7th Circuit Issues a Well-Reasoned "Catbert" Opinion Regarding Retaliation

A very thoughtful case out of the 7th Circuit regarding Title VII Retaliation: Chrissie Washington v. Illinois Department of Revenue, Cause No. 03-3818 (7th Cir. August 22, 2005).

Between 1984 and 2000, Chrissie Washington worked from 7 a.m. until 3 p.m. instead of the standard 9-to-5 schedule at the Illinois Department of Revenue. The earlier hours allowed her to care for her son, who has Down syndrome, when he arrived home. By 1995 Washington had been promoted to Executive Secretary I. Over the next few years some of her duties were reassigned to others. Believing that this was the result of race discrimination, she filed a formal charge with state and federal officials in June 1999. That charge, she maintains, led supervisors to rescind the flextime schedule on which her son depended. A senior manager demanded that she work from 9 to 5 and, when she refused, her position was abolished.

She sued under Title VII of the Civil Rights Act of 1964, claiming that the agency moved her to a 9-to-5 schedule in retaliation for her earlier charge of discrimination. The judge granted summary judgment for the agency because, he concluded, Washington had not established even a prima facie case of retaliation. She could not do so, the judge ruled, because a change of work hours, while salary and duties remain the same, is not an ?adverse employment action.?The Circuit Court noted that Section 2000e-3(a) [governing retaliation claims] is ?broader? than §2000e-2(a) [governing plain vanilla discrimination claims] in the sense that retaliation may take so many forms, while §2000e-2(a) is limited to discrimination ?with respect to [the worker?s] compensation, terms, conditions, or privileges of employment?. Retaliation may even take the form of acts outside the workplace. The Department of Revenue (the employer in this case) might have audited the plaintiff?s tax returns in response to her complaint to the EEOC, or hired a private detective to search for a disreputable tidbit that could be used to intimidate her into withdrawing the complaint. "When the employer?s response does not affect a complainant?s terms and conditions of employment, it is vain to look for an adverse ?employment? decision." But this does not mean it is nretaliatione retalliation. "Section 2000e-3(a)'s [ban on retaliation] is broader than the anti-discrimination rule in §2000e-2(a) in the sense that it extends beyond pay and other tangible employment actions."The issue, according to the Court, is whether the action complained of by a plaintiff is "material". ?Discrimination? entails a requirement that the employer?s challenged action would have been material to a reasonable employee, which means that the same requirement applies to §2000e-3(a), the antiretaliation clause, as well as the other provisions in Title VII that use the word ?discrimination.? An employer?s action is not material under §2000e-3(a) if it would not have dissuaded a reasonable worker from making or supporting a charge of discrimination. Here's the money quote:

By and large a reassignment that does not affect pay or promotion opportunities lacks this potential to dissuade and thus is not actionable. But ?by and large? differs from ?never.?

The Court goes on with an interesting example of its point:

Now ?material? is one of those protean wordsthat resists further definition. This holds opensome potential to say that an act that would beimmaterial in some situations is material in others. Forexample, suppose that the employee?s charge of discriminationis designed to obtain a $10,000 annual raise. Movingthat employee in response from a 100-square-foot cubicle toa 70-square-foot one, or to one with a metal rather than awooden desk, would not be a material change in the conditionsof employment, because petty bureaucratic nastinessdoes not dissuade a reasonable person from seeking asubstantial increase in income. If instead of seeking moneyfor himself the employee supported a colleague?s charge ofdiscrimination, however, this sort of response might inducethe employee to withhold support; it takes less to deter analtruistic act than to deter a self-interested one.

The Court calls this type of company behavior "Catbert" management, named for the evil human resources officer made famous in the popular Dilbert comic series.

This record suggests that the Illinois Department of Revenue may have a Catbert in its management, seeking out devices that would be harmless to most people but do real damage to select targets. What Washington [the plaintiff] alleges?that her job was abolished and that she was then placed in a ?new? Executive Secretary I position?would for most people be no different from a change of supervisors, a step that would not be discriminatory under Ellerth and the Supreme Court?s other decisions. But because Washington was assigned to a ?new position? rather than just a new supervisor, she had to reapply for a flex-time schedule. The approval she had received in 1984 covered only her ?old? position, and the Department insisted that she work a normal 9-to-5 schedule at her ?new? job. What the Department effectively did, then, was assign her a new supervisor and change her hours. Again this would not be materially adverse for a normal employee?but Washington was not a normal employee, and Catbert knew it. She has a vulnerability: her son?s medical condition. Working 9-to-5 was a materially adverse change for her, even though it would not have been for 99% of the staff.

This is a thoughtful argument and direction that Plaintiff's attorneys should pay great attention to in retaliation cases.Link to the Opinion Link to the Oral Argument (mp3)Sexual Harassment, Pregnancy Discrimination, Age Discrimination, San Antonio, Employment Lawyer

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Questions For and About Roberts

While it is probably wishful thinking on their part, several organizations have forwarded proposed questions to members of the Senate Judiciary Committee for them to put to John Roberts.

Here are the links to questions these groups would like Roberts to answer:People for the American Way - They only utilized questions that other Supreme Court nominees have answered in the past. Sample:

What is your view of the incorporation doctrine applying the Bill of Rights to state governments? (Justice Souter answered this question.)

National Employment Lawyers Association - Contains virtually every question that those of us practicing employment law would love to get an answer to. Sample:

How do you reconcile the Seventh Amendment right to a jury trial with federal courts? enforcement of employers? pre-dispute arbitration clauses that employees are required to sign as a condition of employment?

National Partnership for Women and Families - This is really more along the lines of questions about Roberts than questions to be put to him. Sample:

In criticizing two proposed Department of Justice (DOJ) settlement letters in October 1981, Roberts asserted that proof of discrimination is not enough to establish a violation under Title VII, the main federal employment discrimination law. Under his rationale, an employer could have a ?no African Americans? or, presumably, a ?no women? hiring policy without running afoul of the law. He argued that a violation would occur only if a person proved that he or she was ?more qualified? than the person hired, even if such qualifications were never considered in the hiring process.

Public Advocate - A really, really, really conservative political action group that is actually opposing the White House and Roberts b/c he is not nearly conservative enough for this group. (To give you an idea about their brand of conservatism, they oppose all hate crime legislation, which they term "Thought Control" legislation and have filed amicus briefs with the Supreme Court seeking to have state and local gay anti-discrimination laws declared unconstitutional "because they would violate teachings in the Bible.") Sample:

Judge Roberts helped the radical homosexual lobby win the case that lead to conservative activists and scholars alike to call for the impeachment of the six Supreme Court Justices who voted to overturn the pro-family Colorado law in 1996.

**As an aside, I noted Public Advocate's Online Poll in which they asked their members who the President should have nominated. Top two vote getters: Robert Bork followed by Dan Quayle in a close second. (I'm not making this stuff up folks!)So, do we think we will get answers to any of the excellent questions posed by any of these groups. In a word....

No. With the Democratic Party busy changing their mascot from the donkey to the jellyfish and with this administration's magical power of never being answerable for anything...ever, it is very unlikely that Roberts will feel the need to give any senator on the judiciary committee a substantive answer to any questions beyond the level of "What is your favorite color?". Oddly enough, "Don't say anything!" was exactly the advise given by John Roberts to nominee Sandra Day O'Connor back in 1981 when he was a senior aide to the attorney general helping prepare her for her confirmation hearings. Here is the Washington Post story.Sexual Harassment, Pregnancy Discrimination, Age Discrimination, San Antonio, Employment Lawyer

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Monday Morning Funny

My thanks to Andy Ihnatko for sending a link to this hilarious trailer for the 26th Annual Key Art Awards. If you have ever wondered who those voices are that you hear on movie trailers, now is your chance to see them. Enjoy!Sexual Harassment, Pregnancy Discrimination, Age Discrimination, San Antonio, Employment Lawyer

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UPS Worker Awarded $21 Million in Wrongful Termination Suit

A Los Angeles County jury has awarded nearly $21 million to a former United Parcel Service manager who was fired for allegedly falsifying a worker's time sheet by deducting one minute from his shift. The plaintiff proved to a jury that the real reason he was terminated was his opposition to UPS' alleged practice of overcharging its customers who are shipping odd-sized packages. The trial lasted for 3 weeks, which to my mind is quite a long trial for a single plaintiff wrongful termination trial. $20 million of the verdict was for punitive damages and will almost certainly be reduced on appeal or through settlement.

Link to the LA Times Story.

Link to Plaintiff's Attorney's Website. (Assuming I found the correct David Wiechert, he does not appear to hold himself out as an employment law specialist. Maybe he should.)No link to Defendant's Website. They were successful in going unnamed in the article I saw. Sexual Harassment, Pregnancy Discrimination, Age Discrimination, San Antonio, Employment Lawyer

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Roberts Doesn't Think Women Should be Lawyers

According to an article in today's Washington Post analyzing John Roberts' past writings:

Supreme Court nominee John G. Roberts Jr. consistently opposed legal and legislative attempts to strengthen women's rights during his years as a legal adviser in the Reagan White House, disparaging what he called "the purported gender gap" and, at one point, questioning "whether encouraging homemakers to become lawyers contributes to the common good." [emphasis mine]

And, just in case you were wondering, Roberts wrote this in the 1980's not the 1950's.Sexual Harassment, Pregnancy Discrimination, Age Discrimination, San Antonio, Employment Lawyer

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Dukes v. Wal-Mart Argument Audio Online

Many legal blawgs are following the Walmart sexual discrimination class action case and we have been no different. Last week, Walmart argued its appeal in the Ninth Circuit challenging the District Court's certification of a class of 1.5 million of the retailing giant's current and former female employees. In its argument, the company maintains that its constitutional rights would be violated if the court the suit to continue as a class because to do so would deprive the company of its rights to defend itself against each woman's claim, it argues, the courts should allow suits only on a store-by-store basis.

If the Ninth Circuit agrees and strikes down the multistate action certified by a lower court, it would likely kill the largest employment class action in U.S. history. More broadly, it would open wide the door for all large companies to make similar arguments.

The Ninth Circuit Court of Appeals website has just posted the audio of the attorney's argument here. Walmart's attorneys were chided quite severely for their disrespectful remarks regarding the in their briefing. Regardless of which side you lean towards in this case, however, the arguments were well-made on both sides (Brad Seligman for the plaintiffs) and make for very interesting listening.

Our thanks to George for the link to the audio.Sexual Harassment, Pregnancy Discrimination, Age Discrimination, San Antonio, Employment Lawyer

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Office on Wheels?!?

It is amazing what things you can come across on the Flickr picture site by accident. File this under our Practice Management section I guess. Attorney John Dearie maintains a fully-mobile law office on this bus. The interior has a reception room and a conference room complete with a mahogany conference table. I tracked down Dearie's website to get a closer look. Also, here is a New York Times article from 2001 about the law bus.

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Download a Searchable Database of Roberts' Opinions

AskSam.com has produced a searchable database of all of Judge John Roberts opinions here. In two years on the U.S. Court of Appeals for the District of Columbia Circuit, Judge Roberts has helped decide about 120 cases and written 49 published opinions.

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Growing Scandal Surrounding Workers' Compensation Carriers

Tip of the hat to Workers Comp Insider for keeping us up to date on the ever-growing criminal scandal surrounding the practices of many of the nation's largest comp carriers. Insider cites the work of workers compensation insurance expert Joe Paduda, who has his own blog titled Managed Care Matters. Last week Padula reported on NY Attorney General Eliot Spitzer?s ongoing investigation into the insurance industry has produced guilty pleas from 14 insurance execs so far. And more prosecutions and pleas are reportedly likely in the near future. Leading the list of the guilty pleas are Marsh with six, followed by AIG with four and Zurich with three.

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Monday Morning Rant: The ABA Annual Meeting is Over . . . Yawn!

I don't often blog about blogging. Seems redundant. But I had to briefly touch on the ABA litigation section's blog of this year's ABA National Meeting. In a word: It was the worst blogging effort I have ever seen. (OK, that is more than a word but it was really really bad.)As with every other type of technological law practice development, the ABA is years behind where they need to be on blogging. Frankly, I'm surprised there wasn't a seminar on Windows 3.1 at this year's seminar.

The blog offers no useful information whatsoever. I can't figure out what purpose it was supposed to serve. The most interesting part is a link to photos of people sitting in chairs in a lecture hall. Wow! What a great use of bandwidth!

Like so many small to medium-sized firm pratictioners, I dropped my ABA membership sometime ago b/c it simply does not provide any useful purpose. It has become way to expensive for the little useful information that it provides to its members. I am sorry to say this b/c I would much rather have a vibrant ABA that serves its members with useful and immediate information on various areas of the law through the most modern means of information distribution.

Then to add insult to injury, the ABA blog contains a "Survey" where you can tell the ABA why you did not attend the ABA Meeting and provide them with useful information to act on. Unfortunately, whoever designed the form only allowed space for you to type about seven words. Nicely done.

OK, well that is the end of this week's rant. Carolyn Elefant, over at My Shingle has a similar piece here. Of course, she is much more eloquent than I am.

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Tenth Circuit Appears to endorse Police-Assisted Private Searches of Employee Residences by Employers

I don't want to work for Iomed, Inc. In a recent 10th Circuit opinion, the court describes how Iomed, Inc. sought and obtained an ex parte order in state court, directing local police, with the assistance of Iomed, to execute a search of Iomed former employee Jamal Yanaki's residence. The action was taken in furtherance of a suit by Iomed against Yanaki, alleging misappropriation of trade secrets and breach of a confidentiality agreement.

According to the court:

Iomed filed an ex parte motion seeking an order permitting immediate discovery to prevent the destruction of evidence (the "Search Order"). On April 12 lawyers for Iomed appeared before a state court judge ex parte and argued the motion. The court granted Iomed's motion and issued the Search Order which, in relevant part, directed the Salt Lake County Sheriff's Office, with the assistance of Iomed, to execute the Search Order at Yanaki's home and take into custody all hard drives and other electronic storage media. On the morning of April 15 Justin Matkin, a lawyer for Iomed, arrived at Yanaki's home accompanied by Salt Lake County Deputy Sheriff Heinz Kopp. Moss (the ex-employee's roommate) answered the door and was served with the Search Order. Moss refused to allow Matkin and Kopp into the home because Yanaki was not present at the time. After she refused them entry, Mr. Matkin, an Iomed attorney, said: "We can come in now, or we can come in later. Deputy Sheriff Kopp, to support Matkin's statement and to intimidate Moss, said: 'we can kick in this door.' Kopp remained outside the home while Matkin returned to the state court judge to secure an ex parte writ of assistance. The judge issued a Supplemental Order in Aid of Enforcement (the "Enforcement Order") which directed and authorized the Salt Lake County Sheriff's Office to enter Yanaki's residence and to use reasonable force, if necessary and appropriate, to execute the Search Order.

Matkin returned to Yanaki's home with the Enforcement Order, and Matkin and Kopp, along with Mary Crowther and Scott Johnson, entered Yanaki's home and commenced the search. Shortly thereafter a second police officer, Sergeant Kendra Herlin, arrived to assist. Pursuant to the Search Order, officers seized Moss and Yanaki's computer and other materials belonging to them, including Yanaki's University of Utah Executive MBA Program materials, various other papers and effects Yanaki had packed upon leaving Iomed, and a CD-ROM belonging to Ceramatec, Inc., a client of Yanaki's consulting business.

In granting the Defendants' 12(b)(6) motion throwing the Plaintiffs' 1983 action out of court, the majority states that "The involvement of the police in executing the court-ordered search, without more, does not convert Defendants' abuse of state law into conduct attributable to the state for purposes of § 1983 liability." Without a challenge to the constitutionality of the underlying state laws or any suggestion of a conspiracy between Defendants and the police, the actions of the police in discharging their official duties do not distinguish Plaintiffs' claims from the claim rejected in previous Supreme Court precedent.

I think I am going to have to go along with the dissenting opinion on this one. It should be noted that neither the district court nor the 10th Circuit panel in this case ever addressed the merits of Iomed's claims upon which the search was based because, as the majority ruled, the employer's and state's actions simply cannot be challenged in federal court under Section 1983. The court held that the state's actions in threatening to kick in the employee's door, conducting the search, and seizing the former employee's belongings did not amount to state action. Under the Court's reasoning, this outcome is mandated because the state was merely assisting a private entity. The degree of assistance was not relevant to the majority. If you take the opinion to its logical extreme, the decision would not have been different if the officer had held the employee at gunpoint during the course of the search or even shot him. Here is the full opinion: Yanaki v. Iomed Inc., No. 04-4051 (10th Cir. July 26, 2005).

While companies sometimes use baseless or near-baseless claims of misappropriation of trade secrets and breach of a confidentiality agreements to harass former employees who may wish to continue working in the same industry (and therefore be possible competition for his or her former employer), corporate conduct such as what is alleged in this case is, at least in my experience, rare. Hopefully this is not an indication of a new general direction by companies in this regard.

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More on pending federal electronic discovery rules.

As we reported earlier here, the federal standing committee on rules of practice and procedure recently approved the amendments submitted by the civil rules advisory committee addressing discovery of electronically stored information. You can see a copy of the proposed new rules here. Assuming they are not delayed, the amendments will become effective on December 1, 2006.

This week Law Technology News has an article out by Helen Bergman Moure, containing a concise overview of the new rules here. [Free registration required to see article.]

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