Dale Kleber v. CareFusion Corporation
Opinion of the Court
The key provision of the Age Discrimination in Employment Act of 1967 prohibits employment practices that discriminate intentionally against older workers, and prohibits employment practices that have a disparate impact on older workers.
In fact, our reading tracks the Supreme Court's reading of virtually identical statutory language in Title VII of the Civil Rights Act of 1964 in
Griggs v. Duke Power Co
.,
We therefore reverse the district court's Rule 12(b)(6) dismissal of plaintiff Dale Kleber's disparate impact claim and remand for further proceedings. Given the stage of the case, we do not address possible affirmative defenses under § 623(f)(1), including the defense that the challenged practice was "based on reasonable factors other than age."
Part I provides the factual and procedural background for the issue. Part II examines the text, purpose, and origins of § 623(a)(2), as well as the practical consequences of the interpretations advanced by the parties. Part III addresses the unusually wide array of arguments, rebuttals, and sur-rebuttals marshaled by the parties to support their competing interpretations § 623(a)(2). Part IV explains why the plaintiff did not fail to exhaust his administrative remedies.
I. Factual Background and Procedural History
In reviewing a dismissal for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6), we treat as true the factual allegations in the complaint without vouching ourselves for their truth.
Bonnstetter v. City of Chicago
,
On March 5, 2014, Kleber applied for a position as "Senior Counsel, Procedural Solutions" with defendant CareFusion Corporation, a healthcare products company. The job posting called for "a business person's lawyer" with the ability "to assume complex projects," which we must assume would be well-suited to Kleber's skills and experience. The job posting also said, however, that applicants must have "3 to 7 years (no more than 7 years) of relevant legal experience." CareFusion received Kleber's application but did not select him for an interview. The company eventually filled the position with a 29-year-old applicant.
The seven-year experience cap is at the heart of this lawsuit. In this appeal from a Rule 12(b)(6) dismissal, we must assume that the company did not select Kleber because he had more than seven years of relevant legal experience. Because of the experience cap, Kleber filed a charge of age discrimination with the Equal Employment Opportunity Commission. CareFusion responded in a letter to the EEOC saying its maximum experience cap in the job posting was an "objective criterion based on the reasonable concern that an individual with many more years of experience would not be satisfied with less complex duties ... which could lead to issues with retention."
After the EEOC issued Kleber a right-to-sue letter in December 2014, he filed this suit alleging claims for both disparate treatment and disparate impact under the relevant clauses of section 4 of the ADEA,
CareFusion moved to dismiss both claims. The district court dismissed the disparate impact claim under Rule 12(b)(6), relying on our decision in
E.E.O.C. v. Francis W. Parker School
,
II. The Scope of Disparate Impact Protection
A. The Text of the ADEA
1. Dissecting § 623(a)(2)
This appeal from a Rule 12(b)(6) dismissal presents a legal issue that we review
de novo
: whether § 623(a)(2) protects outside job applicants from employment practices that have a disparate impact on older applicants. See
Bell v. City of Chicago
,
The key provision of the ADEA,
It shall be unlawful for an employer-
(1) to fail or refuse to hire or to discharge any individual or otherwise discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment, because of such individual's age;
(2) to limit, segregate, or classify his employees in any way which would deprive or tend to deprive any individual of employment opportunities or otherwise adversely affect his status as an employee, because of such individual's age; or
(3) to reduce the wage rate of any employee in order to comply with this chapter.
The disparate treatment provision, paragraph (a)(1), does not refer to job applicants, but it clearly applies to them by making it unlawful for the employer "to fail or refuse to hire ... any individual ... because of such individual's age." The disparate impact provision, paragraph (a)(2), also does not refer specifically to applicants or hiring decisions, but its broad language easily reaches employment practices that hurt older job applicants as well as current employees.
Despite the length of this opinion, resulting from the unusually deep layers of arguments about this language, we can explain our basic textual reading in this and the following three paragraphs. We start with the critical statutory language, "to limit, segregate, or classify" employees. If an employer classifies a position as one that must be filled by someone with certain minimum or maximum experience requirements, it is classifying its employees. If the classification "would deprive or tend to deprive any individual of employment opportunities," paragraph (a)(2) can reach that classification. The broad phrase "any individual" reaches job applicants, so the focus turns to the employer's action and its effects on the individuals impacted by it-i.e.,
whether the employer has classified jobs in a way that tends to limit any individual's employment opportunities. See
Smith v. City of Jackson
,
To oppose this conclusion, the defendant emphasizes the phrase "or otherwise adversely affect his status as an employee." § 623(a)(2). The antecedent of "his" is "any individual," and "otherwise adversely affect" is broader than "deprive or tend to deprive any individual of employment opportunities." If "any individual" is not already employed by the employer in question, reasons the defendant, the individual does not yet have "status as an employee" and so is not protected from policies or practices that have disparate impacts because of age. The defendant thus concludes that a person's status as an employee cannot be affected unless the person is already an employee, so paragraph (a)(2) implicitly limits its protections from disparate impacts to people who already possess "status as an employee" with the defendant-employer.
Looking only at the language of paragraph (a)(2) in isolation, the defense argument has some plausibility, but we reject it for several reasons we explain in detail below. At the most basic textual level, there are two fundamental problems. First, the defense argument assumes that "status as an employee" limits the already broad phrase, "deprive or tend to deprive any individual of employment opportunities." It is not self-evident-as a matter of plain meaning-that the last "status" phrase
must
be read as a limitation. A list culminating in an "or otherwise" term could instead direct the reader to consider the last phrase alternatively, "in addition to" what came before. For example, an employer could violate the ADEA by adversely affecting the status of its employees (e.g., by unreasonably giving bigger raises to junior employees, as alleged in
Smith
,
Second, even if "status as an employee" must be affected to state a claim under (a)(2), the defense argument depends entirely on the notion that "status as an employee" is not affected when a person is denied the opportunity to become an employee in the first place. That limiting assumption is clever, but we believe it is incorrect. Deciding whether a person becomes an employee or not has the most dramatic possible effect on "status as an employee." Courts often speak of "denying status" of one sort or another.
Looking beyond the text of paragraph (a)(2) at the larger context of the ADEA as a whole, as well as the Supreme Court's interpretation of identical language in Title VII of the Civil Rights Act of 1964 in
Griggs v. Duke Power Co.
,
The parties here and other courts addressing this problem under § 623(a)(2) have laid out an unusually large variety of textual arguments. Most are spelled out well on both sides of the debate in the several opinions in the Eleventh Circuit's
en banc
decision,
Villarreal v. R.J. Reynolds Tobacco Co.
,
2. Considering Consequences of the Interpretations
In the following pages, we dive more deeply into the layers of the textual arguments offered in this appeal. Before we do,
it is useful to pause to consider the practical consequences of the parties' readings of paragraph (a)(2). See, e.g.,
Graham County
,
Suppose the defendant is correct that paragraph (a)(2) applies only to current employees. Imagine two applicants for the defendant's senior counsel position: both are in their fifties, and both have significantly more than seven years of relevant legal experience. One is Kleber, who does not currently have a job with the defendant. The other already has a job with the defendant but wants a transfer or promotion to the senior counsel position. Both are turned down because they have more than the maximum seven years of experience. According to the defendant's interpretation of paragraph (a)(2), the internal applicant can sue for a disparate impact violation, but the external one cannot.
That result would be arbitrary and even baffling, especially under a statute with the stated purpose "to prohibit arbitrary age discrimination in employment."
The problems with the defendant's interpretation do not end there. If the statute actually drew this arbitrary line between inside and outside applicants, still further arbitrary line-drawing would be needed. Suppose the applicant is currently employed by a sister subsidiary of the employer. Does she have "status as an employee" so that she could assert a disparate impact claim? Or suppose the applicant was recently laid off by the employer and challenges its failure to recall her. Or suppose the applicant currently has a temporary position as an independent contractor through a temporary employment agency. We see no arguable policy reason to exclude any of these applicants from the disparate impact protection of paragraph (a)(2).
The defendant and other proponents of the no-outside-applicants interpretation of paragraph (a)(2) have not offered a reason why Congress might have chosen to allow the inside applicant but not the outside applicant to assert a disparate impact claim.
But when courts interpret statutory language that is less than crystalline, it is worth keeping in mind the practical consequences of the argued interpretations. See, e.g.,
Graham County
,
B. Assumptions of the ADEA's Drafters
Another important guide for understanding why the better reading of
An unadorned "plain meaning" approach to interpretation supposes that words have meanings divorced from their contexts-linguistic, structural, functional, social, historical. Language is a process of communication that works only when authors and readers share a set of rules and meanings. In re Erickson ,815 F.2d 1090 (7th Cir. 1987). What "clearly" means one thing to a reader unacquainted with the circumstances of the utterance-including social conventions prevailing at the time of drafting-may mean something else to a reader with a different background. Legislation speaks across the decades, during which legal institutions and linguistic conventions change. To decode words one must frequently reconstruct the legal and political culture of the drafters. Legislative history may be invaluable in revealing the setting of the enactment and the assumptions its authors entertained about how their words would be understood. It may show, too, that words with a denotation "clear" to an outsider are terms of art, with an equally "clear" but different meaning to an insider. It may show too that the words leave gaps, for short phrases cannot address all human experience; understood in context, the words may leave to the executive and judicial branches the task of adding flesh to bones.
There can be no doubt that Congress enacted the ADEA to address unfair employment practices that make it harder for older people to
find
jobs. The ADEA is now more than 50 years old. It has been amended numerous times, but the disparate impact language we address here has not changed since the initial enactment in 1967. See Pub. L. 90-202, § 4(a)(2),
We know from the text of the ADEA itself that Congress set out to address "the incidence of unemployment, especially long-term unemployment" among older workers.
In 1964, Congress ordered the Department of Labor to recommend "legislation to prevent arbitrary discrimination in employment because of age." The result was the Wirtz Report. U.S. Department of Labor, The Older American Worker: Age Discrimination in Employment 1 (1965), reprinted in
Employment Problems of Older Workers: Hearings on H.R. 10634 and Similar Bills Before the Select Subcomm. on Labor of the H. Comm. on Educ. and Labor
, 89th Cong. 201-387 (1966). The Supreme Court has repeatedly treated the Wirtz Report as an authoritative guide in interpreting the ADEA. See
Smith v. City of Jackson
,
The Wirtz Report sought to explain the role of age and age discrimination "as a factor in the unemployment of older workers." Wirtz Report at 3. This discrimination, the report found, was not necessarily the result of "any employer malice, or unthinking majority, but from the ruthless play of wholly impersonal forces," i.e., the interaction between technological progress and stereotypes and assumptions about older workers.
Those stereotypes and assumptions, the department found, led to "hiring practices that take the form of specific age limits applied to older workers as a group." Id. at 5. Age limits for job applicants were so prevalent in the 1960s that "[a]lmost three out of every five employers" surveyed had an age limit for "new hires which they apply without consideration of an applicant's other qualifications." Id. at 6. The Wirtz Report found that a "significant proportion of the age limitations presently in effect ... have been established without any determination of their actual relevance to job requirements, and are defended on grounds apparently different from their actual explanation." Id. at 7. These limits caused a significant number of older workers to find themselves among the long-term unemployed, unable but still wanting to provide for a life and standard of living above the subsistence floor of public assistance programs:
There is, in this connection, no harsher verdict in most men's lives than someone else's judgment that they are no longer worth their keep. It is then, when the answer at the hiring gate is "You're too old," that a man turns away, in [a] poet's phrase, finding "nothing to look backward to with pride, nothing to look forward to with hope."
Id. at 1. This discrimination added, in the report's estimation, hundreds of millions of dollars in public expense due to unemployment insurance payments that may not have been necessary. See id. at 18.
The Wirtz Report also addressed earlier voluntary efforts like "studies, information and general education" campaigns directed at ending the "persistent and widespread use of age limits in hiring."
Id.
at 21. The "possibility of new
nonstatutory
means of dealing with such arbitrary discrimination has been explored," the report declared, and as of the time of the report, "[t]hat area is barren."
Id.
Some states had moved ahead and enacted "statutes prohibiting discrimination in employment on the basis of age," and their success suggested the primary solution-for the federal government to adopt "a national policy with respect to hiring on the basis of ability rather than age" that would not be subsumed into other antidiscrimination efforts.
Id.
at 21-22; see also
General Dynamics
,
To adopt the defendant's reading of paragraph (a)(2), we would have to find that the ADEA's protection of the "employment opportunities" of "any individual" prohibits employment practices with disparate impacts in firing, promoting, paying, or managing older workers,
but not in hiring them
. Congress, as shown by both the Wirtz Report itself and later interpretations of it, was indisputably concerned about all of these forms of discrimination. Wirtz Report at 21-22; see also
Employment of Older Workers
, 111 Cong. Rec. 15518, 15518-19 (1965) (describing Wirtz Report as urging "a clear, unequivocal national policy against hiring that discriminates against older workers" and referring to "job openings," and "applicants over 45");
EEOC v. Wyoming
,
These signals from the Wirtz Report help reveal the assumptions that the ADEA's "authors entertained about how their words would be understood."
Sinclair
,
Against this evidence of contemporary understandings, the defendant offers essentially nothing to support the improbable view that the Act outlawed employment practices with disparate impacts on older workers, but limited that protection to those already employed by the employer in question. To the extent § 623(a)(2) could be considered ambiguous on the issue, the evidence of purpose weighs heavily in favor of allowing disparate impact claims by job applicants regardless of whether they come from inside or outside the company. Outside job applicants are a very large group of the ADEA's intended beneficiaries, and they are protected by the text of both its disparate treatment and disparate impact provisions.
III. Comparisons and Precedent Regarding the Language of § 623(a)(2)
With that understanding of the text, the practical consequences of the parties' alternative readings of paragraph (a)(2), and the report that was the catalyst for the Act, we return to paragraph (a)(2)'s language and examine it in light of related statutory provisions and past judicial interpretations. The parties draw our attention to the following circumstances. First, Title VII's parallel provision is now slightly different because it was amended in 1972 to add "or applicants for employment" after
Griggs v. Duke Power Co.
,
A. The Title VII Parallel
1. Differences Between Today's Title VII and the ADEA
Section 623(a)(2) tracks very closely a parallel provision for race, sex, religious, and national origin discrimination in Title VII of the Civil Rights Act of 1964, with one notable difference-an explicit reference to job applicants. Title VII now provides in relevant part:
It shall be an unlawful employment practice for an employer-
(1) to fail or refuse to hire or to discharge any individual, or otherwise to discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment, because of such individual's race, color, religion, sex, or national origin; or
(2) to limit, segregate, or classify his employees or applicants for employ ment in any way which would deprive or tend to deprive any individual of employment opportunities or otherwise adversely affect his status as an employee, because of such individual's race, color, religion, sex, or national origin.
42 U.S.C. § 2000e-2(a) (emphasis added).
On the surface, it would seem easy to argue that the language difference between the disparate impact provisions in Title VII and the ADEA shows different meaning with respect to job applicants. The problem with that argument is that the "or applicants for employment" language was added to Title VII in 1972,
after
the Supreme Court decided
Griggs v. Duke Power
,
In
Griggs
, the employer required either a high school diploma or a minimum score on a general intelligence test to screen all job applicants, whether they were outside applicants or current employees seeking better jobs. The Court framed the issue as whether an employer could require a high school education or passing a general intelligence test as "a condition of employment in or transfer to jobs,"
Congress has now provided that tests or criteria for employment or promotion may not provide equality of opportunity merely in the sense of the fabled offer of milk to the stork and the fox. On the contrary, Congress has now required that the posture and condition of the job-seeker be taken into account. It has-to resort again to the fable-provided that the vessel in which the milk is proffered be one all seekers can use. The Act proscribes not only overt discrimination but also practices that are fair in form, but discriminatory in operation.
2. Griggs and the 1972 Amendment to Title VII
The conclusion in
Griggs
was not altered by the 1972 amendment to Title VII. The year after
Griggs
, Congress enacted the Equal Employment Opportunity Act of 1972. It was a major bill that strengthened the powers of the EEOC and extended coverage of Title VII to state and local government employees, teachers, and federal employees. See Conf. Rep. on H.R. 1746, reprinted in 92nd Cong., 118 Cong. Rec. 7166, 7166-69 (March 6, 1972). One minor provision of the 1972 Act amended Title VII's § 2000e-2(a)(2) to add the express reference to "applicants for employment." Pub. L. No. 92-261, § 8(a),
Confirming that point, the key committee reports do not discuss § 8(a) as a significant provision. If Congress had thought it was creating new law by extending disparate impact protection from current private-sector employees to reach all private-sector job applicants as well, that surely would have been significant enough to mention in the committee reports. The Senate reports contained the brief "merely declaratory" description of § 8(a) explained above. The House version of the conference committee report from a few days before contained the text of § 8(a) but provided no explanation of it. See H.R. Rep. 92-899 at 8, 19-20, reprinted in 92nd Cong., 118 Cong. Rec. 6643, 6645, 6648 (March 2, 1972). An earlier House report summarized the bill's major provisions, which were directed at different issues. H.R. Rep. 92-238 at 1, 4 (June 2, 1971), reprinted in 1972 U.S.C.C.A.N. 2137, 2137, 2140 (explaining the "basic purpose of H.R. 1746 is to grant the Equal Employment Opportunity Commission authority to issue ... judicially enforceable cease and desist orders" as well as to extend protections to State and local government employees, Federal employees, and private-sector employees and labor union members at smaller organizations);
id
. at 8-26, reprinted at 2143-60 (summarizing these provisions). With the focus on these other issues, the language in § 8(a) was not mentioned at all in the explanation. It appears only in passing in the section-by-section analysis. See
id.
at 20-22, 30, reprinted at 2155-57, 2165. The explanation quotes
Griggs
at length to emphasize the importance of disparate impact protections for "the job seeker" before noting that the "provisions of the bill are fully in accord with the decision of the Court."
Id.
at 21-22, reprinted at 2156-57, quoting
Griggs
,
As the Supreme Court has taught, Congress "does not alter the fundamental details of a regulatory scheme in vague terms or ancillary provisions-it does not, one might say, hide elephants in mouseholes."
Whitman v. American Trucking Ass'ns
,
Nevertheless, the defendant argues that we should infer from this 1972 amendment to Title VII that in clarifying existing Title VII law after
Griggs
, and consistent with it, Congress was silently endorsing a narrower interpretation of the ADEA. This negative inference is not justified. The ADEA was never mentioned in the 1972 Act itself or in the conference report describing it. The 1972 Act was the Equal Employment Opportunity Act of 1972, and it amended
only
provisions of Title VII of the 1964 Act. See
University of Texas Southwestern Medical Center v. Nassar
,
3. Applying Griggs in This Context
In fact,
Griggs
has special and continuing relevance to the ADEA in this context. When the Supreme Court held in
Smith v. City of Jackson
that § 623(a)(2) authorizes disparate impact claims, the Court relied heavily on the
Griggs
interpretation of the essentially identical language from Title VII before the 1972 amendments.
Other earlier cases not cited in
Smith
had also allowed disparate impact age claims by job applicants. E.g.,
Lowe v. Commack Union Free School Dist.
,
In addition, around the time of these earlier cases, the Supreme Court cited with approval another circuit's approach to an ADEA claim involving job applicants.
Western Air Lines, Inc. v. Criswell
,
The defendant responds to the
Griggs
argument in two principal ways. First, it returns to
Griggs
itself to argue all of its plaintiffs were in fact already employed by Duke Power and were only seeking better jobs. So, according to the defendant,
Griggs
is limited to fact patterns involving incumbent employees. We are not persuaded. Even if the
Griggs
plaintiffs themselves were already employees, the Supreme Court did not limit its holding in
Griggs
to that particular fact pattern, as we explained above. The Court saw no reason to read the paragraph (a)(2) language in Title VII as allowing discriminatory tests for hiring while outlawing them for promotion decisions.
B. Our Precedent Abrogated by Smith
Second, the defendant argues that a 1994 decision of this court, which categorically rejected all disparate impact claims under the ADEA, still survives today, at least in part. See
E.E.O.C. v. Francis W. Parker School
,
We first describe these three cases before explaining why
Smith
and not
Francis Parker School
controls this case. In
Francis Parker School
, a sixty-three-year-old's application for a teaching job was not considered because, based on his experience, he would have qualified for a salary higher than the school could afford.
As we describe above at pages 880-81,
Griggs
involved the "hiring and assigning of employees" at a power plant operated by Duke Power.
Faced with a case brought by municipal employees, the
Smith
Court applied
Griggs
to the identical language of the ADEA and held "that the ADEA does authorize recovery in 'disparate-impact' cases comparable to
Griggs.
"
The defendant and courts taking the defendant's view respond by arguing that
Griggs
should be narrowed to "transferees" inside of companies, i.e., internal applicants, primarily by citing brief mentions of
Griggs
in later opinions. See Appellee Br. at 26-28; see also
Villarreal v. R.J. Reynolds Tobacco Co.
,
These later opinions, however, did not try to limit the holding of
Griggs
to cases involving current employees, nor did they lose sight of the broader implications that
Griggs
had for future plaintiffs. See, e.g.,
The Supreme Court itself has repeatedly rejected that narrow approach.
Smith
recognized the import of
Griggs
for the ADEA when it explained paragraph (a)(2)'s text as focusing on "the
effects
of the action" and not the employer's motivations.
Thus, since
Smith
resolved the disparate impact question on the basis of
Griggs
, and since
Griggs
was about both promotion
and
hiring criteria, this hiring case is "comparable to
Griggs
" and controlled by it, without reference to
Francis Parker School
. See
Smith
,
C. Comparing § 623(a)(2) to Other ADEA Provisions
1. Summary
The parties also offer textual arguments that compare § 623(a)(2) to several neighboring provisions in the ADEA. The unlawful employment practices section of the ADEA begins with three subsections prohibiting age discrimination in employment by three different kinds of actors-private and public employers, employment agencies,
and labor organizations.
Remember that the text of § 623(a)(2) -the provision we interpret here-does not specifically include or obviously exclude applicants for employment in such terms. Some other ADEA provisions do use the term "applicant(s) for employment." See §§ 623(c)(2), 633a(a). The question is whether the absence of this phrase in the private-employer-facing provisions of (a)(2) is meaningful. See
Brown
, 513 U.S. at 118-19,
The three comparisons from within the ADEA are the labor union provision in § 623(c)(2), the retaliation provision in § 623(d), and the federal government employee provision in § 633a(a). Here again is the text of § 623(a)(2) :
It shall be unlawful for an employer-...
(2) to limit, segregate, or classify his employees in any way which would deprive or tend to deprive any individual of employment opportunities or otherwise adversely affect his status as an employee, because of such individual's age....
The labor union provision prohibits labor unions from refusing "to refer for employment any individual" and from adversely affecting the status of any "applicant for employment, because of such individual's age." § 623(c)(2). The retaliation provision makes it unlawful for "an employer to discriminate against any of his employees or applicants for employment" in retaliation for opposing unlawful practices or participating in the investigation or litigation of an age discrimination complaint. § 623(d). Finally, the federal government employee provision declares that "[a]ll personnel actions affecting employees or applicants for employment ... shall be made free from any discrimination based on age." § 633a(a).
Courts often presume that a difference in statutory words signals a difference in Congressional intent, but we must consider here "whether Congress intended its different words to make a legal difference."
Burlington Northern & Santa Fe Ry. Co. v. White
,
In construing workplace discrimination laws, "Congress' special care in drawing so precise a statutory scheme" must be respected, and courts should exercise caution in drawing inferences between provisions that have different scopes.
Nassar
,
2. The Labor Union Provision
Interpreting the ADEA, the Court has also said that "[n]egative implications raised by disparate provisions are strongest" when those provisions were "considered simultaneously" or enacted at the same time.
Gomez-Perez
,
3. Retaliation Provision
The defendant also urges us to compare the disparate impact provision in (a)(2) with the ADEA's retaliation provision, § 623(d). The retaliation provision was enacted at the same time as (a)(2) and makes it "unlawful for an employer to discriminate against any of his employees or applicants for employment" as a consequence of their opposition to unlawful practices or their involvement in the age discrimination complaint and resolution process. Pub. L. 90-202, § 4(d),
This provision refers to applicants for employment as distinct from employees, but the comparison fails to shed light on the meaning of paragraph (a)(2) specifically. First, it is not clear that the enumeration in subsection (d) does anything more than recognize that subsection (a) as a whole unquestionably covers both employees and applicants-paragraph (a)(1), of course, makes it unlawful for an employer "to refuse to hire or to discharge any individual," and we have explained why (a)(2) applies to job applicants. Subsection (d) extends retaliation protection to the same groups without any obvious reference to the disparate impact provision of paragraph (a)(2).
If it suggests anything useful here, the language in subsection (d) suggests that the key phrase in paragraph (a)(2) is the broad "any individual." Later in the retaliation provision, perhaps as a shorthand, subsection (d) repeats the phrase "individual, member or applicant for membership" twice, signaling in the provision that "individual" is the key unit of analysis for retaliation by private sector employers and employment agencies. See § 623(d) ; see also
Sauzek v. Exxon Coal USA, Inc.
,
Second, the retaliation provision is notable for what it does not say. The defendant's no-outside-applicants view would find strength from this provision if it called out paragraph (a)(2) specifically and if it prevented retaliation against "any of his employees or internal applicants for employment," or if it read "any of his employees or applicants for promotion or transfer ." It does not say anything to that effect, however. The plain text of the ADEA's retaliation provision covers employees and applicants, which as we describe above, is the best way to understand the scope of paragraph (a)(2) as well.
4. The Federal Employee Provision
With respect to the federal employee provision, as in
Gomez-Perez
, the "relevant provisions were not considered or enacted together."
The federal employee reference to applicants, added at a different time, tells us little about what the original ADEA (a)(2) language means.
Gomez-Perez
indicates that the natural comparator for ADEA's federal government employee provision is not § 623(a) but the federal government employee provision of Title VII, upon which the 1974 ADEA amendments were based. See
Gomez-Perez
,
D. Conclusion
Given the statutory language in § 623(a)(2), the interpretation of that language in Smith and virtually identical language in Griggs , and the absence of an apparent policy rationale for barring outside job applicants from raising disparate impact claims, we are not persuaded by the defendant's more subtle comparative arguments using various other statutory provisions. Those differences do not support the improbable and arbitrary distinction argued by the defendant.
IV. Exhaustion of Administrative Remedies
Finally, defendant CareFusion offers an alternative argument for affirmance. In the district court, the defendant moved to dismiss the disparate impact claim on the additional ground that Kleber failed to exhaust his administrative remedies. It argued that Kleber's EEOC charge could not have notified the company that he alleged a practice of discrimination against older workers since he charged that " I was not hired" and therefore " I have been discriminated against because of my age, 58." Dkt. 22-1 at 8 (emphasis added). The defendant renews this exhaustion argument on appeal, but it is misplaced.
To be cognizable, ADEA claims must be "like or reasonably related to the allegations of the charge and growing out of such allegations."
Noreuil v. Peabody Coal Co.
,
Conclusion
Plaintiff Kleber is over the age of 40. Kleber alleges that his job application was not considered because of a specific hiring practice that discriminated in effect against older applicants like him. Neither the language of § 623(a)(2) nor our abrogated precedent in
Francis Parker School
bars his disparate impact claim. The judgment of the district court is REVERSED and the case is REMANDED to the district court for further proceedings consistent with this opinion.
Justice Scalia joined Parts I, II, and IV of the
Smith
opinion by Justice Stevens, saying that he also agreed with the plurality's reasoning in Part III.
Judge Martin's dissent in
Villarreal v. R.J. Reynolds Tobacco Co.
,
We have also used this phrasing in a variety of contexts.
Bell v. Kay
,
The
amicus
supporting the defendant does not address this inside-v.-outside-applicant problem. Instead it offers policy arguments on two different points-why Congress may have intended the ADEA's coverage to be narrower than that of Title VII, and what might happen in the business world if this court agrees with plaintiff Kleber. See App. Dkt. 19. Both points have already been addressed by the Supreme Court in
Smith
. Because the kinds of discrimination they seek to prohibit are different, the ADEA has both broader affirmative defenses and more specific disparate impact claim requirements for the plaintiff than Title VII. Together these elements mean that disparate impact claims under the ADEA must both identify a specific "test, requirement, or practice ... that has an adverse impact on older workers" and, where applicable, overcome the rebuttal that the practice is "based on reasonable factors other than age."
Smith
,
This conference committee report to the Senate was the final report on § 8(a) of H.R. 1746, which added "or applicants for employment" to 42 U.S.C. § 2000e-2(a)(2). See
In a different section, the earlier House report reached the same conclusion about Griggs that we reach here: it was a case "where the Court held that the use of employment tests as determinants of an applicant's job qualification ... was in violation of Title VII if such tests work a discriminatory effect in hiring patterns" without a "showing of an overriding business necessity." H.R. Rep. 92-238 at 8, reprinted at 1972 U.S.C.C.A.N. at 2144 (emphasis added).
The defendant makes a similar argument about
Smith v. City of Jackson
, whose plaintiffs were also incumbent employees. See
We found support for this position in a then-recent Supreme Court opinion. See
Francis Parker School
,
There is another reason why
Francis Parker School
does not control this case-it had a subtle factual error in its discussion of
Griggs
. In rejecting the reasoning in
Griggs
, the
Francis Parker School
opinion characterized
Griggs
as interpreting 42 U.S.C. § 2000e-2 as it existed in 1994. See
Also, using this language to infer that private employers are permitted to use practices with disparate impacts on older job applicants would create a strange incongruity in the statute. All actors who regularly recruit job applicants are specifically prohibited from engaging in age discrimination. In 1967, Congress made it unlawful "for an employment agency to fail or refuse to refer for employment, or otherwise to discriminate against, any individual because of such individual's age, or to classify or refer for employment any individual on the basis of such individual's age." See
Because this opinion could be seen as creating a conflict among the circuits, despite
Smith
,
Dissenting Opinion
I believe an ordinary reading of the language found in § 4(a)(2) of the Age Discrimination in Employment Act of 1967 (ADEA),
"Statutory construction must begin with the language employed by Congress and the assumption that the ordinary meaning of that language accurately expresses the legislative purpose."
Gross v. FBL Fin. Servs., Inc.
,
Reference
- Full Case Name
- Dale E. KLEBER, Plaintiff-Appellant, v. CAREFUSION CORPORATION, Defendant-Appellee.
- Cited By
- 1 case
- Status
- Published