Sally Randall v. Rolls-Royce Corpor
637 F.3d 818
7th Cir.2011Background
- Plaintiffs are over 500 female Rolls-Royce Indiana plant employees alleging Title VII sex discrimination and EPA pay discrimination, and promotion denial claims.
- District court denied class certification under Rule 23(b)(2) and Rolls-Royce moved for summary judgment on EPA claim; the court resolved merits as to named plaintiffs.
- Rolls-Royce uses a two-step pay framework: broad compensation categories with ranges, then market-based narrowing within each category.
- Base pay within categories is influenced by market wages and performance-based add-ons; discounts or elevations depend on job market comparisons and supervisor evaluations.
- In 2003, average base pay for men in five grades was about 5% higher than women; performance adjustments magnified or reduced total pay across years.
- Experts challenged discrimination theory: Rolls-Royce’s expert found no Title VII base-pay discrimination after adjusting for job differences; plaintiffs’ EPA claim failed for lack of equal-work comparators; plaintiffs’ promotion claims were weaker and involve highly senior, non-fungible roles.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Should the district court certify the class under Rule 23? | Named plaintiffs adequate and typical representation. | Significant differences and conflicts undermine adequacy and typicality. | No; certification upheld as properly denied due to lack of typicality/adequacy considerations. |
| Is there a Title VII-based base-pay discrimination after market-adjustment analysis? | Base-pay disparity shows discrimination persisting due to sex. | Adjusting for job differences and market should eliminate disparity; no discrimination. | Discrimination claim fails; Siskin's adjustment shows no remaining base-pay disparity attributable to sex. |
| Does the EPA claim survive given lack of appropriate comparators? | Unpaid wage differential constitutes EPA violation. | Cannot identify male comparator with equal work/skill/responsibility; EPA fails. | EPA claim fails as pleaded due to lack of proper equal-work comparators. |
| Can substitution of unnamed class members for named plaintiffs salvage certification or relief? | Substitution could restore typicality and adequacy. | Substitution late and improper; would delay and prejudice Rolls-Royce. | Motion to substitute denied; substitution not automatic and timeliness matters. |
Key Cases Cited
- Bazemore v. Friday, 478 U.S. 385 (U.S. 1986) (concurring opinion on Equal Pay Act/Title VII interplay)
- Hildebrandt v. Illinois Dept. of Natural Resources, 347 F.3d 1014 (7th Cir. 2003) (acceptance of certain discrimination theories; adequacy/typicality concerns)
- Lang v. Kohl's Food Stores, Inc., 217 F.3d 919 (7th Cir. 2000) (comparable-worth concepts not recognized for federal discrimination suit)
- American Nurses’ Ass’n v. Illinois, 783 F.2d 716 (7th Cir. 1986) (limits on discrimination theories and class representation concepts)
- Mikula v. Allegheny County, 583 F.3d 181 (3d Cir. 2009) (comparability standards for discrimination claims)
- United Auto Workers v. Michigan, 886 F.2d 766 (6th Cir. 1989) (equal pay and job classification considerations)
- Thorn v. Jefferson-Pilot Life Ins. Co., 445 F.3d 311 (4th Cir. 2006) (Rule 23(b)(2) adequacy and injunctive relief framework)
- Reeb v. Ohio Dep’t of Rehabilitation & Correction, 435 F.3d 639 (6th Cir. 2006) (injunctive relief and monetary tail considerations in certification)
- In re Allstate Ins. Co., 400 F.3d 505 (7th Cir. 2005) (monetary relief and class action scope; 23(b)(2) limitations)
- Kartman v. State Farm Mutual Auto Ins. Co., 2011 WL 488879 (7th Cir. 2011) (requires final relief under 23(b)(2); not satisfied by purely monetary tail)
- Jefferson v. Ingersoll Intl., Inc., 195 F.3d 894 (7th Cir. 1999) (cohesive class actions under 23(b)(2) prerequisites)
