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31 F.4th 583
7th Cir.
2022
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Background

  • Paul Palmer, an African American lecturer at Indiana University's Kelley School (hired 2010), also served as Diversity Coach (≈$25,000 stipend, reduced teaching load) but resigned that role effective 2017 when its focus shifted to recruiting.
  • In January 2013 Palmer asked Chair Krishnan about early promotion to senior lecturer and was discouraged from applying; Palmer did not apply and was promoted on the regular six-year timeline in August 2016.
  • IU hired Josh Gildea (white) in August 2016 as a lecturer and Director of the Business Marketing Academy (BMA), paid substantial stipends ($30,000 annual + $7,500 summer stipends) and teaching overload pay; Gildea received larger raises and taught many overload courses.
  • Palmer repeatedly complained about perceived racial bias in July–August 2018 (emails/phone) and again in February 2019, alleging Krishnan’s discouragement and objection to Gildea’s pay/promotion; Palmer filed an EEOC charge on May 15, 2019 and sued on November 19, 2019.
  • From 2017–2020 Gildea earned about $171,731 more than Palmer in aggregate—$105,000 attributable to BMA stipends and the remainder to overload classes and higher percentage raises—while Palmer maintained the highest base salary in the department throughout.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Failure-to-promote (timeliness / equitable tolling) Krishnan’s 2013 discouragement made early application futile; Palmer only realized discrimination after Gildea’s early-promotion actions, so tolling makes his 2019 EEOC charge timely. Claim accrued in 2013 when discouraged; EEOC charge (2019) is untimely and equitable tolling is unavailable because Palmer knew or should have known earlier. Claim is time-barred. Equitable tolling rejected—the record shows Palmer suspected discrimination by Aug 2018, and his EEOC filing was not within a "reasonable time."
Unequal pay (comparator / merits) Gildea is the proper comparator; higher total compensation and larger raises show racial discrimination. Gildea performed materially different work (BMA Director, extensive overload teaching) and produced demonstrable results; pay differences are explained by legitimate, non-discriminatory factors. Summary judgment for IU. Gildea is not a proper comparator; pay disparity is explained by different duties, overload teaching, and performance-based raises—no reasonable juror could infer racial discrimination.

Key Cases Cited

  • Nat'l R.R. Passenger Corp. v. Morgan, 536 U.S. 101 (U.S. 2002) (timeliness rule and equitable tolling limits for Title VII claims)
  • Beamon v. Marshall & Ilsley Tr. Co., 411 F.3d 854 (7th Cir. 2005) (equitable tolling begins when plaintiff reasonably could suspect a claim)
  • Thelen v. Marc’s Big Boy Corp., 64 F.3d 264 (7th Cir. 1995) (‘‘reasonable time’’ to file after discovery is short—days to weeks)
  • Vega v. Chicago Park Dist., 954 F.3d 996 (7th Cir. 2020) (summary-judgment review and Title VII evidentiary approach)
  • Poullard v. McDonald, 829 F.3d 844 (7th Cir. 2016) (Ledbetter Act pay-reset rule for pay-discrimination claims)
  • Ortiz v. Werner Enters., Inc., 834 F.3d 760 (7th Cir. 2016) (Title VII standard: plaintiff must show race caused the pay disparity; assess if "everything else remained the same")
  • Igasaki v. Ill. Dep't of Fin. & Pro. Regul., 988 F.3d 948 (7th Cir. 2021) (causation requirement in compensation discrimination)
  • Warren v. Solo Cup Co., 516 F.3d 627 (7th Cir. 2008) (comparator must be similar in all material respects)
  • Coleman v. Donahoe, 667 F.3d 835 (7th Cir. 2012) (need "enough common factors" for meaningful comparator comparison)
  • David v. Bd. of Trs. of Cmty. Coll. Dist. No. 508, 846 F.3d 216 (7th Cir. 2017) (additional duties distinct from plaintiff can defeat equal-pay claim)
  • Spencer v. Va. State Univ., 919 F.3d 199 (4th Cir. 2019) (faculty are not interchangeable; broad similarities insufficient for comparator)
  • Eaton v. Ind. Dep't of Corr., 657 F.3d 551 (7th Cir. 2011) (differences in performance history or responsibilities can explain pay disparities)
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Case Details

Case Name: Paul Palmer, Jr. v. Indiana University
Court Name: Court of Appeals for the Seventh Circuit
Date Published: Apr 14, 2022
Citations: 31 F.4th 583; 21-1634
Docket Number: 21-1634
Court Abbreviation: 7th Cir.
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