ALBEMARLE PAPER CO. ET AL. v. MOODY ET AL.
No. 74-389
Supreme Court of the United States
Argued April 14, 1975—Decided June 25, 1975
422 U.S. 405
*Together with No. 74-428, Halifax Local No. 425, United Papermakers & Paperworkers, AFL-CIO v. Moody et al., also on certiorari to the same court.
J. LeVonne Chambers argued the cause for respondents in both cases. With him on the brief were Jack Greenberg, James M. Nabrit III, Charles Stephen Ralston, Eric Schnapper, Morris J. Baller, Barry L. Goldstein, Robert Belton, Conrad O. Pearson, T. T. Clayton, Albert J. Rosenthal, and Louis H. Pollak.
James P. Turner argued the cause for the United States et al. as amici curiae urging affirmance in both cases. On the brief were Solicitor General Bork, Assistant Attorney General Pottinger, Mark L. Evans, Brian K. Landsberg, David L. Rose, John C. Hoyle, Julia C. Cooper, Joseph T. Eddins, and Beatrice Rosenberg.†
†Briefs of amici curiae in both cases were filed by Gerard C. Smetana, Jerry Kronenberg, Milton A. Smith, and Richard B. Berman for the Chamber of Commerce of the United States; by J. Harold Flannery, Paul R. Dimond, William E. Caldwell, Robert B. Wallace, William H. Brown III, Lloyd N. Cutler, and Erwin N. Griswold for the Lawyers’ Committee for Civil Rights Under Law; and by the American Society for Personnel Administration. John Vanderstar filed a brief for Scott Paper Co. as amicus curiae in No. 74-389.
These consolidated cases raise two important questions under Title VII of the Civil Rights Act of 1964, 78 Stat. 253, as amended by the Equal Employment Opportunity Act of 1972, 86 Stat. 103,
I
The respondents—plaintiffs in the District Court—are a certified class of present and former Negro employees at a paper mill in Roanoke Rapids, N. C.; the petitioners—defendants in the District Court—are the plant‘s owner, the Albemarle Paper Co., and the plant employees’ labor union, Halifax Local No. 425.1 In August 1966, after filing a complaint with the Equal Employment Opportunity Commission (EEOC), and receiving notice of their right to sue,2 the
At the trial, in July and August 1971, the major issues were the plant‘s seniority system, its program of employment testing, and the question of backpay. In its opinion of November 9, 1971, the court found that the petitioners had “strictly segregated” the plant‘s departmental “lines of progression” prior to January 1, 1964, reserving the higher paying and more skilled lines for whites. The “racial identifiability” of whole lines of progression persisted until 1968, when the lines were reorganized under a new collective-bargaining agreement. The court found, however, that this reorganization left Negro employees “‘locked’ in the lower paying job classifications.” The formerly “Negro” lines of progression had been merely tacked on to the bottom of the formerly “white” lines, and promotions, demotions, and layoffs continued to be governed—where skills were “relatively equal“—by a system of “job seniority.” Because of the plant‘s previous history of overt segregation, only whites had seniority in the higher job categories. Accordingly, the court ordered the petitioners to implement a system of “plantwide” seniority.
“In the instant case there was no evidence of bad faith non-compliance with the Act. It appears that the company as early as 1964 began active recruitment of blacks for its Maintenance Apprentice Program. Certain lines of progression were merged on its own initiative, and as judicial decisions expanded the then existing interpretations of the Act, the defendants took steps to correct the abuses without delay. . . .
“In addition, an award of back pay is an equitable remedy. . . . The plaintiffs’ claim for back pay was filed nearly five years after the institution of this action. It was not prayed for in the pleadings. Although neither party can be charged with deliberate dilatory tactics in bringing this cause to trial, it is apparent that the defendants would be substantially prejudiced by the granting of such affirmative relief. The defendants might have chosen to exercise unusual zeal in having this court determine their rights at an earlier date had they known that back pay would be at issue.”
The court also refused to enjoin or limit Albemarle‘s testing program. Albemarle had required applicants for employment in the skilled lines of progression to have a high school diploma and to pass two tests, the Revised Beta Examination, allegedly a measure of nonverbal in-
“The personnel tests administered at the plant have undergone validation studies and have been proven to be job related. The defendants have carried the burden of proof in proving that these tests are ‘necessary for the safe and efficient operation of the business’ and are, therefore, permitted by the Act. However, the high school education requirement used in conjunction with the testing requirements is unlawful in that the personnel tests alone are adequate to measure the mental ability and reading skills required for the job classifications.”
The petitioners did not seek review of the court‘s judgment, but the respondents appealed the denial of a backpay award and the refusal to enjoin or limit Albemarle‘s use of pre-employment tests. A divided Court of Appeals for the Fourth Circuit reversed the judgment of
“Because of the compensatory nature of a back pay award and the strong congressional policy embodied in Title VII, a district court must exercise its discretion as to back pay in the same manner it must exercise discretion as to attorney fees under Title II of the Civil Rights Act. . . . Thus, a plaintiff or a complaining class who is successful in obtaining an injunction under Title VII of the Act should ordinarily be awarded back pay unless special circumstances would render such an award unjust. Newman v. Piggie Park Enterprises, 390 U. S. 400 . . . (1968).” (Footnote omitted.)
As for the pre-employment tests, the Court of Appeals held, id., at 138, that it was error
“to approve a validation study done without job analysis, to allow Albemarle to require tests for 6 lines of progression where there has been no validation study at all, and to allow Albemarle to require a person to pass two tests for entrance into 7 lines of progression when only one of those tests was validated for that line of progression.”
In so holding the Court of Appeals “gave great deference” to the “Guidelines on Employee Selection Procedures,”
We granted certiorari5 because of an evident Circuit conflict as to the standards governing awards of backpay6 and as to the showing required to establish the “job relatedness” of pre-employment tests.7
II
Whether a particular member of the plaintiff class should have been awarded any backpay and, if so, how much, are questions not involved in this review. The equities of individual cases were never reached. Though at least some of the members of the plaintiff class obviously suffered a loss of wage opportunities on account of Albemarle‘s unlawfully discriminatory system of job seniority, the District Court decided that no backpay should be awarded to anyone in the class. The court declined to make such an award on two stated grounds: the lack of “evidence of bad faith non-compliance with the Act,” and the fact that “the defendants would be substantially prejudiced” by an award of backpay that was demanded contrary to an earlier representation and late in the progress of the litigation. Relying directly
The petitioners contend that the statutory scheme provides no guidance, beyond indicating that backpay awards are within the District Court‘s discretion. We disagree. It is true that backpay is not an automatic or mandatory remedy; like all other remedies under the Act, it is one which the courts “may” invoke.9 The
employment practice), or any other equitable relief as the court deems appropriate. Back pay liability shall not accrue from a date more than two years prior to the filing of a charge with the Commission. Interim earnings or amounts earnable with reasonable diligence by the person or persons discriminated against shall operate to reduce the back pay otherwise allowable. No order of the court shall require the admission or reinstatement of an individual as a member of a union, or the hiring, reinstatement, or promotion of an individual as an employee, or the payment to him of any back pay, if such individual was refused admission, suspended, or expelled, or was refused employment or advancement or was suspended or discharged for any reason other than discrimination on account of race, color, religion, sex, or national origin or in violation of section 2000e-3 (a) of this title.”
It is true that “[e]quity eschews mechanical rules . . . [and] depends on flexibility.” Holmberg v. Armbrecht, 327 U. S. 392, 396 (1946). But when Congress invokes the Chancellor‘s conscience to further transcendent legislative purposes, what is required is the principled application of standards consistent with those purposes and not “equity [which] varies like the Chancellor‘s foot.”10 Important national goals would be frustrated by a regime of discretion that “produce[d] different results for breaches of duty in situations that cannot be differentiated in policy.” Moragne v. States Marine Lines, 398 U. S. 375, 405 (1970).
The District Court‘s decision must therefore be measured against the purposes which inform Title VII. As the Court observed in Griggs v. Duke Power Co., 401 U. S., at 429-430, the primary objective was a prophylactic one:
“It was to achieve equality of employment opportunities and remove barriers that have operated in the past to favor an identifiable group of white employees over other employees.”
Backpay has an obvious connection with this purpose. If employers faced only the prospect of an injunctive order, they would have little incentive to shun practices of dubious legality. It is the reasonably certain prospect of a backpay award that “provide[s] the spur or catalyst
It is also the purpose of Title VII to make persons whole for injuries suffered on account of unlawful employment discrimination. This is shown by the very fact that Congress took care to arm the courts with full equitable powers. For it is the historic purpose of equity to “secur[e] complete justice,” Brown v. Swann, 10 Pet. 497, 503 (1836); see also Porter v. Warner Holding Co., 328 U. S. 395, 397-398 (1946). “[W]here federally protected rights have been invaded, it has been the rule from the beginning that courts will be alert to adjust their remedies so as to grant the necessary relief.” Bell v. Hood, 327 U. S. 678, 684 (1946). Title VII deals with legal injuries of an economic character occasioned by racial or other antiminority discrimination. The terms “complete justice” and “necessary relief” have acquired a clear meaning in such circumstances. Where racial discrimination is concerned, “the [district] court has not merely the power but the duty to render a decree which will so far as possible eliminate the discriminatory effects of the past as well as bar like discrimination in the future.” Louisiana v. United States, 380 U. S. 145, 154 (1965). And where a legal injury is of an economic character,
“[t]he general rule is, that when a wrong has been done, and the law gives a remedy, the compensation shall be equal to the injury. The latter is the standard by which the former is to be measured. The injured party is to be placed, as near as may be, in
the situation he would have occupied if the wrong had not been committed.” Wicker v. Hoppock, 6 Wall. 94, 99 (1867).
The “make whole” purpose of Title VII is made evident by the legislative history. The backpay provision was expressly modeled on the backpay provision of the National Labor Relations Act.11 Under that Act, “[m]aking the workers whole for losses suffered on account of an unfair labor practice is part of the vindication of the public policy which the Board enforces.” Phelps Dodge Corp. v. NLRB, 313 U. S. 177, 197 (1941). See also Nathanson v. NLRB, 344 U. S. 25, 27 (1952); NLRB v. Rutter-Rex Mfg. Co., 396 U. S. 258, 263 (1969). We may assume that Congress was aware that the Board,
“The provisions of this subsection are intended to give the courts wide discretion exercising their equitable powers to fashion the most complete relief possible. In dealing with the present section 706 (g) the courts have stressed that the scope of relief under that section of the Act is intended to make the victims of unlawful discrimination whole, and that the attainment of this objective rests not only upon the elimination of the particular unlawful employment practice complained of, but also requires that persons aggrieved by the consequences and effects of the unlawful employment practice be, so far as possible, restored to a position where they would have been were it not for the unlawful discrimination.” 118 Cong. Rec. 7168 (1972).
As this makes clear, Congress’ purpose in vesting a variety of “discretionary” powers in the courts was not to limit appellate review of trial courts, or to invite inconsistency and caprice, but rather to make possible the “fashion[ing] [of] the most complete relief possible.”
It follows that, given a finding of unlawful discrimination, backpay should be denied only for reasons which, if applied generally, would not frustrate the central statutory purposes of eradicating discrimination throughout the economy and making persons whole for injuries suffered through past discrimination.14 The courts of appeals must maintain a consistent and principled application of the backpay provision, consonant with the twin statutory objectives, while at the same time recognizing that the trial court will often have the keener apprecia-
The District Court‘s stated grounds for denying backpay in this case must be tested against these standards. The first ground was that Albemarle‘s breach of Title VII had not been in “bad faith.”15 This is not a sufficient reason for denying backpay. Where an employer has shown bad faith—by maintaining a practice which he knew to be illegal or of highly questionable legality—he can make no claims whatsoever on the Chancellor‘s conscience. But, under Title VII, the mere absence of bad faith simply opens the door to equity; it does not depress the scales in the employer‘s favor. If backpay were awardable only upon a showing of bad faith, the remedy would become a punishment for moral turpitude, rather than a compensation for workers’ injuries. This would read the “make whole” purpose right out of Title VII, for a worker‘s injury is no less real simply because his employer did not inflict it in “bad faith.”16 Title VII is not concerned with the employer‘s “good intent or absence of discriminatory intent” for “Congress directed the thrust of the Act to the consequences of employment practices, not simply the motivation.” Griggs v. Duke
The District Court also grounded its denial of backpay on the fact that the respondents initially disclaimed any interest in backpay, first asserting their claim five years after the complaint was filed. The court concluded that the petitioners had been “prejudiced” by this conduct. The Court of Appeals reversed on the ground “that the broad aims of Title VII require that the issue of back pay be fully developed and determined even though it was not raised until the post-trial stage of litigation,” 474 F. 2d, at 141.
“every final judgment shall grant the relief to which the party in whose favor it is rendered is entitled, even if the party has not demanded such relief in his pleadings.”
But a party may not be “entitled” to relief if its conduct of the cause has improperly and substantially prejudiced the other party. The respondents here were not merely tardy, but also inconsistent, in demanding backpay. To deny backpay because a particular cause has been prosecuted in an eccentric fashion, prejudicial to the other party, does not offend the broad purposes of Title VII. This is not to say, however, that the District Court‘s ruling was necessarily correct. Whether the petitioners were in fact prejudiced, and whether the respondents’ trial conduct was excusable, are questions that will be open to review by the Court of Appeals, if the District Court, on remand, decides again to decline to make any award of backpay.20 But the standard of review will be the familiar one of whether the District Court was “clearly erroneous” in its factual findings and whether it “abused” its traditional discretion to locate “a just result” in light of the circumstances peculiar to the case,
III
In Griggs v. Duke Power Co., 401 U. S. 424 (1971), this Court unanimously held that Title VII forbids the use of employment tests that are discriminatory in effect unless the employer meets “the burden of showing that any given requirement [has] . . . a manifest relationship to the employment in question.” Id., at 432.21 This burden arises, of course, only after the complaining party or class has made out a prima facie case of discrimination, i. e., has shown that the tests in question select applicants for hire or promotion in a racial pattern significantly different from that of the pool of applicants. See McDonnell Douglas Corp. v. Green, 411 U. S. 792, 802 (1973). If an employer does then meet the burden of proving that its tests are “job related,” it remains open to the complaining party to show that other tests or selection devices, without a similarly undesirable racial effect, would also serve the employer‘s legitimate interest in “efficient and trustworthy workmanship.” Id., at 801. Such a showing would be evidence that the employer was using its tests merely as a “pretext” for discrimination. Id., at 804-805. In the present case, however, we are concerned only with the question whether Albemarle has shown its tests to be job related.
“[T]he Wonderlic Personnel Test, which purports to measure general intelligence, and the Bennett Mechanical Comprehension Test. Neither was directed or intended to measure the ability to learn to perform a particular job or category of jobs. . . .
“. . . Both were adopted, as the Court of Appeals noted, without meaningful study of their relationship to job-performance ability. Rather, a vice president of the Company testified, the requirements were instituted on the Company‘s judgment that they generally would improve the overall quality of the work force.” 401 U. S., at 428-431.
The Court took note of “the inadequacy of broad and general testing devices as well as the infirmity of using diplomas or degrees as fixed measures of capability,” id., at 433, and concluded:
“Nothing in the Act precludes the use of testing or measuring procedures; obviously they are useful. What Congress has forbidden is giving these devices and mechanisms controlling force unless they are demonstrably a reasonable measure of job performance. . . . What Congress has commanded is that any tests used must measure the person for the job and not the person in the abstract.” Id., at 436.
The question of job relatedness must be viewed in the context of the plant‘s operation and the history of the testing program. The plant, which now employs about 650 persons, converts raw wood into paper products. It is organized into a number of functional departments, each with one or more distinct lines of progression, the theory being that workers can move up the line as they acquire the necessary skills. The number and structure of the lines have varied greatly over time. For many years, certain lines were themselves more skilled and paid higher wages than others, and until 1964 these skilled lines were expressly reserved for white workers. In 1968, many of the unskilled “Negro” lines were “end-tailed” onto skilled “white” lines, but it apparently remains true that at least the top jobs in certain lines require greater skills than the top jobs in other lines. In this sense, at least, it is still possible to speak of relatively skilled and relatively unskilled lines.
In the 1950‘s while the plant was being modernized with new and more sophisticated equipment, the Company introduced a high school diploma requirement for entry into the skilled lines. Though the Company soon concluded that this requirement did not improve the quality of the labor force, the requirement was continued
The Company added the Wonderlic Tests in 1963, for the skilled lines, on the theory that a certain verbal intelligence was called for by the increasing sophistication of the plant‘s operations. The Company made no attempt to validate the test for job relatedness,24 and simply adopted the national “norm” score of 18 as a cut-off point for new job applicants. After 1964, when it discontinued overt segregation in the lines of progression,
Because departmental reorganization continued up to the point of trial, and has indeed continued since that point, the details of the testing program are less than clear from the record. The District Court found that, since 1963, the Beta and Wonderlic Tests have been used in 13 lines of progression, within eight departments. Albemarle contends that at present the tests are used in only eight lines of progression, within four departments.
Four months before this case went to trial, Albemarle engaged an expert in industrial psychology to “validate” the job relatedness of its testing program. He spent a half day at the plant and devised a “concurrent validation” study, which was conducted by plant officials, without his supervision. The expert then subjected the results to statistical analysis. The study dealt with 10 job groupings, selected from near the top of nine of the
“determine which ones they felt irrespective of the job that they were actually doing, but in their respective jobs, did a better job than the person they were rating against . . . .”27
For each job grouping, the expert computed the “Phi coefficient” of statistical correlation between the test scores and an average of the two supervisorial rankings. Consonant with professional conventions, the expert regarded as “statistically significant” any correlation that could have occurred by chance only five times, or fewer, in 100 trials.28 On the basis of these results, the District Court found that “[t]he personnel tests administered at the plant have undergone validation studies and have been proven to be job related.” Like the Court of Appeals, we are constrained to disagree.
The EEOC has issued “Guidelines” for employers seeking to determine, through professional validation studies,
The message of these Guidelines is the same as that of the Griggs case—that discriminatory tests are impermissible unless shown, by professionally acceptable methods, to be “predictive of or significantly correlated with important elements of work behavior which comprise or are relevant to the job or jobs for which candidates are being evaluated.”
Measured against the Guidelines, Albemarle‘s validation study is materially defective in several respects:
(1) Even if it had been otherwise adequate, the study would not have “validated” the Beta and Wonderlic test battery for all of the skilled lines of progression for which the two tests are, apparently, now required. The study showed significant correlations for the Beta Exam in only three of the eight lines. Though the Wonderlic Test‘s Form A and Form B are in theory identical and
(2) The study compared test scores with subjective supervisorial rankings. While they allow the use of supervisorial rankings in test validation, the Guidelines quite plainly contemplate that the rankings will be elicited with far more care than was demonstrated here.30
Albemarle‘s supervisors were asked to rank employees by a “standard” that was extremely vague and fatally open to divergent interpretations. As previously noted, each “job grouping” contained a number of different jobs, and the supervisors were asked, in each grouping, to
“determine which ones [employees] they felt irrespective of the job that they were actually doing, but in their respective jobs, did a better job than the person they were rating against . . . .”31
There is no way of knowing precisely what criteria of job performance the supervisors were considering, whether each of the supervisors was considering the same criteria or whether, indeed, any of the supervisors actually applied a focused and stable body of criteria of any kind.32 There is, in short, simply no way to determine whether the criteria actually considered were sufficiently related to the Company‘s legitimate interest in job-specific ability to justify a testing system with a racially discriminatory impact.
(3) The Company‘s study focused, in most cases, on job groups near the top of the various lines of progression. In Griggs v. Duke Power Co., supra, the Court
“If job progression structures and seniority provisions are so established that new employees will probably, within a reasonable period of time and in a great majority of cases, progress to a higher level, it may be considered that candidates are being evaluated for jobs at that higher level. However, where job progression is not so nearly automatic, or the time span is such that higher level jobs or employees’ potential may be expected to change in significant ways, it shall be considered that candidates are being evaluated for a job at or near the entry level.”
29 CFR § 1607.4 (c) (1) .
The fact that the best of those employees working near the top of a line of progression score well on a test does not necessarily mean that that test, or some particular cutoff score on the test, is a permissible measure of the minimal qualifications of new workers entering lower level jobs. In drawing any such conclusion, detailed consideration must be given to the normal speed of promotion, to the efficacy of on-the-job training in the scheme of promotion, and to the possible use of testing as a promotion device, rather than as a screen for entry into low-level jobs. The District Court made no findings on these issues. The issues take on special importance in a case, such as this one, where incumbent employees are permitted to work at even high-level jobs without passing the company‘s test battery. See
“[t]he validity of a test should be determined on subjects who are at the age or in the same educational or vocational situation as the persons for whom the test is recommended in practice.” ¶ C 5.4.
The EEOC Guidelines likewise provide that “[d]ata must be generated and results separately reported for minority and nonminority groups wherever technically feasible.”
“If it is not technically feasible to include minority employees in validation studies conducted on the present work force, the conduct of a validation study without minority candidates does not relieve any person of his subsequent obligation for validation when inclusion of minority candidates becomes technically feasible.”
29 CFR § 1607.5 (b) (1) .“. . . [E]vidence of satisfactory validity based on other groups will be regarded as only provisional compliance with these guidelines pending separate validation of the test for the minority group in question.”
29 CFR § 1607.5 (b) (5) .
For all these reasons, we agree with the Court of Appeals that the District Court erred in concluding that
Accordingly, the judgment is vacated, and these cases are remanded to the District Court for proceedings consistent with this opinion.
It is so ordered.
MR. JUSTICE POWELL took no part in the consideration or decision of these cases.
[Appendix to opinion of the Court follows.]
CHART A
Results of Validation Study
| Job Group | N | Test | ||
|---|---|---|---|---|
| Beta | W-A | W-B | ||
| 1. Caustic Operator, Lime Kiln Operator | 8 | .25 | 1.00** | .47 |
| 2. C. E. Recovery Operator, C. E. Recovery 1st Helpers & Evaporator Operators | 12 | .64** | .32 | .17 |
| 3. Wood Yard: Long Log Operators, Log Stackers, Small Equipment Operators & Oilers | 14 | .00 | 1.00** | .72* |
| 4. Technical Services: B Mill Shift Testmen, Additive men, General Lab. Testmen, General Lab. asst., A Mill Testmen, Samplemen | .50* | .75** | .64* | |
| 5. B Paper Mill: Machine Tenders and Back Tenders | 16 | .00 | .50** | .34 |
| 6. B Paper Mill: Stock Room Operator, Stock Room 1st Helper | 8 | -.50 | .00 | .00 |
| 7. B Paper Mill: 3rd Hands, 4th Hands & 5th Hands | 21 | .43 | .81** | .60** |
| 8. Wood Yard: Chipper Unloader, Chipper Operator, No. 2 Chain Operator | 6 | .76* | -.25 | 1.00** |
| 9. Pulp Mill: Stock Room Operator, Stock Room 1st Helpers | 8 | .50 | .80* | .76* |
| 10. Power Plant: Power Plant Operator, Power Plant 1st Helper, Power Plant 2nd Helper | 12 | .34 | .75** | .66* |
NOTE
The job groups are identified in Chart B. N indicates the number of employees tested. A single (double) asterisk indicates the “Phi” coefficient of correlation, shown on the chart, is statistically significant at a 95% (99%) level of confidence. The other coefficients are not statistically significant.
Albemarle‘s Skilled Lines of Progression
NOTE: The numbered job groups are those examined in the validation study summarized in Chart A. Testing is no longer required for entry into the Woodyard Department.
I agree with the opinion of the Court. I write today only to make the following observations about the proceedings in the District Court on remand relative to the backpay issue.
As the Court affirms, there is no legal bar to raising a claim for backpay under Title VII at any time in the proceedings, even “indeed after a trial on [the] complaint [for injunctive relief] has been had.” Ante, at 424. Furthermore, only the most unusual circumstances would constitute an equitable barrier to the award of make-whole relief where liability is otherwise established. The bar of laches, predicated on the prejudice to a defendant‘s case from the tardy entry of a prayer for compensation, should be particularly difficult to establish.
Backpay in Title VII cases is generally computed, with respect to each affected employee or group of employees, by determining the amount of compensation lost as a direct result of the employer‘s discriminatory decision not to hire or promote. In litigation such as this, where the plaintiff class is limited to present and former employees of petitioner company who were denied promotions into the more lucrative positions because of their race, there is no need to make additional findings and offsetting computations for wages earned in alternative employment during the relevant period.
The information needed in order to compute backpay for nonpromotion is contained in the personnel records and pay schedules normally maintained by an employer, some under compulsion of law. These data include the time at which an employee in the favored group was promoted over an otherwise more senior member of the disfavored class, and the wage differential that the promotion entailed. Rarely, if ever, could an employer plausibly invoke the doctrine of laches on the usual
The prejudice on which the District Court relied here was, indeed, of a different and more speculative variety. The court made no findings of fact relevant to the subject, but found it “apparent” that prejudice would accrue because “[t]he defendants might have chosen to exercise unusual zeal in having this court determine their rights at an earlier date had they known that back pay would be at issue.” 2 App. 498. This indulgent speculation is clearly not an adequate basis on which to deny the successful Title VII complainant compensatory backpay and surely even less of a reason for penalizing the members of the class that he represents.* In posing as an issue on remand “[w]hether the petitioners were in fact prejudiced,” ante, at 424 (emphasis added), the Court recognizes as much.
Although on the record now before us I have no doubt that respondents’ tardiness in asserting their claim to backpay was excusable in light of the uncertain state of the law during the first years of this litigation, I agree that the District Court should be the first to pass upon the issues as the Court has posed them. Doubtful though I remain about their ability to do so, petitioners are entitled at least to an opportunity to prove that respondents’ delay prejudiced their defense so substantially as to make an award of compensatory relief oppressive.
MR. JUSTICE REHNQUIST, concurring.
I join the opinion of the Court. The manner in which
To the extent that an award of backpay were to be analogized to an award of damages, such an award upon proper proof would follow virtually as a matter of course from a finding that an employer had unlawfully discriminated contrary to the provisions of Title VII of the Civil Rights Act of 1964, 78 Stat. 253, as amended by the Equal Employment Opportunity Act of 1972, 86 Stat. 103,
“The constant tendency of the courts is to find some way in which damages can be awarded where a wrong has been done. Difficulty of ascertainment is no longer confused with ‘right of recovery’ for a proven invasion of the plaintiff‘s rights. Story Parchment Co. v. Patterson Co., [282 U. S. 555,] 565.”
But precisely to the extent that an award of backpay is thought to flow as a matter of course from a finding of wrongdoing, and thereby becomes virtually indistinguishable from an award for damages, the question (not raised by any of the parties, and therefore quite properly not discussed in the Court‘s opinion), of whether either side may demand a jury trial under the Seventh Amendment becomes critical. We said in Curtis v. Loether, 415 U. S. 189, 197 (1974), in explaining the difference between the provision for damages under
“In Title VII cases, also, the courts have relied on the fact that the decision whether to award backpay is committed to the discretion of the trial judge. There is no comparable discretion here: if a plaintiff proves unlawful discrimination and actual damages, he is entitled to judgment for that amount. . . . Whatever may be the merit of the ‘equitable’ characterization in Title VII cases, there is surely no basis for characterizing the award of compensatory and punitive damages here as equitable relief.” (Footnote omitted.)
In Curtis, supra, the Court further quoted the description of the Seventh Amendment in Mr. Justice Story‘s opinion for this Court in Parsons v. Bedford, 3 Pet. 433, 447 (1830), to the effect that:
“In a just sense, the amendment then may well be construed to embrace all suits which are not of equity and admiralty jurisdiction, whatever may be the peculiar form which they may assume to settle legal rights.”
To the extent, then, that the District Court retains substantial discretion as to whether or not to award backpay notwithstanding a finding of unlawful discrimination, the nature of the jurisdiction which the court exercises is equitable, and under our cases neither party may demand a jury trial. To the extent that discretion is replaced by awards which follow as a matter of course from a finding of wrongdoing, the action of the court in making such awards could not be fairly characterized as equitable in character, and would quite arguably be subject to the provisions of the Seventh Amendment.
Thus I believe that the broad latitude which the
“[W]e must avoid the rigidities of an either-or rule. The remedy of back pay, it must be remembered, is entrusted to the Board‘s discretion; it is not mechanically compelled by the Act. And in applying its authority over back pay orders, the Board has not used stereotyped formulas but has availed itself of the freedom given it by Congress to attain just results in diverse, complicated situations.”
I agree, nonetheless, with the Court that the District Court should not have denied backpay in this litigation simply on the ground that Albemarle‘s breach of Title VII had not been in “bad faith.” Good faith is a necessary condition for obtaining equitable consideration, but in view of the narrower “good faith” defense created by statute,
A cursory canvass of the decisions of the District Courts and Courts of Appeals which confront these problems much more often than we do suggests that the most frequently recurring problem in this area is the difficulty of ascertaining a sufficient causal connection between the employer‘s conduct properly found to have been in violation of the statute and an ascertainable amount of backpay lost by a particular claimant as a result of that conduct. United States v. St. Louis-S. F. R. Co., 464 F. 2d 301, 311 (CA8 1972), cert. denied, 409 U. S. 1116 (1973). The Court of Appeals for the Eighth Circuit aptly described the difficulty of fashioning an award of backpay in the circumstances before it, and upheld the District Court‘s refusal to award backpay, in Norman v. Missouri P. R. Co., 497 F. 2d 594, 597 (1974), cert. denied, 420 U. S. 908 (1975):
“No standard could determine the right to back pay itself nor the date from which to compute any right to back pay. Courts that have found back pay awards to be appropriate remedies in Title VII actions have generally recognized that such awards should be limited to actual damages. . . .”
As the Court recognizes, ante, at 424-425, another factor presented here which is relevant to the District Court‘s exercise of discretion is the possible detrimental reliance of petitioners on prior representations of respondents that they were not seeking classwide backpay. In 1966 respondents in replying to a motion for summary judgment expressly represented to the District Court that they had no interest in classwide backpay:
“It is important to understand the exact nature of
the class relief being sought by plaintiffs. No money damages are sought for any member of the class not before the court . . . . “. . . [T]he matter of specific individual relief for other class members is not before this Court.” 1 App. 13-14.
Five years later, respondents reversed their position and asserted a claim for classwide backpay. Petitioners have argued here and below that they reasonably relied to their detriment on respondents’ statement in numerous ways including an interim sale of the mill at a price which did not take into account the ruinous liability with which the new owners are now faced, failure to investigate and prepare defenses to individual backpay claims which are now nine years old, and failure to speed resolution of this lawsuit. 474 F. 2d 134, 146 n. 16 (CA4 1973). This conduct by the respondents presents factual and legal questions to be resolved in the first instance by the District Court, reviewable only on whether its factual findings are “clearly erroneous” and whether its ultimate conclusion is an “abuse of discretion” under all the circumstances of this case. Ante, at 424-425. In the same manner that the good faith of an employer may not be viewed in isolation as precluding backpay under any and all circumstances, the excusable nature of respondents’ conduct, if found excusable, will not necessarily preclude denial of a backpay award if petitioners are found to have substantially and justifiably relied on respondents’ prior representations.
If the award of backpay is indeed governed by equitable considerations, and not simply a thinly disguised form of damages, factors such as these and others, which may argue in favor of or against the equities of either plaintiff or defendants, must be open for consideration
MR. JUSTICE BLACKMUN, concurring in the judgment.
I concur in the judgment of the Court, but I do not agree with all that is said in the Court‘s opinion.
The statutory authority for making awards of backpay in Title VII cases is cast in language that emphasizes flexibility and discretion in fashioning an appropriate remedy:
“If the court finds that the respondent has intentionally engaged in or is intentionally engaging in an unlawful employment practice charged in the complaint, the court may enjoin the respondent from engaging in such unlawful employment practice, and order such affirmative action as may be appropriate, which may include, but is not limited to, reinstatement or hiring of employees, with or without back pay . . . or any other equitable relief as the court deems appropriate.” 78 Stat. 261, as amended, 86 Stat. 107,
42 U. S. C. § 2000e-5 (g) (1970 ed., Supp. III) (emphasis added).
Despite this statutory emphasis on discretion, the Court of Appeals in this case reasoned by analogy to Newman v. Piggie Park Enterprises, 390 U. S. 400 (1968), that once a violation of Title VII had been established, “[backpay] should ordinarily be awarded . . . unless special circumstances would render such an award unjust.” 474 F. 2d 134, 142 (CA4 1973). Today the Court rejects the “special circumstances” test adopted by the Court of Appeals and holds that the power to award backpay is a discretionary power, the exercise of which must be measured against “the purposes which
I also agree with the decision of the Court
MR. CHIEF JUSTICE BURGER, concurring in part and dissenting in part.
I agree with the Court‘s opinion insofar as it holds that the availability of backpay is a matter which Title VII commits to the sound equitable discretion of the trial court. I cannot agree with the Court‘s application of that principle in this case, or with its method of reviewing the District Court‘s findings regarding Albemarle‘s testing policy.
In light of this background, the Court‘s suggestion that the District Court “conditioned” awards of backpay upon a showing of bad faith, ante, at 423, is incorrect. Moreover, the District Court‘s findings on this point cannot be disregarded as irrelevant. As the Court‘s opinion notes, one of Congress’ major purposes in giving district courts discretion to award backpay in Title VII
The Court‘s treatment of the testing issue is equally troubling. Its entire analysis is based upon a wooden application of EEOC Guidelines which, it says, are entitled to “great deference” as an administrative interpretation of Title VII under Griggs v. Duke Power Co., 401 U. S. 424 (1971). The Court‘s reliance upon Griggs is misplaced. There we were dealing with Guidelines which state that a test must be demonstrated to be job related before it can qualify for the exemption contained in
In contrast, the Guidelines upon which the Court now relies relate to methods for proving job relatedness; they interpret no section of Title VII and are nowhere referred to in its legislative history. Moreover, they are not federal regulations which have been submitted to public comment and scrutiny as required by the Administrative Procedure Act.3 Thus, slavish adherence to the EEOC Guidelines regarding test validation should not be required; those provisions are, as their title suggests, guides entitled to the same weight as other well-founded testimony by experts in the field of employment testing.
The District Court so considered the Guidelines in this case and resolved any conflicts in favor of Albemarle‘s experts. For example, with respect to the question whether validating tests for persons at or near the top of a line of progression “is a permissible measure of the minimal qualifications of new workers,” ante, at 434, the District Court found:
“The group tested was typical of employees in the skilled lines of progression. They were selected from the top and middle of various lines. Professional studies have shown that when tests are vali-
dated in such a narrow range of competence, there is a greater chance that the test will validate even a broader range, that is, if job candidates as well as present employees are tested.” 2 App. 490-491.
Unless this Court is prepared to hold that this and similar factual findings are clearly erroneous, the District Court‘s conclusion that Albemarle had sustained its burden of showing that its tests were job related is entitled to affirmance, if we follow traditional standards of review. At the very least, the case should be remanded to the Court of Appeals with instructions that it reconsider the testing issue, giving the District Court‘s findings of fact the deference to which they are entitled.
Notes
“It appears that the company as early as 1964 began active recruitment of blacks for its Maintenance Apprentice Program. Certain lines of progression were merged on its own initiative, and as judicial decisions expanded the then existing interpretations of the Act, the defendants took steps to correct the abuses without delay.” 2 App. 498.
“I had had experience with using the Wonderlic before, which is a short form Verbal Intelligence Test, and knew that it had, uh, probably more validation studies behind it than any other short form Verbal Intelligence Test. So, after consultation we decided to institute the Wonderlic, in addition to the Beta, in view of the fact that the mill had changed quite a bit and it had become exceedingly more complex in operation . . . [W]e did not, uh, validate it, uh, locally, primarily, because of the, the expense of conducting such a validation, and there were some other considerations, such as, uh, we didn‘t know whether we would get the co-operation of the employees that we‘d need to validate it against in taking the test, and we certainly have to have that, so, we used National Norms and on my suggestion after study of the Wonderlic and Norms had been established nationally for skilled jobs, we developed a, uh, cut-off score of eighteen (18).”
“(3) The work behaviors or other criteria of employee adequacy which the test is intended to predict or identify must be fully described; and, additionally, in the case of rating techniques, the appraisal form(s) and instructions to the rater(s) must be included as a part of the validation evidence. Such criteria may include measures other than actual work proficiency, such as training time, supervisory ratings, regularity of attendance and tenure. Whatever criteria are used they must represent major or critical work behaviors as revealed by careful job analyses.
“(4) In view of the possibility of bias inherent in subjective
