Payday Blues at the Supreme Court

I was out of town deposing when the Supreme Court issued its opinion Tuesday in Ledbetter v. Goodyear Tire & Rubber Co. (5/29/07) [pdf], which means in today's world of competitive blogging all hopes of any quick analysis were long gone by the time I read the decision. So rather than recreate the discussions, let me point you to a good summary of various commentary at SCOTUSblog. For a legal criticism check out Professor Secunda's thoughts at Some Reflections on the Ledbetter Decision. For a rebuttal, see Professor Runkel's response. My firm's take on the decision which also talks about the impact on OFCCP policy can be found here.

I suppose I had not taken this case seriously enough as I am somewhat surprised at the heat that it is drawing. I would have been extremely surprised if it had come out any other way. If it had, it would have been disastrous for employers (although not their lawyers).

Professor Secunda starts with what he says is the critical question: "under Morgan, is pay discrimination a discrete act like a termination or failure to promote or is it more like a cumulative series of individual events like hostile work environment sexual harassment?" He argues that Justice Ginsburg (the cumulative view) has the better of the argument. I see it differently. In a hostile environment case, a single action may or may not be actionable depending on what happens later. See for example, Clark County School District v. Breeden, U.S. (2000).

However, if an employer makes a decision about pay based on gender, it is clearly actionable even if the amount of damage is small or it is hard to know that it is discrimination at the time. The latter two facts do not change the actionable nature of the event, and once you have an actionable event the time limit starts.

The "hard to discover" argument really would be more appropriately addressed in the context of whether there should be a "discovery rule" in discrimination cases. The Court clearly notes (footnote 10) that question is not before them:

We have previously declined to address whether Title VII suits are amenable to a discovery rule. National Railroad Passenger Corporation v. Morgan, 536 U. S. 101, 114, n. 7 (2002). Because Ledbetter does not argue that such a rule would change the outcome in her case, we have no occasion to address this issue.

A few other points from the commentary, some theoretical, others more practical-

  • I was interested in Linda Greenhouse's comment in the New York Times that if Justice O'Connor had been on the Court instead of Justice Alito, who authored the majority opinion, she "would almost certainly have voted the other way, bringing the opposite outcome." Interestingly two commentors on the Scotus Blog took her to task noting that Justice O'Connor had dissented in Morgan on the relevant point, and it is unlikely that she would have reversed herself.

    Since before reading either Greenhouse's article or the comments, I had made a similar statement to a reporter who called for my thoughts on Ledbetter, I checked out the dissent and see where the commentors are coming from. I am not sure that I am convinced however that if she had been on the Court the out come might not have been different; probably not a complete reversal, but some "middle way" which might well have done nothing more than muddied the waters. Like the outcome of Ledbetter or not, one thing we can all agree on — it is clear, a quality whose value is often overlooked.

  • I also have noted the lack of commentary on how there is in fact a statute that is designed specifically for Lebetter's problem — the Equal Pay Act which is one year older than Title VII and focuses exclusively on discrimination in pay based on gender. As the majority notes that claim was not time barred, Ledbetter urged it and lost, but did not appeal it. The dialogue between Justice Ginsburg and Ledbetter's counsel on this issue is instructive.

    JUSTICE GINSBURG: Why didn't you ask for the equal pay claim? As I understand the magistrate judge he said, yes, you had made it across the first hurdle, you had a prima facie case. You showed that you're a woman, and you're getting this and all the men are getting much higher. But the employer has come forward with any other factor other than sex and the other factor is that, your inadequate performance.

    MR. RUSSELL: We should have objected to the failure to reinstate the Equal Pay Act claim. We didn't; we didn't think it was that important at the time because we still had the Title VII claim.

    Thanks to Chris McKinney at the HR Lawyer's Blog for the link to transcript of oral argument.

    Justice Ginsburg's sole retort in her dissent is that Title VII is not limited to sex, so today's decision will impact those who bring race, religion and national origin claims. But differences in remedial statutes is not limited to those two — for example § 1981 allows uncapped damages for discrimination based on race without any administrative procedures (meaning a racial victim of pay discrimination would have four years to bring a claim), but there is no § 1981 claim for gender discrimination. If a statute needs addressing, perhaps it should be the Equal Pay Act which specifically focuses on compensation, not Title VII.

  • More practically speaking, my rule of thumb is that any legal argument, such as Justice Ginsburg's, which argues that the dangers of adopting it can be cured by the appropriate application of the doctrine of laches — relying on the proposition that "no sensible judge would tolerate such inexcusable neglect," is written by a judge who is far removed from the reality of everyday litigation.

  • Finally, although it makes no real difference except to make the arguments against the decision on the grounds that people will not know that they are discriminated against less doomworthy, the press has not frequently enough pointed out that more than half of the states have deferral agencies which means the time period for filing a claim is 300 days not 180 (or as pointed out above, 4 years if based on race).

    And for those who claim that employers will hide their discrimination by prohibiting employees from talking about their wages — they may do so, but they do it in violation of another law, the National Labor Relations Act. They of course also risk extending the statute of limitations under other equitable doctrines of "waiver, estoppel and equitable tolling."

Maybe there was more to say about the case than I thought.

Update: The NYT's editorial page really goes off the hyperbolic deep end in their desire to paint the Supreme Court as evil doers — Injustice 5, Justice 4:

The Supreme Court struck a blow for discrimination this week by stripping a key civil rights law of much of its potency. The majority opinion, by Justice Samuel Alito, forced an unreasonable reading on the law, and tossed aside longstanding precedents to rule in favor of an Alabama employer that had underpaid a female employee for years. The ruling is the latest indication that a court that once proudly stood up for the disadvantaged is increasingly protective of the powerful.

I think most employers and their lawyers would be surprised to know that Title VII has been stripped of its potency or can figure out which "long standing precedents" were "tossed aside." If the NYT's wants to object on policy grounds — fine — but notwithstanding the impassioned and certainly deeply held views of Justice Ginsburg and the three who joined her dissent, an attempt to paint this as some wacky right wing reading of the law is off the mark.

It's a clever headline, but far from accurate or helpful.

Minimum Wage Bill Passed - Bush to Sign

In addition to the authorization for the Iraq war through September, Congress passed out some raises when it passed a minimum wage hike. According to an article in the South Florida Sun-Sentinel, Congress passes minimum wage hike. It would go from the current $5.15 an hour to $7.25 in three phases:
  1. to $5.85 two months after the bill is signed into law,
  2. $6.55 one year later,
  3. and to $7.25 the following year.

President Bush is expected to sign the bill perhaps as early as today, which would mean the bill would go into effect near the end of July.

FRD = MDV, Ohio Jury - $2.1 Million for Mom

I was not kidding earlier this week when I said that family responsibility discrimination was one of the hottest topics in employment law, see here . I didn't know I would have an MDV as proof quite so quickly. Earlier today an Akron, Ohio state court jury ruled in favor of Teresa Lehman who had been passed over for promotion to store manager at a retail store. According to one of the jurors: I think she was very poorly treated because she was pregnant, because she wanted to have a family." Akron woman wins discrimination case.

The news story summarizing the evidence at trial indicated that in a two month period five store managers went to less qualified men, or to women with no children or women who assured their bosses that they would have no more children. According to the story, Lehman had been asked such questions as:
"You're not going to get pregnant again, are you?" "Did you get your tubes tied?" "I thought you couldn't have any more kids." "Are you breast feeding?" and "Are you having any more kids?"
My guess is most would believe that if those things happened some kind of award would be justified. But there is another strongly felt position. Look at a couple of early comments on the story:

Have kids, or run a business. You have a choice. Why should my or any other business suffer because a "Manager" wants time off to have a family? It does not make sense. Kohl's [the employer] should just say "Screw hiring women".....

and this one:

As a man with children and two jobs, one full time and one part time I assure you I am very involved with the raising of my children and I don't have to take time off to do it. The occasional kid sick at school, yes I take off to get them home and then I go back to work. We made the choice to have children and I nor my wife encumbered our jobs to do it. I don't need the Family Leave Act, I don't need what I need to do as a father legislated at all.

Does anyone have an original thought anymore or do we just keep repeating the crap we hear spewed? Does anyone take responsibility for their own actions anymore or should we blame "greedy businesses" for all of our ills?

By the way, I think the judgement should have been for the victim, but not to the tune of 2.1 million dollars . . . ridiculous.

Family responsibility discrimination — it's here with a vengeance.

A Belated Valentine's Day Message - $4 MDV for Sandia Labs Employee

For some reason some MDV's seem to be escaping my attention recently, including one that was initially reported on February 14. From an Albuquerque Journal story reprinted at Thinking About Vigilantism, Update on Sandia National Laboratories "Vigilante", detailing with some juror comments the return of a $4 million dollar verdict by a New Mexico jury in favor of a Sandia Lab employee who had been terminated after his "back-hacking" efforts uncovered evidence that he disclosed to the FBI about national security breaches.

$2 million of the award was punitive damages. Although it is hard to get all the details from this story, it appears part of the issue was that he didn't disclose to his employer that it was the FBI he was working with.

I was led to the story by a post on Rosario D. Vega-Lynn's New Mexico Labor and Employment Law blog, which I read regularly through my RSS reader. For some reason her April 16th post, Letter to the Editor, just showed up this afternoon. It's a letter to the Albuquerque Journal following one of their stories about the trial, which must have talked about the trial strategy of the defense.

The letter writer was happy to learn the "kind of arguments to expect from really big law firms who specialize in defending corporations." Since that hits pretty close to home, I was curious to see how those arguments were viewed. Among them, with the writer's editorial comments in parentheses, were:
  • (Can you believe their reported argument) the fired employee "was an at-will employee and therefore not entitled to due process"
  • a jury had "no business" second-guessing the employer's decision (because, after all, at will employment means anyone can always be fired for any reason or no reason, and, that such a rule is surely stated somewhere in the stuff they— and all corporations— make people sign to get hired in the first place).

Then the writer took off on the notion of employment at will, laying it at the feet of Ronald Reagan and the Republican party (at least 43 didn't get blamed for this):

When Ronald Reagan became president in 1981, a coincident discovery was also made in anthropology that people are actually "human capital" walking upright. Soon thereafter, "employment at will," a doctrine originally intended (and appropriate) for sole proprietors who hire other individuals, was embraced instead by corporations as the cure-all for any pesky problems with the human capital. Employee handbooks were uniformly rewritten to say so, and to this day, "conservatives," while speaking vaguely of "values" they usually can't define, are actually the political enablers of corporations seeking in law to evade responsibility for any mistreatment of any employee— no matter how outrageous. The "at-will" doctrine is as sacred to the Republican Party as the Pledge of Allegiance.

Obviously not a fan of the at will employee argument, which struck home as earlier this year I had been facing a New Mexico jury trial where that issue was going to be prominently featured — whether I wanted it to be or not. The letter made me even happier that the case was otherwise resolved.

Not to quibble with the writer — but actually the two arguments correctly state the law. Unless Sandia is considered a government employer, it is not required to provide due process and there are a number employment decisions that pretty much use the exact words quoted, that juries and courts are not to serve as super-hr departments second guessing an employer's decision.

And with respect to blaming Ronald Reagan for employment at will, the concept actually goes back a lot further. In Texas we cite East Line and R.R.R. Co. v. Scott, 10 S.W. 99, 102 (Tex. 1888), almost 100 years earlier as establishing the law in Texas.

But having said that, I can certainly see why the arguments would not be appealing to a jury, and why when I give a talk about employment law trials, one of the points I emphasize is that trial is not a time for legal theories, classic example — employment at will. My experience is that a jury want facts that support the "why" an employee was fired, regardless of the legal standard.

Why I Am Not an Academician

Occasionally through the magic of the internet (and in this case the Freakonomics Blog) I run across a cite to an academic article that attracts my attention because it is related to employment law. Especially when they have great titles like — The Sexual Harassment of Uppity Women — by Jennifer Berdahl in the Journal of Applied Psychology. I click on it thinking I will get some tremendous insight and then ...

In 3 studies, the author tested 2 competing views of sexual harassment: (a) It is motivated primarily by sexual desire and, therefore, is directed at women who meet feminine ideals, and (b) it is motivated primarily by a desire to punish gender-role deviants and, therefore, is directed at women who violate feminine ideals. Study 1 included male and female college students (N ! 175) and showed that women with relatively masculine personalities (e.g., assertive, dominant, and independent) experienced the most sexual harassment. Study 2 (N ! 134) showed that this effect was not because women with relatively masculine personalities were more likely than others to negatively evaluate potentially harassing scenarios. Study 3 included male and female employees at 5 organizations (N ! 238) and showed that women in male-dominated organizations were harassed more than women in female-dominated organizations, and that women in male-dominated organizations who had relatively masculine personalities were sexually harassed the most.

and I am reminded why I need to stick to law.

And for those of you who like me are a little stumped by the abstract, here's the the summary that caught my attention (courtesy of Melissa Lafsky):

Contrary to the conventional belief that a woman’s acting “feminine” in the workplace leads to sexual harassment, just the opposite may be true. Berdahl’s paper concluded that women who “act like men” are more likely to experience harassment, possibly because of the conduct’s use as a tool to reinforce traditional gender roles.

My experience in defending sexual harassment cases doesn't necessarily bear that point out, although I definitely do agree that sexual harassment of women is worse in male dominated industries.

The EEOC's Two Cents Worth on Family Responsibility Discrimination

With Family Responsibility Discrimination as one of the hottest buzz words in employment law these days, you knew it was only a matter of time before the EEOC weighed in. Today was the day as it issued its Enforcement Guidance for Unlawful Disparate Treatment of Workers with Caregiving Responsibilities. In the accompanying Q&A fact sheet the Commission candidly acknowledges that caregivers are not a protected category:

Q: Are caregivers a protected group under the federal EEO statutes?

A: No. The federal EEO statutes do not prohibit discrimination based solely on parental or other caregiver status. Under the federal EEO laws, discrimination must be based on a protected characteristic such as sex or race. However, some state or local laws may provide broader protections for caregivers. A particular caregiver also may have certain rights under other federal laws, including the Family and Medical Leave Act.

Nevertheless, they still offer twenty examples of potential legal problems ranging from "Unlawful discrimination against women with small children" to "Hostile environment based on association with an individual with a disability." Enough ammunition to keep employers awake a night or two.

Here's the complete list of topics covered:

Background and Introduction
Caregiving Responsibilities of Workers
Work-Family Conflicts
Unlawful Disparate Treatment of Caregivers
Sex-based Disparate Treatment of Female Caregivers
Analysis of Evidence
Unlawful Disparate Treatment of Female Caregivers as Compared with Male Caregivers
Unlawful Gender Role Stereotyping of Working Women
Gender-based Assumptions About Future Caregiving Responsibilities
Mixed-motives Cases
Assumptions About the Work Performance of Female Caregivers
“Benevolent” Stereotyping
Effects of Stereotyping on Subjective Assessments of Work Performance
Pregnancy Discrimination
Discrimination Against Male Caregivers
Discrimination Against Women of Color
Unlawful Caregiver Stereotyping Under the Americans with Disabilities Act
Hostile Work Environment
Retaliation

and the background information that the Commission gathered at its May 21st hearing which proceeded today's release can be found here.

What Does Schopenhauer Have to Do With Employment Law?

More than you might think, according to the post Getting philosophical…….. at a splendid UK based Employment Law Blog - PJH Law - "Exclusively Employment Law."

Here's a sample of Schopenhauer quotes and their applicability to what we do:
This saying could apply to your annual wage bargain

Wealth is like sea-water; the more we drink, the thirstier we become..

Why experience always trumps youth could be explained by the following:

Of all the intellectual faculties, judgment is the last to mature.

What is distinctly not true is the following:

And, dear reader, he even knew why this blog has a small but select readership:

The person who writes for fools is always sure of a large audience

For those who want some international flavor to their employment law (and who doesn't in this age?) you should definitely check this one out.

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