Equal Emp't Opportunity Comm'n v. UPS Ground Freight, Inc.
Equal Emp't Opportunity Comm'n v. UPS Ground Freight, Inc.
Opinion of the Court
*1260Plaintiff Equal Employment Opportunity Commission ("EEOC") filed this suit against Defendant UPS Ground Freight, Inc. ("UPS Freight") to correct unlawful employment practices on the basis of disability in violation of the Americans with Disabilities Act ("ADA"). The Court granted EEOC's Motion for Judgment on the Pleadings on Count II, brought under Fed. R. Civ. P 12(c), and granted injunctive relief prohibiting continuation of the discriminatory practice and policy.
I. Procedural and Factual Background
The EEOC filed a two-count action to correct unlawful employment practices, alleging (1) UPS Freight violated the ADA by discriminating against Thomas Diebold on the basis of his disability (Count I); and (2) UPS Freight has a facially discriminatory policy against disabled drivers in its current 2013-2018 Collective Bargaining Agreement "CBA") with Defendant Teamsters National UPS Freight Negotiating Committee (Count II). The focus of Count II is Article 21.2 and Article 21.3 of the CBA. UPS Freight filed an Answer admitting (1) the CBA attached as Exhibit A to the Amended Complaint is a true and correct copy;
The EEOC moved for judgment on the pleadings under Fed. R. Civ. P. 12(c), arguing that UPS Freight's admissions were sufficient to prove the existence of a discriminatory policy and meet the EEOC's burden to make a prima facie case of discrimination. The Court agreed that UPS Freight's additional explanations regarding when Article 21.3(a) applies were immaterial, because there are no circumstances under which paying a disabled driver 90% of what others earn is legal under the ADA.
1. The CBA in dispute violates42 U.S.C. § 12112 by discriminating against drivers with disabilities by (1) limiting, segregating, or classifying drivers because of disability adversely *1261affecting the opportunities or status of disabled drivers and (2) using standards, criteria, or methods of administration that have the effect of discrimination on the basis of disability;
2. The CBA in dispute violates42 U.S.C. § 12112 (b)(2) by participating in a contractual relationship that expressly discriminates against medically disabled UPS Freight drivers.6
The Court entered a permanent injunction that:
3. UPS Freight, its officers, agents, servants, employees, attorneys, and all persons in active concert or participation with it, are permanently enjoined from discriminating on the basis of disability in violation of42 U.S.C. § 12112 (a) by enforcing Article 21.3 as written;7 and
4. UPS Freight and the Teamsters National UPS Freight Negotiating Committee are permanently enjoined from negotiating and ratifying terms of the next collective bargaining agreement which would discriminate on the basis of disability in violation of42 U.S.C. § 12112 (a).8
On August 23, 2018, UPS Freight moved to modify and/or vacate the permanent injunction under Fed. R. Civ. P. 60(b)(5) or, in the alternative, to stay the permanent injunction pending ratification of the new CBA. UPS Freight represented that if the request was denied, it intended to appeal the Order to the Tenth Circuit Court of Appeals.
A driver who is judged medically unqualified to drive, but is considered physically fit and qualified to perform other inside jobs, will be afforded the opportunity to displace the least senior fulltime or casual inside employee at such work until he/she can return to his/her driving job. However, if the displacement of a full-time employee with a CDL would negatively affect the employer's operations, the medically disqualified driver may only displace a casual inside employee. "Red-circled" non-CDL cartage employees shall not be subject to displacement in this process. While performing the inside work, the driver will be paidninety percent (90%) ofthe appropriate rate of pay for the full-time classification of work being performed. The Company shall attempt to provide eight (8) hours of work, if possible, out of available work.11
The new CBA would retroactively apply for the period August 1, 2018 through July 31, 2023.
*1262The EEOC opposed UPS Freight's motion, and ultimately sought leave to file a sur-response to address new arguments raised in UPS Freight's reply brief claiming that the injunction should be vacated because it was an "obey the law" injunction and thus impermissible under Fed. R. Civ. P. 65(d).
On October 17, 2018, UPS Freight was granted leave to file a supplemental brief.
II. Discussion
A. Rule 60(b)(5)
A motion for relief from judgment under Fed. R. 60(b) is an extraordinary remedy and may be granted only in exceptional circumstances.
Courts "should deny a party's request for modification ... if it merely establishes that 'it is no longer convenient [for the movant] to live with the terms' " of the injunction or consent decree.
UPS Freight initially cited two changed facts in support of its request for relief: (1) that subsequent to the Court's Order, UPS Freight and the Teamsters reached a tentative deal that modifies Article 23.1 to eliminate the 90% pay for medically disqualified drivers; and (2) the likely ratification of a modified Article 23.1. Taken together, UPS Freight argues, these changed facts render the permanent injunction no longer equitable. In its reply, however, UPS Freight argued that the injunction should be vacated because it is a prohibited "obey the law" mandate. Although the EEOC objected to this new argument as outside the factors the Court can consider in ruling on a Rule 60(b)(5) motion, it read UPS Freight's reply brief to mean it was open to the Court narrowing the injunction and proposed modifications of the second part of the injunction to narrow the scope and limit its application to drivers. As noted above, UPS Freight subsequently advised the Court that it was not open to modification of the injunction, but rather was requesting the Court vacate the injunction entirely.
UPS Freight does not address the first part of the injunction-the prohibition against "enforcing Article 23.1 [of the current 2013-2018 CBA] as written" until the new CBA is ratified. This part of the injunction expires by its own terms when the next CBA is ratified and the current Article 23.1 is no longer operational. Of course, ratification did not occur as anticipated the first week of October 2018, and UPS Freight does not estimate when another vote will be scheduled. While UPS Freight claims that it is now complying with this part of the injunction, the Court declines to vacate the injunction under these tentative circumstances and prior to ratification of the new CBA.
UPS Freight's changed circumstances with respect to the second part of the injunction- which enjoins it "from negotiating and ratifying terms of the next [2018-2023 CBA] which would discriminate on the basis of disability in violation of
The Court is not convinced that the second part of the injunction is an "obey the law" injunction. This part of the injunction is specifically limited to negotiation of the new CBA and likewise expires upon ratification, and thus has a geographic and temporal limit.
As UPS Freight notes, however, the EEOC took the position in its response that this part of the injunction could extend to provisions in the CBA beyond Article 23.1 and the realm of this lawsuit that are purportedly discriminatory under the ADA "general rule" that UPS is now enjoined from negotiating and ratifying under the Court's Order.
If a party meets its burden of establishing a change in fact or circumstance that warrants modification of an injunction, the court should examine "whether the proposed modification is suitably tailored to the changed circumstance."
UPS Freight and the Teamsters National UPS Freight Negotiating Committee are permanently enjoined from negotiating and ratifying terms of the next collective bargaining agreement which would discriminate on the basis of disability in violation of42 U.S.C. § 12112 (b)(1) and (b)(3), specifically (1) limiting, segregating, or classifying drivers *1265because of disability adversely affecting the opportunities or status of disabled drivers and (2) using standards, criteria, or methods of administration that have the effect of discrimination against drivers on the basis of disability.
This modification is particularly relevant in light of the failed vote requiring UPS Freight and the Teamsters to return to the bargaining table; the narrowed injunctive language will alleviate UPS Freight's concern about its application and ensure compliance when negotiating the new CBA.
B. Rule 62(c)
UPS Freight requests the Court stay its permanent injunction while this matter is appealed. Fed. R. Civ. P. 62(c) states, in relevant part: "While an appeal is pending from an interlocutory or final judgment that grants, dissolves, or denies an injunction, the court may suspend, modify, restore, or grant an injunction on terms for bond or other terms that secure the opposing party's rights." Stay of an injunction should first be sought at the district court level.
(1) whether the stay applicant has made a strong showing that he is likely to succeed on the merits; (2) whether the applicant will be irreparably injured absent a stay; (3) whether issuance of the stay will substantially injure the other parties interested in the proceedings; and (4) where the public interest lies.34
The Court addresses the factors in turn.
1. Likelihood of Success on the Merits
This Court's ruling under Fed. R. Civ. P. 12(c) is reviewed under the same de novo standard used for motions to dismiss under Rule 12(b)(6).
UPS Freight argues that the Court's finding of liability solely on the pleadings and resulting permanent injunction merits closer consideration by the Tenth Circuit because (1) the Court applied the incorrect burden-shifting model under International Brotherhood of Teamsters v. United States ;
First, with respect to the underlying liability issue, EEOC's lawsuit was filed under Section 706 of Title VII of the Civil Rights Act, challenging UPS Freight's discriminatory policy set forth in the CBA that expressly treated employees differently because of their disability. UPS Freight argues that claims alleging a "pattern or practice" of discrimination can be brought only under Section 707 of the Civil Rights Act, and that EEOC waived a claim for disparate impact based on pattern or practice when it labeled Count II a "disparate treatment" claim.
There are two types of Title VII employment discrimination: (1) disparate impact, which involves a facially neutral employment practice resulting in disproportionate impact; and (2) disparate treatment, which involves intentionally discriminatory employment practices.
Further, the method of proof for a pattern-or-practice case differs from that used for individual discrimination claims, which are analyzed under the burden-shifting McDonell Douglas framework.
An employer responding to a prima facie showing of a pervasive policy of intentional discrimination has the burden to "defeat" the case by "demonstrating that the Government's proof is either inaccurate or insignificant."
In this case, UPS Freight's admissions established liability, as there was no factual question that its policy and practice violated
Moreover, the Court did consider the arguments UPS Freight made in opposition to entry of judgment on the pleadings and found them unpersuasive: that the EEOC relies upon a selective and erroneous interpretation of the CBA, that terms of the CBA are ambiguous, and that the Court is required to engage in a case-by-case analysis to determine if an employee has been discriminated against. Thus, the Court is not persuaded that UPS Freight is likely to succeed on its challenge of the Court's liability analysis or judgment on the pleadings.
*1268Next, with respect to the Court's issuance of a permanent injunction, UPS Freight argues that an injunction was improper because "monetary compensation" could adequately remedy its wrongdoing. This argument is also without merit. Title VII permits the EEOC to enforce statutes that specifically authorize it to obtain injunctive remedies.
Finally, the Court notes that the permanent injunction is not "onerous," but temporally limited until the new CBA is ratified, and is thus narrowly tailored to remedy the harm shown. Further, any claim that the injunction is overbroad and critically vague has been remedied by the Court's modification narrowing the language of the injunction. Accordingly, UPS Freight has not demonstrated it is likely to succeed on appeal and this factor weighs against a stay.
2. Irreparable Harm
After the Court's Order, UPS Freight took steps to modify Article 23.1 to comply with the permanent injunction. UPS Freight claims it will be irreparably harmed absent a stay pending appeal because of the time and expense of ensuring that nothing else in the new CBA discriminates on the basis of disability, which might "hinder or delay" ratification. Since UPS Freight made this argument, however, the CBA was voted down and not ratified by the union members, necessitating a return to the bargaining table. In light of the Court's modification narrowing the permanent injunction, UPS Freight has the guidance it seeks to determine if it has met the terms of the Court's injunction, which should not hinder or delay ratification beyond the time necessary to negotiate a new CBA to meet the concerns of the union members. This factor weighs against a stay.
3. Injury to Other Parties/Public Interest
Finally, UPS Freight claims that other interested parties will not be injured by a stay, nor will a stay adversely affect the public interest. As the EEOC notes, "[w]hen the EEOC acts [it does so] to vindicate the public interest in preventing employment discrimination."
Accordingly, after considering all of the circumstances, the Court concludes that *1269the factors for issuing a stay pending appeal weigh against imposing a stay. UPS Freight's motion is denied.
IT IS THEREFORE ORDERED BY THE COURT that UPS Freight's Motion to Modify and/or Vacate the Court's Permanent Injunction and Motion in the Alternative to Stay the Permanent Injunction Pending Ratification and Appeal (Doc. 32) is granted in part and denied in part. The Court modifies the second part of the permanent injunction as follows:
UPS Freight and the Teamsters National UPS Freight Negotiating Committee are permanently enjoined from negotiating and ratifying terms of the next collective bargaining agreement which would discriminate on the basis of disability in violation of42 U.S.C. § 12112 (b)(1) and (b)(3), specifically (1) limiting, segregating, or classifying drivers because of disability adversely affecting the opportunities or status of disabled drivers and (2) using standards, criteria, or methods of administration that have the effect of discrimination against drivers on the basis of disability.
IT IS FURTHER ORDERED BY THE COURT that UPS Freight's Motion for Stay Pending Appeal is denied.
IT IS SO ORDERED.
Doc. 31.
Doc. 10, ¶ 36.
Doc. 31 at 5-6.
The Court declined the EEOC's request to rewrite this provision.
Doc. 32.
Declaration of Chuck Schmidbauer, Doc. 33, Ex. A, ¶ 4.
Docs. 35, 38.
Doc. 40.
Doc. 41
Doc. 42.
Doc. 51.
Doc. 52.
Servants of Paraclete v. Does ,
Fed. R. Civ. P. 60(b)(5).
Horne v. Flores ,
Jackson v. Los Lunas Cmty. Program ,
Horne ,
Cf. N.L.R.B. v. U.S. Postal Serv. ,
By contrast, the Court declined to enter a permanent injunction requested by the EEOC "enjoining UPS Freight ... from discriminating on the basis of disability in violation of
See Doc. 35 at 7 ("What UPS Freight does not say in its short two-page Rule 60(b)(5) section ... is that it has apparently refused to actively comply with its obligation under the injunction 'to ensure that nothing [besides Article 21.3] in the CBA is unintentionally discriminatory on the basis of disability.' ... Clearly the injunction, and a real threat of possible contempt action, is necessary to get UPS Freight to ensure it stops discriminating against disabled employees.").
Jackson ,
Fed. R. App. P. 8(a)(1)(A).
Liberty Mut. Fire Ins. Co. v. Clemens Coal Co. , No. 14-2332-CM,
Diversey v. Schmidly ,
Jackson v. Integra Inc. ,
See EEOC v. Pitre, Inc. ,
42 U.S.C. § 2000e-5.
42 U.S.C. § 2000e-6(a).
EEOC v. Horizontal Well Drillers, LLC , No. CIV-17-879-R,
See EEOC v. Bass Pro Outdoor World, L.L.C. ,
Daniels v. UPS, Inc. ,
EEOC v. Pitre, Inc. ,
Int'l Brhd. of Teamsters v. United States ,
See United States v. City & Cnty. of Denver ,
Id. at 1309-10.
See Bates v. United Parcel Serv., Inc. ,
See, e.g. , 42 U.S.C. § 2000e-5(g)(1) ("If the court finds the [defendant] has intentionally engaged in or is intentionally engaging in an unlawful employment practice charged in the complaint, the court may enjoin [it] from engaging in such unlawful employment practice");
Semsroth v. City of Wichita ,
See 42 U.S.C. § 2000e-5(g)(1) and 6(a).
Gen. Tel. Co. of the Nw. v. EEOC ,
Reference
- Full Case Name
- EQUAL EMPLOYMENT OPPORTUNITY COMMISSION v. UPS GROUND FREIGHT, INC., d/b/a UPS Freight
- Cited By
- 1 case
- Status
- Published