Appellant, Lori Duteher, successfully proved her employer, appellee Randall Foods, violated the Equal Pay Act 1 , see 29 U.S.C. § 206(d) (1992), and the Iowa Civil Rights Act, see Iowa Code ch. 216 (1993). A jury awarded Duteher lost wages and benefits. The trial court, however, refused to award Duteher liquidated damages, damages for emotional distress and attorney fees. Duteher appealed. We reverse the trial court’s denial of liquidated damages and attorney fees, and remand for determination of an appropriate fee and entry of judgment in accordance with our decision.
I. Background Facts and Proceedings.
Lori Duteher began working for Randall in 1984 as a part-time wrapper and counter person in the meat department. In 1990 she was promoted to a full-time position, responsible for the prepackaged meat section of the meat department. At that time, store management granted Dutcher’s request to have a “supervisor” patch sewn on her white work jacket; two other full-time employees in the meat department received the same patch.
In late 1991, Duteher began to suspect that Randall was discriminating against her based on her gender. Her suspicions were primarily based on her belief that Myron Gilliland, a full-time male employee in the produce department, received a higher wage than she did.
Randall hired Gilliland in September of 1991 as a full-time produce clerk. Randall expected Gilliland would move into a management position; he had twelve years of experience in the grocery business, five in managerial positions. Gilliland was initially hired at a rate of $5.80 per hour; three weeks later Dutcher’s wage was raised to the same hourly rate. In October of 1991, however, Gilliland received a one dollar raise; Duteher did not receive a raise at that time.
By coincidence, the produce department manager was Dutcher’s brother-in-law, Tom Duteher. Lori Duteher learned of the pay differential between her and Gilliland when Tom Duteher told his brother, Lori Duteher’s husband, in early 1992.
Lori Duteher then complained to the store manager about being paid less than Gilliland. When she found the manager’s response unsatisfactory, she filed a complaint with the Iowa Civil Rights Commission. See Iowa Code § 216.15 (1993). Following the issuance of a right-to-sue letter, see id. § 216.16, Duteher filed a petition in the Iowa district court. Her petition included a claim under the Equal Pay Act to recover wages, liquidated damages and attorney fees. It also stated a claim under the Iowa Civil Rights Act for loss of income and benefits, emotional distress, punitive damages and attorney fees. Both claims were based on the allegation that Duteher did not receive wage increases given to males working in equal positions.
Trial of Dutcher’s case was bifurcated: the equal pay claim was tried to a jury and the civil rights claim was tried to the court. The jury decided Randall violated the Equal Pay Act by paying Duteher at a rate less than the rate “paid to a member of the opposite sex for a job doing substantially equal work which required equal skill, effort and responsibility.” It awarded her $2128 for lost wages and benefits, only $40.80 less than what she had requested. The court entered judgment on the jury verdict and addressed the remaining issues.
With respect to the Equal Pay Act, the court found Randall demonstrated it acted in good faith and had reasonable grounds to believe it was not violating the law in setting the pay rate for Duteher and comparable employees. Thus, the court denied liquidated damages.
See
29 U.S.C. § 260. In
The court then considered Dutcher’s discrimination claim under the Iowa Civil Rights Act. The court adopted the jury’s findings that (1) Randall paid Duteher less than male employees because she was female and (2) Duteher lost wages and benefits of $2128. Dutcher’s claim for additional compensatory damages was denied because the court rejected her testimony that Randall’s discriminatory conduct caused her emotional distress. The trial court also found Randall’s actions were not willful or wanton and consequently concluded punitive damages were not warranted.
On appeal Duteher makes several claims: (1) the trial court erred in considering whether Randall’s conduct was reasonable and in good faith because Randall had not raised this issue as an affirmative defense; (2) even if this issue had been properly raised, the court abused its discretion in finding Duteher was not entitled to liquidated damages; (3) substantial evidence does not support the court’s conclusion that Duteher suffered no emotional distress; and (4) the trial court erred in failing to award Duteher reasonable attorney fees. Randall did not file a cross-appeal and therefore, we accept as established that Randall violated the Equal Pay Act and the Iowa Civil Rights Act by paying Duteher less than males in comparable positions. Similarly, the amount of Dutcher’s lost wages and benefits, not challenged on appeal, is also conclusively determined.
II. Liquidated Damages.
Section 216(b) of the FLSA provides for an award of liquidated damages to a prevailing employee:
An employer who violates the provisions of [the Equal Pay Act] shall be liable to the employee ... affected in the amount of their unpaid ... wages ... and in an additional equal amount as liquidated damages.
29 U.S.C. § 216(b). An employee’s right to liquidated damages may, however, be defeated:
[I]f the employer shows to the satisfaction of the court that the act or omission giving rise to such action was in good faith and that he had reasonable grounds for believing that his act or omission was not a violation of the Fair Labor Standards Act of 1938, as amended, the court may, in its sound discretion, award no liquidated damages or award any amount thereof not to exceed the amount specified in section 216 of this title.
Id. § 260.
Duteher challenges the district court’s denial of liquidated damages on both procedural and substantive grounds. First, she claims section 260 is an affirmative defense which the employer must plead and prove. Because Randall failed to plead “good faith and reasonable grounds” in its answer, Duteher claims the defense was waived. Second, Duteher asserts the trial court abused its discretion in failing to award liquidated damages because the evidence does not show good faith and reasonable grounds for Randall’s actions.
We agree that Randall waived this defense when it failed to raise section 260 as an affirmative defense. Consequently, we do not reach the question of whether Randall successfully proved it acted in good faith and on reasonable grounds. Whether section 260 creates an affirmative defense is a question of law for the court; therefore, we review for errors of law. See Iowa R.App.P. 4.
A
Section 260 is an affirmative defense.
Although other sections of the Portal-to-Portal Act require a particular defense to be “pleaded and proved” by the employer,
e.g.,
29 U.S.C. §§ 258, 259 (employer’s rebanee on past and future administrative rulings), section 260 merely provides that the employer “show” good faith and reasonable grounds. Thus, although the statute places the burden of proof on the employer, it does not address the necessity to plead a section 260 defense. Because the statute is silent on this issue, we look to our procedural rules to determine whether they require this defense to be affirmatively alleged.
See Winans v. W.A.S., Inc.,
Iowa Rule of Civil Procedure 101 requires “[a]ny defense ... which admits the facts of the adverse pleading but seeks to avoid their legal effect [to] be specially pleaded.” A section 260 defense is more than a mere denial of liability; it arises only
after
the facts of the petition have been proven. Thus its purpose is to
avoid
one of the legal effects of a finding of discrimination—an award of liquidated damages. We think Randall’s defense to the imposition of liquidated damages falls within this rule. Other jurisdictions have also concluded section 260 must be affirmatively alleged.
E.g., Dole v. Haulaway, Inc.,
We hold rule 101 required Randall to plead section 260 as an affirmative defense; Randall faded to make such a pleading. Failure to plead an affirmative defense normally results in waiver of the defense, unless the issue is tried with the consent of the parties.
See Arkae Dev., Inc. v. Zoning Bd. of Adjustment,
B.
Section 260’s affirmative defense was not tried by consent.
When a party introduces evidence without objection on an issue not raised by the pleadings, the court considers the matter tried by consent and properly in the case. Iowa R.Civ.P. 106;
Folkers v. Britt,
Here the testimony Randall now relies upon to support its section 260 defense was admissible on other issues. First Randall points to the evidence differentiating Dutcher’s and Gilliland’s jobs to show it had reasonable grounds to pay these employees differently. That evidence, however, was relevant to whether Dutcher and Gilliland performed “equal work.” See 29 U.S.C. § 206(d)(1) (prohibiting the payment of different wages for “equal work on jobs the performance of which requires equal skill, effort, and responsibility”). Second Randall relies on testimony that Gilliland was paid more because he had management experience. This testimony was admissible on whether the difference in wages was based on gender. See id. (prohibiting discrimination in wages “on the basis of sex”). Dutcher would have had no legitimate objection to this evidence. Moreover, none of this testimony would have alerted Dutcher to the defense upon which Randall now relies. Thus, we reject Randall’s claim that its section 260 defense was tried by consent.
Because Randall failed to plead section 260 as an affirmative defense, Randall was not entitled to rely on its alleged good faith to avoid liability for liquidated damages.
2
III. Damages for Emotional Distress.
Dutcher also sought damages for emotional distress under the Iowa Civil Rights Act. A person proving discrimination under the Act is entitled to compensation for “actual damages.” Iowa Code § 216.15(8)(a)(8) (1993). Only those damages “caused by the discriminatory or unfair practice” are com-pensable. Id.
We have held damages for emotional distress are a component of “actual damages.”
Chauffeurs Local Union 238 v. Iowa Civil Rights Comm’n,
The trial court refused to award Dutcher any damages for emotional distress, finding her claims of such distress “difficult to substantiate or believe.” We are bound by this factual finding unless it is unsupported by substantial evidence.
Smith v. ADM Feed Corp.,
In reviewing the record, particularly Dutcher’s testimony concerning her emotional distress, it is apparent that her focus is on the negative reaction she received to the filing of this lawsuit. She complains that her immediate supervisor stopped taking his breaks with her because he felt betrayed when she sued their employer. Her supervisor also removed her “supervisor” patch in response to this lawsuit. Her primary source of emotional distress, however, was the reaction of her brother-in-law, the manager of the produce department; he stopped talking with her at the store as well as at family gatherings. As a result Dutcher no longer enjoyed the close relationship she once had with her husband’s family.
It is significant that these events were consequences of Dutcher’s filing of this lawsuit, not the unequal wages she was paid by Randall. Although retaliation for filing a civil rights complaint is an unfair or discriminatory practice, see Iowa Code § 216.11, neither the jury nor the court found that Randall retaliated against Dutcher because she filed a complaint. The only discriminatory practice found by the judge and jury was that Dutcher was paid less than male employees because she was female. We find substantial evidence that Dutcher’s emotional distress was not caused by this discriminatory practice. Consequently, we affirm the trial court’s refusal to award damages for emotional distress.
IV. Attorney Fees.
The trial court denied attorney fees in its decree denying Randall’s posttrial motions
A.
FLSA requires an award of attorney fees to a prevailing party.
The FLSA
mandates
an award of reasonable attorney fees and costs to the prevailing party. 29 U.S.C. § 216(b) (“The court ...
shall
... allow a reasonable attorney’s fee ... and costs of the action.”) (emphasis added);
Fegley v. Higgins,
1.
Dutcher was a prevailing party.
The FLSA directs an award of reasonable attorney fees and costs to a “prevailing party.” “[A] plaintiff ‘prevails’ when actual relief on the merits of his claim materially alters the legal relationship between the parties by modifying the defendant’s behavior in a way that directly benefits the plaintiff.”
Farrar v. Hobby,
2.
Dutcher’s recovery was not nominal.
Randall contends the trial court merely determined a reasonable attorney fee was zero, and that it did not abuse its discretion in making this finding. The United States Supreme Court has stated that even a prevailing party may be denied attorney fees: “When a plaintiff recovers only nominal damages because of his failure to prove an essential element of his claim for monetary relief, the only reasonable fee is usually no fee at all.”
Farrar,
3.
Randall’s settlement offer for less than Dutcher’s recovery does not bar an award of attorney fees.
Randall points out that it had made an offer to confess judgment in the amount of $2000 prior to trial and Duteher’s recovery of $2128 exceeds that figure by only $128. This fact does not preclude Dutcher from recovering attorney fees.
See Haworth v. Nevada,
4.
District court prematurely denied fees.
We also note the trial court ruled on the attorney fee issue prior to a motion requesting fees or the submission of any affidavits setting forth the amount of the requested fees.
See Williams v. Tri-County Growers, Inc.,
B.
Remand for determination of reasonable attorney fees.
Our decision requires that we remand this case to the trial court to determine a reasonable attorney fee award. Dutcher shall be allowed to make a request for attorney fees.
See Grunin v. International House of Pancakes,
The manner of computing a reasonable attorney fee under federal fee-shifting statutes has changed over time.
See Pennsylvania v. Delaware Valley Citizens’ Council for Clean Air,
A reasonable attorney fee is initially calculated by multiplying the number of hours reasonably expended on the winning claims times a reasonable hourly rate.
Hensley v. Eckerhart,
An upward adjustment of the lodestar amount is permissible in “exceptional” cases.
Blum,
Detailed findings of fact with regard to the factors considered must accompany the attorney fee award.
See General Elec.,
C.
Attorney fees under the Iowa Civil Rights Act.
Reasonable attorney fees may also be awarded to a successful party under the Iowa Civil Rights Act. Iowa Code § 216.15(8)(a)(8) (1993). In the past, we have looked to comparable federal statutes in interpreting our civil rights act.
E.g., Boelman v. Manson State Bank,
The vindication of civil rights is so significant that the method of calculating attorney fees should not vary between state and federal courts.
4
Therefore, we adopt the federal analytical framework for the calcula
California courts should follow interpretations of similar federal laws in awarding attorney fees in age discrimination cases. Otherwise, if fee awards were doubtful in California courts, there would exist an incentive for plaintiffs to file suits in federal courts under the federal civil rights statute with more liberal attorney fee provisions. This would effectively defeat the policy of keeping the California law as an effective remedy against age discrimination and would undermine Congress’s intent “to encourage full use of state remedies.”
Stephens v. Coldwell Banker Commercial Group, Inc.,
V. Disposition.
We affirm the trial court’s decision that Dutcher was not entitled to damages for emotional distress. We reverse the district court’s denial of liquidated damages and attorney fees, and remand. Upon remand, the court should determine a reasonable attorney fee for the trial and appeal of this case and enter judgment consistent with this opinion.
AFFIRMED IN PART, REVERSED IN PART, AND REMANDED.
Notes
. The Equal Pay Act, see 29 U.S.C. § 206(d), is contained within the Fair Labor Standards Act (FLSA), see 29 U.S.C. §§ 201-219. The Portal-to-Portal Act, see 29 U.S.C. §§ 251-262, in part provides defenses to the FLSA.
. We do not suggest that there was any merit in Randall’s section 260 defense. This defense has
. After considering only the amount and nature of the judgment awarded a prevailing party, a court may determine that the plaintiff has only an insignificant technical victory. In those circumstances, the court may deny fees without receiving affidavits or evidence, or computing the lodestar amount.
Farrar,
. Similarly, the United States Supreme Court has held that the method of calculating attorney fees should be uniform under all federal fee-shifting statutes.
Dague,
