Dwight L. ALMOND, III and Kevin C. Weems, Plaintiffs-Appellants, v. UNIFIED SCHOOL DISTRICT #501, Defendant-Appellee.
No. 10-3315
United States Court of Appeals, Tenth Circuit.
Nov. 29, 2011.
1174
Before MURPHY, Circuit Judge, BRORBY, Senior Circuit Judge, and GORSUCH, Circuit Judge.
IV. Administrative Information
If our request for certification is granted, we designate Sierra as petitioner. See
In accordance with
V. Stay of Proceedings
In light of this court‘s decision to certify the issues presented here, all further proceedings in this case before our court are stayed pending final action by the California Supreme Court. The parties shall notify the Clerk of this court after the California Supreme Court accepts or rejects certification, and again within fourteen days if the California Supreme Court issues a decision.
This court retains jurisdiction over any further proceedings in this case.
IT IS SO ORDERED.
Pantaleon Florez, Jr., Topeka, KS, for Plaintiffs-Appellants.
Patricia E. Riley, of Weathers, Riley & Sheppeard, LLP, Topeka, KS, for Defendant-Appellee.
Enacted in 2009, the Lilly Ledbetter Fair Pay Act governs how long parties have to file “discrimination in compensation” claims. This case requires us to consider what that phrase means. As it turns out, the phrase refers to situations in which a member of a protected class receives less pay than similarly situated colleagues—that is, unequal pay for equal work. Because the plaintiffs in this case don‘t raise an unequal pay for equal work claim, they do not benefit from the Act‘s comparatively generous deadlines and preexisting accrual rules apply. Under those rules, and as the district court observed, the plaintiffs’ claims are untimely and must be dismissed.
This case stretches us back to 2003 when Kansas Unified School District # 501 says it was facing serious budgetary straits. To help get back on course, the District claims, it decided to eliminate three positions, one of which was Dwight Almond‘s maintenance job. Rather than fire him, however, the District told Mr. Almond that he could transfer to a vacant custodial position at a lower pay grade. If Mr. Almond accepted the new position, the District promised, he could retain his current salary for two years before the lower pay associated with the new job kicked in. To all this Mr. Almond agreed in writing,
In 2004, Kevin Weems found himself in the same predicament. As part of a putative effort to tighten its budget further, the District eliminated his position and Mr. Weems accepted a written offer allowing him to assume a lower paying job with the opportunity to keep his current salary for two years. Like Mr. Almond, Mr. Weems‘s salary was to be (and two years later was) brought in line with his lower pay grade.
Eventually, Mr. Almond and Mr. Weems filed administrative charges alleging that the District‘s actions were motivated by unlawful age discrimination, not budget necessity. But with this came a wrinkle. The men didn‘t bring their administrative charges until 2006, even though the discrimination they alleged occurred in 2003 and 2004. And this fact posed a problem for the pair when they sought to take their claims to court. The district court held that the men had waited too long to seek administrative review—and that the delay had the effect of barring their lawsuits altogether.
While the plaintiffs’ appeal of the district court‘s summary judgment decision was pending in this court, the statutory topography shifted. Congress passed the Ledbetter Act, a law specifically aimed at effecting changes to limitations law in the employment discrimination field. To allow the district court the opportunity to consider whether the Act rescued the plaintiffs’ claims, rendering their otherwise untimely claims timely, the parties agreed to dismiss the appeal. In the end, though, the district court concluded that the Act offered the plaintiffs no help and now the case is back on appeal, requiring us to consider the timeliness of the plaintiffs’ claims in light of both preexisting law and the Ledbetter Act.
We start with the first question first, asking whether preexisting law requires dismissal of the plaintiffs’ claims. The Age Discrimination Employment Act (“ADEA“) provides that “no civil action may be commenced” in federal court unless the would-be plaintiff first files a grievance with the appropriate administrative agency—and does so “within 300 days after the alleged unlawful practice occurred” where (as here) a state administrative agency process exists to remedy the alleged discrimination.
But determining when exactly an “unlawful practice occur[s]“—when an ADEA claim accrues and the 300 day limitations clock starts running—isn‘t as simple as it might first appear. Does the clock start when the challenged employment practice is decided internally? When the decision is first announced to the plaintiff? When the plaintiff learns the decision was motivated by discriminatory animus? Or perhaps each and every time the plaintiff experiences some effect from the adverse decision?
In the absence of contrary directives from Congress, the Supreme Court has read into federal statutory limitations periods a relatively consistent rule. As formulated by the Court, the clock starts running when the plaintiff first knew or should have known of his injury, whether or not he realized the cause of his injury was unlawful. See, e.g., United States v. Kubrick, 444 U.S. 111, 122 (1979); Rotella v. Wood, 528 U.S. 549, 555-56 (2000).
With these principles in hand, the question for us becomes when Mr. Almond and Mr. Weems first had or should have taken notice of the District‘s allegedly discriminatory decision. The undisputed facts show that the answer is 2003 for Mr. Almond and 2004 for Mr. Weems. It was then that the District told the plaintiffs their jobs were being eliminated, then that the District announced the demotions, and then that the District revealed the future pay reduction associated with those demotions. And all this poses a problem for the plaintiffs, just as the district court held, because they filed their administrative charges in 2006, well past the 300 day deadline set by statute and much too late to be able to pursue their claims in federal court.
The plaintiffs respond by protesting that the most painful consequence of the District‘s transfer decision—the reduction in their pay—didn‘t take place in 2003 and 2004 but two years later, in 2005 and 2006, and so well within the 300 day statutory period. Because of this, they say, they should be able—at the very least—to contest their pay reduction in federal court.
We cannot agree. Some adverse employment actions—such as demotion to a lower position—can require more work of the employee for less pay on an ongoing basis. Other adverse employment actions can involve entirely deferred consequences—such as a delayed demotion, a deferred reduction in pay, or a notice of termination with a grace period before actual firing occurs. But whether the adverse consequences flowing from the challenged employment action hit the employee straight away or only much later, the “limitations period [] normally commence[s] when the employer‘s decision is made” and “communicated” to the employee. Ricks, 449 U.S. at 258. Put differently, the “proper focus” is on the time that the employee has notice of “the discriminatory acts,” not “the time at which the consequences of the acts became most painful.” Id. at 258 (quotation omitted); see also Chardon v. Fernandez, 454 U.S. 6, 8 (1981); Proctor v. United Parcel Serv., 502 F.3d 1200, 1206 (10th Cir.2007). And in this case there is no question that the District‘s actions, including the planned pay reductions, were first announced to the plaintiffs in 2003 and 2004. The fact that
Our conclusion in this case parallels (and is compelled by) the Supreme Court‘s decision in Ricks. The plaintiff there was a college professor whose employer denied him tenure but gave him a year to find new work. The Court held the limitations period began to run at the time the employer announced the adverse tenure decision, not when it ultimately terminated his employment a year later. The Court did so explaining that the challenged unlawful employment practice was the tenure decision and the plaintiff‘s eventual but deferred termination was only “a delayed... consequence of the denial of tenure.” 449 U.S. at 257-58. And as it was in Ricks so it must be here. The plaintiffs before us seek to challenge (among other things) the District‘s decision to reduce their pay, a decision known to them well before it happened to take effect.
Shifting ground, the plaintiffs contend that, however the limitations clock used to operate under Ricks, the Supreme Court‘s decision in Nat‘l R.R. Passenger Corp. v. Morgan, 536 U.S. 101 (2002) reset it. As they read Morgan, the
Morgan, however, didn‘t so fundamentally rework how we measure time. To be sure, Morgan held that hostile work environment claims accrue each time acts contributing to that environment occur. See id. at 117-18. And to be sure, this represents a deviation from the general Ricks accrual rule. But Morgan took great pains to reaffirm the Ricks rule and to draw only a narrow distinction for hostile work environment claims. Morgan began with an extended discussion endorsing Ricks‘s rule that “[d]iscrete acts such as termination, failure to promote, denial of transfer, or refusal to hire” trigger the statute of limitations when announced to the claimant, and do so whether or not all of their adverse effects or consequences are immediately felt. Id. at 114. Morgan then proceeded to distinguish hostile work environment claims from this general rule only because, unlike the mine run of employment discrimination claims, hostile work environment claims “cannot be said to occur on any particular day,” and instead usually involve a pattern of acts that aren‘t “actionable on [their] own” but give rise to a legal violation only when assessed in their totality. Id. at 115-16. By its own terms, then, Morgan helps the plaintiffs in this case not at all. Mr. Almond and Mr. Weems don‘t seek to pursue a hostile work environment claim but wish instead to challenge the District‘s termination, transfer, and demotion decisions. And Morgan expressly held that those sorts of decisions remain subject to Ricks‘s rule.
Before invoking the Ledbetter Act, the plaintiffs say there‘s still one more reason why their claims, or at least some portion of them, are timely under preexisting law. When the District announced its transfer decisions in 2003 and 2004, the plaintiffs submit, it wasn‘t clear about the accompanying salary reductions. As they describe the facts, the District said it would reduce their salary in two years’ time only if its financial prospects didn‘t improve. And this temporizing about the pay cuts, the plaintiffs argue, means that their salary reductions weren‘t really a sure thing until 2005 and 2006 when they took effect. And because of this, they say, their administra-
Whatever other problems may attend this tack, a factual one surely does. Even straining to view the facts most favorably to the plaintiffs, the District in 2003 and 2004 didn‘t say it might or could reduce the plaintiffs’ pay in the future. It said it would reduce their pay in two years’ time, subject only to the possibility of later review or reconsideration. And the Supreme Court has instructed us in no uncertain terms that, when a challenged employment decision is merely subject to later review, reconsideration, or appeal, this does nothing to stop the clock from running. The limitations period still accrues with the employer‘s announcement and “the pendency of a grievance, or some other method of collateral review of an employment decision, does not toll the running of the limitations periods.... [and neither does] [t]he existence of careful procedures to assure fairness.” Ricks, 449 U.S. at 261. See also Chardon, 454 U.S. at 9 (Brennan, J., dissenting) (explaining that the “thrust” of the Court‘s jurisprudence is to require a potential plaintiff “to measure the time for filing his claim from the moment some form of injunctive relief first becomes available“); Kessler v. Bd. of Regents, 738 F.2d 751, 754-55 (6th Cir.1984); 4 Lex K. Larson, Employment Discrimination, § 72.07[3] (2d ed.2011).
Having concluded that the district court was right and preexisting accrual doctrine renders the plaintiffs’ claims untimely, and without any suggestion from the plaintiffs that equitable tolling doctrine might save their cause, our work is still only half finished. We still have to consider whether the Ledbetter Act changes the limitations equation in any way, whether it might save the plaintiffs’ otherwise lost federal claims.
The Ledbetter Act came in response to the Ledbetter case. Lilly Ledbetter proved at trial that her supervisors gave her poor performance reviews because of her sex—and that these reviews, in turn, caused her employer to pay her less than similarly situated male workers. Ledbetter v. Goodyear Tire & Rubber Co., Inc., 550 U.S. 618, 622 (2007). The Supreme Court, however, reversed. It explained that Ms. Ledbetter‘s pay discrimination claim was untimely and the jury‘s verdict had to be overturned because Ms. Ledbetter filed her administrative charge more than 300 days after the announcement of the employer‘s relevant pay-setting decision.
Writing for herself and three others, Justice Ginsburg dissented. The dissent argued that the Court should treat compensation discrimination claims like it did hostile work environment claims in Morgan. The dissent emphasized that, while most adverse employment actions (firings, failures to hire, demotions, transfers) are communicated or quickly made obvious to employees, compensation discrimination (or unequal pay for equal work) claims and hostile work environment claims are different. In these two situations, the dissent explained, employers don‘t typically announce or communicate the injurious facts to the employee. In the pay discrimination context, workers like Ms. Ledbetter of course know their own salaries but they are rarely told what their co-workers earn. And this means that an employee may have no reason to know of the fact of his or her injury—the very existence of a pay disparity—for a long time. For this reason, Justice Ginsburg argued, pay discrimination claims shouldn‘t accrue when a particular pay decision is made and announced to an individual employee but should arise anew with each pay check, much as a hostile work environment claim accrues
Enter the Ledbetter Act. In addition to modifying Title VII to overturn the Supreme Court‘s Ledbetter decision, the Act added new and parallel language to the ADEA:
[f]or purposes of this section, an unlawful practice occurs, with respect to discrimination in compensation in violation of this chapter, when a discriminatory compensation decision or other practice is adopted, when a person becomes subject to a discriminatory compensation decision or other practice, or when a person is affected by application of a discriminatory compensation decision or other practice, including each time wages, benefits, or other compensation is paid, resulting in whole or in part from such a decision or other practice.
The plaintiffs would have us believe this language saves their claims. In their view, an “unlawful practice” for purposes of
The Ledbetter Act, however, didn‘t go so far. By its express terms, the Act applies only to claims alleging “discrimination in compensation“—or, put another way, claims of unequal pay for equal work. The plaintiffs before us don‘t seek to bring such claims and so the Ledbetter Act offers them no help. Why all this is so takes a bit of unpacking, but it is revealed by Congress‘s particular choice of language in
The first and core difficulty with the plaintiffs’ interpretation lies in the language of the Act itself. Contrary to their view, the phrase “when a discriminatory compensation decision or other practice is adopted” doesn‘t do the work of defining the class of discrimination cases to which the Act applies. Linguistically, the portion of the Act doing that task is the preceding phrase providing that “[f]or purposes of this section, an unlawful practice occurs, with respect to discrimination in compensation in violation of this chapter....” It is there that Congress defined which “unlawful practices” are and are not affected by the Act‘s new accrual rules. And it is there that Congress made clear the Act‘s new accrual rules pertain only to “discrimi-
Neither is the phrase “discrimination in compensation in violation of this chapter” some Rorschach inkblot to which we may ascribe whatever meaning springs to mind. It is instead a clear cross-reference to a specific term of art with a settled legal meaning. “This chapter,” namely the ADEA, contains a particular prohibition on compensation discrimination in
Parallel language added to Title VII underscores the point. To address the particular sex discrimination claim at issue in Ledbetter, the Act contains a new accrual rule for claims of “discrimination in compensation in violation of” Title VII. See
The plaintiffs’ competing reading—that the Ledbetter Act applies to any “other practice” involving a discriminatory decision affecting pay—thus errs. It errs by ignoring the statute‘s first phrase expressly limiting the law‘s coverage to claims of “discrimination in compensation,” as well as its clear cross-reference, “in violation of this chapter,” directing us to a class of claims with a settled and statutorily precise meaning. And, in this way, the plaintiffs’ proposed interpretation commits not one but two statutory interpretation sins—first by rendering a statutory phrase superfluous and then by failing to give effect to Congress‘s reference to a preexisting legal term with a well settled meaning. See Freytag v. Comm‘r of Internal Revenue, 501 U.S. 868, 877 (1991); Morissette v. United States, 342 U.S. 246, 250 (1952).
The Act‘s history erases any possible lingering questions. The Act‘s findings tell us that Congress‘s target was the Ledbetter majority and its purpose to undo the Court‘s treatment of “discrimination in compensation” claims. See
Justice Ginsburg‘s dissent also helps confirm the (limited) significance of the “other practice” language. As Justice Ginsburg observed, the act of discrimination against Ms. Ledbetter wasn‘t in the pay-setting decision itself, but in the poor performance reviews given to her because of her gender that were later used to justify paying her less than her male colleagues. The Ledbetter dissent repeatedly emphasized that the pay differential, the unequal pay for equal work, Ms. Ledbetter experienced was caused by these earlier discriminatory acts. See Ledbetter, 550 U.S. at 644 (Ginsburg, J., dissenting) (discrimination rather than performance inadequacies “accounted for the pay differential“); see also id. at 659 (Ledbetter‘s pay was “discriminatorily low due to a long series of decisions reflecting Goodyear‘s pervasive discrimination against women managers“). The dissent argued that the law should take account of these other practices when setting accrual rules for compensation discrimination claims. And it is once again hardly surprising that Congress would include language to do just that, to trigger
Beyond language of
In light of all this, we hold that
Without endorsing all of the reasoning they employ, we note that the path we‘ve taken in interpreting the Ledbetter Act generally parallels the paths taken by two of our sibling circuits, and we all reach the same result in the end. See Noel v. Boeing Co., 622 F.3d 266, 273-74 (3d Cir.2010); Schuler, 595 F.3d at 374-75. Our way has been made all the clearer as well thanks to the careful work of the district judge who preceded us through this statutory thicket. The district court‘s judgment dismissing the case for failure to file timely administrative charges is affirmed. Given this disposition, we have no need to reach the district court‘s alternative holding that Mr. Weems (but not Mr. Almond) failed to exhaust his administrative remedies for other reasons.
Affirmed.
UNITED STATES of America, Plaintiff-Appellee, v. Ronald Keith IRVING, Defendant-Appellant.
No. 10-7012.
United States Court of Appeals, Tenth Circuit.
Nov. 29, 2011.
