Equal Employment Opportunity Commission v. American Airlines, Inc.Equal Employment Opportunity Commission v. American Airlines, Inc.
This is an action for age discrimination, 29 U.S.C. § 621
et seq.,
brought by the United States Equal Employment Opportunity Commission (“EEOC”) on behalf of a class of pilots age forty and over who applied and were denied employment by American Airlines, Inc. (“American”). Two separate claims of discriminatory hiring practices were alleged. First, EEOC charged that American’s policy of hiring only pilots who will progress to the rank of Captain discriminated against applicants on the basis of age. Second, EEOC alleged that American intentionally discriminated, as proved by its pattern and practice, against applicants age forty and over who were not excluded by the “years to Captain” policy. The district court granted partial summary judgment for American on the first claim, holding that the EEOC’s challenge to the “hire-only-Captains/years to Captain” policy is barred by collateral estoppel. In a separate order,
I.
BACKGROUND
A. American’s General Pilot Hiring Policies
American employs pilots in three cockpit positions of ascending seniority and authority: Flight Officer, Co-pilot, and Captain. In all cases the entry level position at American is Flight Officer. Progression from one cockpit position to another depends on the size of American’s pilot workforce, the number of cockpit positions in the fleet, and the terms of the seniority system established in the collective bargaining agreement between American and the pilots’ union. The district court’s order of October 26, 1993, p. 3 (citing
Murnane v. American Airlines, Inc.,
It is American’s policy to hire only future Captains. In other words, every pilot considered and hired by American is evaluated as a future Captain and is expected to progress to the position of Captain. American has an “up-or-out” policy, which requires the pilot to demonstrate the ability to рrogress to the next highest cockpit position or be terminated.
* * * * * *
The Federal Aviation Administration (“FAA”) has promulgated regulations which require American to retire its Captains and Co-pilots at age sixty (“the FAA age sixty rule”). American does not allow former Captains, age sixty and over, to bid back to the Flight Officer position. Therefore, no pilot who has reáehed his or her sixtieth birthday continues to work in an American cockpit.
Id. (footnotes & citations omitted).
B. The Challenge to the Age Thirty Guideline
Until 1985, American maintained a general guideline against hiring persons over age thirty for the beginning position of Flight Officer.
Murnane v. American Airlines, Inc.,
When American did not hire Edward Mur-nane, a 43-year old retired military aviator, Murnane sued, asserting that American’s re
American’s intended goal of maintaining a staff of Captains which has the longest possible record of experience in American cockpits is, in our opinion, completely justified.
... We conclude that American’s age forty guideline was a bona fide occupational qualification “reasonably necessary to the normal operation” of American Airlines.
Id. at 101.
C. The Years-to-Captain Rule and the Instant Case
American continued to use the maximum age guideline in hiring pilots until 1985, when the airline expanded its operations. As a result of the expansion, pilots progressed more rapidly through the cockрit positions. American needed more pilots. To broaden the pool of eligible pilot applicants, while maintaining its “hire-only-Captains” and “up- or-out” policies, American replaced the age thirty guideline with the “years-to-Captain” rule. Under the years-to-Captain rule, American periodically projected the length of time necessary for a newly hired pilot to progress through the cockpit positions and to attain the position of Captain. American based its projections on the number of pilots employed, the expected retirement and attrition rates, and the number of aircraft expected to be in the fleet. The estimated years-to-Captain are subtracted from sixty (the FAA mandatory retirement age) to determine the age cutoff for pilot applicants during the relevant hiring period. 2 At some point in 1991, after the EEOC began investigating American’s pilot hiring practices, American modified the years-to-Captain rule “to state that applicants must be expected to serve as Captain for a minimum of five years.”
Since 1989, the “years-to-Captain” projection has fluctuated from ten to twenty years. 3 Hence, American expanded the pool of those it was willing to hire to pilot applicants as old as fifty under certain circumstances.
Paradoxically, this loosening of an age-related policy did not elicit kudos from the EEOC but instead prompted a new lawsuit on the two grounds noted. Each basis of potential liability deserves discussion.
II.
COLLATERAL ESTOPPEL
EEOC first contends that American violated the federal age discrimination law by
Before collateral estoppel can bar a lawsuit, three elements must exist: 1) the issue at stake must be identical to the one involved in the prior litigation; 2) the determination of the issue in the prior litigation must have been a critical, necessary part of the judgment in that earlier action; and 3) the special circumstances must not exist which would render preclusion inappropriate or unfair.
Texas Pig Stands, Inc. v. Hard Rock Cafe Int'l Inc.,
The court of appeals in Mumane found: The issue before the court, then, is whether age is a “bona fide occupational qualification” (BFOQ) which is “reasonably necessary to the normal operation” of the airline business. We conclude that it is.
Mumane,
EEOC responds that the defense of collateral estoppel should not be available to American in this case because 1) American’s modification of its hiring policy in 1985 (i.e. rеplacing the age forty guideline with years-to-Captain rule) created “a significant change in the controlling facts,” 2) the Supreme Court’s decision in
Western Air Lines v. Criswell,
A. Has American’s Change of Policy Resulted in a Significant Change in Controlling Facts?
EEOC principally asserts that collateral estoppel does not apply because the' facts have changed; American’s new age-related policy demands a new analysis.
Mumane,
in finding that the age-based policy was a BFOQ, assumed that safety was optimized because the hire-only-Captains, up-or-out, and age forty guidelines produced pilots who could serve as Captains for 10 to 15 years. As a result of that policy, if American hired a “Flight Officer in his forties he would probably not become Captain until his late fifties [and] he would be able to serve only briefly as an American Captain before he had to retire” because of the FÁA age sixty rule.
Mumane,
But EEOC’s reading of
Mumane
is too limited. As discussed above, the issue before the court was “whether age is a [BFOQ]” for an airline.
Thus, among the essential facts found by
Mumane
was that American’s use of age cutoffs to hire only those who can progress to serve as Captain before mandatory retirement at age sixty was “reasonably necessary to the normal operation оf the airline.” This finding is emphasized, as the court succinctly rejected .EEOC’s argument that American should be made to hire older pilots who could not serve long enough to become Captains although they might make safer Flight Officers and Co-pilots: “it is more important to have a safe
Captain
than a safe
Flight Officer.”
“To produce absolution from collateral es-toppel on the ground of changed factual circumstancеs, the changes must be of a character and degree as might place before the court an issue different in some respect from the one decided in the initial case.” IB James W. Moore, Moore’s Federal Practice ¶ 0.448, p. 642 (2d ed. 1994). It is not enough to avoid the preclusive effect of the prior determination for the EEOC to show merely a change in facts: a change must have occurred in facts that were essential to the judgment and were “of controlling significance.”
Montana v. United States,
This facet of EEOC’s complaint alleges not that the ADEA is violated when American hires a 45 year old pilot applicant who is expected to progress to Captain a few years before his sixtieth birthday, but instead when American fails to hire a 45 year old applicant who is not expected to make Captain before the mandatory retirement age.
Mumane
would condone American’s refusal to hire, for safety reasons, both classes of applicants under the previous age-forty guideline. But, even if, contrary to our interpretation,
Mur-nane
also turns on American’s use of an age qualification to maximize its pilots’ years of service as Captain, as the EEOC argued in the trial court and at oral argument, it does not follow that American’s present policy of refusing to hire applicants who could not progress to Captain before retirement is unlawful. In
Mumane,
the EEOC argued that American’s hire-only-Captains policy was not supported by the safety BFOQ. That argument was specifically rejected by the circuit court.
Mumane,
EEOC also argues that American’s adoption of a policy which permits the hiring of older pilots who could potentially become Captain as late as age 59 undercuts American’s proffered defense in
Mumane
that the air carrier used age as a device to maximize pilots’ years of service, and hence safety, as Captain. We disagree with EEOC’s premised reading of
Mumane
and with its conclusion. American’s adoption of the years-to-Captain pоlicy does not significantly change the fact that American’s hire-only-Captains policy results in the selection of pilots who will become Captains “with the longest possible record of experience in American cockpits.” Indeed, as between the applicants who are selected because they will become Captain, even if only briefly, before their sixtieth birthday, and the applicants on whose behalf the EEOC brings this suit who cannot become Captains before their sixtieth birthday, only American’s selection of the former would “ensure that the experience with American of its active Captains will be maximized.”
Noting that a “significant ‘change in the legal climate’ ” may defеat collateral estoppel where “modifications in ‘controlling legal principles’ ... could render a previous determination inconsistent with prevailing doctrine,”
Montana v. United States,
Criswell
clarified that a BFOQ defense relating to safety concerns in an ADEA case may succeed if the use of age was “reasonably necessary to the normal operation” of the employer’s business; the Court rejected Western’s argument that an employer needed only to establish a “rational basis in fact” for its age-based employment criterion.
“[T]he job qualifications which the employer invokes to justify his discrimination must be reasonably necessary to the essence of his business — here the safe transportation of bus passengers from one point to another. The greater the safety factor, measured by the likelihood of harm and the probable severity of that harm in ease of an accident, the more stringent may be the job qualifications designed to ensure safe driving.”531 F.2d at 236 .
This inquiry “adjusts to the safety factor” by ensuring that the employer’s restrictive job qualifications are “reasonably necessary” to further the overriding interest in public safety. Ibid.
Criswell,
That interest is adequately reflected in instructions that track the language of the statute. When an employer establishes that a job qualification has been carefully formulated to respond to documented concerns for public, safety, it will not be overly burdensome to persuade the trier of fact that the qualification is “reasonably necessary” to the safe operation of the business. Thе uncertainty implicit in the concept of managing safety risks always makes it “reasonably necessary” to err on the side of caution in a close case. [FN 29] FN 29. Several Courts have recognized that safety considerations are relevant in making or reviewing findings of fact, [listing cases including Mumane,667 F.2d at 101 ]. Such considerations, of course, are only relevant at the margin of a close case, and do not reheve the employer from its burden of establishing the BFOQ by the preponderance of the evidence.
Criswell,
EEOC contends that the
Mumane
decision was based on a now-impermissibly deferential acceptance of American’s safety rationale for its hiring practices. Specifically, EEOC points to the district court’s findings that “American should be able to apply a reasonable general rule in order to minimize the risks of the disastrous consequences of an airline accident,” and that “American’s hiring policy implements such a rule.”
Mur-nane,
As the district'court observed and emphasized, the airline industry is one in whichsafety is of the utmost importance. The staggering death tolls and resulting human suffering which have followed some of our nation’s horrible air disasters attest to this fact. Therefore, in our judgment, the airline industry must be accorded great leeway and discretion in determining the manner in which it may be operated most safely, Usery v. Tamiami Trail Tours, Inc., 531 F.2d 224 , 236 n. 30 (5th Cir.1976). This is in accord with America’s view that “safe” is not sufficient. Rather the “safest” possible air transportation is the ultimate goal. Courts, in our view, do not possess the expertise with which, in a cause presenting safety as the critical element, to supplant their judgments for those of the employer.
Mumane,
Reviewing the
Mumane
holdings as a whole, we conclude that both the district and appellate courts applied the proper standard. Although the district court in
Mumane
used the term “reasonable” once while discussing the standard to be applied to American,
The District of Columbia Circuit Court’s decision in
Mumane
admits of no
.Criswell-
based infirmities. Indeed, the appellate panel presciently cited the same passage of
Tamiami
quoted extensively by the Supreme Court in
Criswell. Compare Mumane,
In sum, there was ample factual evidence and legal precedent to support the findings of the district court. We conclude that American’s age forty guideline was a bona fide occupational qualification ‘reasonably necessary to the normal operation’ of American Airlines.
C. Do Special Circumstances Warrant an Exception to the Normal Rules of Preclusion?
EEOC’s equitable' and policy considerations advanced against the application of the normal rules of issue preclusion were properly rejected by the trial court.
The Supreme Court has decisively rejected attempts by government agencies to avoid the bar of issue preclusion in order to litigate repetitively against the same defendant on virtually the same facts.
United States v. Stauffer Chemical Co.,
Indeed we think that applying an exception to the doctrine of mutual defensive estoppel in this case would substantially frustrate the doctrine’s purpose of protecting litigants from burdensome relitigation and of promoting judicial economy.
Stauffer Chemical,
In light of the absence of .any significant change in controlling facts and legal principles and any rule allowing “special circumstances” to prevent the application of issue preclusion, the trial court properly granted summary judgment for American on EEOC’s challenge to American’s hire-only-Captains years-to-Captain guidelines on behalf of
III.
THE SUFFICIENCY OF EEOC’S STATISTICAL ANALYSIS
EEOC’s second claim is that American intentionally discriminated as a matter of pattern and practice against applicants age forty and over who were not otherwise excluded from consideration by American’s hire-only-Captains policy. EEOC initially sought to prove this allegation solely by offering a statistical аnalysis that applicants over forty were rejected in disproportionate numbers to those under the age of forty. American challenged the relevance of the statistical analysis because it compared hired candidates to all applicants in each age group, regardless of qualifications. Responding to American’s second summary judgment motion, EEOC revised its analysis to exclude applicants whom American disqualified for eight precise reasons;
8
according to the new results, 33.6% of the applicants under forty not disqualified by the stated facts were hired, whereas only 23.1% of the applicants over forty not so disqualified were hired. Significantly, in its Response to American’s Second Motion for Summary Judgment, EEOC cited no cases and made no legal arguments other than to agree with American that “the relevant comparison in a pattern and practice involving an allegation of age discrimination in hiring is between
qualified
applicants over and under age 40.” (citing American’s Brief in Support of Summary Judgment which cited
Hazel-wood School District v. United States,
American renewed its objection to the new statistics, complaining that EEOC had yet to produce a comparison of those pilots hired to those qualified to be hired as pilots for American. At best, EEOC’s new comparison measured pilots hired against those who applied, while eliminating some applicants who were disqualified by a few obvious criteria. American offered deposition excerpts from EEOC’s statistical expert admitting that the EEOC had only eliminated those applicants who were disqualified by the threshold criteria American had identified in the Second Motion for Summary Judgment. The expert conceded that other such criteria may have been unaccounted for by his analysis. He further admitted that certain hiring policies and criteria not considered in his analysis may have further reduced the apparent age disparity in the hiring percentages. The expert admitted that, among other defiсiencies in the analysis, he had not removed from the applicant pool the pilots who failed to pass a flight simulator test. For these reasons, American urged that EEOC’s statistics did not support an inference of intentional discrimination, and summary judgment was proper. EEOC did not respond. The district court granted summary judgment for American because the EEOC had failed to meet its burden of coming forward with summary judgment evidence proving that its statistical comparisons are between those hired and those qualified as required by Hazel-wood School District v. United States, supra.
On appeal, EEOC advances several elaborate arguments to rescue its statistical analysis from summary judgment. Those arguments were not, however, presented to the trial court, which was invited simply to determine, by the parties’ agreement, whether EEOC had offered sufficient proof that
qualified
pilot applicants over forty were rejected by American at a greater rate than younger applicants.
Hazelwood, supra; Anderson v. Douglas & Lomason,
IV.
CONCLUSION
For the reasons provided, the district court’s grant of final summary judgment for American on EEOC’s two claims of ADEA violations is AFFIRMED.
Notes
. Since the ADEA protects only those aged forty or over, the D.C.Circuit reviewed American's policy as an "age forty guideline."
. For example, if American projects that it would take 15 years to become Captain, the age cutoff for pilot applicants would be 45.
. In the
Mumane
court’s discussion of the age 40 guideline as a BFOQ, it took note of the fact that "it takes at least ten to fifteen years" to progress from Flight Officer to Captain.
. There is a strong argument that American's hire-only-Captains rule is not an age-based qualification at all, but an experience-mandating qualification.
See Hazen Paper Co. v. Biggins,
- U.S. -, ---,
. Specifically, EEOC bases its limited view of Mumane on the following passage of the district court’s opinion:
It seems clear that the safest Captain is not an American Captain who first assumes that position at age fifty-five to fifty-nine, but an American Captain who has the depth of experience that is the result of ten to fifteen years flying as a Captain for American. The Court concludes that if American were to hire pilots above the age of 40 at the time of hiring, it would not be possible for them to acquire this essential experience before they are forced to retire by the FAA age 60 rule. Therefore, the Court finds that American has a factual basis for believing that all or substantially all pilots of an age above forty at the time of hiring would be unable to perform safely and efficiently the duties of the job involved.
. That EEOC's challenge to the years-to-Captain rule flies in the face of Mumane is evident from the agency's posture here. By representing would-be American pilots in their fifties, EEOC necessarily rejects American's view that airline safety is maximized by nurturing the progression of pilots through the cockpit positions in American's aircraft. But American’s reasoning was approved by the courts in Mumane, and the airline should not be required to relitigate the soundness of that position simply because American changed the method of calculating the required progression.
. Indeed, the EEOC listed as claimants 6 applicants who were over 60 years old at the time they applied, and 51 applicants who were between the ages of 55-59 when they applied.
. EEOC's expert declared that he modified his analysis to take into account the following criteria for exclusion which had been listed by American in its motion: 1) exclusion by Years to Captain Rule, 2) failed medical exams, 3) insufficient total flight hours, 4) insufficient recent flight hours, 5) refusal to proceed with the application, 6) failure to show up for interview, 7) prior employment with Eastern Airlines, and 8) having a close relative employed at American. Declaration of Jack Kearns, p. 3 (R. 642).
. The agency asserts in this сourt that for purposes of making a prima facie pattem-and-prac-tice discrimination case, it need not demonstrate that each of the rejected applicants from a protected class would have been fully qualified under the particular employer's criteria, but only that they were generally equipped for employment. As a general principle, it is accurate that gross statistical disparities alone in an employer’s hiring patterns may constitute prima facie proof of intentional discrimination.
Hazelwood, supra.
The cases do not as yet specify what level of qualification for employment is sufficient to undеrgird such a statistical case. Intuitively, the level of qualification must be correlated to .the sophistication of the job duties; the job of corporate chief financial officers, for instance, would not readily yield a statistical case for discrimination by pattern and practice. See
City of Richmond v. J.A. Croson Co.,