MEMORANDUM OPINION
Currently pending before the Court is Defendants’ joint motion for summary judgment and Defendant Viad’s separate motion for summary judgment as to all counts of Plaintiffs claims. This case arises from a series of events resulting in the demotion and resignation of Plaintiff, Yolanda Glunt, from her employment at
I. FACTUAL BACKGROUND
GES is a corporation that assists trade associations and other organizations in producing and managing events, such as trade shows. According to the corporate hierarchy of GES, Account Executives hold primary responsibility for overseeing all facets of client events. Formal job duties include managing the show’s budget, supervising all employees assigned to the event, facilitating communications among the parties involved, and rectifying any errors or oversights committed by other employees working on the show. For particularly large events, multiple Account Executives could be assigned to one event where one would be designated as the lead Account Executive. The Account Executive position had a salary range of $38,-800 - $62,200.
Project Coordinators, now known as Account Coordinators, perform many of the same tasks that Account Executives perform. However, Project Coordinators are subordinate to Account Executives. Additionally, Project Coordinators are not officially responsible for the ultimate success of the promoted event. Project Coordinators are commonly named as Account Executives for particular shows. The salary for Project Coordinators ranged from $22,-640 - $33,960.
In 1990, Plaintiff was hired by Andrews Bartlett, a company that offered exposition services. Andrews Barlett was soon thereafter acquired by GES. Following the acquisition, Plaintiff continued her prior work as a customer service representative for five years eventually rising to the position of Senior Customer Service Representative. Over the years, she received favorable performance evaluations leading to merit raises in 1992, 1993, 1994 and 1995.
In June of 1995, Plaintiff was promoted from her position as Senior Customer Service Representative to Project Coordinator. Her starting salary as Project Coordinator was $27,255. It is undisputed that Plaintiffs performance as Project Coordinator was outstanding and that she received favorable performance appraisals from her supervisors. A year later, she received another merit increase raising her salary to $28,346. By September 1996, Plaintiffs salary was raised to $30,046 based upon a favorable recommendation by her supervisor, Diana Simmons. The recommending memorandum stated that “[sjince [Plaintiff] has taken on the role of Project Coordinator, she has gone way beyond the roles and*responsibilities of the position.” (Pl.’s Opp’n to Def.’s Mot. Summ.J., Interoffice Memorandum, Ex. B.) The memo noted that, in her two-year tenure as Project Coordinator, Plaintiff not only assisted senior Account Executives on major shows, but also assumed the role of Account Executive on several events. The memo also noted that Plaintiff turned down a job offer from a competitor to remain with GES. In addition to her formal responsibilities as Project Coordinator, Plaintiff performed additional tasks
Later in 1997, Plaintiff was assigned to the IMAGES project. The IMAGES project was a software development initiative that was intended to increase the efficiency of trade show productions. Her duties on the project included documenting business processes, designing and developing information systems and a training manual, facilitating communications with software developers, and managing other employees’ time and other project-related tasks. Plaintiff played a highly important role on the project to the extent that she became an “expert.” As a result, her responsibilities to the IMAGES project consumed a significant amount of her time.
After eight years of service, in February 1998, GES offered Plaintiff promotion to Account Executive. The offer included an annual salary of $42,000 with an auto allowance of $350.00 per month. Plaintiff accepted this position because she was erroneously informed that Project Coordinators would no longer be eligible for overtime pay. After her promotion, Plaintiff continued to work on the IMAGES Project in addition to assuming the duties of an Account Executive. In June 1998, Plaintiff informed two of her supervisors, Sue Harvey and Diana Simmons, of her pregnancy.
After learning of Plaintiffs pregnancy, Harvey asked Plaintiff on several occasions to lift up her shirt so that Harvey could see her stomach. After complying with Harvey’s request twice, Plaintiff objected upon the third request. Harvey relented and did not make any further requests for Plaintiff to expose her stomach. Harvey also remarked that Plaintiff “waddled.” Diana Simmons questioned whether Plaintiff was pregnant because she was not showing, but later called her “fat.” Harvey failed to invite Plaintiff to an Account Executive meeting while the other Account Executives were extended an invitation. During a show, Harvey told Plaintiff that she could not go onto the show floor because she was pregnant and limited her duties to preparing for the show.
In July 1998, GES hired Keith Roe to supervise the national implementation of the IMAGES program. After Roe took over the IMAGES project, Plaintiff began to feel as if she was being shut out of the project. She was not included in meetings among IMAGES project team managers. Prior to Roe’s coming, Plaintiff had been included in all manager meetings. In early September, Plaintiff notified Harvey that she was scheduled to give birth in January and planned to take maternity leave. Later that month, Roe stripped Plaintiff of responsibility for development of the training manuals. Roe stated to Donald James, Plaintiffs supervisor on the IMAGES project, that it would not be appropriate for Plaintiff to travel during the national roll-out because she was pregnant. Plaintiffs doctor had informed her that, although some pregnant women could travel up to their eighth month of pregnancy, she could still travel at her discretion.
According to Defendants, several errors in Plaintiffs performance as Account Executive on two shows resulted in her demotion. In 1998, Plaintiff was assigned as an Account Executive to the Software Development show. The Software Development show was one of the first shows testing the IMAGES Project. Plaintiff was assigned as the lead Account Executive with assis
In 1998, Plaintiff was assigned as Account Executive for the Association of United States Army (AUSA). Juan Vicio-so was also assigned as Account Executive. Because the AUSA event was one of the larger shows produced by GES, A.J. Jan-sko, the National Account Executive, participate in the event’s preparation. Initially, Sue Harvey assigned Juan Vicioso to assist Mr. Jansko. Approximately six weeks into the production of the show, Plaintiff replaced him as the lead Account Executive. During the show, Plaintiff witnessed three members of the Production Department arguing as to the placement of an order for sand bags. In order to end the argument, Plaintiff volunteered to order the sand bags. Plaintiff forgot to order the sand bags resulting in the need for emergency replacements. Yet, due to a set construction change, the sand bags were not used in the show. Although the Production Department was usually responsible for placing such orders, Sue Harvey pinpointed ultimate responsibility for the oversight on Plaintiff. Another problem with the AUSA show involved incorrectly produced signs. Although Plaintiff shared the responsibility of developing the signs with Juan Vicioso, Defendant blamed Plaintiff alone for the problems with the signs. Due to her duties as Account Executive, Plaintiff worked several weekends from September to October in order to produce the two trade shows. One Saturday, Harvey called Plaintiff to see if she could work on the AUSA show that day. Plaintiff explained that she could not work on the AUSA show because she was hosting the bridal shower of a friend and planned an evening with her husband. The next day on Sunday after receiving a call from Harvey at breakfast, Plaintiff reported to work after finishing her breakfast and left that evening to walk her dog.
On December 1, 1998, Sue Harvey demoted Plaintiff to the position of Account Coordinator, previously called Project Coordinator, and reduced Plaintiffs salary to $34,945. The letter stated that Plaintiffs demotion was due to her lack of professionalism, commitment, and leadership. Plaintiff was scheduled to begin maternity leave on January 4, 1999, approximately one month after her demotion. After her demotion, Plaintiff wrote a complaint letter to Thomas Acker, a GES Human Resources officer. Plaintiff mistakenly faxed the letter to the GES Chicago Office when Mr. Acker was based in the Grand Rapid, MI Office. Apparently, the GES Chicago office did not forward the complaint letter to Mr. Acker. On December 15, 1998, Plaintiff took two weeks of vacation leave. She gave birth on January 3, 1999 and took three months maternity leave under the demoted pay scale. She resigned immediately upon her return to work in March. Thereafter, Plaintiff secured employment with a competitor of GES in a specially contrived position as Project Coordinator/Account Coordinator. Within three months, she rose to the position of Account Manager, the equivalent of an Account Coordinator at GES.
II. DISCUSSION
A. Summary Judgment
Rule 56 of the Federal Rules of Civil Procedure provides that summary judgment will be granted when no genuine dispute of material fact exists and the moving party is entitled to judgment as a matter of law.
Anderson v. Liberty Lobby, Inc.,
B. Equal Pay Act (EPA)
Plaintiff posits to two premises for assigning liability to Defendants under the EPA. First, Plaintiff argues that, in her capacity as Project Coordinator, she performed essentially the same job functions as three male Account Executives for less pay. Second, Plaintiff alleges that, even after her promotion to Account Executive, Defendants failed to raise her salary to a level parallel to the starting salaries of the three male Account Executives. Defendants maintain that Plaintiffs duties as Project Coordinator and Account Executive were not substantially equally to the cited male counterparts. Defendants urge this Court to accept that Plaintiffs detailing to the IMAGES project and assumption of additional duties made her position so “unique” as to be beyond comparison to any other Account Executive.
The Equal Pay Act of 1963, 29 U.S.C. § 206(d) prohibits sex discrimination by employers “in the form of unequal pay for equal work.” Lex Larson,
Employment Discrimination
§ 107.01 (2d.ed.2000). To establish a claim under the Equal Pay Act (EPA), the plaintiff-employee must show that members of the opposite sex employed in the same establishment are paid different wages for equal work on the basis of sex.
See
29 U.S.C. § 206(d)(1);
Corning Glass Works v.
1. Substantially Equal
In the Fourth Circuit, equal work does not require the positions to be identical in every respect.
See Soble v. University of Maryland,
Typically, additional duties required of the higher paid male-dominated position are used to differentiate their jobs from the lower paid female-dominated position.
Clymore v. Far-Mar-Co., Inc.
Given the purposes of the EPA, “an employer cannot avoid the [EPA] by the simple expedient of loading extra duties onto its female employees—unless it pays them more.”
Riordan v. Kempiners,
The crucial finding on the equal work issue is whether the jobs to be compared have a ‘common core’ of tasks, i.e., whether a significant portion of the two jobs is identical. The inquiry then turns to whether the differing or additional tasks make the work substantially different.
Brewster v. Barnes,
Here, Defendants place heavy emphasis on Plaintiffs responsibilities under the IMAGES project as making her position incomparable to any other Project Coordinator or Account Executive. Yet, it is undisputed that Plaintiffs assignment to the IMAGES project was temporary in nature. Defendants do not advance that participation in the IMAGES project was intended to be a permanent incident to Plaintiffs position as Account Executive or Project Coordinator. Instead, Defendants rely on work performed in an eight-month interval to characterize the duties performed by Plaintiff over three years. Furthermore, Defendants highlight Plaintiffs time spent on the IMAGES project and additional duties only until March 1998. Plaintiffs promotion to Account Executive did not become effective until March 1, 1998. Devoting a significant time to alternative duties that are temporary in nature for only one month does not, as a matter of law, preclude Plaintiffs position from being substantially similar to other Account Executives.
Equally important, the record indicates Plaintiff, in her capacity as Account Executive, was still assigned to at least eight shows. (See App. to Def.Mot.Summ.J. Vol. 4 Ex. CC 1998 Show Schedule). The two shows where she performed as “lead” Account Executive were large shows sponsored by highly important clients. John Kluh, one of the most experienced and higher paid Account Executives, produced thirteen (13) shows. Such numbers could reasonably indicate that Plaintiff was still responsible for the core common tasks of an Account Executive — producing and supervising trade show events. Furthermore, the testimony of her supervisor, Sue Harvey, indicates that she expected Plaintiff to produce the same level of performance and assigned her the same level of responsibilities expected of Account Executives that did not undertake extra duties. Plaintiffs claim is buttressed by the fact that, within several months of her promotion to Account Executive, Plaintiff was given supervisory authority over a male Account Executive, Juan Vicioso. These facts indicate that her permanent duties were intended to coincide with the traditional responsibilities of Account Executives.
Likewise, Plaintiffs participation in the IMAGES project and assumption of extra duties did not limit her central function as a Project Coordinator. The deposition testimony indicates that, despite her additional duties, Plaintiff was assigned to assist on larger shows than her contemporaries. Likewise, she assumed the role of Account Executive on twelve occasions and supervised larger shows. Even though the IMAGES project and other additional tasks may have consumed significant amounts of Plaintiffs time at different stages in development, Plaintiff still performed her duties as Project Coordinator in a sufficiently commendable fashion to warrant a promotion to Account Executive. In light of such evidence and the fact intensive inquiry necessary to assess the weight of Plaintiffs evidence that she performed substantially equal work to male Account Executives, one cannot say that, as a matter of law, Plaintiff cannot establish her prima facie case for an EPA violation.
Defendants acknowledge that Project Coordinators perform much of the same work as Account Coordinators. However, Defendants maintain that Account Coordinators are paid more because they hold a higher degree of responsibility in ensuring the success of the show and have supervisory authority over Project Coordinators. Responsibility is concerned with the degree of accountability required in the performance of the job,
It is undisputed that Account Coordinators supervised Project Coordinators in the production of some events. In other events, multiple Account Coordinators could be assigned to the same show. In such instances, the Account Executive junior to the “lead” Account Executive essentially performed the same functions as a Project Coordinator. Similar to Project Coordinators, such “junior” Account Executives would perform the regular functions of an Account Executive, but would not be ultimately responsible for the success of the show or hold the highest ranking position. For other shows where no official Account Executive was assigned, Project Coordinators assumed all the responsibilities of an Account Executive. Despite this apparent overlap in responsibilities and supervisory authority, even the highest paid Project Coordinator ($33,960) would be paid almost $5,000 less than the lowest paid Account Executive ($38,800).
Defendants posit that Project Coordinators held ultimate supervisor authority for smaller shows than those traditionally assigned to Account Executives. As Project Coordinator, Plaintiff served as Account Executive for twelve (12) shows. When she served as Account Executive, she was responsible for larger and more complex shows than other Project Coordinators. These facts reasonably support Plaintiffs claim that
she
performed duties substantially similar to those of Account Executives.
Cf. Katz v. School Dist.,
Likewise, as Project Coordinator, she supported Account Executives on large shows. For example, the depositions from GES employees show a general consensus that the AUSA show was one of the larger shows produced by GES. The record reveals that Plaintiff served as Project Coordinator for the AUSA shows for several years. For instance, when Susan Haning was an Account Executive on the 1997 AUSA show, Plaintiff assisted her as Project Coordinator. Yet, when Plaintiff was assigned as the “lead” Account Executive for the 1998 AUSA show, she was assisted by another Account Executive, Mr. Vicio-so. There is no suggestion that the scope and complexity of the annual AUSA show changed from year to year. Nevertheless, in one year an Account Executive/Project Coordinator team was sufficient to produce the event. The next year, two Account Executives, with one serving as “lead,” was sufficient to produce the same event. Yet, when Plaintiff served as Project Coordinator, she was paid $31,349.- By contrast, Mr. Vicioso, as “junior” Account Executive was paid $48,000 for apparently the same work and level of responsibility. This apparent interchangeability between Project Coordinators and “junior” Account Executives could lead a reasonable jury to conclude that the two performed substantially similar work for unequal pay.
Cf. Brennan v. Prince William Hospital Corp.,
503
2. Explanatory Factors Other than Sex
“Once the [Plaintiff] satisfies her burden of establishing a prima facie case, the burden shifts to the employer to prove, by a preponderance of the evidence, that the pay differential is justified by one of the four statutory exemptions.”
1
Equal Employment Opportunity Commission v. Aetna Ins. Co.,
a. Criston Ellis
Defendants explain that Mr. Ellis received a higher starting salary because he was internally transferred from a higher-paying position. It is widely recognized that an employer may continue to pay a transferred or reassigned employee his or her previous higher wage without violating the EPA, even though the current work may not justify the higher wage.
See, e.g., Covington v. Southern Illinois University,
b. John Kluh
Defendants maintain that John Kluh’s higher wage ($56,000) is attributable to his extensive prior experience and its need to draw him from a competitor. Offering a higher starting salary in order to induce a candidate to accept the employer’s offer over competing offers has been recognized as a valid factor other than sex justifying a wage disparity.
Mazzella v. RCA Global Comm, Inc.,
The Court is aware of Plaintiffs objections concerning Defendants’ compliance with discovery procedures. Plaintiff complains that Defendants’ initial reason, as stated in its interrogatory responses, for paying Mr. Kluh a higher wage (that he was a Senior Account Executive) was determined to be false. Plaintiff objects to the newly advanced reason of market forces because Defendants failed to supplement their interrogatories and did not reveal the market forces rationale until the filing of its dispositive motion, two days before the completion of discovery. The Court agrees that compliance with discovery procedures is important to the full and fair resolution of an adversarial proceeding. Still, as Plaintiff elected not to file a motion in limine or a motion to extend discovery as to the new market forces defense, the Court does not find it necessary to exclude its consideration of this recently advanced reason. Furthermore, it remains undisputed that Mr. Kluh held twelve years of experience in the trade show industry when GES offered him employment. His prior salary was $70,000 at a competitor of GES. Furthermore, at the time GES was negotiating with Mr. Kluh, a competitor has extended him an offer that was only $2,000 less than the finally agreed starting salary. In the face of these undisputed facts, the Court believes that market forces, not sexual bias, led to Mr. Kluh’s higher salary.
c. Juan Vicioso
In July 1998, Juan Vicioso began working as an Account Executive at a starting salary of $48,000 with a $350 monthly car allowance. Defendants maintain that Juan Vicioso was offered a higher starting salary because of his experience as convention manager in the hotel industry, his certification as a certified meeting professional, and his bachelor of science degree in hotel/restaurant management. Courts have recognized additional formal education as a bona fide reason for paying different wages.
Dey v. Colt Construction,
As to experience, in her capacity as Customer Service Representative and Project Coordinator, Plaintiff held eight years of relevant trade show experience at the time of her promotion to Account Executive. By contrast, Mr. Vicioso held about six years of experience in event promotions from the hotel industry perspective. Moreover, the record indicates that Plaintiff supervised Juan Vicioso. Such evidence undermines Defendants’ assertion that Vicioso’s higher salary was due to his greater experience. “[W]hen the plaintiff adduces sufficient evidence controverting an employer’s assertion that higher salary is due to more experience, a genuine issue of material fact can arise.”
Brinkley v. Harbour Recreation Club,
3. Statute of Limitations
Defendants argue that their potential liability under the EPA is limited to acts- occurring after October 1, 1997 because of - the -two-year statute of limitations applicable to non-willful violations of the act.
See
29 U.S.C. § 255(a). Plaintiff counters that the three-year statute of limitations for willful violations applies. A willful violation arises when the “employer either knew or showed reckless disregard for the matter of whether its conduct was prohibited by the [EPA] .... ”
McLaughlin v. Richland Shoe Co.,
C. Maryland Equal Work for Equal Pay Act (MEPA)
The MEPA essentially mirrors its federal counterpart, the EPA. The primary dif
D. Title VII
Title VII of the Civil Rights Act of 1964 provides that an employer shall not “fail or refuse to hire or discharge any individual, or otherwise 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.” 42 U.S.C. § 2000e-2(a)(l). Gender-based employment discrimination under Title VII of the Civil Rights Act of 1964, as amended by the Pregnancy Discrimination Act of 1978, encompasses discrimination on the basis of pregnancy. 42 U.S.C. § 2000e(k). 3
1. Wage Discrimination
While the Equal Pay Act and Title VII are meant to remedy the evil of discriminatory pay based upon sex, the Equal Pay Act’s prohibition of unequal pay for equal work is viewed as being narrower in scope than Title VIPs mission to route out discrimination in compensation.
See Equal Employment Opportunity Commission v. Aetna Ins. Co.,
2. Pregnancy Harassment
Defendants argue that the incidents suffered by Plaintiff are not actionable forms of sexual harassment. Title VIPs protections against employment discrimination extend to the right to work in an environment free from sexual harassment.
See Garber v. Saxon Business Products,
To support her pregnancy harassment claim, Plaintiff points to several acts by her supervisors, Sue Harvey and Diana Simmons. In one instance, Ms. Harvey observed Plaintiff drinking milk at a regional meeting attended by Sales Executives, Account Executives, and Project Coordinators. At the meeting, Harvey blurted out “What are you pregnant?” Plaintiff stated she was shocked and embarrassed by the statement and its amplification to all of the attendees. On several occasions, Harvey asked Plaintiff to lift up her shirt and expose her stomach. On one occasion, Harvey touched her stomach. Diana Simmons witnessed one of the occasions where Plaintiff lifted up her shirt in compliance and remarked “You’re probably not even pregnant because you don’t look pregnant.” On another occasion, Harvey commented that Plaintiffs belly was “huge.” After Plaintiff objected to lifting up her shirt, Harvey made no additional requests. Thereafter, Harvey had remarked that Plaintiff “waddled” and commented on “how big Plaintiff was getting.”
While perhaps inappropriate and insulting, the complained of acts are not sufficiently severe and pervasive as to change the conditions of Plaintiffs employment. The Fourth Circuit has stated that “Title VII was not designed to create a federal remedy for all offensive language ... in the workplace.”
Brinkley v. Harbour Recreation Club,
3. Pregnancy Discrimination
Because Plaintiffs pregnancy discrimination claim falls within the ambit of Title VII, the Court applies the three-step burden shifting paradigm fashioned by the Supreme Court in
McDonnell Douglas Corp. v. Green,
There is no dispute that the plaintiff was a member of a protected class, i.e., she was pregnant during the period at issue. Furthermore, the December letter from Plaintiffs supervisor, Sue Harvey, establishes that Plaintiff was demoted from the position of Account Executive
a. Legitimate Expectations
“[W]hen assessing whether a plaintiff has met her employer’s legitimate expectations at the
prima facie
stage ..., a court must examine plaintiffs evidence independent of the nondiscriminatory reason ‘produced’ by the defense as its reason for [the adverse employment action.]”
Cline v. Catholic Diocese of Toledo,
b. The Necessity of a Similarly Situated Replacement
As to the fourth element, “[i]n order to make out a prima facie case of discriminatory termination, a plaintiff must ordinarily show that the position ultimately was filled by someone not a member of the protected class.”
Brown v. McLean,
As the Supreme Court has emphasized, “the proper solution ... lies not in making an utterly irrelevant factor an element of the prima facie case, but rather in recognizing that the prima facie case requires ‘evidence adequate to create an inference that an employment decision was based on a[n] [illegal] discriminatory criterion....’”
O’Connor v. Consolidated Coin Caterers Corp.,
Here, there is sufficient evidence to support a jury finding that Plaintiff was demoted under circumstances giving rise to a reasonable inference of unlawful discrimination. First, the Court believes that there is direct evidence of discriminatory animus against Plaintiff based upon her pregnancy. “Derogatory remarks may in some instances constitute direct evidence of discrimination.”
Brinkley,
Here, Plaintiff has produced deposition testimony indicating that, before her pregnancy, Plaintiff and her supervisor had a very positive relationship. Before learning of Plaintiffs pregnancy, Ms. Harvey strongly recommended Plaintiff for her promotion to Account Executive. Yet, within a matter of months following the announcement of her pregnancy, Plaintiff went from “golden child” to an impediment that “compromised the success of [the] division'.” Several co-workers have testified that Ms. Harvey began to speak to Plaintiff in a noticeably condescending manner following the announcement of her pregnancy. One co-worker noted that Harvery “often seemed angry and cold toward the Plaintiff 1 and “hyper-critical of Plaintiffs job performance.” (PI. Opp’n. Ex. DD Beggan Decl. ¶ 19). The timing of Plaintiffs perceived decline in performance and the accompanying negative remarks relating to Plaintiffs pregnancy are sufficient to give rise to a reasonable inference of discrimination.
See Kerzer v. Kingly Mfg.,
Moreover, Plaintiff satisfies the fourth element even under the existing precedent in this jurisdiction. In addition to showing replacement by a similarly qualified applicant outside of her class, the pregnancy discrimination plaintiff may finalize her
prima facie
case by showing that her former position remained open or that similarly situated employees were treated differently.
See McDonnell Douglas,
c. Legitimate Nondiscriminatory Reason
Now the burden shifts to GES to advance a legitimate nondiscriminatory reason for Plaintiffs demotion. GES alleges that Plaintiff committed numerous errors on two shows, the Software Development and AUSA shows, as the basis for her demotion. On the Software Development show, Defendants allege that Plaintiff improperly ordered and misplaced signs and props for the set design. Defendants maintain that these errors led to the client’s dissatisfaction with the production of the event. On the AUSA show, Defendants maintain that Plaintiff forgot to place an order of sand bags; improperly ordered signs, and failed to work an appropriate amount of overtime. Plaintiffs poor job performance constitutes a legitimate, non discriminatory reason for demoting Plaintiff.
See Hawkins v. PepsiCo, Inc.,
d. Pretext
Plaintiff has adduced sufficient evidence to support a reasonable inference that the proffered reasons were a mere pretext for discrimination. On the Software Development show, Ms. Harvey’s own deposition testimony indicates that the client’s complaints did not necessarily stem from Plaintiffs performance. In explaining why Miller-Freeman was not “happy” with GES’s service, she stated
they were not happy with the way we produced their event and the amount of time they had to take out of their duties at [the] show site ... their perception was the GES did not have enough labor to meet their needs....
(Def.Mot.Summ.J.App. 0-90 Harvey Dep.). From this statement, it reasonably appears that the client complained that GES did not commit enough labor to meet their needs for the production of the Software Development show. As a consequence, there is a factual dispute as to whether GES’s perceived failure to provide sufficient manpower rather than Plaintiffs performance that led to the client’s dissatisfaction.
As to the AUSA show, the sand bags from the forgotten order cited by Defendant as a reason for demoting Plaintiff were never even used in the production. Furthermore, ordering the sandbags was not part of her duties. Rather, she assumed the additional responsibility in order to quell the dispute among the Production Department employees. Likewise, the record shows sufficient evidence to raise a question of fact as to whether the cited errors in the signs were actually commit
Equally important, while Defendant now claims that Plaintiffs conduct was sufficient to warrant a demotion. A.J. Jansko, the National Account Executive assigned to the AUSA show, wrote a letter to Plaintiff praising her performance on the show. In addition praising Plaintiffs performance, Mr. Jansko noted that the client had characterized the show as “the best Annual Meeting ever.” Ms. Harvey testified that the alleged performance problems of Plaintiff in the AUSA show led to her ultimate decision to demote Plaintiff. Given the subsequent commendations on Plaintiffs performance from the National Account Executive and the client and the questionable basis for Defendant’s assertion that Plaintiff committed numerous errors, Plaintiff has produced sufficient evidence to create a genuine dispute as to whether her performance at the AUSA show was the reason for her demotion.
At this stage, the evidence shows competing testimony between Plaintiff and the supervisor accused of discriminating against her. “Because of the availability of seemingly neutral rationales under which an employer can hide its discriminatory intent,” at the summary judgment stage, the court “grant[s][the] plaintiff the benefit of every favorable inference.... ”
Hodgens v. General Dynamics Corp.,
4. Punitive Damages
Defendants argue that Plaintiffs request for punitive damages under Title VII is insufficient as a matter of law. A plaintiff “may recover punitive damages under [Title VII] ... if [she] demonstrates that the [defendant] engaged in a discriminatory practice or discriminatory practices with malice or with reckless indifference to [her] federally protected rights.” 42 U.S.C. § 1981a(b)(l). As discussed earlier, the payroll information produced by Plaintiff could support an inference that GES engaged in a pattern of paying female employees less than male employees
E. Family and Medical Leave Act (FMLA)
Plaintiff contends that her demotion before her scheduled maternity leave substantially reduced her paid leave, thereby, interfering with her exercise of the rights granted under the FMLA. The FMLA provides eligible employees 5 with certain* rights that may not be interfered with or denied by a covered employer. 6 Specific to this case, the FMLA provides up to twelve (12) weeks of unpaid medical leave attributable to the employee’s birth or adoption of a child. The FMLA prohibits employers from interfering with an employee’s exercise of the rights granted under its provisions. 29 U.S.C. § 2615(a)(1) (“It shall be unlawful for any employer to interfere with, restrain, or deny the exercise of or the attempt to exercise, any right provided under this subchapter.”).
The crux of Plaintiffs FMLA claim is that Ms. Harvey demoted Plaintiff before her FMLA leave in order to reduce her maternity leave benefits and circumvent the issue of reinstatement after Plaintiffs return. Defendants demoted Plaintiff one month before her scheduled maternity leave. GES’s maternity leave policy provided six weeks of paid leave based upon 66% of the employee’s salary. The demotion prospectively reduced her salary base for the six weeks of paid leave granted under GES’s maternity leave policy. Defendants argue that the FMLA provides no entitlement to paid leave, only twelve weeks of unpaid leave. According to Defendants, in the absence of a substantive right to any paid leave, Plaintiff cannot claim that Defendants interfered with her FMLA rights through a prior demotion that reduced her maternity leave benefits granted under its own employment policy. There is no dispute that Plaintiff was entitled to take FMLA leave without interference from her employer. Furthermore, Plaintiff does not allege that Defendants deprived her of the entitlement to take twelve weeks of maternity leave.
Defendants correctly point out that the FMLA does not entitle eligible employees to paid leave. Nevertheless, its protections do not end there. The interpretive regulations of the FMLA state that “ ‘[[Interfering with’ the exercise of an employee’s rights ... includes ... not only refusing to authorize FMLA leave, but discouraging an employee from using such leave [and] manipulation by a covered employer to avoid responsibilities under FMLA.” 29 C.F.R. § 825.220(b). “Employers cannot use the taking of FMLA leave as a negative factor in employment actions, such as hiring, promotions or disciplinary actions.” 29 C.F.R. § 825.220(c). Therefore, where an adverse employment action is influenced by the taking of family leave, the employer interferes with that
While the Fourth Circuit has not explicitly fashioned a test for analyzing an employee’s claims under the FMLA, the court has indicted that the analytical framework developed under Title VII cases should be applied.
See Cline v. Wal-Mart Stores, Inc.,
To establish her
prima facie
case, Plaintiff must show that “(1) [s]he availed [her]self of a protected right under FMLA; (2)[s]he was adversely affected by an employment decision; [and] (3) there is a causal connection between the employee’s protected activity and the employer’s adverse employment action.”
Hodgens,
To rebut the plaintiffs
prima facie
case, the
McDonnell Douglas
framework requires the employer to advance a legitimate nondiscriminatory reason for the adverse employment action.
See
As discussed earlier, Plaintiff has produced sufficient evidence to create a genuine issue for trial as to whether her alleged poor job performance is just a pretext for discrimination. Considering the conflicting performance appraisals, her supervisor’s sudden change in demeanor, the insulting comments of her supervisors regarding her pregnancy, and restrictions on her duties following the announcement of her pregnancy, a reasonable jury could render a verdict in Plaintiffs favor.
Cf. Hodgens,
F. Maryland’s Wage Payment and Collection Law (MWPCL)
Next, Defendants contend that Plaintiffs claim for treble damages under § 3-507.1 of the MWPCL cannot stand as matter of law. The civil enforcement remedy of the MWPCL states:
(a) In general. — Notwithstanding any remedy available under § 3-507 of this subtitle, if an employer fails to pay an employee in accordance with § 3-502 or § 3-505 of this subtitle, after 2 weeks have elapsed from the date on which the employer is required to have paid the wages, the employee may bring an action against the employer to recover the unpaid wages.
(b) Award and costs. — If, in an action under subsection (a) of this section, a court finds that an employer withheld the wage of an employee in violation of this subtitle and not as a result of a bona fide dispute, the court may award the employee an amount not exceeding 3 times the wage, and reasonable counsel fees and other costs. 7
Md.Code Ann., Labor & Emp. § 3-507.1 (1998). “Thus, employers risk liability for treble damages if they (1) fail to pay wages owed to a terminated employee within two weeks after the date he would been paid if his employment had continued, and (2) have no bona fide reason for withholding those wages.”
Baltimore Harbor Charters, Ltd. v. Ayd,
G. Defendant Viad’s Motion for Summary Judgment
In support of its motion for summary judgment, Defendant Viad maintains that it is not an “employer” of Plaintiff under Title VII, the Equal Pay Act, the FMLA, or any of the Maryland employment statutes. Viad argues that it is a party to this suit solely because of its status as parent to GES. According to Viad, the parent-subsidiary relationship alone is insufficient to impute liability for Plaintiffs claims of employment and wage discrimination. Plaintiff declined to respond to Viad’s arguments concerning its status as her “employer” under the various statutes at issue
1. EPA
The EPA defines “employer” as “any person acting directly or indirectly in the interest of an employer in relation to an employee_”29 U.S.C. 203(d). In determining whether a particular entity falls with this statutory definition, courts have considered: “(1) the amount of control the alleged employer exerted on the employee; and (2) whether the alleged employer had the power to fire, hire, or modify the employment conditions of the employee.”
Blalock v. Dale County Bd. of Educ.,
2. MEPA
In addition to the EPA definition of employer, the MEPA defined an “employer” as “a person engaged in a business, industry, profession, trade, or other enterprise in the State.” Md.Code Ann., Labor
&
Emp., § 3-301(b) (1998). Maryland courts have not yet interpreted this subsection of the MEPA. However, the treatment of foreign corporations for jurisdictional purposes is helpful in determining whether a defendant qualifies as a “person engaged in a business ... in the State” under the MEPA. For jurisdictional purposes, Maryland law does not consider a foreign corporation to be doing business within the state merely because of its subsidiary relationship to another corporation doing business in the state.
See Vitro Electronics, Division of Vitro Corp. of America v. Milgray Electronics, Inc.,
3. Title VII and FMLA
In the absence of a direct employment relationship between the plaintiff and a defendant, courts have employed the “integrated employer test” to determine whether the defendant meets the statutory definitions of “employer” under Title VII and the FMLA
See Hukill v. Auto Care, Inc.,
In applying the integrated enterprise test, courts have noted the following to be probative evidence that one company employs the other’s employees for purposes of Title VII liability: (1) one company’s employees hired and fired the other’s employees and/or authorized lay offs, recalls, and promotions of such employees; (2) one company routinely transferred employees between it and the other company, used the same work force, and/or handled the other’s payroll, (3) one company exercises more than general oversight of the other’s operations by supervising the other’s daily operations, such as production, distribution, purchasing, marketing, advertising, and accounts receivable, (4) the companies have common management in the form of interlocking boards of directors and/or common officers and managers, (5) the companies fail to observe basic formalities like keeping separate books and holding separate shareholder and board meetings, (6) the companies fail to maintain separate bank accounts, and (7) the companies file joint tax returns.
Thomas,
III. CONCLUSION
In summary, for the reasons stated above, the Court will deny-in-part Defendants’ Motion for Summary Judgment as to Plaintiffs claims under the Equal Pay Act, the Maryland Equal Pay Act, Title VII based upon wage discrimination and pregnancy discrimination, and the Family and Medical Leave Act and grant-in-part Defendants’ Motion for Summary Judgment as to Plaintiffs Title VII claim based upon pregnancy harassment and Plaintiffs claim for treble damages under § 3-507.1 of the Maryland Wage and Payment and Collection Law. The Court shall grant Defendant Viad’s separate motion for summary judgment as the corporation is not Plaintiffs employer under the relevant statutes. An Order consistent with this Opinion will follow.
Notes
. An employer may pay different wages for equal work where such payment is made pursuant to (i) a seniority system; (ii) a merit system; (iii) a system which measures earnings by quantity or quality of production; or (iv) a differential based on any other factor other than sex. 29 U.S.C. § 206(d)(1).
. The Maryland Equal Pay Act provides, in part, that:
(a) ... An employer may not discriminate between employees in any occupation by paying a wage to employees of 1 sex at a rate less than the rate paid to employees of the opposite sex if both employees work in the same establishment and perform work of comparable character or work on the same operation, in the same business, or of the same type....
(b) ... this section does not prohibit a variation in a wage that is based on: (1) a seniority system that does not discriminate on the basis of sex; (2) a merit increase system that does not discriminate on the basis of sex; (3) jobs that require different abilities or skills: (4) jobs that require the regular performance of different duties or services; or (5) work that is performed on different shifts or at different times of day. Md.Code Ann., Lab. & Emp. § 3-304(a) and (b) (1998).
. "The terms 'because of sex’ or ‘on the basis of sex’ include, but are not limited to, because of or on the basis of pregnancy, childbirth, or related medical conditions; and women affected by pregnancy, childbirth, or related medical conditions shall be treated the same for all employment-oriented purposes, including receipt of benefits ... as other persons not so affected but similar in their ability or inability to work....” 42 U.S.C. § 2000e(k).
. At the hearing, Defendant's counsel suggested that the failure to hire a replacement for Plaintiff was due to the financial constraints of GES in that it could not afford to hire a replacement. However, this excuse not only lends to a reduction in force argument, but
. "Eligible employees” have been employed for more than twelve (12) months before requesting leave under FMLA and worked at least 1,250 hours within that period. 29 U.S.C. § 2611(2)(A).
. A covered employer employs more than fifty (50) employees in a working day. 29 U.S.C. § 2611(4)(A).
. Section 3-502 states, in pertinent part, that "[e]ach employer: (i) shall set regular pay periods; and (ii) ... shall pay each employee at least once in every 2 weeks or twice in each month.” Section 3-505 provides that "[e]ach employer shall pay an employee or the authorized representative of an employee all wages due for work that the employee performed before the termination of employment, on or before the day on which the employee would have been paid the wages if the employment had not been terminated.” Md.Code Ann., Labor & Emp. §§ 3-502; 3-505 (1998).
