Lead Opinion
INTRODUCTION
¶ 1 We granted this interlocutory appeal to decide whether the trial court correctly ruled that an at will employee who claims to have been discriminated against by her employer and who is unable to seek relief under the Utah Anti-Discrimination Act can pursue a civil action for wrongful termination in contravention of an alleged public policy against sex discrimination.
BACKGROUND
¶ 2 Plaintiff Toby Gottling alleges that her employer, defendant P.R. Incorporated, terminated her because she refused to maintain a sexual relationship with P.R. Incorporated’s owner, defendant Kelly Peterson. The Utah Anti-Discrimination Act (UADA or the Act) provides an administrative remedy for discrimination, retaliation, or harassment by an employer on the basis of sex, race, color, pregnancy, age, religion, national origin, or disability. Utah Code Ann. §§ 34A-5-101 to -108 (1999). The remedy is limited, however, to those persons who work for an employer of fifteen or more employees (large employers). See Utah Code Ann. §§ 34A-5-102(8)(a)(iv) (defining “employer” for the purposes of the act as a “person employing 15 or more employees within the state for each working day in each of 20 calendar
¶3 Seeking an alternative remedy, Got-tling brought this action asserting a common law tort cause of action previously unrecognized by this court. Relying on our case law forbidding the termination of an at will employee in contravention of a clear and substantial public policy, Gottling alleged that P.R. Incorporated wrongfully terminated her in contravention of a public policy against sex discrimination. See Burton,
¶4 P.R. Incorporated answered Gottling’s complaint by denying her allegations and asserting the affirmative defenses that (1) Gottling’s cause of action was preempted by the UADA; (2) Gottling had failed to exhaust her administrative remedies under the UADA; and (3) Kelly Peterson could not be held personally liable for P.R. Incorporated’s conduct. Gottling then moved for partial summary judgment and to strike P.R. Incorporated’s affirmative defenses. In response, P.R. Incorporated cross-moved for summary judgment, arguing that an action for wrongful termination in contravention of a public policy against sex discrimination does not exist in Utah and that Kelly Peterson could not be held personally liable. After a hearing, the trial court ruled in favor of Gottling on all issues. We subsequently granted P.R. Incorporated’s petition for interlocutory appeal.
STANDARD OF REVIEW
¶ 5 “We review a trial court’s summary judgment ruling for correctness and afford no deference to its legal conclusions.” Utah Coal & Lumber v. Outdoor Endeavors Unlimited,
ANALYSIS
¶ 6 P.R. Incorporated contends that Got-tling cannot pursue a wrongful termination action based on the contravention of an alleged public policy against sex discrimination because (1) the UADA preempts all common law employment discrimination remedies and (2) Utah does not have a public policy against sex discrimination. P.R. Incorporated also argues that Kelly Peterson cannot be personally liable for the corporation’s alleged discrimination. We address each argument sequentially.
I. PREEMPTION
A.
¶ 7 We have long held that “where a conflict arises between the common law and a statute or constitutional law, the common law must yield,” Hansen v. Utah State Ret. Bd.,
[t]he rule of the common law that statutes in derogation thereof are to be strictly construed has no application to the statutes of this state. The statutes establish the laws of this state respecting the subjects to which they relate, and their provisions and all proceedings under them are to be liberally construed with a view to effect the objects of the statutes and to promote justice.
Utah Code Ann. § 68-3-2 (1999); see Retherford v. AT & T Communications,
¶ 8 Whether legislation is intended to blanket a particular field — and thereby preempt existing or developing common law- — is obviously a question of legislative intent. Richardson v. Matador Steak House, Inc.,
[i] Sometimes courts, when facing the pre-emption question, find language in the ... statute that reveals an explicit [legislative] intent to pre-empt [common] law. [ii] More often, explicit pre-emption language does not appear, or does not directly answer the question. In that event, courts must consider whether the ... statute’s “structure and purpose,” or nonspecific statutory language, nonetheless reveal a clear, but implicit, preemptive intent, [a] A ... statute, for example, may create a scheme of [statutory] regulation “so pervasive as to make reasonable the inference that [the legislature] left no room for the [common law] to supplement it.” [b] Alternatively, [statutory] law may be in “irreconcilable conflict” with [the common] law. Compliance with both ..., for example, may be a “physical impossibility,” or, [c] the [common] law may “stand as an obstacle to the accomplishment and execution of the full purpose and objectives of [the legislature].”
Gilger,
B.
¶ 9 Turning to the UADA, we find that the plain language of section 34A-5-107(15) reveals an explicit legislative intention to preempt all common law remedies for employment discrimination.
¶ 10 In declaring the UADA to be the “exclusive remedy under state law for employment discrimination,” section 34A-5-107(15) makes no distinction between actions against large and small employers. It might be argued that, as used in this section, the phrase “employment discrimination” refers solely to discrimination by large employers because only large employers are subject to the remedial provisions of the UADA. This argument fails, however, because the UADA does not define the phrase “employment discrimination,” and therefore, we must read the phrase literally, according to its ordinary and accepted meaning. Versluis v. Guar. Nat’l Cos.,
¶ 11 We assume that the legislature used the phrase “employment discrimination” advisedly. See Versluis,
C.
¶ 12 Even if the UADA lacked an explicit statement of preemptive intent, our holding that it preempts common law remedies for employment discrimination would not change because a clear preemptive intent can be implied from the statute’s structure and purpose. The UADA was designed “to prohibit discrimination in employment,” and it utilizes a variety of tools to accomplish that goal. Univ. of Utah v. Indus. Comm’n,
¶ 13 In addition to evidencing an intent to preempt the field of employment discrimination law in general, the structure of the statute also shows that the legislature intended its preemption of common law employment discrimination actions to apply to employees of small employers. Despite establishing a comprehensive legislative scheme, including a directive that five representatives of the general public sit on the Anti-Discrimination Advisory Committee, see § 34A-5-105(l)(a)(v), the UADA specifically exempts small employers from its administrative remedy. See § 34A-5-102(8)(a)(iv). The obvious nature of this category of employers — encompassing a majority of employers in Utah — leaves little doubt that its exclusion was intentional. See Gilger,
[a] covered employee alleging discrimination must assert his claim within 180 days of the alleged discrimination.... The charge is filed at the UADD and is handled administratively. Emphasis in the administrative process is placed on conciliation and voluntary resolution. The UADA mandates that the administrative agency “attempt a settlement between the parties by conference, conciliation, or persuasion.” If the claimant is successful, the relief provided includes reinstatement, back pay and benefits, and attorney fees, but no compensatory or punitive damages may be awarded. This is all done without charge by the administrative agency.
Burton,
¶ 14 The dissent suggests that legislatures are presumed to know the common law in
D.
¶ 15 Our conclusions regarding the plain language and the structure and purpose of the UADA are bolstered by its legislative history. The original draft of the UADA defined an employer as “every other person employing one or more employees in the State.” Utah State House of Rep., 36th Leg., Reading of House Bill 62, February 22, 1965, Record 1 Side 2. After the second formal reading of the bill, the majority of the House was unsatisfied with the bill and returned it to committee. The substitute — and ultimately adopted — bill defined employers as persons “employing twenty-five or more employees.” Utah Code Ann. § 34-17-2(5) (1953). This, despite the testimony of one of the drafters of the original bill that the new definition of employer “would create a no man’s land between the federal [Civil Rights Act of 1964] and the state law.” See House of Representatives, Floor Debate on House Bill 62, March 6, 1965, 57th Day, Record 1 Side 2 at 2-4. No other common law remedies for employment discrimination were available at that time in Utah and therefore it is obvious that the legislature deliberately chose to leave individuals employed by small employers without a remedy for employment discrimination.
¶ 16 The available legislative history does not reflect precisely why the legislature ultimately chose to eliminate small employer liability. It does, however, reveal that the UADA was modeled after Title VII of the Civil Rights Act of 1964, which contains a similar exemption for small employers. See Utah State House of Rep., 46th Leg., Reading of House Bill 62, March 8, 1965, Record 1 Side 1 (one of Bill’s drafters stating the UADA “matches” Title VII); Id. at Side 2 (Bill’s sponsor stating that the Act “will implement federal [title VII] legislation” in the state context); see also Utah State Senate, Floor Debate on Senate Bill 216, February 22, 1985, Record 1 Side 2 (stating that 1985 amendments to the Act reducing the number of people a person must employ to be considered an employer to fifteen was to “bring the state into compliance with federal law”). Congress included the small business exception in Title VII to protect the intimate relationships associated with small employers and to shield them from the heavy costs of defending against discrimination claims. See 110 Cong. Rec. S. 13092 (1964) (remarks of Sen. Cotton); 110 Cong. Rec. 13085-88 (June 9, 1964); 110 Cong. Rec. S. 13088 (1964) (remarks of Sen. Humphrey); 110 Cong. Rec. S. 13092-93 (1964) (remarks of Sen. Morse); 110 Cong. R. 6566 (1964); 110 Cong. R. 7212 (remarks of Sen. Clark); see also Tomka v. Seiler Corp.,
E.
¶ 17 Stating that there was “no controlling authority” on the issue of preemption, the
¶ 18 Aside from the fact that Molesworth does not directly address preemption, the trial court’s reliance on that case to suggest that the small employer exemption of the UADA was meant to avoid administrative backlog is problematic because in our view Molesworth is of questionable authority on this point. The Molesworth court’s pronouncements regarding the intent of the Maryland legislature are relevant, if at all, only to a determination of the preemptive effect of the UADA insofar as they address the congressional intent behind Title VII of the Civil Rights Act of 1964, which we have recognized as a model to the UADA. In determining that the purpose of the small employer exemption in the Maryland equivalent to the UADA was to avoid a heavy administrative burden, Molesworth looks to a single U.S. House of Representatives committee minority report prepared in conjunction with the 1972 amendments to the Civil Rights Act of 1964 and concludes that “the intent of at least some of the legislators [involved in the 1972 amendments] was to exempt small employers from the administrative process under the Act to avoid overburdening the EEOC.” Molesworth,
¶ 19 Molesworth relied on Collins v. Rizkana,
¶20 In its ruling, the trial court also suggested that the legislature could not have meant to preempt common law actions against small employers because it would be “inequitable” to find that “small employers are granted a license to discriminate and their employees have no recourse available to them.” However, the “ ‘legislature need not “strike at all evils at the same time,” Semler v. Dental Examiners,
F.
¶21 We hold therefore that because the UADA preempts all common law causes of action for discrimination, retaliation, or harassment by an employer on the basis of sex, race, color, pregnancy, age, religion, national origin, or disability, the trial court erred by recognizing a common law cause of action against a small employer for wrongful termination in contravention of a public policy against sex discrimination.
II. PUBLIC POLICY
¶22 P.R. Incorporated also argues that Gottling cannot pursue a wrongful termination claim based on the contravention of a public policy against sex discrimination because Utah does not have a public policy against gender discrimination. In Burton, we acknowledged that a “public policy against discrimination on grounds [of sex] might conceivably be found in [the] statutes of this state.” Burton,
III. PROPER EXERCISE OF JUDICIAL POWER
¶23 This court is no friend to employment discrimination. Nevertheless, we recognize that our decision today leaves many Utah workers unable, should the need arise, to obtain relief from employment discrimination. As a result, some will undoubtedly accuse this court of opening the door for small employers in Utah to discriminate. Those who do so ignore the reality that it is the legslature that primarily holds the power to open and shut that door. Indeed, “[t]his court cannot ignore or strike down an act because it is either wise or unwise. The wisdom or lack of wisdom is for the legislature to determine.” Masich, 113 Utah at
respect for the legislative prerogative in lawmaking requires that the judiciary not interfere with enactments of the Legislature where disagreement is founded only on policy considerations and the legislative scheme employs reasonable means to effectuate a legitimate objective. In matters not affecting fundamental rights, the prerogative of the legislative branch is broad and must by necessity be so if government is to be by the people through their elected representatives and not by judges.
Baker v. Matheson,
CONCLUSION
¶ 24 The Utah Anti-Discrimination Act preempts all common law remedies for employment discrimination on the basis of race, color, sex, pregnancy, age, religion, national origin, or disability. Therefore, Gottling may not bring a cause of action for wrongful termination in contravention of an alleged public policy against sex discrimination. The summary judgment of the trial court is reversed, and the complaint is dismissed for failure to state a cause of action.
Notes
. Both Gottling and P.R. Incorporated center their preemption arguments on the analytical framework we established in Retherford v. AT & T Communications,
. We note that we were asked to decide whether the UADA preempts common law remedies for employment discrimination in Bwion. Because we decided that case on another ground, we did not address the issue. Burton,
. Our decision also renders unnecessary discussion of Kelly Peterson's personal liability.
Dissenting Opinion
dissenting.
¶ 26 I respectfully dissent.
¶ 27 Oliver Wendell Holmes noted that the law is a “magic mirror” reflecting “not only our own lives, but the lives of all men that have been.” Oliver Wendell Holmes, Jr., The Speeches of Oliver Wendell Holmes 17 (1891). The law thus reflects the myriad changes that occur in society, and strives, however imperfectly, to make the world more just. The Utah Legislature acknowledged profound societal changes when it passed the Utah Anti-Discrimination Act. Responding to the deep revulsion felt by the majority of our citizens to unfair employment discrimination, the Act made such practices actionable in a fast, relatively cheap, and efficient way. The majority opinion draws the illogical conclusion that, in providing statutory remedies for employees of large employers (employers of fifteen or more employees), the legislature preemptively eliminated all common law employment discrimination remedies for all other employees. I disagree.
¶28 The anti-discrimination statute provides administrative procedures for all employment discrimination claims arising at larger employers. This statutory scheme is silent regarding all other employees who constitute the majority of Utah workers. The majority of this court infers from this silence the conclusion that the legislature legitimized employment discrimination against all employees of small businesses, including Ms. Gottling, who was allegedly fired by her employer for refusing his sexual demands.
¶ 29 Traditionally, the legislature may change the common law only explicitly. Fed. Sav. & Loan Ins. Corp. v. Quinlan,
¶ 30 In my view, the legislature intended by the Act to establish simplified procedures and more certain remedies for unlawful discrimination by bigger businesses. That goal is inconsistent with the conclusion that the legislature sub silencio repealed and eliminated existing common law remedies for employees who happen to work for smaller employers. The majority’s position implicitly concludes that the legislature in fact intended the statute to weaken employment anti-discrimination law, rather than strengthen it. I am not prepared to accept that conclusion.
¶ 31 The legislature created a “package deal” affecting employees of larger firms. The trade-offs included in the package, not unlike those contained in the workers’ compensation scheme, are clear: In return for losing access to common law remedies (some of which were unorganized, under-developed, or uncertain during this period), employees could use a simple, relatively certain, statutory procedure for redressing discriminatory practices. Presumably, the legislature did not extend the Act to smaller employers out of concern that they might be financially unable to meet the costs of creating the sorts of hiring and promotion policies that are the most effective way of avoiding anti-discrimination lawsuits. Moreover, it is reasonable to make it easier to sue and recover from an entity which has greater monetary resources, especially because large, visible corporations are more likely to serve as an example than smaller enterprises. But there is no reason to infer from the fact that the legislature strengthened anti-discrimination remedies against large employers that it simultaneously intended to destroy or preclude existing and future remedies against small employers.
¶ 32 The majority opinion states that the phrase “employment discrimination” is not defined in the statute and therefore must include discrimination by small firms. See Utah Code Ann. § 34A-5-107(15) (2001). This is incorrect. The statute explicitly states that it applies only to employers with fifteen or more employees. This is a limiting definition of employment discrimination: The statute simply does not speak to discrimination by small employers.
¶ 33 In Burton this court decided the common law issue of whether age discrimination could be the basis for a claim for tortious wrongful termination for employees of small employers on grounds other than the UADA’s alleged exclusivity. Burton v. Exam Ctr. Indus. & Gen. Med. Clinic, Inc.,
[T]he way in which a state regulates relations between employees and employers has a significant impact on the quality of life for many of its citizens, and ultimately for the society as a whole. The “workplace climate” of a state is an important part of its opportunities for economic growth and long-term development. It is an entirely appropriate arena for the operation of policy choices intended to benefit the public interest, as indeed is manifest by the legislature’s choice to embody anti-discrimination principles in [the] statute. Utah should not be a place where workers can be fired, paid less, or otherwise treated less favorably by nearly 70 percent of all employers on the basis of their race, sex, religion, disability, or age.
Burton,
. In a recent decision we stated that courts may look to statutory "structure and purpose” to find “implicit, preemptive intent” of the common law when the statutory regulation is "so pervasive,” is in "irreconcilable conflict” with the common law, or when the common law “stand[s] as an obstacle to the accomplishment ... of the full purposes and objectives of [the legislature].” Bishop v. GenTec Inc.,
