Hеlen Pittman appeals from dismissal of an employment discrimination claim brought under § 1981 against the Employment Department of the State of Oregon. The district court dismissed the § 1981 action, holding that the statute does not provide a cause of action against states. We affirm.
FACTS
On March 30, 2005, plaintiff Helen Pittman, an African-American woman, filed a complaint in Multnomah County Circuit Court alleging employment discrimination
On April 12, 2005, defendants removed the case to federal court and then moved to dismiss under Federal Rule of Civil Procedure 12(b)(6). In their motion to dismiss, defendants argued that there is no right of action to sue a state under either § 1981 or § 1983, and that a state, “regardless, is immune from such suits under the 11th Amendment to the United States Constitution.” 1
On August 8, 2005, the district court issued an opinion and order in which it granted the defendants’ motion to dismiss. Addressing Pittman’s § 1983 claim, the district court noted that states are not “persons” for purposes of § 1983, so Pittman could not proceed under that statute against the Employment Department. Turning to Pittman’s § 1981 claim, the district court held that the State of Oregon waived its Eleventh Amendment immunity by removing the case to federal court, but agreed that § 1981 does not permit actions against a state, citing the Supreme Court’s decision in
Jett v. Dallas Independent School District,
ANALYSIS
Under this circuit’s case law, § 1981 contains a right of аction against municipalities.
Fed’n of African Am. Contractors v. City of Oakland,
A. We begin by recounting the historical background of the issue before us. Prior to the amendments brought about by the Civil Rights Act of 1991, Pub.L. No. 102-166, 105 Stat. 1071, 42 U.S.C. § 1981 provided:
All persons within the jurisdiction of the United States shall have the same right in every State and Territоry to make and enforce contracts, to sue, be parties, give evidence, and to the full and equal benefit of all laws and proceedings for the security of persons and property as is enjoyed by white citizens, and shall be subject to like punishment, pains, penalties, taxes, licenses, and exactions of every kind, and to no other.
The Supreme Court has interpreted this language to prohibit racial discrimination by both privatе parties and state entities in the making and enforcement of contracts.
See Runyon v. McCrary,
Having held that § 1981 by its terms prohibits private discrimination as well as discrimination under color of state law, the Supreme Court in
Jett v. Dallas Independent School District,
Two years after Jett, Congress passed the Civil Rights Act of 1991, Section 101 of which added two new subsections to 42 U.S.C. § 1981. The new subsection (c) provides:
(c) Protection against impairment
The rights protected by this section are protected against impairment by nongovernmental discrimination and impairment under color of State law.
In their reports on the bill, the House Education and Labor Committee and the House Committee on the Judiciary both indicated that the purpose of subsection (c) was to codify Runyon v. McCrary. See H.R. Rep. No. 102-40(1), at 92 (1991), reprinted in 1991 U.S.C.C.A.N. 549, 630 (citing Runyon and stating that § 1981(c) “confirms section 1981’s coverage of both public and private sector employment”); H.R. Rep. No. 102-40(II), at 37 (1991), reprinted in 1991 U.S.C.C.A.N. 694, 731 (subsection (c) “is intended to codify Runyon v. McCrary ”). The legislative history of the subsection nowhere makes referеnce to Jett, or to the availability of a private cause of action against states or state officials.
Pittman contends that the addition of subsection (c) to § 1981 overruled Jett to create a cause of action against both municipalities and arms of the state. Pittman does not contend, nor would the language of the statute suggest, that the amendment explicitly created a right of action against arms of the state. She argues, however, that subsection (c) contains an implied right of action against both municipalities and state actors.
1) “[I]s the plaintiff one of the class for whose especial benefit the statute was enacted”? Cort,422 U.S. at 78 ,95 S.Ct. 2080 (quotation marks omitted).
2) “[I]s there any indication of legislative intent, explicit or implicit, either to create ... a [federal] remedy or to deny one”? Id.
3) “[I]s it consistent with the underlying purposes of the legislative scheme to imply such a remedy”? Id.
4) “[I]s the cause of action one traditionally relegated to state law”? Id.
Although we continue to consider the four factors outlined in
Cort,
we also note that subsequent Supreme Court decisions have clarified that “legislative intent” is the “most important inquiry.”
See Orkin,
All of the other circuits to reach thе question have held that the 1991 amendments and the addition of subsection (c) did not overrule
Jett,
and that there is still no cause of action against municipalities or other state actors. In
Butts v. County of Volusia,
We, however, in
Federation of African American Contractors v. City of Oakland,
Applying the Cort factors, the court determined that “the statute, by its plain terms, creates federal civil rights in favor of a class of persons that include[d]” the plaintiffs, a group of African-American contractors who alleged that they had been discriminated against on the basis of race by the city of Oakland. Id. at 1211. As to legislative intent, the court held that, although Congress did not mention an intent to overrule Jett, it did intend to provide “parallel prоtection against private and governmental entities”:
Because § 1981(c) affords identical protection against “impairment by nongovernmental discrimination” and “impairment under color of State law,” and because § 1981(c) implicitly codifies an implied cause of action against private defendants, we infer that § 1981(c) also contains an implied cause of action against state actors who “impair” a claimant’s § 1981 rights.
Id. at 1213.
The court went on to hold that actions against state actors whо violate federal civil rights “have
not
been traditionally relegated to state law,” and that a cause of action was not inconsistent with the underlying purposes of the legislative scheme.
Id.
at 1213-14. In reaching this final conclusion, the court acknowledged that there was already a remedy for violations of § 1981 by municipalities under § 1983. It noted, however, that “there is no alternative enforcement mechanism in the revised 42 U.S.C. § 1981 itself,” and that implying a cause of action against municipalities under § 1981 “imposes no substantive change on federal civil rights law,” because such actions were already possible under § 1983.
3
Id.
at 1214. Notably, the argument that § 1981 contains a cause of action against municipalities was raised in
Federation
in an attempt to free plaintiffs from the obligation to demonstrate a “policy or custom” as required under
Monell
to impose liability on local government units under § 1983.
Id
(noting that appeal presents the issue whether § 1981(c) overrules
Jett,
“and, if so, whether the Act relieves plaintiffs from alleging that their civil rights were violated as a result of an offieial ‘policy or custom’ ”).
Federation
ultimately held on the latter question that the “policy or custom” requirement pertains to municipalities sued under § 1981.
B. Pittman argues that the reasoning of Federation necessarily applies not only to municipalities, but to arms of the state. The argument is a substantial one in two respects. First, the language of § 1981(c) itself does not support any distinction between municipalities and arms of the state. The statute merely affirms that it prohibits discrimination “under color of law,” and both municipal actors and arms of the state act “under color of law.” Second, much of Federation’s analysis.of whether it is appropriate to imply a private right of actiоn does not depend on any distinction between municipalities and state entities. The statute, by its plain terms, creates rights in favor of individuals who have been discriminated against in employment on the basis of race. Further, causes of action against state actors for violation of federal civil rights have also not traditionally been relegated to state law.
We nonetheless reject the extension of
Federation
to suits against arms of the state, for other reasons we conclude аre more weighty. Most notably, the reasoning of
Federation
depended in part on its conclusion that implication of a cause of action against municipalities under § 1981 “imposes no substantive change on federal
As the Supreme Court has applied the Eleventh Amendment, “an unconsent-ing State is immune from suits brought in federal courts by her own citizens as well as by citizens of another State.”
Edelman v. Jordan,
There are, however, exceptions to Eleventh Amendment immunity. When acting pursuant to its authority under § 5 of the Fourteenth Amendment, Congress can abrogate the sovereign immunity of the states.
See Atascadero State Hosp. v. Scanlon,
Applying these principles of sovereign immunity to cases under § 1983 and § 1981, courts have held that states enjoy sovereign immunity from suits brought under both statutеs. In
Quern v. Jordan,
The ability to bring an action against a state is governed, of course, not only by sovereign immunity, but also by whether the statute itself creates a cause of action against a state. As the Supreme Court held in
Jett
that there was no cause of action against state actors under § 1981, plaintiffs wishing to enforce § 1981’s prohibitions against a state actor were relegated to the cause of action available un
For this reason, holding that § 1981(c) creates a cause of action against state actors would bring abоut some change in federal civil rights law that was not created by allowing actions against municipalities. Such a holding would allow cases in federal court against arms of the state in those instances in which they waive their Eleventh Amendment sovereign immunity, as the State has in this case. Perhaps more importantly, it would allow actions in state court against arms of the state for violations of § 1981, at least when the state does not invoke sovereign immunity under its оwn law in its own courts.
The Supreme Court has instructed that allowing suits against states in state court is a significant alteration in the federal/state balance that must be supported by a clear statement of Congressional intent. In
Will v. Michigan Dep’t of State Police,
Will, then, suggests that the creation of a right of action against state actors under a civil rights statute, even where there is no question of abrogating the state’s sovereign immunity, constitutes an “alteration in] the usual constitutional balance between the States and the Federal Government” for which “unmistakably clear language” is required. We do not find it necessary to address here whether “unmistakably clear language” is always required to find an implied right of action against a state under a civil rights statute. Will nonetheless suggests that, at the least, there must be some evidence of Congressional intent to impose liability on states in order to find such an implied right of action.
In fact, neither the language nor the legislative history of the statute suggests any intent to create a private right of action against arms of the state. Federation is not to the contrary, as it did not involve the application of Will; concerned only municipalities, not states; and stressed that it worked no practical changes in civil rights law because of the absence of sovereign immunity protection for municipalities.
C. Our conclusion that § 1981(c) does not create a private right of action against states is bolstered by developments in the Supreme Court’s approach to private rights of action that have occurred since this court issued its decision in
Federation.
In
Gonzaga University v. Doe,
... [E]ven where a statute is phrased in ... explicit rights-creating terms, a plaintiff suing under an implied right of action still must show that the statute manifests an intent “to create not just a private right but also a private remedy.”
Id.
at 284,
The holding in
Gonzaga
was not a significant departure from previous Supreme Court case law, which, beginning in the 1970s, has increasingly emрhasized the distinction between rights and remedies.
See Virginia Bankshares, Inc. v. Sandberg,
CONCLUSION
For the foregoing reasons, we hold that § 1981 does not contain a cause of action against states. The district court’s dismissal of Pittman’s § 1981 action against the State of Oregon Employment Department is AFFIRMED.
Notes
. Defendants further contended that Deborah Lincoln was not properly a party to the action because she had not been served. The court held that Lincoln had not been properly served, and dismissed the action against her. That ruling has not been challenged on appeal.
. 42 U.S.C. § 1982 provides:
All citizens of the United States shall have the same right, in every State and Territory, as is enjoyed by white citizens thereof to inherit, purchase, lease, sell, hold, and convey real and personal property.
. Although
Federation
refers in parts to "state actors,” it is clear from the context of the entire opinion — and from
Federation’s
observation that its decision would not create a substantive change in the law — that it focused only on private causes of action against municipalities and other local government units.
Federation
involved a challenge to discrimination by Alameda County.
Fed. of African American Contractors v. City of Oakland,
. Section 1983 provides, in relevant part:
Every person who, under color of any statute, ordinance, regulation, custom, or usage, of any State or Territory or the District of Columbia, subjects, or causes to be subjected, any citizen of the United States or other person within the jurisdiction thereof to the deprivation of any rights, privileges, or immunities secured by thе Constitution and laws, shall be liable to the party injured in an action at law, suit in equity, or other proper proceeding for redress....
. While
Will
does provide support for the State’s position, it does not do so on the basis the state argues in its brief. The State maintains that a holding that there is a cause of action against a state would, unlike in
Federation,
work a substantive change in civil rights law because "state agencies are immune from lawsuits filed against them under § 1983.” But states are also immune from suits in federal court under § 1981. Actions under § 1981 would still be barred by sovereign immunity in federal courts in the absence of
. We note that, while implied rights of action necessarily require an intent to create a remedy, such an intent is unnecessary for creation of a right enforceable under § 1983.
See Gonzaga,
