OGDEN, dba Lucille‘s Hair Care, Petitioner, υ. BUREAU OF LABOR, Respondent. (No. 26-81, CA A27956 (Control)) STATE ex rel ROBERTS, Respondent, υ. OGDEN, dba Lucille‘s Hair Care, Appellant.
No. A8305 02813, CA A29998
Oregon Court of Appeals
May 9, 1984
Rehearing Denied June 29, 1984
682 P2d 802
Argued and submitted January 13, affirmed May 9, petitioner‘s reconsideration denied June 15, respondent‘s reconsideration denied June 29, petition for attorney fees denied July 27, all petitions for review allowed August 28, 1984 (297 Or 781). See 299 Or 98, 699 P2d 189 (1985)
William F. Nessly, Jr., Assistant Attorney General, Salem, argued the cause for respondent. With him on the brief were Dave Frohnmayer, Attorney General, and James E. Mountain, Jr., Solicitor General, Salem.
Before Buttler, Presiding Judge, and Warren and Rossman, Judges.
WARREN, J.
Rossman, J., dissenting.
This is an employment discrimination case in which the Commissioner of Labor found that petitioner, an employer, had discriminated against the complainant, Miller, by refusing to hire her because of her age, in violation of
Miller filed a complaint with the Bureau of Labor on May 7, 1979, alleging that petitioner had discriminated against her on the basis of age. The commissioner held a hearing on July 15, 1982, after which she issued the final order challenged in this appeal by petitioner. The order was supported in part by the following ultimate findings of fact:
“1. On February 13, 1979, an advertisement placed by Respondent in a Portland, Oregon newspaper sought a ‘full or part time’ beautician with ‘experience,’ ‘for a retirement home’ beauty salon which Respondent owned and operated. Actually, Respondent was seeking two full-time beauticians who would work on Saturdays.
“2. On February 13, 1979, Complainant was thirty years old and a licensed beautician who had experience working with elderly persons both as a beautician and in other types of employment. She was also unemployed.
“3. Complainant was qualified for the positions for which respondent sought applicants in her February 13, 1979, advertisement.
“4. On or about February 13, 1979, Complainant saw Respondent‘s advertisement. Because she was looking for work as a beautician and preferred to work with elderly clients, Complainant answered Respondent‘s advertisement immediately. Complainant talked with Respondent twice about Respondent‘s openings, first by telephone and later in
person. Respondent‘s first query of Complainant was what was Complainant‘s age. In response to Complainant‘s answer, Respondent voiced her concern that Complainant was, in effect, too young to work with the elderly people who composed almost all of the clientele at Respondent‘s salon. Respondent labelled Complainant in terms of her age and had such strong misgivings about Complainant‘s age that she did not express interest in Complainant‘s experience or qualifications during her two encounters with Complainant. “5. At the time Complainant answered Respondent‘s advertisement, the youngest of Respondent‘s four beauticians was 46 years old.
“6. Complainant and Irene Bynum were the only two applicants for Respondent‘s openings who remained interested in them after being interviewed by Respondent. Ms. Bynum was 49 years old at the time. In evaluating the qualifications of Complainant and Ms. Bynum, Respondent considered three factors, one of which was the age of each of them. Respondent hired Ms. Bynum. Respondent did not hire or consider hiring Complainant.
“7. Respondent maintains that the only reason she did not hire Complainant was Complainant‘s alleged refusal to work for her full-time or on Saturdays. In fact, Complainant wanted full-time work and expected (and was willing) to work on Saturdays. Ms. Bynum, on the other hand, was available to work only two days per week, Tuesday and Saturday.
“8. Respondent did not hire or consider hiring Complainant for employment because of Complainant‘s age.
“* * * * *”
The record shows that these factual findings are supported by substantial evidence, and therefore we are bound by them.
Petitioner raises five assignments of error: (1) The commissioner erred in holding that
In her second assignment, petitioner argues that the commissioner‘s finding that petitioner refused to hire Miller because of her age does not constitute an unlawful employment practice in violation of
“For the purposes of
ORS 659.010 to659.110 ,659.227 ,659.330 ,659.340 and659.400 to659.435 , it is an unlawful employment practice:“(a) For an employer, because of an individual‘s race, religion, color, sex, national origin, marital status or age if the
individual is 18 years of age or older and under 70 years of age, or because of the race, religion, color, sex, national origin, marital status or age of any other person with whom the individual associates, or because of a juvenile record, that has been expunged pursuant to ORS 419.800 to419.839 , of any individual, to refuse to hire or employ or to bar or discharge from employment such individual. However, discrimination is not an unlawful employment practice if such discrimination results from a bona fide occupational requirement reasonably necessary to the normal operation of the employer‘s business.”
Miller is over the age of 18 and under the age of 70 and is entitled to rely on this statute.
Petitioner further argues, and the dissent agrees, that the commissioner must find that age was the sole factor in the decision not to hire Miller in order to constitute an unlawful employment practice under
“It is declared to be the public policy of Oregon that available manpower should be utilized to the fullest extent possible. To this end the abilities of an individual, and not any arbitrary standards which discriminate against an individual solely because of his age, should be the measure of the individual‘s fitness and qualification for employment.”
The dissent concludes that the word “solely” used in the statute demonstrates a legislative purpose to allow consideration of age as a hiring criterion, if at least one other factor can be identified in the decision not to hire. We are not persuaded.
The policy statement contained in
Senate Bill 17, which became former
“(1) It is an unlawful employment practice for an employer to refuse to hire or employ or to bar, discharge, dismiss, reduce, suspend or demote any individual because of his age if the individual is 25 years of age or older and under 65 years of age; ***”
Senate Bill 16, which became former
“(1) It is an unlawful employment practice for a public employer or any person acting for a public employer to disqualify or discriminate against any individual in any civil service entrance, appointment or promotion examination or rating, or to refuse to hire, employ or reemploy or to bar, discharge, dismiss, reduce, suspend or demote any individual because of his age if the individual is 25 years of age or older and under 65 years of age; * * * ”
The policy statement in
“It shall be unlawful for an employer—
“(1) to fail or refuse to hire or to discharge any individual or otherwise discriminate against any individual with respect to his compensation, terms, conditions, or privileges or employment, because of such individual‘s age.” (Emphasis supplied.)
Under these circumstances, we find the application of
At first glance, the language in
We also must consider
In Fred Meyer v. Bureau of Labor, 39 Or App 253, 592 P2d 564, rev den 287 Or 129 (1979), the complainant recovered back pay for discharge “because of race,” even though there was some evidence of substandard work performance and the decision to discharge was not proven to be entirely racially motivated. The store manager made the decision to discharge based on unsatisfactory work performance with the recommendation of three supervisors, two of which were found to be motivated by racial prejudice in giving their recommendation. We concluded that there was evidence to support the commissioner‘s finding that
“* * * [a]ny correctly perceived instances of the Complainant‘s substandard work performance [which influenced the manager‘s] termination decision were contributed to and caused, at least in part, by the racial abuse and slurs directed at the Complainant, * * *.” 39 Or App at 267. (Emphasis supplied.)
That evidence was sufficient to support a claim for unlawful employment practices under
We conclude that the legislature meant to prohibit the use of age as a determining factor in an employer‘s decision to hire a particular applicant, even when other factors
To adopt the position of the dissent would be openly to validate discrimination because of age, provided that one other factor is present. In the 1959 hearings on SB 16, a senator inquired of the chief sponsor and advocate whether the bill would contemplate prohibiting newspaper advertising which restricted age and was told that it would. The dissent would change that answer, if some other factor was mentioned in the ad. This could not be the “positive approach” the legislature intended.
Although the commissioner found that petitioner considered three factors6 in evaluating Miller‘s qualifications, only one of which was age, there is ample evidence in this case to support the determination that age was a factor in the decision not to hire Miller. The dissent mischaracterizes the facts in this case. Petitioner argues, and the dissent agrees, that she simply hired the older of the two qualified applicants after considering all of the factors, but the commissioner‘s findings, as well as petitioner‘s own testimony, show otherwise. Petitioner testified that, when Miller applied for work, she needed and sought two new employes, each to work five days per week, including Saturdays. The only applicants who remained interested after petitioner explained that the clientele were elderly were Miller and Bynum, whom petitioner subsequently hired to work two days per week. She admitted that Miller was qualified and testified in no uncertain terms in her deposition and at the hearing that she considers age in making her hiring decisions. The only explanation that she offered for not hiring Miller was that Miller refused to work full-time or Saturdays. The commissioner was entitled to and did disbelieve that explanation.
Miller was not competing with an older applicant for a single position. The evidence supports the view that petitioner did not simply prefer the older applicant, all other factors being equal. The consideration petitioner gave to
The purpose of employment discrimination statutes is to discourage the use of categories in employment decisions which ignore the individual characteristics of particular applicants. By declaring discrimination on the basis of age an unlawful employment practice, the legislature recognized that age alone may bear no relation to a person‘s ability to perform a job or contribute to society. This is not to deny that age indirectly figures into employment decisions based on experience requirements. Such requirements are valid when they relate to the demonstrated needs of the employer and the actual capabilities of an individual to perform the job. But, when, as here, a qualified applicant is not hired for an available position, no legitimate reason is offered for not hiring that person and age per se was a factor in the decision, we hold that the commissioner did not err in concluding that the decision constitutes an unlawful employment practice under
In her third assignment, petitioner challenges the commissioner‘s authority to award $12,143.65 in money damages. The commissioner has the authority to issue an appropriate cease and desist order against any employer found to have engaged in any unlawful practice charged, once she has considered all of the evidence and issued findings of fact and conclusions of law.
“‘Cease and desist order’ means an order signed by the commissioner, taking into account the subject matter of the complaint and the need to supervise compliance with the terms of any specific order issued to eliminate the effects of any unlawful practice found, addressed to a respondent requiring the respondent to:
“(a) Perform an act or series of acts designated therein and reasonably calculated to carry out the purposes of
ORS 659.010 to659.110 and659.400 to659.435 , eliminate the effects of an unlawful practice found, and protect the rights of the complainant and other persons similarly situated.”
An award of money damages constituting the difference between actual earnings and those the complainant would have earned, absent the employer‘s discriminatory employment decision, has been recognized as within the commissioner‘s authority to protect the rights of the private complainant under a cease and desist order. School District No. 1 v. Nilsen, 271 Or 461, 534 P2d 1135 (1975); Sch. Dist. No. 1 v. Mission Ins. Co., 58 Or App 692, 703, 650 P2d 929 (1982), rev den 294 Or 682 (1983); Clackamas Co. Fire Protection v. Bureau of Labor, 50 Or App 337, 352, 624 P2d 141, rev den 291 Or 9 (1981); Williams v. Joyce, 4 Or App 482, 479 P2d 513, rev den (1971); but see Fred Meyer v. Bureau of Labor, supra, 39 Or App at 270 (Buttler, J., specially concurring). The order to pay money damages is valid if it is reasonably calculated to eliminate the effects of petitioner‘s refusal to hire Miller because of her age.
The commissioner awarded damages from February 19, 1979, when the applicant who was hired began work, until November 6, 1980, when Miller found “alternative work” at an AM-PM Mini Market. The only fact supporting the conclusion that Miller did not find alternative work until November 6, 1980, was her testimony that, up to that date, she would have quit any job she had to work for petitioner. On the basis of that testimony, the commissioner found that, between February, 1979, and approximately January 1, 1980, and between approximately February 12, 1980, and November 6, 1980, Miller remained ready and willing to work as a beautician in petitioner‘s salon. We are bound by findings of fact
After petitioner told Miller that there was no vacancy, complainant resumed looking for work. The first work she obtained was at The Townhouse beauty salon as a beautician for about two days, earning no more than $49. Her percentage commission on that job does not appear in the record. On March 28, 1979, she began working as a beautician full-time at The Airliner beauty salon. After one month at The Airliner, she left voluntarily and immediately started work at Ann‘s Honeycomb beauty salon. She worked there for approximately eight months, when she left voluntarily. Miller brought none of her own clientele to The Airliner or Ann‘s, and her compensation was 60 percent of her receipts, as it would have been at petitioner‘s shop. We accept the commissioner‘s findings that Miller remained willing to work for petitioner but conclude that she found “alternative work” on March 28, 1979, when she obtained full-time work in the same field at an equivalent commission. Her damages could not continue to accrue beyond that date.
In computing the damages, the commissioner found that Miller would have worked full-time, earning at least as much as the average daily wages8 of petitioner‘s employes, which was $42.95. Those findings are supported by the evidence. Therefore, Miller is entitled to recover $1,067.70 in damages accruing from February 19 until March 28, 1979,
In her fourth assignment, petitioner claims that there is no statutory authority for the commissioner to award prehearing interest on lost wages. We do not agree. The commissioner has the authority to order money damages in order to “eliminate the effects of [the] unlawful practice found and protect the rights of the complainant * * *.”
The award does not offend the rule developed in case law that prejudgment interest may be awarded only when the damages are easily ascertainable by simple computation or by reference to generally recognized standards such as market price and the date recovery became due is easily determined. Public Market Co. v. Portland, 171 Or 522, 130 P2d 624, 138 P2d 916 (1943); Carlson v. Blumenstein, 54 Or App 380, 635 P2d 380 (1981), modified on other grounds 293 Or 494, 651 P2d 710 (1982). The date of the rejection sets the time the wages became due, and the sum owing may be ascertained with reasonable certainty by looking at the wages earned by those performing the same job during the period when Miller suffered economic loss on account of the unlawful discrimination.
The commissioner, however, ordered that interest be compounded. That method of computation assumes that the entire amount of damages became due on the date of applicant‘s rejection, which is clearly error. Interest should be at the rate of 6 percent on daily wages accruing between February 19, 1979, and December 31, 1979, and at the rate of 9 percent on wages accruing between December 31, 1979, and March 28, 1979, and 9 percent on the total amount thereafter, until the date petitioner complies with the order.
In her fifth assignment, petitioner contends that the commissioner erred in not disclosing the Bureau of Labor‘s investigative file. The commissioner contends that she need not disclose the records under
“The following public records are exempt from disclosure under
ORS 192.410 to192.500 unless the public interest requires disclosure in the particular instance:“* * * * *
“(h) Investigatory information relating to any complaint filed under
ORS 659.040 or659.045 , until such time as the complaint is resolved underORS 659.050 , or a final administrative determination is made underORS 659.060 .”
The public policy favors disclosure of public records and we construe the statutory exemption narrowly, see Lane County School District v. Parks, 55 Or App 416, 637 P2d 1383 (1981), rev den 293 Or 103 (1982); Morrison v. School District No. 48, 53 Or App 148, 152, 631 P2d 784, rev den 291 Or 893 (1981). We conclude that the purpose of the exemption is fulfilled by authorizing that disclosure be denied to members of the public exclusive of those involved directly in the dispute. The goal of
We believe that in a proceeding between the commissioner and an accused employer, the ordinary rules of discovery apply. The commissioner erred in denying discovery under
The decisions of the Bureau of Labor and circuit court are modified to reduce damages to $1,067.70, plus interest at the rate of 6 percent from February 19, 1979,
ROSSMAN, J., dissenting.
Although I highly commend the majority for its well-reasoned resolution of the damages issue in this case, I believe that a proper construction of
“It is declared to be the public policy of Oregon that available manpower should be utilized to the fullest extent possible. To this end the abilities of an individual, and not any arbitrary standards which discriminate against an individual solely because of his age, should be the measure of the individual‘s fitness and qualification for employment.” (Emphasis supplied.)
The majority‘s construction of
That the legislature intended otherwise is obvious, given its use of the word solely in
The erroneous nature of the majority‘s interpretation becomes even more apparent after considering that the legislature felt it necessary to issue two separate policy statements
Moreover, the word solely is also conspicuously absent from
The commissioner specifically found that petitioner relied on two factors in addition to the applicant‘s age. Although she does not identify the other two factors, we must assume that they were non-discriminatory. Accordingly, because petitioner did not rely solely on age, in my opinion she did not violate the statute.
The commissioner and the majority conclude that, because petitioner considered age at all, she behaved unlawfully. I do not believe the legislature intended to impose such a narrow and rigid standard. Therefore, I would find that the commissioner relied on an erroneous interpretation of
