In a 5-2 decision, the Supreme Court established that employers must know an employee’s disability caused misconduct in order for the Labor and Industry Review Commission (LIRC) to determine intentional employment discrimination.

Previously in employment discrimination cases, LIRC used the “inference method,” which finds intent to discriminate when employers take action against employees for any misconduct caused by a disability. The decision amended LIRC’s “inference method” by requiring employers’ have knowledge that an employee’s disability caused the misconduct.

In 2010, Wisconsin Bell suspended employee Charles Carlson for inappropriately hanging up and blocking customer calls. In a hearing related to Carlson’s suspension, Carlson’s treatment providers wrote letters to Wisconsin Bell describing Carlson’s diagnosis of bipolar disorder, but the letters did not detail specifically how the disorder affects Carlson’s workplace conduct. As a condition for returning to work after the suspension, Carlson signed a “last chance agreement” stating that he would be terminated for another infraction.

Almost a year later, Carlson broke the last chance agreement, and Wisconsin Bell terminated him. Carlson claimed Wisconsin Bell intentionally discriminated against him because his bipolar disorder caused his misconduct.

The court held that Wisconsin Bell did not violate Wisconsin’s employment discrimination statute (Wis. Stat. § 111.322(1)) because it was not aware Carlson’s bipolar disorder caused his misconduct.

This decision also further clarifies the court’s position on the agency deference doctrine, decided in Tetra Tech v. Department of Revenue. Here, the court did not defer to LIRC’s decision but gave “due weight” to the agency’s technical experience.