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ARTICLE · 29 DECEMBER 2015

Termination For Non-Performance Upheld

That determination would be upheld by the Court of Appeals.

United StatesEmployment and HR

In a recent decision, the Sixth Circuit Court of Appeals upheld the termination of the executive director of a non-profit corporation when she failed, over several years, to balance the budget.  In doing so her assertions that she was terminated on the basis of her sex and that she was held to a stricter standard than was her male successor were rejected.  Gunn v. Senior Services of Northern Kentucky, No. 15-5320 (6th Cir. Dec. 7, 2015).

Gunn was in 2000 hired as the Executive Director of Senior Services of Northern Kentucky ("SSNK"); eventually she as well accumulated the titles of President and CEO.  By 2006 the corporation was operating at a deficit; losses were being covered by a related endowment.  In 2006 the operating deficit was $101,000 and in 2008 it was $81,653. The Board, in June, 2008, directed that management's goal was "to react to the [funding] cuts and achieve a balanced budget in 2009."  Slip op. at 2.  Instead, in 2009 the deficit was $93,000,

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