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2024 MSPB 6
MSPB
2024
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Background

  • Lois A. Starkey was hired by the Department of Housing and Urban Development (HUD) as a GS-14 Manufactured Housing Specialist in July 2017, during her career probationary period.
  • Shortly after her hiring, Starkey became the subject of industry complaints, specifically from the Manufactured Housing Association for Regulatory Reform (MHARR), highlighting her Democratic political affiliations and campaign activities.
  • An internal personnel dispute arose when Starkey, under instructions from her supervisors and in line with agency policy, contacted an industry association during a dispute with a state partner, leading to complaints from Oregon state officials.
  • Despite her immediate supervisors rating her performance as "outstanding" and defending her actions, higher-level management, led by a political appointee (GDASH), terminated her probationary appointment, citing the Oregon complaint as the reason.
  • Starkey appealed her termination, asserting it was motivated by partisan political reasons, and the administrative judge found her termination was pretextual and based on her political affiliation.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Was Starkey's probationary termination based on partisan politics? Starkey argued her firing was based on her known Democratic ties and complaints orchestrated by MHARR. HUD argued her dismissal was for improper information sharing per the Oregon complaint. The Board held Starkey was terminated for partisan political reasons, not misconduct.
Was the agency’s stated reason (Oregon complaint) a pretext? Starkey claimed the Oregon complaint was a pretext; she acted under orders and established policy. HUD maintained the incident justified her dismissal. The Board found the official reason was pretextual; she acted as instructed.
Did the agency comply with procedural rules for interim relief? Starkey sought dismissal of agency’s petition for late compliance. HUD provided late certification and argued for review on the merits. The Board found delay but opted not to dismiss the agency's petition.
Was the GDASH aware of Starkey’s political affiliation? Starkey presented evidence GDASH knew her background via common knowledge and complaints. HUD denied this, claiming no direct awareness. The Board found GDASH’s denial not credible based on the evidence.

Key Cases Cited

  • Stokes v. Federal Aviation Administration, 761 F.2d 682 (Fed. Cir. 1985) (adapted Title VII frameworks to Board discrimination analysis)
  • Furnco Construction Corp. v. Waters, 438 U.S. 567 (1978) (articulated burden-shifting for discrimination claims)
  • Gross v. FBL Financial Services, Inc., 557 U.S. 167 (2009) (established 'but-for' causation for “because of” statutes)
  • Bostock v. Clayton County, 140 S. Ct. 1731 (2020) (interpreted 'but-for' causation in Title VII discrimination)
  • Sprint/United Management Co. v. Mendelsohn, 552 U.S. 379 (2008) (described relevance of "me too" evidence in employment cases)
  • Kerr v. National Endowment for the Arts, 726 F.2d 730 (Fed. Cir. 1984) (explained restoration and retroactive remedies)
Read the full case

Case Details

Case Name: Lois Starkey v. Department of Housing and Urban Development
Court Name: Merit Systems Protection Board
Date Published: Mar 22, 2024
Citations: 2024 MSPB 6; DC-315H-18-0258-I-4
Docket Number: DC-315H-18-0258-I-4
Court Abbreviation: MSPB
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