Lead Opinion
Williаm Shea appeals the district court’s dismissal of his employment discrimination lawsuit against Colin Powell, the former Secretary of the United States Department of State
I.
For the purpose of Shea’s appeal, we assume the truth of the factual allegations contained in his complaint,
[A]t the time I applied for a position as an FSO in 1991 and started in 1992, the Department was giving higher starting paygrades to minoritiеs with the same qualifications I had, and lower starting paygrades to non-minorities. I was not eligible to start at a higher grade only because of my race/ethnicity. I would have started two paygrades higher than I did, but for my non-minority race/ethnicity status. The government interest being advanced by this racially discriminatory program was, again, achieving racial balancing (diversity) in the workforce.
Joint Appendix (J.A.) 15. Shea further alleged that, as a result of this “racially discriminatory program,” he “receiv[es] less pay with each paycheck than [he] would ... if [he] had not been discriminated[] against.” Id. According to his complaint:
At аn absolute minimum,' even in the unlikely event that I had never been promoted, if I had started in 1992 at FS-3 I would today be receiving pay at no less than the rate of an FS-3 step nine ($68,684 per year) rather than my current FS-3 step 5 ($61,025). If I had started at FS-3 and been promoted at about an average rate, I would now be paid at about the grade of FS-2 step 4 ($73,119). If promoted at a faster-than-average rate, I would be receiving higher pay than $73,119.
Id. Shea alleged that the receipt of each paycheck constitutes a “recurring violation of Title VII.” Id.
Shea initially filed a grievance with thе State Department, as required by statute. See 22 U.S.C. § 4134(a). When the State Department failed to act on his discrimination claims within 90 days, Shea filed his grievance with the Foreign Service Grievance Board (Board). See id. § 4134(b). The Board dismissed his grievance, finding that it lacked jurisdiction to entertain it. Shea then filed suit in federal district court to obtain review of the Board’s decision, as permitted by statute. See id. § 4140.
On Sept~mber 30, 2003, the district court granted the S~cretary's Rule 12(b)(6) motion to dismiss Shea's complaint. Fad. R. Civ. P. 12(b)(6). As to the pay grade discrimination claim, the district court con-cludeci that "the allegedly discriminatory act-the assignment of a pay grade two levels below that of similarly qualified minority hires-did not occur within the pen-od covered by his administrative complaint." J.A. 8. The district court first observed that, because a grievance under the Foreign Service Act is statutorily time-barred if filed later than 180 days "after the occurrence giving rise to the grievance," 22 U.S.C. § 4134(a) & (c)(1), Shea could not recover on all of the paychecks he received since he was hired in May 1992 but, at most, only on those received after January 12, 2001, or 180 days before he filed his grievance with the State Department on July 11, 2001. It then concluded that Shea could not recover on paychecks received after January 12, 2001 either. Relying on Niedermeier v. Office of Baucus,
Shea now appeals.
II.
Our review is de novo. Gilvin v. Fire,
Shea waited until July 11, 2001, to file an administrative grievance with the State Department, alleging that he had received discriminatorily low pay and benefits since he was hired in May 1992. The rub, as the district court recognized, is that the Foreign Service Act “forever” bars any grievance based on alleged discrimination if the grievance is filed more than 180 days “after the occurrence giving rise to the grievance.” 22 U.S.C. § 4134(a) & (c)(1). The question, then, is whether Shea can state a claim for relief regarding the allegedly discriminatory paychecks he received both within the limitations period and thereafter or whether, as the district court concluded, his entire claim is time-barred.
The Secretary, relying on the holding in Nat’l R.R. Passenger Corp. v. Morgan,
The Seсretary contends that Shea merely complains about the present effects of a past act — namely, the State Department’s assignment of an allegedly discriminatorily low pay grade in 1992 — and therefore even the post-January 12, 2001, claim is barred. The district court accepted this argument, concluding that “the allegedly discriminatory act — the assignment of a pay grade two levels below that of similarly qualified minority hires — did not occur within the period covered by his administrative complaint.” J.A. 8. If Shea were complaining of the assignment of a discriminatorily low pay grаde only, we would agree under a clear line of Supreme Court cases — United Air Lines, Inc. v. Evans,
Shea’s. complaint, however, is not simply that the State Department discriminated against him in assigning him a lower pay grade than similarly-situated minority hires in 1992 but that, as a consequence of the “racially discriminatory” diversity program it then operated, he “receives] less pay with each paycheck than [he] would be [receiving] if [he] had not been discriminated[] against. ” J.A. 15 (emphasis added). We believe this allegation is properly analyzed not under the Evans-Ricks-Lorance line of precedent, which treats discriminatory acts under a facially-neutral employment system, but instead under the holding in Bazemore v. Friday,
This is not the first time our Circuit has recognized the distinction between the Evans-Ricks-Lorance line, on the one hand, and Bazemore, on the other. See Anderson v. Zubieta,
The Secretary nevertheless maintains that the Bazemore-Anderson analysis was put to pasture in Morgan. Not so. Granted, Morgan restricted the “continuing violation doctrine” in holding that, while “a hostile work environment claim ... will not be time barred so long as all acts which constitute the claim are part of the same unlawful employment practice and at least one act falls within the time period,”
The Secretary then responds that, even if Bazemore survives Morgan, its rationale does not extend to Shea’s case. But the precedent she relies on to support her assertion — Williams,
The Secretary, as did the district court, finds support in the dicta contained in Niedermeier v. Office of Baucus,
Nor do we agree with the Secretary that our reading of Bazemore “evisceratefs] Morgan as well as the time requirements of Title VIL” Appellee’s Br. at 10. Given that the holding in Morgan relies on the holding in Bazemore, it is difficult to see how the application of the latter holding could “eviscerate” the former. The two decisions dovetail: Bazemore holds that an employee may recover for discriminatorily low pay received within the limitations period because each paycheck constitutes a discrete discriminatory act, see
We likewise cannot accept the Secretary’s related contention that allowing Shea’s claim tо proceed would “severely prejudice [the Department] by forcing it to defend stale charges based on actions that allegedly occurred long ago.” Appellee’s Br. at 9. The Secretary is undoubtedly correct that “[statutes of limitation are statutes of repose; their purpose is to quiet stale controversies, the evidence as to which may be eroded by time.” Fox-Greenwald Sheet Metal Co. v. Markowitz Bros.,
Finally, the Secretary asserts that the Bazemore rule is unavailable to Shea because it is limited to private class actions and to suits brought by the government ex relatione on a pattern-or-practice theory only. Bazemore is a pattern-or-practice case but we find nothing in Bazemore to suggest that its holding is-so limited. See
For the foregoing reasons, the judgment of the district court granting the Secretary of State’s motion to dismiss is reversed and the case is remanded for further proceedings in accordance with this opinion.
So ordered.
Notes
. Shea sued Powell in his official capacity as Secretary of State. See 42 U.S.C. § 2000e-16(c). Powell has since resigned and his successor, Condoleezza Rice, is automatically substituted pursuant to Federal Rules Of Appellate Procedure Rule 43(c)(2).
. Shea’s complaint was dismissed pursuant to Federal Rules Of Civil Procedure Rule 12(b)(6). See Gilvin v. Fire,
. In Evans, the plaintiff was forced to resign in 1968 because a United Air Lines policy barred female flight attendants who were married. See
In Ricks, the plaintiff, a junior professor, alleged that Delaware State College discriminated against him based on his national origin when it denied him tenure and instead gave him a one-year " `terminal contract.'" See
Finally, in Lorance, the three female plaintiffs alleged that they were demoted under a seniority system that "ha[d] its genesis in [sex] discrimination.”
. Anderson, which we decided three years before the Morgan decision, also allowed the plaintiffs to rely on the "continuing violation” theory to recover for the paychecks they received before the 45-day limitations period. See
. Before the district court offered this analysis, it concluded that "neither of these cases is new law and thus plaintiff's attempt to raise this argument post-judgment is not a sufficient ground for reconsideration.” Nieder-meier,
. On this point, the Secretary cites two cases but neither supports her position. In a parenthetical, she claims that the Ninth Circuit in Cherosky "refus[ed] to allow non-class private plaintiffs to use Bazemore to revive [an] action time-barred under Morgan." Appel-lee's Br. at 7. That the plaintiffs were not class members played no part in the decision and the court in fact relied on Bazemore in concluding that “a discriminatory policy claim does not extend the statute of limitations." See Cherosky,
Concurrence Opinion
concurring.
I write separately to underscorе the precise distinction that we draw, following the Supreme Court to the best of our ability, between cases where a plaintiff can recover for the current consequences of a discrete discriminatory act in a time-barred period and cases where he or she may not. The distinction turns, as I see it, on whether one may reasonably characterize the defendant employer as applying a discriminatory salary structure in the unbarred period. See Maj. Op. at 452-54.
First, of course, we put aside hostile environment claims, which under National Railroad Passenger Corp. v. Morgan, 536
Among cases of discrete acts, those allowing recovery include Bazemore v. Friday,
On the other side are cases where a plaintiff cannot recover for a pay discrepancy in the unbarred period arising from an employer’s act of alleged discrimination in a barred period. The clearest example is Evans itself. At least in ordinary language, it seems impossible to describe the airline as currently applying a seniority policy that itself discriminated on the basis of marital status. The Court, after all, declared the system to be “neutral in its operation.”
In Lorance v. AT & T Technologies,
Most recently in Law v. Continental Airlines Corp., Inc.,
Morgan, the district court’s main ground for barring Shea’s claim, explicitly preserves Bazemore, which Morgan described as addressing “a discriminatory salary structure.”
Shea, however, alleges just such a structure. See Complaint at ¶ 6(b) (“[A]t the time I applied for a position ... the Department was giving higher starting paygrades to minorities with the same qualifications I had, and lower starting paygrаdes to non-minorities.”); ¶ 6(c) (“Because of the ... discrimination noted [earlier], I am today receiving less pay with each paycheck than I would be if I had not been discriminated against .... This is a recurring violation of Title VII with the receipt of each paycheck.”). We can grasp the allegation most easily if we imagine Shea’s situation in a world with no inflation and no “time in grade” pay increases. In such a world, it appears from his complaint, the State Department’s current pay policy could reasonably be described as follows: “Everyone will be paid $XX,XXX except that (1) employees who have received special merit promotions or demotions will also receive whatever increments or decrements were prescribed at the relevant times, and (2) white employees hired in 1992 will receive five per cent less than they would otherwise.” This would look very much like Bazemore and Anderson. It is hard to construct a similar sentence to describe the policies being applied in Evans, Lorance or Law.
Distinguishing currently discriminatory pay structures from other, related employer policies is hardly an exact science. Were we to start from scratch, we might find more transparent criteria. But the distinction advanced above appears to reconcile the cases. We therefore follow it here.
