Yes, dropping one's pants is cause for termination

As the title implies, someone actually challenged their termination "for cause" when they mooned their supervisors.

In 2005, regional powerhouse Wanger Asset Management merged with Bank of America's Columbia Management and there was a reorganization of staff.  Chicago investment banker Jason Selch became  upset when he learned that a friend was being fired for not accepting a lower salary to remain with the company.

When Selch learned that Columbia COO Roger Sayler was meeting with Selch's supervisor Charles McQuaid, Selch burst uninvited into the conference room.  After first asking the two whether he was bound by a non-compete clause with the company and receiving a negative response, Selch "proceeded to unbuckle his pants, pull them down, and 'moon' Sayler and McQuaid," according to court filings.

Surprisingly, McQuaid did not want to fire Selch after this display - Selch was a rainmaker and McQuaid feared the impact of his loss on the unit's profitability.  But corporate wisdom prevailed.  Columbia CEO Keith Banks believed that allowing such an actor to remain employed in their division would undermine their authority and diminish morale.

Selch was terminated "for cause", which meant the loss of significant severance benefits.

Not surprisingly, Selch sued BofA.  He stated that he shouldn't have been fired "for cause" because pulling down his pants didn't interfere with his official duties.

Fortunately, the appeals court upheld the lower court ruling that Selch's termination was proper as his behavior was "insubordinate, disruptive, unruly, and abrasive."

In my opinion, Selch's case had no merit from the start.  Prior to his derriere display, Selch asked if he was subject to a covenant not to compete - meaning he would be contractually prevented from seeking another position in his field.   He later admitted that he wanted to know ahead of time if he would have difficulties seeking a new position as a consequence of his action.  This indicates to me that he knew that loss of his job was a reasonable and expected consequence of baring his bottom.

Please note that there is a serious HR issue that arose during this case.  After the mooning, but before the termination, Selch was given a warning letter stating that any further displays would be cause for termination.  This letter allowed Selch to argue that he was being giving one more chance before he might be terminated, therefore allowing him to claim a breach of contract.  Luckily for BofA, the court did not find that the written warning constituted a contract.  BofA could still fire him for the mooning.   

The price of Selch's protest was steep - he is reputed to have lost $2 million in benefits forfeited as a result of being fired "for cause".  But I don't feel sorry for him.   Online resources show that he is now an executive with an energy company as well as a mega-investor.  He also made a million dollars in profit last year off the sale of one of his homes.  So Selch has apparently rebounded from his professional setback.

The lesson for employers: don't give an employee cause to believe he is not really being fired.  Be decisive - show him to the door.  Any subsequent reversal of action may give the employee justification to sue for wrongful termination.

The lesson for employees: keep your pants on - at least until your benefits have vested. 

  

Disclaimer:

This site was established to provide information about the law, designed to educate users about issues in which they may have an interest. But legal information is not the same as legal advice -- the application of law to an individual's specific circumstances. Although I go to great lengths to make sure the information provided is accurate and useful, I recommend you consult a lawyer if you want professional assurance that the information, and your interpretation of it, is appropriate to your particular situation.