smith

225 Fifth Avenue Suite 1200

Pittsburgh, PA 15222 Counsel for Appellee _______________

OPINION OF THE COURT

_______________ McKEE, Circuit Judge. Jeffrey Steidle appeals the District Court's grant of summary judgment in favor of United States Liability Insurance Co., Inc. ("USLI"), his former employer. Steidle brought claims under the Americans with Disabilities Act ("ADA") and the Family and Medical Leave Act ("FMLA"). For the reasons that follow, we will vacate the District Court's grant of summary judgment on Steidle's retaliation claims arising from his lower than anticipated 2020 bonus and salary increase and remand for further proceedings consistent with

2

this opinion. We will affirm the District Court's grant of summary judgment on Steidle's retaliation claims stemming from his lower than anticipated 2021 bonus and salary increase.

I. Background

Shortly after his honorable discharge from the United States Marine Corps, Steidle began struggling with his mental health. In 2010, he was diagnosed with major depressive disorder. In 2013, Steidle began working at USLI with the Casualty Claims team and reported to Janet Helbig, Vice President of Claims.

Near the end of each year, USLI awarded Steidle an annual salary increase and bonus that would go into effect the following calendar year. In 2015, USLI awarded Steidle a 14% salary increase and a $5,500 bonus. In 2016, it awarded him a 4.9% salary increase and a $6,500 bonus. In 2017, it awarded him a 4.9% salary increase and a $7,000 bonus. In 2018, it awarded him a 4.5% salary increase and a $7,000 bonus.¹ In November 2019, Steidle transferred to the Liquor Liability team supervised by Ann Lacey. In Steidle's 2020 First Quarter Performance Review, Lacey praised Steidle's

"dedication to [their] team and community" and his

"community involvement outside of his regular job responsibilities."²She also noted that, "[g]iven his newness to the position, [Steidle] ha[d] been getting acclimated to a new

3

pending list of claims" that was "lower than his peers" and involved "lower severity general liability claims."³During this time, Steidle's mental health condition worsened; he was diagnosed with posttraumatic stress disorder and anxiety. In the summer of 2020, Steidle informed Lacey that he

"was struggling and working with [his] psychiatrist at the VA for [his] mental health condition."⁴In Steidle's 2020 Third Quarter Performance Review, Lacey again commended Steidle for his "remarkable" "involvement in community initiatives"

and for being a "valued team and community contributor"⁵ despite some issues with responsiveness and managing his workload. She also wrote: "I would like [Steidle] to communicate more openly about his struggles and what I can do to support him in achieving better success with his job specific responsibilities and service expectations . . . ."⁶ Shortly after his 2020 Third Quarter Performance Review, Steidle told Helbig he wished to return to her team. USLI approved his transfer back to Helbig's team. Before rejoining Helbig's team, Steidle took approved FMLA leave from October 1, 2020 through December 20, 2020 to treat his mental health conditions. Lacey approved Steidle's annual salary adjustment while he was on leave. She awarded Steidle a 2.5% salary increase and a $3,000 bonus ("2020 Bonus").⁷

4

This was Steidle's smallest bonus and lowest percentage salary increase to date.

Steidle returned to work on Helbig's team at the end of 2020. In his 2021 First Quarter Performance Review, Helbig applauded Steidle for "meeting [USLI's] service promises,"

"providing good service," and "manag[ing] his call volume."⁸ She also noted she was "intentionally assigning [Steidle] a higher number of new claims to grow his pending [claims]."⁹ A month after his review, Steidle requested and was granted accommodations to "help reduce [his] stress, anxiety, depression, [and] PTSD."¹⁰He was allowed to continue working remotely if USLI reopened its office and to work between the hours of 7 am and 3 pm.¹¹

Two months later, on July 21, 2021, Steidle emailed Helbig describing a situation with another employee that caused him to take a "mental health sick day."¹²He emailed Helbig again the next day describing how "unnecessary stressors manufactured by USLI . . . played a role in what sent [him] into the worst mental health episodes that [he had] ever experienced."¹³Helbig forwarded Steidle's email to her supervisor, Jim Scalise. Steidle met with Scalise and Helbig to

5

discuss his concerns the following day. According to Steidle,

"[i]t was a very combative" discussion.¹⁴Scalise warned Steidle that if he told others about his mental health struggles, USLI would "be forced to take action against [him]."¹⁵He also told Steidle "instead of sending emails to them . . . with [his] concerns, to scream at [his] wife."¹⁶

Steidle received his 2021 Third Quarter Performance Review a few months later. In it, Helbig again described Steidle as "a valued team member"¹⁷but observed that

"[w]orking remotely . . . ha[d] reduced some of [Steidle's] previous on-site opportunities to show individual leadership."¹⁸She also explained that Steidle was still

"receiv[ing] an increased number of incoming claims."¹⁹At the time, he had 83 pending claims and "[t]he goal [was] to get [Steidle] to a pending of 125 claims."²⁰At the end of the year, Steidle received a 3.6% salary increase and a $3,150 bonus ("2021 Bonus").²¹

In January 2022, Steidle requested and was granted FMLA leave through April for treatment related to his mental health conditions. In March 2022, Steidle requested an

6

extension of his medical leave and provided USLI with a letter from his doctor noting that Steidle was "totally disabled and unable to report to work indefinitely."²²USLI granted the extension. USLI received a letter from Steidle's doctor in July noting that Steidle was "medically stable to return to working from home at reduced hours."²³Steidle requested three accommodations before returning to work: (1) a reduction in hours to four per day, (2) a phone adapter and ability to use call forward, and (3) permission to record meetings. USLI approved the reduced work hours and the phone adapter, but denied his request to record meetings due to confidentiality concerns. Steidle never returned to work with these accommodations.

The next month, Steidle shared a letter with USLI in which his doctor "retract[ed] [her] previous statement regarding [Steidle's] medical stability" and recommended that he remain on medical leave.²⁴USLI asked for clarification on an anticipated return date, but the doctor responded that she was unable to provide one. On September 14, 2022, USLI informed Steidle that it could not grant his request for indefinite leave. As a result, USLI terminated Steidle's employment.

Thereafter, Steidle filed suit against USLI asserting claims of disability discrimination under the ADA and retaliation under both the ADA and the FMLA. The District Court granted USLI's motion for summary judgment on all claims. It held that Steidle failed to establish a prima facie case

7

of discrimination and retaliation. In addressing Steidle's retaliation claims, the District Court defined an adverse employment action as one that "alters the employee's compensation, terms, conditions, or privileges of employment, deprives him or her of employment opportunities, or adversely affects his or her status as an employee."²⁵Using this standard, it concluded that Steidle had not suffered an adverse employment action. It also concluded Steidle failed to establish a causal connection between his request for accommodations and medical leave and his receipt of smaller bonuses and lesser percentage salary increases. This appeal followed.²⁶

II. Standard of Review

We exercise plenary review over a district court's grant of summary judgment, applying the same standard as the lower court.²⁷We will affirm a district court's grant of summary judgment only if "there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of

8

law."²⁸"A factual dispute is 'material' if it 'might affect the outcome of the suit under the governing law,'"²⁹and "is genuine only if the evidence at issue could permit a reasonable jury to decide in favor of the nonmoving party."³⁰Throughout our analysis, we "view the facts in the light most favorable to the non-moving party and [draw] all reasonable inferences in that party's favor."³¹

III. Discussion

Steidle argues the District Court erred in granting USLI's motion for summary judgment as to his retaliation claims under the ADA and FMLA.³²Federal law prohibits

9

employers from retaliating against employees for exercising their rights.³³The ADA makes it unlawful for employers to discriminate against any employee who "has opposed any act or practice made unlawful by [the ADA]" or has "made a charge, testified, assisted, or participated in any manner in an investigation, proceeding, or hearing under" the statute.³⁴ Similarly, under the FMLA, an employer may not retaliate against an employee "for having exercised or attempted to exercise FMLA rights."³⁵

Retaliation claims that rely on circumstantial evidence are subject to the burden-shifting framework³⁶the Supreme Court established in McDonell Douglas Corp. v. Green.³⁷ Under this framework, a plaintiff must first establish a prima accommodation. See Turner v. Hershey Chocolate U.S., 440 F.3d 604, 611 (3d Cir. 2006) (explaining that in order to establish a prima facie case of discrimination, the plaintiff must be a "qualified individual," which is defined as a person

"who, with or without reasonable accommodation, can perform the essential functions of the employment position"

(quoting 42 U.S.C. § 12111(8)). This is because he requested indefinite leave and could not return to work regardless of accommodation.

10

facie case of retaliation.³⁸Under the ADA and the FMLA, a prima facie case of retaliation requires showing: "(1) protected employee activity; (2) adverse action by the employer either after or contemporaneous with the employee's protected activity; and (3) a causal connection between the employee's protected activity and the employer's adverse action."³⁹If the plaintiff establishes a prima facie case, the burden shifts to the defendant to offer a legitimate, nonretaliatory reason for its action.⁴⁰If the defendant satisfies this requirement, the burden shifts "back to the plaintiff to provide evidence from which a factfinder could reasonably infer that the employer's proffered justification is merely a pretext" for retaliation.⁴¹ Steidle contends the District Court erred in holding that he failed to establish a prima facie case of retaliation. He argues his retaliation claims should have survived summary judgment because he established that the reasons USLI provided for awarding him a lower 2020 Bonus and 2021 Bonus were pretextual. USLI contends that the District Court did not err in

11

holding that Steidle failed to establish a prima facie case of retaliation and argues that, even if it did, we should affirm the grant of summary judgment because Steidle cannot establish pretext.

We agree with Steidle that the District Court erred in holding that Steidle did not suffer an adverse employment action based on receipt of the lower 2020 Bonus and 2021 Bonus. In doing so, we hold that our definition of an adverse employment action in Title VII retaliation cases applies equally to ADA and FMLA retaliation cases. Additionally, we find that the District Court erroneously concluded that Steidle failed to establish a causal connection for the 2020 Bonus but appropriately held that no causal connection existed for the 2021 Bonus.

Accordingly, we will affirm the District Court's grant of summary judgment on Steidle's 2021 Bonus claims, but vacate the District Court's grant of summary judgment on his 2020 Bonus claims. Because the District Court has not yet considered whether Steidle can establish pretext, we will remand to the District Court to consider in the first instance whether summary judgment is appropriate on this basis.⁴²

A. Protected Activity

12

The ADA prohibits "retaliation against an employee for requesting an accommodation."⁴³Accordingly, an employee engages in protected activity when s/he requests accommodations in good faith.⁴⁴An employee also engages in protected activity when "she invoke[s] her right to FMLA- qualifying leave."⁴⁵Moreover, "a request for FMLA leave may qualify, under certain circumstances, as a request for a reasonable accommodation under the ADA."⁴⁶It is undisputed that Steidle's request for FMLA leave from October 1, 2020 through December 20, 2020 qualifies as protected activity. Steidle also engaged in protected activity in May 2021 when he submitted a request for accommodation to work remotely from 7 a.m. to 3 p.m. to manage his "stress, anxiety, depression, [and] PTSD."⁴⁷

B. Adverse Employment Action

13

A plaintiff bringing a claim of retaliation or discrimination must show that he suffered "an adverse employment action" as a result of a protected activity.⁴⁸In the context of Title VII discrimination claims, an adverse employment action is defined as one that demonstrates "some harm respecting an identifiable term or condition of employment."⁴⁹However, a "more relaxed standard" applies to retaliation claims.⁵⁰In Burlington Northern & Santa Fe Railway Co. v. White, the Supreme Court held that a plaintiff claiming retaliation under Title VII "must show that a reasonable employee would have found the challenged action materially adverse" in that "it well might have dissuaded a reasonable worker from making or supporting a charge of discrimination."⁵¹

Two months after the Burlington decision, we applied this standard to a Title VII retaliation claim.⁵²Since then, we have not decided precedentially whether the less restrictive standard also applies to retaliation claims under the ADA and the FMLA.⁵³Today, we hold that it does. The antiretaliation

14

provision in the ADA is "nearly identical" to the one in Title VII.⁵⁴Similarly, the antiretaliation provision of the FMLA was

"derived from [Title VII] and [was] intended to be construed in the same manner."⁵⁵Accordingly, Congress clarified that the FMLA's provision was "intended to provide the same sorts of protection [as Title VII] to workers who oppose, protest, or attempt to correct alleged violations of the [statute]."⁵⁶Given their similarities, we subject retaliation claims under all three statutes to the McDonnell Douglas burden-shifting framework, and therefore require plaintiffs in each to establish the same prima facie case of retaliation.⁵⁷We see no reason to apply a different adverse employment action standard to ADA and FMLA retaliation claims when nothing in the text of the ADA or the FMLA suggests that we ought to apply a more restrictive standard. Rather, the similarities between these statutes and Title VII convinces us to apply the same analysis. Other circuit courts of appeals agree. The same year Burlington Northern was decided, the Court of Appeals for the Tenth Circuit explained that, because the FMLA antiretaliation employment action' promulgated in the Title VII context"); see DiCampli v. Korman Cmtys., 257 F. App'x 497, 500-01 (3d Cir. 2007) (applying less restrictive standard to an FMLA retaliation claim); Parker v. Univ. of Pa., 239 F. App'x 773, 775-76 (3d Cir. 2007) (applying less restrictive standard to an ADA retaliation claim).

15

provision was "derived from Title VII" and was "intended to be construed in the same manner,"⁵⁸the Burlington Northern adverse employment action standard "applies with equal force in the context of an FMLA retaliation case."⁵⁹Shortly thereafter, the Tenth Circuit announced that Burlington Northern "applies in the ADA context as well" because "the ADA's anti-retaliation provision . . . contains essentially the same language as Title VII's provision."⁶⁰Nearly all circuit courts have followed suit.⁶¹We now join our sister circuits and

16

hold that the Supreme Court's formulation of an adverse employment action under Title VII applies to retaliation claims under the ADA and the FMLA as well.

Here, the District Court relied on our decision in Moore

v. City of Philadelphia to define an adverse employment action as one that "alters the employee's compensation, terms, conditions, or privileges of employment, deprives him or her of employment opportunities, or adversely affects his or her status as an employee."⁶²However, in Moore, we clarified that such definition was replaced by the less restrictive Burlington Northern standard because the Supreme Court found the discrimination and retaliation provisions in Title VII were "not coterminous"⁶³given their "different statutory language and different purposes."⁶⁴We further explained in Moore that, based on this reasoning, the Supreme Court "held that a plaintiff claiming retaliation under Title VII must show that a reasonable employee would have found the alleged retaliatory actions 'materially adverse' in that they 'well might have dissuaded a reasonable worker from making or supporting a 419 (6th Cir. 2021) (same); Breneisen v. Motorola, Inc., 512 F.3d 972, 979 (7th Cir. 2008) (same); Garrison v. Dolgencorp, LLC, 939 F.3d 937, 943 (8th Cir. 2019) (same); Csicsmann v. Sallada, 211 F. App'x 163, 168 (4th Cir. 2006) (same); Chandler v. Sheriff, Walton Cnty., No. 22-13698, 2023 WL 7297918, at *2 (11th Cir. Nov. 6, 2023) (same).

17

charge of discrimination.'"⁶⁵The District Court's reference to Moore failed to capture our recognition of the key distinction the Supreme Court drew between an adverse employment action in the discrimination context as opposed to the retaliation context.

In accordance with Burlington Northern and Moore, we conclude that a reasonable factfinder could find that the lower bonuses and smaller salary increases Steidle received in 2020 and 2021 could have dissuaded a reasonable worker from requesting accommodation or FMLA leave.

We find no precedent post-Burlington Northern establishing that receipt of lower than anticipated bonuses and salary increases are not adverse employment actions in retaliation claims. Appellate courts that reached such conclusion prior to Burlington Northern relied on a distinction between discretionary and automatic bonuses where only a reduction in the latter could constitute an adverse employment action.⁶⁶This distinction was necessary under the pre- Burlington rule which required that an adverse employment action alter "the employee's compensation, terms, conditions, or privileges of employment."⁶⁷For instance, in Rabinovitz v. Pena, the Court of Appeals for the Seventh Circuit held "that loss of a bonus is not an adverse employment action . . . where

18

the employee is not automatically entitled to the bonus."⁶⁸That court also explained that "the denial of a raise can constitute a materially adverse employment action if a raise would have been an expected element of the employee's salary and its denial cuts the salary in real terms."⁶⁹Similarly, in Turner v. Gonzales, the Court of Appeals for the Eighth Circuit clarified that a "performance rating downgrade qualifie[d] as an adverse employment action" because it "directly forfeited a non- discretionary salary increase, detrimentally altering the terms and conditions" of employment.⁷⁰

However, given the analysis in Burlington Northern, the distinction between automatic and discretionary bonuses is no longer tenable. In Burlington Northern, the Supreme Court rejected the petitioner's argument "that the employer actions prohibited by the antiretaliation provision should similarly be limited to conduct that affects the employee's compensation, terms, conditions, or privileges of employment."⁷¹The Court clarified "that the antiretaliation provision, unlike the substantive provision, is not limited to discriminatory actions that affect the terms and conditions of employment."⁷² Therefore, plaintiffs "need only show that an action is

19

'materially adverse' in that it 'well might have dissuaded a reasonable worker from'" exercising his or her rights under the statute.⁷³Receipt of a lower than anticipated bonus and salary increase could certainly dissuade a reasonable worker from engaging in protected activity.

Despite improperly applying a more restrictive definition of an adverse employment action than the Burlington Northern standard, the District Court did acknowledge that "the receipt of a less than expected merit increase could rise to the level of an adverse employment action in the retaliation context."⁷⁴Nonetheless, it concluded that USLI did not subject Steidle to an adverse employment action because "there [was] nothing in the record to show Steidle's performance . . . merited a higher discretionary bonus and salary increase than . . . he received."⁷⁵However, the question at the prima facie stage is not whether Steidle's performance merited a higher bonus and salary but whether receipt of a lower bonus and salary increase under the circumstances here could constitute an adverse employment action. In other words, would the receipt of a lower than anticipated bonus and salary increase dissuade a reasonable worker from making or supporting a charge of discrimination?

We also reject USLI's argument that Steidle cannot establish he suffered an adverse employment action because

"Steidle himself was not dissuaded or deterred from engaging

20

in any protected activity."⁷⁶Burlington Northern's materiality condition is not premised on an individual plaintiff's response to an allegedly retaliatory action.⁷⁷Burlington Northern requires us to "examine the challenged conduct 'from the perspective of a reasonable person in the plaintiff's position.'"⁷⁸"[P]etty slights, minor annoyances, and simple lack of good manners" are generally insufficient to satisfy this standard.⁷⁹Nonetheless, "the significance of any given act of retaliation will often depend upon the particular circumstances."⁸⁰The inquiry must focus on the likely impact

21

an employer's action would have on "a reasonable person in the plaintiff's position,"⁸¹not on how the most intrepid and financially secure employee would react to it. On this record, prior to 2020, the smallest bonus Steidle received was $5,500 and his lowest percentage salary increase was 4.5%, but he typically received an even larger bonus, and a higher salary increase.⁸²However, Steidle's bonuses and salary increases were significantly reduced after he engaged in protected activity. After Steidle requested FMLA leave in 2020, USLI awarded him only a $3,000 bonus and a 2.5% salary increase—a more than 40% reduction in bonus and salary increase compared to previous years. Similarly, after Steidle requested an accommodation in 2021, USLI gave him only a $3,150 bonus and a 3.6% salary increase.⁸³A reasonable jury could conclude that these reductions might well have words used or the physical acts performed." Id. (quoting Oncale v. Sundowner Offshore Servs., Inc., 523 U.S. 75, 81-

82 (1998)).

22

dissuaded a reasonable worker from requesting FMLA leave or an accommodation. Thus, the District Court erroneously held that Steidle did not suffer adverse employment actions in 2020 and 2021.

C. Causation

A plaintiff must also establish "a causal connection between the employee's protected activity and the employer's adverse action."⁸⁴To establish causation, a plaintiff may rely on "an unusually suggestive temporal proximity between the protected activity and the allegedly retaliatory action."⁸⁵ Unusually suggestive timing alone can "create an inference of causality and defeat summary judgment."⁸⁶When such close temporal proximity is lacking, "we consider the circumstances as a whole, including any intervening antagonism by the employer, inconsistencies in the reasons the employer gives for its adverse action, and any other evidence suggesting that the employer had a retaliatory animus when taking the adverse action."⁸⁷

Steidle took medical leave to treat his mental health conditions from October to December of 2020. In the middle of his medical leave, Lacey approved a smaller bonus and lower percentage salary increase. "[S]uch close temporal

23

proximity qualifies as unusually suggestive timing."⁸⁸The District Court concluded Steidle could not establish causation because, although the bonus was approved while he was on leave, "it was USLI's common practice to make bonus decisions late in the year."⁸⁹The District Court also found the evaluations did not demonstrate a pattern of antagonism because Steidle himself acknowledged he struggled with some of his work responsibilities. These facts, however, are not relevant at the causation stage when unusually suggestive timing has been established.⁹⁰Instead, they are central to the second and third steps of the McDonnell Douglas burden- shifting framework,⁹¹which the District Court did not address.

24

Therefore, we conclude the District Court erroneously held that Steidle failed to establish a prima facie case of retaliation for the 2020 Bonus.⁹²

The same cannot be said of the 2021 Bonus. In May 2021, Steidle requested accommodations to work remotely between the hours of 7 a.m. and 3 p.m. His bonus and salary increase were approved almost six months later. This six- month gap alone is insufficient to establish an unusually suggestive temporal proximity.⁹³"Where the temporal proximity is not 'unusually suggestive,' we ask whether 'the

25

proffered evidence, looked at as a whole, may suffice to raise the inference.'"⁹⁴"[A] plaintiff can establish a link between his or her protected behavior and subsequent discharge if the employer engaged in a pattern of antagonism in the intervening period."⁹⁵For instance, work conditions that set up employees

"to fail" after the employee engages in protected activity may support finding a pattern of antagonism.⁹⁶Viewing the evidence in the light most favorable to Steidle, he has not presented sufficient evidence from which a jury could reasonably make the required inference to establish a causal link between the protected behavior in May of 2021 and the amount of the subsequent bonus and salary increase. Steidle argues his assignment of an increased number of claims and his meeting with Scalise are enough to establish a pattern of antagonism.⁹⁷The record does not support his

26

argument. It is true that Steidle "received an increased number of incoming claims,"⁹⁸but he began receiving them months before he requested accommodations in May of 2021.⁹⁹ Because the record lacks other evidence from which a reasonable jury could conclude that his request for accommodations caused the heavier workload, Steidle's argument fails.

result of the medical leave he took in 2020. Because no such argument was made, we need not address whether Steidle could have established causation based on a continuing pattern of antagonism that began when he first requested leave in 2020.

27

Moreover, Steidle's single meeting with Scalise does not demonstrate a pattern of antagonism. Steidle met with Scalise on July 23, 2021. Although Scalise was "combative"

and perhaps even unprofessional and inappropriate towards Steidle during the discussion,¹⁰⁰he did not initiate any disciplinary action against Steidle. Without more, a jury could not reasonably find that USLI engaged in a pattern of antagonism based on Steidle's single conversation with Scalise. Therefore, Steidle fails to establish a causal connection between his accommodation request and his 2021 Bonus.

IV. Conclusion

For these reasons, we will vacate the District Court's grant of summary judgment as to Steidle's retaliation claims arising from the 2020 Bonus and remand to the District Court to consider in the first instance whether Steidle has established pretext. We will, however, affirm the District Court's grant of summary judgment on Steidle's claims arising from the 2021 Bonus.

28