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Loren Noreen v. PharMerica Corporation
833 F.3d 988
| 8th Cir. | 2016
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Background

  • Loren Noreen, a pharmacist at PharMerica’s Fridley, MN location since 1975, was terminated in a December 30, 2013 reduction-in-force (RIF) and later denied rehire; he sued for age discrimination under federal and Minnesota law.
  • PharMerica uses a written RIF procedure employing a multi-tab "RIF Decision Matrix" that assigns overall performance ratings (O, E, M, NI, U) and directs sub-ranking within rating groups, with HR review for adverse impact on protected classes.
  • In practice, regional directors (Rife, then Teich) consistently sub-ranked all pharmacists together rather than first grouping by performance-rating categories; the December 2013 matrix ranked pharmacists together and selected lowest scorers for termination, including Noreen (rated "M").
  • After termination, Noreen applied for posted positions that were never filled; when a pharmacist resigned in March 2014, Teich considered but declined to rehire Noreen because of Noreen’s allegedly threatening reaction at his termination meeting and instead hired someone he previously knew.
  • Noreen alleged (1) PharMerica deviated from its own RIF guidelines to his detriment, (2) workforce-age statistics demonstrate discriminatory effect, and (3) stray comments and HR actions show discriminatory motive. The district court granted summary judgment for PharMerica; the Eighth Circuit affirmed.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Was there sufficient evidence to submit age-discrimination claims under Minnesota law? Noreen: deviation from written RIF process caused his termination and supports inference of age bias; statistics and comments corroborate. PharMerica: consistently applied a different but uniform practice (sub-ranking all pharmacists together); termination due to low sub-ranking and business loss; non-hiring due to lack of open positions or poor post-termination conduct. Held: No submissible case under Minnesota law; deviations were consistent practice, statistics not significant, comments insufficient.
Did plaintiff show age was a motivating/but-for cause under federal ADEA? Noreen: same evidence supports federal claim. PharMerica: legitimate nondiscriminatory reasons; no evidence age was but-for cause. Held: Fails under the more demanding federal standard as well.
Can deviation from employer policy alone support an inference of discrimination? Noreen: departure from written guideline (not grouping by ratings) shows improper motive. PharMerica: departures from written policy do not indicate discrimination when applied consistently to a group. Held: Deviation does not create inference because the practice was uniformly applied across RIFs.
Do workforce-age statistics and hiring patterns support an inference of discrimination? Noreen: average age dropped and Teich hired younger pharmacists after RIFs, indicating bias. PharMerica: averages not statistically meaningful, small sample sizes, alternative explanations. Held: Statistics are not probative or statistically significant to infer age discrimination.

Key Cases Cited

  • Gross v. FBL Fin. Servs., Inc., 557 U.S. 167 (explains ADEA requires but-for causation)
  • U.S. Postal Serv. Bd. of Governors v. Aikens, 460 U.S. 711 (standard on submitting claims to jury)
  • Hilde v. City of Eveleth, 777 F.3d 998 (employer's individualized manipulation of procedures can support inference of discrimination)
  • Floyd v. Mo. Dep’t of Soc. Servs., 188 F.3d 932 (departure from policy does not support inference when variation is broadly applied)
  • Carraher v. Target Corp., 503 F.3d 714 (small sample sizes and anecdotal evidence insufficient to show discriminatory motive)
  • Stidham v. Minn. Mining & Mfg., Inc., 399 F.3d 935 (analysis of workforce averages and relevance to discrimination claims)
  • Johnson v. Securitas Sec. Servs. USA, Inc., 769 F.3d 605 (affirming that summary judgment review is de novo and may be affirmed on any supporting ground)
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Case Details

Case Name: Loren Noreen v. PharMerica Corporation
Court Name: Court of Appeals for the Eighth Circuit
Date Published: Aug 19, 2016
Citation: 833 F.3d 988
Docket Number: 15-2917
Court Abbreviation: 8th Cir.