Arbaugh v. Y & H Corp.Arbaugh v. Y & H Corp.
delivered the opinion of the Court.
This case concerns the distinction between two sometimes confused or conflated concepts: federal-court “subject-matter” jurisdiction over a controversy; and the essential ingredients of a federal claim for relief. Title VII of the Civil Rights Act of 1964 makes it unlawful “for an employer . . . to discriminate,”
inter alia,
on the basis of sex.
The question arises in this context. Jenifer Arbaugh, plaintiff below, petitioner here, brought a Title VII action *504 in federal court against her former employer, defendant-respondent Y&H Corporation (hereinafter Y&H), charging sexual harassment. The case was tried to a jury, which returned a verdict for Arbaugh in the total amount of $40,000. Two weeks after the trial court entered judgment on the jury verdict, Y&H moved to dismiss thе entire action for want of federal subject-matter jurisdiction. For the first time in the litigation, Y&H asserted that it had fewer than 15 employees on its payroll and therefore was not amenable to suit under Title VII.
Although recognizing that it was “unfair and a waste of judicial resources” to grant the motion to dismiss, App. to Pet. for Cert. 47, the trial court considered itself obliged to do so because it believed that the 15-or-more-employees requirement was jurisdictional. We reject that categorization and hold that the numerical threshold does not circumscribe federal-court subject-matter jurisdiction. Instead, the employee-numerosity requirement relates to the substantive adequacy of Arbaugh’s Title VII claim, and therefore could not be raised defensively late in the lawsuit, i. e., after Y&H had failed to assert the objection prior to the close of trial on the merits.
I
We set out below statutory provisiоns and rules that bear on this case. Title VII makes it “an unlawful employment practice for an employer ... to fail or refuse to hire or to discharge any individual, or otherwise to discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment, because of such individual’s race, color, religion, sex, or national origin.”
“[t]he term ‘еmployér’ means a person engaged in an industry affecting commerce who has fifteen or more employees for each working day in each of twenty or *505 more calendar weeks in the current or preceding calendar year, and any agent of such a person . . . .” § 20006(b). 1
This employee-numerosity requirement
2
appears in a section headed “Definitions,”
Congress has broadly authorized the federal courts to exercise subjeсt-matter jurisdiction over “all civil actions arising under the Constitution, laws, or treaties of the United States.”
“Each United States district court and each United States court of a place subject to the jurisdiction of the *506 United States shall have jurisdiction of actions brought under this subchapter.”42 U. S. C. § 2000e-5(f)(3) . 4
Congress amended
We note, too, that, under
The objection that a federal court lacks subject-matter jurisdiction, see
From May 2000 through February 2001, Jenifer Arbaugh worked as a bartender and waitress at the Moonlight Cafe, a New Orleans restaurant owned and operated by Y&H. Arbaugh alleged that Yalcin Hatipoglu, one of the company’s owners, sexually harassed her and precipitated her constructive discharge. 6 In November 2001, Arbaugh filed suit against Y&H in the United States District Court for the Eastern District of Louisiana. Her complaint asserted claims under Title VII and Louisiana law. App. to Pet. for Cert. 1-2.
Arbaugh’s pleadings alleged that her federal claim “ar[o]se under Title VII” and that the Federal District Court had jurisdiction over this claim under
The parties consented to trial before a Magistrate Judge. See
Two weeks later, Y&H filed a motion under Federal
*509 Discovery ensued. The dispute over the employee count turned on the employment status of Y&H’s eight drivers, engaged to make deliveries for the restaurant, and the company’s four owners (the Moonlight Cafe’s two managers and their shareholder spouses). As the trial court noted, “[i]f either the delivery drivers or the four owners are counted with the persons shown on the payroll journals, then Y&H employed fifteen or more persons for the requisite time.” App. to Pet. for Cert. 27. After reviewing the parties’ submissions, however, the trial court concluded that neither the delivery drivers nor the owner-managers nor their shareholder spouses qualified as “employees” for Title VII purposes. Id., at 32-43. Based on that determination, the trial court vacated its prior judgment in favor of Arbaugh, dismissed her Title VII claim with prejudice, and her state-law claims without prejudice. Id., at 23.
The Court of Appeals for the Fifth Circuit affirmed.
We granted certiorari,
Ill
“Jurisdiction,” this Court has observed, “is a word of many, too many, meanings.”
Steel Co.
v.
Citizens for Better Environment,
The dispute now before us concerns the proper classification of Title VIFs statutory limitation of covered employers to those with 15 or more employees. If the limitation conditions subject-matter jurisdiction, as the lower courts held it did, then a conclusion that Y&H had fewer than 15 employees would require erasure of the judgment for Arbaugh entered on the jury verdict. But if the lower courts’ subject-matter jurisdiction characterization is incorrect, and the issue, instead, concerns the merits of Arbaugh’s case, then Y&H raised the employee-numerosity requirement too late. Its pretrial stipulations, see
supra,
at 508, and its failure to
*511
speak to the issue prior to the conclusion of the trial on the merits, see
On the subject-matter jurisdiction/ingredient-of-claim-for-relief dichotomy, this Court and others have been less than meticulous. “Subject matter jurisdiction in federal-question cases is sometimes erroneously conflated with a plaintiff’s need and ability to prove the defendant bound by the federal law asserted as the predicate for relief — a merits-related determination.” 2 J. Moore et al., Moore’s Federal Practice § 12.30[1], p. 12-36.1 (3d ed. 2005) (hereinafter Moore). Judicial opinions, the Second Circuit incisively observed, “often obscure the issue by stating that the court is dismissing ‘for lack of jurisdiction’ when some threshold fact has not been established, without explicitly considering whether the dismissal should be for lack of subject matter jurisdiction or for failure to state a claim.”
Da Silva,
Cases of this genre include
Hiskon
v.
King & Spalding,
In
Arabian American Oil Co.,
we affirmed the judgment of the courts below that Title VII, as then composed, did not apply to a suit by a United States employee working abroad for a United States employer.
8
That judgment had been placed under a lack of subject-matter jurisdiction label. We agreed with the lower courts’ view of the limited geographical reach of the statute.
The basic statutory grants of federal-court subject-matter jurisdiction are contained in
Arbaugh invoked federal-question jurisdiction under
First, “subject-matter jurisdiction, becausе it involves a court’s power to hear a case, can never be forfeited or waived.”
United States
v.
Cotton,
Second, in some instances, if subjeсt-matter jurisdiction turns on contested facts, the trial judge may be authorized to review the ¿vidence and resolve the dispute on her own. See 5B C. Wright & A. Miller, Federal Practice and Procedure §1350, pp. 243-249 (3d ed. 2004); 2 Moore §12.30[3], pp. 12-37 to 12-38. If satisfaction of an essential element of a claim for relief is at issue, however, the jury is the proper trier of contested facts.
Reeves
v.
Sanderson Plumbing Products, Inc.,
Third, when a federal court concludes that it lacks subject-matter jurisdiction, the сourt must dismiss the complaint in its entirety. See 16 Moore § 106.66[1], pp. 106-88 to 106-89. Thus in the instant case, the trial court dismissed, along with the Title VII claim, pendent state-law claims, see
supra,
at 506, fully tried by a jury and determined on the merits, see App. to Pet. for Cert. 23, 47. In contrast, when a court grants a motion to dismiss for failure to state a federal claim, the court generally retains discretion to exercise supplemental jurisdiction, pursuant to
Of course, Congress could make the employee-numerosity requirement “jurisdictional,” just as it has made an amount-in-controversy threshold an ingredient of subject-matter ju
*515
risdiction in delineating diversity-of-citizenship jurisdiction under
* * *
For the reasons stated, the judgment of the Court of Appeals is reversed, and the case is remanded for further proceedings consistent with this opinion.
It is so ordered.
Notes
The same provision further states that the term “employer” does not include the United States, corporations wholly owned by the United States, Indian tribes, certain departments and agencies of the District of Columbia, or tax-exempt “bona fide private membership club[s]” (other °than labor organizations).
Congress originally prescribed a 25-or-more-employee threshold, Civil Rights Act of 1964, § 701, 78 Stat. 253, but lowered the minimum number of employees to 15 in the Equal Employment Opportunity Act of 1972, § 2, 86 Stat. 103.
The other terms defined in
Title VII contains a separate jurisdictional provision,
See
Pennsylvania State Police
v.
Suders,
Y&H features
Walters
v.
Metropolitan Ed. Enterprises, Inc.,
Congress subsequently amended Title VII to extend protection to United States citizens working overseas. See Civil Rights Act of 1991, § 109(a), 105 Stat. 1077, codified at
In
EEOC
v.
Commercial Office Products Co.,
A claim invoking federal-question jurisdiction under
Congress has exercised its prerogative to restrict the subject-matter jurisdiction of federal district courts based on a wide variety of factors, some of them also relevant to the merits of a case. Certain statutes confer subject-matter jurisdiction only for actions brought by specific plaintiffs,
e. g.,