*1 Plaintiff-Respondent, Ken Kempfer, Defendant-Appellant. Finishing, Inc., Automated Supreme Court 31, 1996. June argument Oral October No. 95-0649. Decided 20, 1997. 692.) (Alsoreported in 564 N.W.2d *4 AbRAHAMSON, C.J., concurs.
Bradley, J., joins.
STEINMETZ, J., concurs. defendant-appellant by For the there were briefs Joseph Redding, Napierala Glojek E. Thomas R. argument by Limited, Allis and oral Thomas R. West Napierala. plaintiff-respondent
For the there was a brief Joseph Widmann, & J. Welcenbach Welcenbach argument by Joseph S.C., Milwaukee and oral J. Shneidman, and Patricia Meunier of Welcenbach *5 Myers, Dowling, Ehlke, Domer, Hawks & Blumenfield, Milwaukee. by Timothy
Amicus curiae brief was filed G. Cos- Costello, S.C., tello and Krukowski & Milwaukee for the Wisconsin Manufacturers & Commerce.
¶ 1. P. WILCOX, JON J. This case is on certifi- appeals following jury cation from the court of trial. jury plaintiff, Kempfer concluded that Ken (Kempfer), damages past was $22,167 entitled to wages wages $145,000 and benefits and for future lost Finishing, Incorporated and benefits from Automated (AFI) wrongful discharge. for his The Circuit Court for County, Snyder, Judge, Waukesha Patrick L. denied appealed. AFI's motions after AFI verdict. (1)
¶ 2. On certification, whether, we consider: as Kempfer law, matter of identified a fundamental and (2) public policy, Kempfer, well-defined whether employee-at-will, demonstrated that he was termi- refusing contrary nated for to act to a fundamental and (3) public policy; well-defined whether the circuit erroneously by allowing court exercised its discretion jury awarding damages wage to consider of future Kempfer loss. We hold that identified a fundamental public policy and well-defined and that he was termi- refusing contrary public policy; nated for to act erroneously however, we also hold that the circuit court jury exercised its discretion when it allowed the to con- awarding damages Kempfer's wage sider future loss. The circuit court should have determined whether feasible, reinstatement was feasible. If it was not amount, circuit court should have determined what any, if necessary Kempfer of front was to make part part in and reverse Thus, we affirm whole. court. of the circuit decision dispute. not The relevant facts are Kempfer defendant, October AFI, on was hired *6 initially assigned perform urethane to 8, 1981. He was years, Kempfer's approximately After five mold work. point began job began vary AFI to to and at some duties employees Kempfer to make as- and three other ask Har- a 22-foot International needed deliveries with purchased in truck. The truck had been vester flatbed registered Depart- weight with the 1984 and its was Transportation pounds. At the time 32,000 as ment of Kempfer
began driving AFI truck, indicated only requirement valid, that the drivers hold was regular driver license. returning Kempfer,
¶ while 1,1993, 4. On March delivery, stopped by patrol a state officer from a was that the truck had a cracked wind- who had noticed warning AFI tickets to shield. The officer issued Kempfer having for not cracked windshield and to (CDL). explained driver license The officer commercial weight Kempfer his truck was that due to the of required by further viola- law to hold a CDL and that personal jail fines and/or time. tions would result plant, Kempfer returned to the 5. When he f plant manager. Kempfer gave both citations to trips Department of four then made first (DMV) to learn more about the CDL Motor Vehicles up requirements. picked He informational book- some gave requirements the CDL which he later lets about employer. his Kempfer subsequently
¶ to drive 6. AFI asked separate Kempfer the truck on six occasions. refused required stating have the each time that he did not Kempfer CDL to drive the truck. stated that he was not get told AFI to a CDL and that he would have Accordingly, needed use AFI's truck to take the test. he never obtained a CDL. morning April plant 7. On the 16, 1994,
manager again Kempfer told to drive the truck. Kempfer stating refused that he did not have the proper licensing. plant manager found another reported Kempfer's truck, to drive the Kempfer suspended result, refusal. As a was for two days. Kempfer then went to the DMVfor a fourth time. explain An at the DMV called AFI to the CDL requirement operation company of the truck. Upon returning suspension April from his on Kempfer position 20, 1994, was informed that his had accordingly, eliminated, and, been he was fired. Kempfer's Bonney, foreman, Mark was also fired for refusing sign Kempfer's suspension notice. Kempfer alleging
¶ 9.
filed suit
that he was
*7
wrongfully discharged
refusing
public pol-
for
to violate
icy.
argued
Kempfer
AFI
at trial
that
was released
cost-cutting
of
because
efforts to reduce the labor force.
Following
three-day
jury
a
trial,
found that
Kempfer
suspended
was
and fired for his refusal to
operate
company
Kempfer
truck without a CDL.
was awarded back
and
in the
benefits
amount of
jury
Kempfer
$22,167. The
$145,000
also awarded
wages
future lost
and benefits. The circuit court denied
appealed.
AFI's motions after verdict and AFI
H-i
¶ 10. The first issue that we address is whether
Kempfer
as a matter
law,
of
identified a fundamental
public policy.
question
and well-defined
This issue is a
law,
of
Bradstreet,
v. Dun &
113 Wis. 2d
(1983), that this court
573-574, 335 N.W.2d
Hospi
Memorial
v. Beloit
novo. Winkelman
reviews de
(1992). 12, 24, 483 N.W.2d
2d
tal, 168 Wis.
proving
plaintiff-employee
of
the burden
bears
public policy.
of
a clear mandate
violates
dismissal
Brockmeyer,
employer
"for
an
morally wrong,
cause, or even for cause
cause, for no
legal wrong."
being thereby guilty
Id. at 567.
without
"narrowly
recognized
circum
a
this court has
However,
general
exception"
public policy
Id.
to this
rule.
scribed
exception provides
Specifically,
an
this
at 574.
refusing
discharge
employer
not
an
a fundamental
well-defined
to violate
command
Brewing
public policy.
Co., 134 Wis.
Bushko v. Miller
(1986).
Public and common conscience. munity common sense of the Wisconsin Constitution provisions . . .The of this state. initially public policies declared the amended, that also is Each time the constitution addition, public public policy. In expression *8 in the regularly adopted promulgated policy public pol- declarations of legislation. form of These every inherently incorporated into icy are relationship. employment at will vagueness concept Given the of the public policy, necessary it is that we more precise be about the public contours of the policy exception. A wrongful discharge is actionable when the termination clearly public contravenes the gravely welfare and paramount violates requirements public interest. public policy must be evidenced a constitu- An be statutory provision. tional or cannot refusing to violate the constitution or a stat- fired for ute. Employers will be held liable those terminations that effectuate an unlawful end.
We recognize intend to an existing public limited policy exception. employer may An require not an employee to violate a statutory constitutional or provision with impunity. If an employee refuses to manner, act in an unlawful the employer would be violating public policy by terminating for such behavior.
Brockmeyer,
added).
Courts proceed cautiously should making when public policy determinations. No employer should subject be merely to suit discharged because a employee's conduct praiseworthy was or because public may have derived some benefit from it. Id. at 573-74. This court's rejection of an expansive exception to the employee-at-will doctrine is also illus- trated by the refusal to impose implied covenant and fair dealing on employers:
We refuse impose duty in good terminate faith into contracts. To do so would "subject discharge judicial each incursions into amorphous concept Moreover, of bad faith." we feel it unnecessary and unwarranted for the courts *9 any termination
to become arbiters good Imposing attached. faith tinge have a bad restrict an unduly terminate would duty faith force. managing the work employer's discretion omitted). (citation Id. at 569 Wisconsin's considered again 13. This court employee-at-will exception policy narrow public case, this 2d 136. In that Bushko, 134 Wis. doctrine exception the public policy whether considered court discharged acting who were employees included public and well-defined with a fundamental consistent employer no order when there was policy This court stated: the public policy. violate Brockmeyer to required under is not plaintiff in the dis- had an evil intent employer prove or other Likewise, allegations gratuitous charge. of action will not save a cause of evil intent evidence if summary judgment motion for from defendant's by Brockmeyer pre- are not required the elements allege and requires employee Brockmeyer sent. refusing to violate discharged for that he was attest Although statutory provision. a constitutional or provide relief for Brockmeyer was intended intent, it did so a victim of evil employee who was circumstances. very limited under the standards cause of action and defined the the trial way that summary judgment in such a of the into the intent inquire need not judge employer. pub- to violate refuses a command
An who public policy. acting consistent with policy lic is acts However, of his own volition if the no more policy, he does consistently public with obey than action, law. Such consistent without an employer's otherwise, command to do merely "praiseworthy" conduct.
Id. at 141-42.
Accordingly,
public policy exception
*10
does not
in
apply
cases where the employee-at-will
is
simply discharged
acting
with
consistently
the fun-
damental and well-defined public policy; there must be
an order by the employer to violate the public policy.
14. We are
with
provided
further guidance on
of this
scope
public policy exception by this court's
decision in Winkelman,
We hold that where a fundamental and well-defined public policy by is evidenced an rule, administrative a discharge for refusal to violate public policy that is actionable. The guiding principle Brockmeyer of is not a slavish adherence to the arbitrary require ment that the public policy by be evidenced statutory or rather, constitutional procedure; it is that an employer must not be allowed to discharge for the employee's refusal to violate a formally stated, fundamental pub well-defined and lic policy which has the effect of law. Heretofore we have required that the public policy by be evidenced statutory or provision constitutional as a means to protect public by from frivolous lawsuits allowing the circuit court to screen cases on motions to dismiss or summary motions judgment. [Brockmeyer, 113 574]. Wis. 2d at The facts of this case make clear that public policy that is fundamen tal important may be in enunciated' administrative rules and that to use such rules will administra- An type
not frustrate this screening. rule, statutory constitutional as as or tive well public a clear expression contain provision, policy. recog- Accordingly, Winkelman, this court at 22.
Id. exception public policy of the nized that the definition and well-defined includes fundamental statutory, policies by public are evidenced consti- provisions. However, this tutional, or administrative case and it does not does not include law definition every statutory, constitutional, or adminis- mean provision a fundamental well- trative evidences policy. public defined public policy not in a If a contained statu- provision,
tory, it constitutional, or administrative exception public policy fall under cannot employee-at-will just However, because a doctrine. statutory, public policy is *11 a constitu- evidenced provision mean tional, or does not that administrative by recognized exception. This it falls under was this in court Winkelman: that
We however do not hold all administrative implicate public policy. rules fundamental Neither Rather, it is the of either a do all statutes. content a funda- rule or statute determines whether that public mental is stated. policy Accordingly, public policy must at 24. still be Id. and found to be fundamental well defined. This is by Brockmeyer. guidelines set in determined forth Brockmeyer, 2d at See 113 Wis. 573-74.1 likely satisfy note that less We an administrative rule is requirements a the fundamental than statu well-defined and likely tory provision statutory provision and is less that a rise public exception policy Thus, 16. employee-at-will the Wisconsin very only to the doctrine is narrow. It provides employee may discharged an not be refusing a command to a violate fundamental well- public policy by defined that is evidenced a constitu- statutory, provision. tional, or administrative With the exception public policy, employer may a of such an dis- charge any employee-at-will an reason or no reason. public policy recog- 17. AFI contends that the by employer nized the circuit court —that cannot require grounded someone to violate the law—was not specific statutory provision in a constitutional or which public pol- evidenced a fundamental and well-defined icy. Kempfer asserts that the circuit court identified (1) public policies: two fundamental and well-defined public policy against improperly licensed commer- 343.05(2)(a) § cial drivers evidenced Wis. Stat. (2) (1993-94);2 public policy against employers ordering employees to violate a statute carried penalties. criminal Kempfer
¶ 18. find that a We identified funda- policy public mental and well-defined sufficient level of fundamental and well defined than constitu- provision. tional stated, statutory Unless otherwise all future references 343.05(2)(a) are to provides the 1993-94 volume. Wis. Stat. part: relevant (2) (a) person may operate a Vehicles, No Commercial Motor upon highway vehicle commercial motor this state unless the
person following: is one of the *12 years age, 1. A who is at of is not resident least who disqualified 343.315, s. under who has valid commercial driver revoked, and, canceled, suspended, expired not license which is or 343.04(2), any operation type for the of under s. has an vehicle authorizing operation type. endorsement vehicle public policy exception
invoke Wisconsin's employee-at-will 343.05(2)(a) § doctrine. Wis. Stat. sets requirements operating forth the for a commercial person operates vehicle in Wisconsin. If a a commercial complying requirements vehicle without with these employer may subject penal- driver and his or her be guidelines § ties under Wis. Stat. 343.245. The for operating commercial vehicle contained 343.05(2)(a) designed promote highway which are safety punished and violation of which be fine andlor incarceration constitute a fundamental public policy-to promote highway well-established safety through regulations penalties. the use of
II.
¶ 19. The next
issue that we address
is whether
Kempfer,
employee-at-will,
demonstrated
that he
refusing
contrary
was terminated
for
to act
to a funda
public policy.
jury
mental
and well-defined
This is a
finding
any
that
this court will not overturn
if there is
supports
Coryell
credible
evidence
that
the verdict.
Conn,
310, 315,
(1979).
88 Wis. 2d
¶ 20. As we have found that public pol- identified a fundamental and well-defined icy, only any we need determine whether credible supports jury's finding Kempfer evidence that was discharged refusing contrary public to act to that policy. sup- AFI contends that there is no evidence port Kempfer failing was terminated to act contrary public policy. support to a fundamental In contention, only Kempfer this AFT states could *13 prevent have obtained a CDL and that AFI did not him doing only from so. AFI further states that it told Kempfer to "drive the truck."
¶ 21. We conclude that under the facts this commanding Kempfer case to drive the truck with full knowledge required that he did not have the license is commanding public pol- him tantamount to to violate icy. At the time that AFI ordered him to drive the truck Kempfer Kempfer it knew that did not have a CDL. suspended by refused to drive the truck and was AFI. Accordingly, support there is credible evidence to the jury's finding Kempfer discharged was for refus- ing contrary act to a fundamental and well-defined public policy.
I I I ¶ 22. The last issue that we consider is whether erroneously the circuit court its discretion exercised allowing jury awarding damages to consider wage Discretionary future loss. acts of the circuit court upheld are absent an erroneous exercise of discretion. Johnson, 137, 143-44, Johnson v. 78 Wis. 2d 254 (1977). apply proper N.W.2d 202 Failure to standard of law an erroneous exercise of discretion. Loy Bunderson, 400, 411-15, 320 2d N.W.2d Wis. (1982). During case, the trial in this course of jury decided the circuit court to allow the consider wage Kempfer whether would suffer a future loss. gave jury following circuit court instruction: you plaintiff If are satisfied that will suffer a and as the natural result of wage future benefit loss discharge, your then include answer wrongful his reasonably fairly 2 such sum as will question wages future loss of plaintiff for such compensate ... benefits *14 exercise of the that this was an erroneous AFI contends employ in an at-will circuit court's discretion because relationship foreseeable future there are no ment damages upon of future lost to base an award which parties earnings cannot foresee the dura because the relationship. Kempfer employment asserts tion of the Weyenberg appeals in of the court of that the decisions Mfg. 373, 410 604 Seidl, Co. v. 140 Wis. 2d N.W.2d Shoe (Ct. 1987), Casualty Brogan App. Co., Ins. v. Industrial (Ct. 1986), App. 439 229, 2d 392 N.W.2d 132 Wis. Stoughton Hosp. Assoc., Inc., 126 Wis. 2d Hale (Ct. 1985), App. illustrate that future N.W.2d excep public policy wages in are an available tion cases. Weyenberg, jury that the In determined wrongfully partici- terminated for had been jury guard
pating in national exercises. The awarded past damages, employee $57,000 $35,000 damages, $15,000 for lost bene- future appeals agreed the trial court fits. The court of with support jury's that there was sufficient evidence finding plaintiff participat- was terminated for ing guard However, in the national exercises. the court appeals fall also held that the termination did not Brockmeyer public policy exception to the under the employee-at-will doctrine: going guard plaintiffs] [the
Because action is consistent with than public policy rather camp to violate public policy, termination for said refusal extremely conduct does not fall within the narrow exception ofthe at will doctrine under Brockmeyer smdBushko.
Weyenberg,
(emphasis
original).
of the award of future to an employee. significant at-will We do not find this as case public policy exception it does not concern the to the employee-at-will doctrine. Whether an award of future 2021(b)(3) damages appropriate under 38 U.S.C. (1982) does not bear on whether such an award is con- Brockmeyer, and, thus, sistent with available under public policy exception employee-at-will *15 doctrine. Kempfer
¶ 25.
next
on,
The
case that
relies
Bro-
gan,
public policy exception
also did not involve the
employee-at-will
the
doctrine. This was a breach of con-
tract case that centered on whether the contract was
(1983-84).
rendered void Wis. Stat.
611.63
Bro-
gan,
appeals
decision
wrongful
employer
against
termination
his former
trial,
At
the
with contract.
and tortious interference
questions.
question
jury
given
The first
two verdict
was
wrong-
defendant-employer had
the
involved whether
question
fully
plaintiff-employee. This
terminated
accompanying
from
instruction was derived
and the
appeals
in
v. Dun &
decision
the court of
(Ct. App.
44,
that ate remedies. argues Brockmeyer Kempfer
¶ did not 28. wrongfully damages expressly for a dis- limit the charged employee-at-will and reinstatement remedy. appropriate backpay there is a more when According Kempfer, appropriate it in this is more wages future instead of reinstate- to award him case agree an there some cases where ment. We be necessary pay in lieu of is award of front reinstatement wronged employee However, as whole. to make the damages cases to limited in almost all only pay backpay, front can be reinstatement and is avenue to make available when there no other pay only employee an words, whole. In other is in those in which the available cases discharged refusing to violate fundamen- has been public policy is and reinstatement tal well-defined not feasible. not if 29. Reinstatement is feasible placed be in the same or a similar cannot company
position or if the refuses reinstate employee. is However, reinstatement not infeasible simply plaintiff does claims that he or she because get employer plaintiff along or not with because working is claims that he or she not comfortable previously him her. someone who terminated or In those situations where reinstatement not feasible an award of front is still limited concepts foreseeability mitigation. See Brockmeyer, Klug 575; 113 Wis. at see 2d also Corp., 2d 141, Flambeau Plastics 62 Wis. (1974) injured (requiring party in that the
N.W.2d situation "must make reasonable mitigate damages."). determining efforts to Thus, in whether front is available, when reinstatement already has been infeasible, deemed the court must (1) *18 pay, any, consider the extent of front if foreseeable (2) under the circumstances of the case, and what effect employee's mitigation will have on the award of pay. front Accordingly,
¶ 31. the circuit court must first determine whether reinstatement is feasible. If the cir- cuit court concludes that reinstatement is not feasible jury then the court rather than the should determine pay, any, necessary amount of front if that is to wronged employee make the whole. See Stafford Systems Corp., Supp. Electronic Data 741 F. 664, 667 (E.D. 1990). present Mich. In the case, the circuit court did not consider whether reinstatement infeasible, was question pay jury. but submitted the of front erroneously Thus, we hold that the circuit court exer- jury cised its discretion when it allowed the to consider wage damages future loss in its determination. The cause is remanded for a determination ofwhether rein- statement is not feasible, and, so, if for a calculation of pay front the circuit court.
By the Court.—The decision of the circuit court is part part. affirmed in and reversed in ¶ 32. SHIRLEY S. ABRAHAMSON, CHIEF (concurring). agree majority opin- JUSTICE I with the preliminary question ion's resolution ofthe case, in this plaintiff discharged that the was in violation of a fun- public policy. agree damental and well-defined I also the case should be remanded to determine pay and, so, if awarded how front should be whether much. (1) separately: the availa- I write because 33. discharge
bility pay for of an at-will of an award of front explain why I I is not and want to obvious (2) sug- to available; be that front should conclude might gest court considerations circuit several (3) awarding pay upon remand; and in front entertain explore respective court and to roles the circuit determining jury lieu of on remand reinstatement.
I—I
goals
The
of a
cause of
dual
wrongful discharge
of an
at-will
are
action
wronged employees
whole and
deter
make
public policy.1
employers'
court's
violations of
deci-
discharge
relating
public policy wrongful
give
sions
*19
gener-
guidance concerning
practical
remedies
little
ally.
Brockmeyer
set
Nonetheless,
the
court
forth
general
regarding
propositions
remedies in its
certain
recognized
newly
paint
of the
effort to
the outlines
(1)
goal
action:
remedial
is to make the
cause of
wronged
and to advance
whole
well-estab-
(2)
public policies;
remedies should be controlled
lished
principles;
tort
thus
contract rather than
foresee-
1
Bradstreet,
subsequent
Brockmeyer
&
Cases
v. Dun
113
(1983),
561,
fully
335
more
addressed
Wis. 2d
N.W.2d 834
have
Wandry
Eye
Bull's
the contours of
cause of action.
v.
Credit
(1986);
Union,
37,
325
v.
129 Wis. 2d
384 N.W.2d
Bushko Miller
(1986);
Co.,
136, 396
Brewing
134
N.W.2d 167
Wis. 2d
Schultz
17,
Stamping Corp., 148 Wis. 2d
122 ability mitigation range and limit the of available (3) appropriate remedies; and the most remedies are pay. Brockmeyer reinstatement and back v. Dun & Bradstreet, 561, 574-76, 2d 335 Wis. N.W.2d 834 (1983).2 pay While and are, reinstatement back as
Brockmeyer appropriate stated, remedies, the most appropriate in reinstatement is not certain cases. In pay I cases, these conclude that an award of front gap. pay should be available to fill the remedial Front necessary principles is achieve set forth (1) Brockmeyer: pay comports front with the Brockmeyer principle that reinstatement and back (2) appropriate remedies; are the most while reinstate- important making wronged ment is an employees whole, there are often serious obstacles (3) rarely ordered; reinstatement and it is front designed precisely to achieve what reinstatement place achieve, would were reinstatement feasible: to wronged employee position he or she would (4) wrongful discharge; in had there be ing been no award- pay comports Brockmeyer front contract with (5) theory damages wrongful discharge; allowing pay comports with the wrongful court's reliance on Wisconsin and federal dis- Brockmeyer's approach, For discussions of contract see Practice, Perritt, Jr., Henry Employee H. Dismissal Law and (3d 1992); Dobbs, Law Remedies: p. 1.2 at ed. Dan B. § 6.10(2) Damages Equity—Restitution, p. at 195-96 — (2d 1993). *20 nn.13, 14 McCarthy, Recovery ed. also John C. See of (1990) Damages Wrongful Discharge, pp. 1.31 at 118-19 for (doctrine unavailability foreseeability punitive and the damages contract characterize "elusive" differences between damages public policy wrongful discharge). and tort charge crafting the common law cause of statutes for wrongful discharge. action for pay comports First, 36. front with the Brockmeyer principle pay that reinstatement and back appropriate employers are the most remedies. If know only pay legally reinstatement and back are avail- pay able, and that front is not available in lieu of reinstatement, reinstatement will cease to be available Barring in fact. front as a substitute for reinstate- perverse employers ment create a incentive for will wrongfully discharge employees who in violation of public policy make not In to reinstatement feasible. essence, not were available when reinstate- ment is not feasible the deterrent effect of the cause of employer action would be undermined or the could dis- charge public policy by an violation of paying damages.3 a minimum amount of impor- Second, while reinstatement is an making wronged employees whole, tant there are often serious obstacles to reinstatement and does, employers Unless court holds as it would have admitting liability instantly the further incentive of after wrongfully discharging employees would be encouraged delay asserting way a cause of action. In that employers they pay wrongfully would seek to reduce amounts discharged employees employees would seek to increase the they public policy amounts receive. The deterrent effect of the wrongful discharge seriously cause of action would be threatened.
it
ordered.4
has
rarely
high
Reinstatement
costs for
as well as for the courts.6
employers
employees,5
4Professor Dobbs has noted as follows: "Common law reme
employer's
dies for an
breach of an
contract have
traditionally
specific performance. Although
not
included
rein
quite casually
statement has
mentioned
been
some common
wrongful discharge
[quoting Brockmeyer],
law
cases
it seems
Dobbs,
actually
sought
granted."
not
to have been
or
Law of
6.10(2)
(citations omitted).
Remedies,
p.
at
198 and n.28
See
§
Larson,
Dismissal,
Unjust
p.
9A.02[2]
also Lex K.
at
9A— 9
§
(3/97) ("reinstatement
awarded,
normally
is not
due to the often
employment relationship").
deteriorated
Nonetheless, many
pre
courts consider reinstatement
"the
See,
remedy."
e.g.,
Inc.,
Express,
ferred
Sasser v. Averitt
839
(Tenn.
422,
1992);
App.
S.W.2d
439
Ct.
v. Electronic
Stafford
(E.D.
Sys. Corp.,
Supp. 781,
1990)(apply
Data
749 F.
785
Mich.
law);
Lab., Inc.,
ing Michigan
McNeil
Economics
800 F.2d
(7th
1986),
denied,
(1987),
118
Cir.
cert.
employers, employees suggested that front more the future efficiently compensates economic loss from a flowing wrongful discharge. Chief *22 Posner has offered the economic Judge following analy- sis front supporting pay:
[T]he [reinstatement] social costs of be avoided by corrective transactions. Suppose that reinstate- $100,000 ment would be worth employee but employer $150,000 would cost the neg- because of a ative effect of on employer's reinstatement the productivity; contrast, $100,000 in an award of $100,000 employer only would cost the while bene- fiting $100,000. to the tune of pay substitution of front for reinstatement would produce a savings $50,000 yet social costs of if— unavailable, front pay employer might buy were reinstatement, out the employee's right of since at any price $100,000 $150,000 par- between both ties buy-out. would be made better off such a pay may Front socially preferable still be the form of relief, because it tricky avoids the need for a transaction. monitoring spurring litigation
ued or risks additional surrounding compliance issues of and retaliation. The Seventh Appeals Circuit Court of described costs ofreinstatement for courts as follows: equity traditionally specific per- Courts of have refused to order employment contracts, formance of it because is difficult and time- consuming supervise parties' ongo- for a court to conduct in an
ing possibly long-term relationship employment. of . . .Courts equivalent do not want to involve themselves in the industrial of squabbling. matrimonial (7th McKnight Corp., General Motors 908 F.2d Cir. 1990). Metropolitan Chicago,
Avitia v. Club Inc., 49 F.3d (7th 1995) (citation omitted). 1219, 1232 Cir. pay designed pre- Third, to achieve cisely what reinstatement achieve, would were place wronged employee reinstatement feasible: to position in the same he or she would be in had there wrongful discharge. pay up been no Front makes earnings difference between the would receive were the old to continue and the earnings expected present employment. and future Thus, front substitutes for reinstatement in that it flowing remedies future economic losses from the wrongful discharge. conjunction recovery In with past wage through pay, loss a back award, front wrongful discharge like reinstatement, remedies the wronged employee itself and assures that the is made whole.
¶ 40. When reinstatement feasible, is not back *23 pay wronged employee is insufficient to make a whole. pay compensates wages Back judg- for the loss of until remedy wrongful discharge it ment; does not the itself. wrongful discharge Reinstatement remedies the and precludes economic loss that would otherwise flow from wrongful discharge. the If reinstatement is not feasible discharged employee's employment oppor- and the new tunities are inferior, the should receive front pay. logic purpose. "The of such an if award, the . .is plaintiff indeed to make the whole, is undeniable." McKnight Corp., v. General Motors F.2d (7th 1990).7 116-17 Cir.
7The Seventh Circuit Appeals Court of pay discussed front follows, under Title VII as deciding without the issue: Supreme [T]he Court has said that the remedial scheme in Title designed plaintiff whole, VII is to make the and this dictum has thought by imply plaintiffs been employ- some courts to if the expectation pay
¶ the 41. Front fulfills interest remedial otherwise there would be a void. where employees may "Wrongfully discharged have valid wages. Such award of 'front claims for lost future 'rightful theory; pay' predicated place' i.e., on the is wrongfully discharged employees are entitled to jobs they of the would have obtained but for the benefit discharge." Litigating Wrongful Tobias, H. the Paul (6/91). Discharge atpp. § 8-37-38 Claims, 8.12 awarding comports Fourth, 42. with theory damages wrong- the contract discharge. remedy in For to be a contract ful available the fact of must be foreseeable. Restatement action (Second) loss (1981). enough
of Contracts 351
It is
that the
distinguished
probable,
was
as a
as
loss
foreseeable
necessary,
cmt.
of the breach. Id. at
a.
from a
result
might
employer
argue
An
that because an
expectation
employ-
of future
at-will
has no
employer
term,
for a definite
ment with this
loss
wages
pay inappro-
is
and front
is
future
unforeseeable
foreseeability
priate.
argument
This
confuses the
of the
foreseeability
wages,
harm,
future
with the
of the
lost
Only
amount of the
the former need be foresee-
loss.
infeasible,
opportunities
ment
are inferior and reinstatement
is
he
lump
in
should receive
addition to back
sum —called "front
distinguish
pay specified
pay"
from the
of back
it
present
representing
discounted
value of the differ-
statute —
ence between
earnings
he would
received in his
have
old
earnings
expected
and
he can be
to receive
his
future,
inferior,
present
by hypothesis
employment.
award,
logic
purpose
of such an
if the
of Title VII's remedial scheme
whole,
plaintiff
to make
is indeed
undeniable.
(citations omitted).
McKnight,
exist for a foreseeable, definite
of time," is not an
argument
wages
that the loss of future
is unforesee-
argument
able. Rather it is an
that the amount of the
certainty.
loss is difficult to ascertain with
This is
put
doubtless true.10 As one court has
it:
damages
"The existence
proved;
must be
the amount of
damages must be decided with
certainty
all the
per
the case
mits."
Pipe
Smith,
Panhandle Eastern
Line Co. v.
637 P.2d
1981)
1020, 1027 (Wyo.
(approving
award of front
to indefi
breach).
nite term
employer's
Repinski
9 See
Loan Ass'n,
Clintonville
&Sav.
Wis. 2d
(1970) ("An
53, 58,
The rules of law for breach of very application contract are flexible. Their in the infinite number beyond question of situations that arise is variable and uncertain. law, they Even more than in the case of other rules of must be regarded merely guides court, leaving as much to the individ- *25 damages biggest problem awarding in future The is wrongful discharge of an at-will for the established, how- avoiding speculation... .It is well if it is ever, recovery will denied "while be damage has and uncertain whether speculative sustained, merely recovery will not denied be been damages is difficult the amount of because ascertain." Smithway Xpress, Inc., 464 Motor N.W.2d
Smith v. (Iowa 1990)(citation omitted)(reversing trial 682, 688 jury question to in refusal to front court submit action). discharge wrongful The a fact that uncertainty calculating degree require in of preclude it of the not a reason to as a amount loss is damages of must be decided matter of law. amount certainty permits. the case with all ¶ rule in contract 46. Indeed the black letter involving employment seems to be recov actions damages pay. ery Bar includes front State of of Damages § Wisconsin, in 23.2 at Wisconsin, The Law of (2d 12/95) (Russell ed.); p.23-3 Ware, ed. M. State Bar at p. Employment § Wisconsin, Law, 13.40 of Wisconsin (4/95). Stoughton Hospital e.g., See, Hale v. 13-14 (Ct. Ass'n, 267, 279-81, 126 N.W.2d 89 Inc., Wis. 2d 376 1985) (indefinite employment App. of term, loss future ordinary wages pension arising course benefits as matter ofbreach of contract foreseeable law). front-pay Although measure rem- 47. necessary edy appropriate uncertain, is it is where wronged one court make the whole. As has injus- justice than exact said: "Substantial better special feeling of the circumstances of the ual court created particular case. (1964). Contracts, 5 on 1002 at 33 Corbin (Pa. 1931) Gibson, A. Weinglass tice." contract even damages need to award (discussing amount). where uncertain with the Fifth, allowing comports
Brockmeyer court's
reliance on Wisconsin and federal
*26
statutes
the common
wrongful discharge
crafting
of action for
The
wrongful
discharge.
law cause
Brockmeyer
court,
568, 575,
113 Wis. 2d at
determined
statutes,
that
state
reinstatement
public policy
as with
and
are the most
remedies.11 Yet
pay
appropriate
back
(WFEA),
Act
provides
the Wisconsin Fair Employment
for a
of
in lieu of reinstatement
remedy
"compensation
111.389(4)(c)
by any
if
Wis. Stat.
requested
party."
§
11
Brockmeyer
recognized
public policy
The
court
wrongful discharge
goals
spe
action
as
cause of
has
same
wrongful
statutory
of action for
cific Wisconsin
causes
Act,
discharge,
Employment
such as the Wisconsin Fair
Wis.
II,
Act,
111,
Employment Peace
Stat. ch.
subch.
the Wisconsin
111.06(1)(c)1,
VII,
as well as Title
42 U.S.C. 2000e
§
Wis. Stat. §
wrongful
seq.,
prohibiting
et
and other federal statutes
dis
public
remedying and
charges
policy.
in violation of
Because
public policy
the heart of these
deterring violations of
are at
action,
brought
statutory
decisions in cases
under
causes of
analyses
determining
provide helpful
these statutes
public policy
appropriate
regime
remedial
in a common law
Brockmeyer,
wrongful discharge action.
131 (1995-96).12 discharge Similarly, wrongful in federal recognized remedy pay in statutes, front has been as lieu of reinstatement.13 388, 397-99, Byers LIRC, 2d See 208 Wis. 561 N.W.2d (1997) (discussing public policy purposes of the WFEA LIRC, 753, 764, available); 2d
remedies Watkins v. 117 Wis. (1984) authority (finding provides N.W.2d 482 that the WFEA remedy). appropriate to fashion statutes, Age Title VII and the Discrimi Federal such as (ADEA), Employment seq., nation in Act 29 U.S.C. 621 et are similarly premised remedying deterring on violations public policy. interpreted allowing Each has been as courts reinstatement, provide as a substitute for addition pay, to back where reinstatement is not feasible. Front regardless available under these statutes of whether employment was for an indefinite term. Supreme pur-
The United
that the
States
Court has stated
poses
of Title VII are to
and deter discrimination
injuries
persons
*27
to "make
due to
whole"
Paper
unlawful
discrimination. Albemarle
Co. v.
(1975).
Moody,
405,
422 U.S.
417-18
following
among
The
are
the courts that have held that
pay
front
is available in lieu of reinstatement under Title VII:
(11th
Gallardo, Inc.,
1515,
v.
Weaver Casa
922 F.2d
1528
Cir.
1991);
1442, 1449
Corp.,
Edwards v. Occidental
892
Chem.
F.2d
(9th
1990);
Express Corp.,
Cir.
v.
Shore
Federal
777 F.2d
(6th
1985);
Sys. Co.,
1159-60
Cir.
Goss v. Exxon
747 F.2d
Office
(3d
885,
1984); McKnight
Corp.,
889-91
Cir.
v. General Motors
(E.D.
(7th
675,
1991),
Supp.
aff'd,
768 F.
680
Wis.
973
1366
F.2d
(1993).
1992),
denied,
Cir.
cert.
The circuit seventh has held that front is available in retaliatory discharge brought lieu of reinstatement in actions Act, seq. under the Fair Labor Standards 29 201 et U.S.C. § 132 the state and federal stat- 49. Consistent with public policy by seek to deter violations of utes which plaintiff employees employers whole, a in and to make wrongful discharge public policy action a common law remedy pay of front when should have available the is not feasible. reinstatement jurisdic- of the 50. For these reasons all but one considered the issue of the
tions14
have
wrongful
availability
pay
public policy
in
dis-
of front
pay
charge
front
is
actions have concluded
I, too,
reinstatement
is not feasible.15
available where
pay
should be an available
conclude that
is not fea-
in lieu of reinstatement when reinstatement
principles
Front
consistent with the
set out
sible.
statutes which
and state and federal
Inc.,
1219, 1231
Metropolitan
Chicago,
v.
Club
49 F.3d
Avitia
(7th
1995).
Cir.
14
Supreme
of Arkansas has held that front
The
Court
wrongful discharge actions.
public policy
is not available in
(Ark. 1988).
Oxford,
Sterling Drug, Inc. v.
question in
of the
(Idaho 1996); Sasser,
Evans,
981,
839 S.W.2d
923 P.2d
987-88
Inc.,
422, 433-34;
Smithway
464 N.W.2d
Xpress,
Motor
Smith
(Iowa
Trulock,
830,
1991);
P.2d
Hayes v.
687-88
(Wash.
Co.,
1988);
v. Ford Motor
347 N.W.2d
App.
Ct.
Goins
*28
1983).
(Mich.
Dougherty,
184, 191
App.
also Francis M.
Ct.
See
Discharge
Wrongful
At-Will
Damages Recoverable
of
(collecting
supp.
and anno.
Employee,
5[c]
seek policy.
II. is remanded for determi- 51. Because this case pay, I to set forth several factors nation of front wish might appropriately consider in that the circuit court awarding pay. stated, as one court is, Front necessarily every remedy, "special not warranted in Express, Inc., case." v. Averitt 839 S.W.2d Sasser (Tenn. 1992). App. 433, 439 Ct. following among factors, others, should 52.
f determining propriety considered in the and amount be (1) of front employee's is not feasible: when reinstatement seniority wrongful at the time of the dis- (2) charge; employment the likelihood that the would long, wrongful continued, have and for how but for the (3) discharge; (4) expectancy; employee's and life work mitigating employee's at or her dam- efforts his any; ages, including (5) employment, if nature of new availability comparable employment opportu- (6) length required nities; and of time to find job. at Sasser, another See 839 S.W.2d ¶ 53. In this case the was an long standing. Although employee will, at there going discharged. was no indication that he was to be According employee's salary to the record the level had seniority, part through been achieved in and his skills history unlikely it made that he could comparable salary pay may Front obtain elsewhere. proper be in this case if reinstatement is found not feasible.
I—I HHHH Finally, relating ¶ 54. the court s decisions public policy wrongful discharge give gui- actions no concerning respective dance the of the roles circuit jury determining propriety and court the the and majority opinion, amount of remedies. without dis- pay by cussion, front mandates that is to be determined by jury. the court a rather than growing 55. A number of courts common law statutory wrongful discharge
and
actions have con
question
pay,
cluded
the
of the
of
amount
front
simply
propriety,
by
not
its
should be decided
the
by jury.
generally
court,
trial
not
See
Richard J. Ser
yak, Front-Pay
Employment Litigation:
Awards in
An
Jury?
Judge
Employee
the
Issue
or
Relations L.J.
(1991).
assigning
The most common rationale for
duty
pay
essentially
this
is that
court
front
is
equitable remedy in this context. See
v. Elec
Stafford
(E.D.
Sys. Corp.,
Supp. 664,
tronic Data
741 F.
665-67
1990)
law);16
(applying Michigan
Mich.
common
pay
Sasser,
not excessive particular case. stances jury were circuit court and 57. The roles argued parties I, and therefore not briefed or *30 majority opinion, this would not decide unlike the the court for I remand cause to circuit issue. would this considering argument whether, of after determination by parties, front-pay by made a a award should be the jury. I alternative, In the would circuit court or briefing in this court. order additional majority ¶ the court is 58. circuit directs appro- front-pay if award, of to decide the amount priate. the presented the issue In case the circuit court this jury. the court determine that to a plaintiff Should circuit may pay, to front the circuit court
is entitled pay jury as award front in this case consider the of 805.02(1) (1995-96). advisory. § Stat. Wis. foregoing ¶ reasons, I 59. concur. For Justice Ann 60. I am authorized to state that Bradley joins opinion. this Walsh {concurring). STEINMETZ, W. J. DONALD agree majority case. I with the mandate of the this impor- majority's However, treatment of the due to the pay possibility cases, I tant issue front as a future of separately solely further the issue of write to discuss pay. keeping spirit employ- In of the front with availability doctrine, I of ment-at-will note that cases front must be limited to in which employee discharged in a funda- has been violation of Additionally, public policy. I mental and well-defined explain to of the in which write further some situations will and will not be available as Finally, of I instead reinstatement. write to stress employee duty mitigate damages, has a to the including all pay, explain
those awarded as front
to
duty
employee's
mitigate.
employment-at-will
recog
62. The
doctrine
f
employment [is]
nizes
an
"that where
for an indefinite
employer
discharge
good
term, an
an
'for
morally wrong,
cause,
cause,
no
or even
cause
being thereby guilty
legal wrong.'"
without
Bradstreet,
v. Dun &
561,
113 Wis. 2d
(1983).
years,
¶ with 63. As where pay may only front be in limited available circum- stances,1 court in this held appropriate backpay "reinstatement and are the most wrongful public policy exception remedies dis- charges." Brockmeyer, then, Id. at 575. on I Based
1
(7th
Quasar Co.,
389,
v.
See Fortino
950 F.2d
Cir.
("the
1991)
very
pay
possibility of front
under Title VII is uncer
it).
though
imposed
tain"
some courts have
See also
Griffith
(10th
1994)
Colorado,
Servs.,
Youth
Div.
position) available, or if the
discharged employee.
refuses
rehire
Finally,
plaintiff
I
write to stress
who
*32
mitigate
pay necessarily
duty
has
to
is awarded
damages.
long-standing principle is a
Wiscon
This
Klug
Corp., 62 Wis.
law.
v. Flambeau Plastics
sin
See
(1974) (requiring that the
141, 155,
2d
¶ 66. The touches on all of the aspects opinion. sepa- of front raised in this I write rately simply important to further discuss these issues provide guidance and to in future cases. foregoing sepa-
¶ 67. For the reasons, I write rately.
