Lead Opinion
¶ 1 Plaintiff Hubert C. Burton, M.D., appeals from the trial court’s grant of summary judgment to defendants Exam Center Industrial & General Medical Clinic, Inc. (the “Clinic”), and Howard Boulter in this action wherein Burton alleges that his employment with the Clinic was terminated because of his age.
BACKGROUND
¶2 In July 1994, Boulter, president and chief operating officer of the Clinic, terminated the sixty-nine-year-old Burton, a part-time physician at the Clinic. Boulter told Burton that the Clinic had hired a full-time physician, eliminating the need for Burton’s services. Boulter explained that the decision to hire this new physician was made suddenly, out of necessity, and stated: “I [Boulter] didn’t know how much longer you older guys wanted to work, and I felt that we couldn’t pass up this opportunity to employ a full-time' physician.”
¶ 3 Burton then filed this action against the Clinic and Boulter (collectively, “Exam Center”), alleging that his firing violated a public policy found in both state and federal statutes against taking employment actions toward employees because of their age and asserting that violation of that public policy gives rise to a claim for tortious wrongful termination.
STANDARD OF REVIEW
¶4 Before granting summary judgment, a court must, after viewing the facts in the light most favorable to the nonmoving party, find that no disputed issues of material fact exist and that the moving party is entitled to judgment as a matter of law. See Utah R. Civ. P. 56(c); Harnicher v. University of Utah Med. Ctr.,
ANALYSIS
¶ 5 The UADA provides:
(1) It is a discriminatory or prohibited employment practice:
(a)(i) for an employer to refuse to hire, or promote, or to discharge, demote, terminate any person, or to retaliate against, harass, or discriminate in matters of compensation or in terms, privileges, and conditions of employment against any person otherwise qualified, because of race, color, sex, pregnancy, childbirth, or pregnancy-related conditions, age, if the individual is years of age or older, religion, national origin, or handicap.
Utah Code Ann. § 34-35-6(l)(a)(i) (1994) (emphasis added). Burton contends that in enacting the foregoing statute, the legislature has recognized and declared a public policy against age discrimination in employment practices including termination of em
¶ 6 We begin by observing that under our case law, there is a presumption that an employment relationship which has no specified term of duration is an at-will relationship, but that presumption is subject to a number of limitations. See Fox v. MCI Communications Corp.,
An at-will employee may overcome that presumption by demonstrating that (1) there is an implied or express agreement that the employment may be terminated only for cause or upon satisfaction of another agreed-upon condition; (2) a statute or regulation restricts the right of an employer to terminate an employee under certain conditions; or (3) the termination of employment constitutes a violation of a clear and substantial public policy.
Id. (citations omitted). In that case, we further remarked that not every employment termination that has the effect of violating some public policy is actionable: “A public policy whose contravention is achieved by an employment termination must be ‘clear and substantial’ to be actionable.” Id. at 860. Declarations of public policy can be found in constitutions and statutes, but not all statements made in statutes are expressions of public policy. See Peterson v. Browning,
¶ 7 The trial court granted summary judgment to the Exam Center in reliance on Retherford’s holding that the UADA provided the employee the exclusive remedy for wrongful termination in violation of the prohibited and discriminatory employment practices enumerated therein. The employee was not allowed to bring a tort action for wrongful discharge. However, in that case the complaining employee was covered by the UADA because her employer had fifteen or more employees. In the instant case, the Exam Center has less than fifteen employees, and the UADA affords Burton no protection or remedy. Thus Retherford’s holding arguably did not extend to small employers who were not within the purview of the UADA. We must therefore decide whether a public policy exists justifying the creation of a common law cause of action for Burton against the Exam Center for allegedly firing him due to his age.
¶8 In support of his position that we should create a common law cause of action to redress his termination, Burton relies on Molesworth v. Brandon,
¶ 9 In reaching its decision, the Maryland court relied upon Collins v. Rizkana,
¶ 10 The California Supreme Court reached the opposite result in Jennings v. Marralle,
This exemption of small employers from the FEHA ban on age discrimination was enacted simultaneously to and is inseparable from the legislative statement of policy. For that reason, and because no other statute or constitutional provision bars age discrimination, we conclude that there presently exists no “fundamental policy” which precludes age discrimination by a small employer. Thus, there is no independent basis for an action for tortious discharge in violation of policy.
Id.
¶ 11 As we have earlier stated, Burton contends that the UADA declares a public policy against the termination of employees who are over the age of forty years and that such public policy applies to all employees, whether employed by an employer who has fifteen or more employees (“large employer”) or an employer who has less than fifteen employees (“small employer”). He argues that small employers were exempted from the UADA because of the administrative burden it would place upon the UADD if all employers were under its jurisdiction. He points out that nothing in the UADA prohibits legal action against small employers who discriminate and that nationwide there are some eleven million workers who are not included within the purview of federal and state anti-discrimination employment acts.
¶ 12 We are not persuaded that the UADA declares a public policy which is “clear and substantial” with respect to small employers. The California Supreme Court’s reasoning in Jennings that “the exemption of
Due respect for the legislative prerogative in lawmaking requires that the judiciary not interfere with enactments of the Legislature where disagreement is founded only on policy considerations and the legislative scheme employs reasonable means to effectuate a legitimate object. In matters not affecting fundamental rights, the prerogative of the legislative branch is broad and must by necessity be so if government is to be by the people through their elected representatives and not by judges.
¶ 13 Amicus ACLU suggests that the legislature additionally has declared a public policy against age discrimination in employment in Utah Code Ann. § 67-19-2(4), which was repealed in 1995 but was in effect at the time of Burton’s termination in 1994. In that statute, the legislature declared that in the state’s own employment practices, there should be equal employment opportunity without regard to age and other discriminatory practices. Amicus also relies on Utah Administrative Code R606-3-2, which prohibits age discrimination by persons contracting with the state. While arguably a public policy can be found in that statute and Code, it obviously has no application to a private employer. Nor do we find any federal statute that could provide the basis for a tort action against small employers. See Leathem v. Research Found, of City Univ. of N.Y.,
¶ 14 The instant case can readily be distinguished from Molesworth,
¶ 15 In Jennings, the California court offered an explanation of the FEHA small employer exception. They suggested that the legislature made the exception in the FEHA because the framers
“believe[d] that discrimination on a small scale would prove exceedingly difficult to detect and police.... [I]t was believed that an employment situation in which there were less than five employees might involve a close personal relationship between employer and employees and that fair employment laws should not apply where such a relationship existed. Finally, the framers were interested primarily in attacking protracted large-scale discrimination by important employers and strong unions. Their aim was not so much to*1267 redress each discrete instance of individual discrimination as to eliminate the egregious and continued discriminatory practices of economically powerful organizations. Thus, they could afford to exempt the small employer.”
Jennings,
¶ 16 Several federal courts have expressed the same reasons for the small employers exemption found in certain federal anti-discrimination statutes. See e.g., Tomka v. Seiler Corp.,
¶ 17 There is an additional reason why we should not create a tort action against small employers. Under the UADA, a covered employee alleging age discrimination must assert his claim within 180 days of the alleged discrimination. Utah Code Ann. § 34-35-7.1(l)(c) (1994). The charge is filed at the UADD and is handled administratively. Emphasis in the administrative process is placed on conciliation and voluntary resolution. The UADA mandates that the administrative agency “attempt a settlement between the parties by conference, conciliation, or persuasion.” Utah Code Ann. § 34-35-7.1(3)(a). If the claimant is successful, the relief provided includes reinstatement, back pay and benefits, and attorney fees, but no compensatory or punitive damages may be awarded. Utah Code Ann. § 34-35-7.1(9). This is all done without charge by the administrative agency. In contrast to that simplified procedure, if a small employer were subjected to a tort action in the courts, he would have to hire his own attorney to defend the action against him, and damages could be awarded against him. The action presumably could be brought within four years, not limited by the 180-day limitation in the UADA, and a jury trial might be demanded. The dissent would subject the small employers of this state to those burdens. As stated by the Jennings court: “It would be unreasonable to expect employers who are expressly exempted from the FEHA ban on age discrimination to nonetheless realize that they must comply with the law from which they are exempted under pain of possible tort liability. We do not ascribe such a purpose to the Legislature.”
¶ 18 Lastly, Burton contends that denying him a tort remedy against his employer violates article I, section 11 of the Utah Constitution, which provides in part, “All courts shall be open, and every person, for an injury done to him in his person, property or reputation, shall have remedy by due course of law....” Burton cites no authority that would require us to create a remedy for him, and we know of no case law that would require this court to do so under that constitutional provision. To the contrary, nearly eighty-five years ago this court held that where no right of action is given or no remedy exists under either the common law or statute, this section creates none. Brown v. Wightman,
¶ 19 Judgment affirmed.
Notes
. The parties dispute exactly what was said at that meeting; however, in reviewing a summary judgment, it is well settled that we relate the facts of the case and all reasonable inferences arising therefrom in a light favorable to the non-moving party, see White v. Deseelhorst,
. Burton alleged that this new doctor was a "much younger” man. His exact age is unclear from the record, but he was over the age of forty.
. At the time of Dr. Burton’s termination, title 34, chapter 35 of the Utah Code embodied the UADA. Unless noted otherwise, all references herein to the UADA will be to the 1994 statutes. The UADA contains the following definitions:
(6) "Employee” means any person applying with or employed by an employer.
(7) “Employer” means the state or any political subdivision..., and every other person employing 15 or more employees within the state for each working day in each of 20 calendar weeks or more in the current or preceding calendar year; but it does not include religious organizations or associations....
Utah Code Ann. § 34-35-2(6), (7).
. In addition to tortious wrongful termination, Burton's complaint set forth two other causes of action: (1) failure to pay wages timely upon termination, and (2) recovery of attorney fees incurred in pursuing timely payment of those wages.
. Upon this court's request, the Utah Manufacturers Association ("UMA”), the Utah State American Federation of Labor-Congress of Industrial Organizations ("AFL-CIO”), and the American Civil Liberties Union of Utah Foundation, Inc. ("ACLU”), provided amicus briefs.
Dissenting Opinion
dissenting:
¶21 I respectfully dissent. While the present case concerns the limited issue of age discrimination by employers with fewer than fifteen employees (“small employers”), the majority’s decision will apply to all kinds of employment discrimination. Specifically, by determining that Dr. Burton has no cause of action for age discrimination against his employer because the employer employs fewer than fifteen employees, the majority has opened the door to all small employers to discriminate not only on the basis of age, but also on the. basis of the other categories protected by the Utah Anti-Discrimination Act (“Act”), Utah Code Ann. §§ 34A-5-101 to -108 (1997 and Supp.1999),
¶22 This court adopted a public policy exception to the employment-at-will doctrine in Berube v. Fashion Ctr., Ltd.,
[W]e recognize that a public policy exception is necessarily a threshold issue implicated in our reexamination of the scope of Utah’s at-will rule, and we have therefore been willing to consider and define it. We also stress that actions for wrongful termination based on this exception must involve substantial and important public policies. To this end, we will construe public policies narrowly and will generally utilize those based on prior legislative pronouncements ... applying only those principles which are so substantial and fundamental that there can be virtually no question as to their importance for promotion of the public good.
Id. at 1043 (Durham, J., joined by Stewart, J.). The majority has failed to undertake the careful analysis of public policy that Berube demands, creating an enormous loophole which Utah employers may exploit to the detriment of many Utah employees. Prohibiting employers from discriminating on the basis of age constitutes a substantial and important public policy sufficient to support a common law cause of action.
¶ 23 In the Act, the legislature pronounced that “[i]t is a discriminatory ... employment practice ... for an employer to ... discharge [or] ... terminate any person ... otherwise qualified, because of race, color, sex, pregnancy, childbirth, or pregnancy-related conditions, age, ... religion, national origin, or handicap.” Utah Code Ann. § 34-35-6(l)(a)(i). The legislature, in limiting the Act’s coverage to employers with more than fifteen employees, appears to have been balancing two policies: vigorously opposing discrimination in employment practices while simultaneously protecting small business from the burdens of the statutory remedies. The legislature’s decision not to extend the Act’s remedies to employees of small employers in no way undermines the significance of its core policy principles. It is not in the public interest to permit discrimination in employment based on age, race, sex, religion, and disability.
¶ 24 The Act creates a substantial bureaucratic system to implement its aims. It mandates the creation of the Utah Anti-Discrimination Division (the “Division”), as well as the Anti-Discrimination Advisory Committee to that Division (the “Committee”). See id. §§ 34-35-3, -4.5(1). The governor is directed to appoint the members of the Committee, including “one small business representative." Id. § 34-35^4.5(l)(a)(i) (emphasis added). The Division is given broad powers, including the authority to “receive, reject, investigate, and pass upon complaints alleging discrimination in employment ... or the existence of a discriminatory or prohibited employment practice by a person, [or] an employer.” Id. § 34-35-5(l)(c) (emphasis added). Significantly, the Division is not lim
¶25 In addition to this strong statutory support for recognizing claims for wrongful termination based on age discrimination, two other policy considerations support the availability of such a cause of action. First, a significant majority — 69.7%—of the Utah employer population employs fourteen or fewer employees.
¶ 26 The majority decision undermines Utah’s publicly proclaimed desire to eliminate employment discrimination. Because there is no reason in logic, history, case law, or policy why discrimination on the basis of race, sex, religion, and disability may be distinguished from that based on age, I believe the majority’s decision will apply to all categories protected in the Utah Anti-Discrimination Act and will affect all forms of invidious discrimination by small employers. It seems strange indeed that this court should declare that it is not a violation of public policy to discriminate against someone in employment because of race, sex, religion, disability, or age, no matter the size of the employer.
¶27 The issue before us has been addressed by other jurisdictions. Noteworthy is Molesworth v. Brandon,
¶ 28 In conclusion, the language of Berube is clear: “Public policy is most obviously, but not exclusively, embodied in legislative enactments. The legislature, acting in consonance with constitutional principles and expressing the will of the people, determines that which is in the public interest and serves the public good.” Berube,
. At the time the instant case was filed, the Act was codified at title 34, chapter 35 of the Utah Code. The relevant sections of the Act were not affected by the subsequent renumbering and amendments. Unless otherwise noted, all reference to the Act hereinafter are to the 1994 version.
. This number is based on data from the second quarter of 1999 and is provided by the Division of Workforce Information and Payment Services.
