Dale Kleber v. CareFusion Corporation
Opinion of the Court
After Dale Kleber unsuccessfully applied for a job at CareFusion Corporation, he sued for age discrimination on a theory of disparate impact liability. The district court dismissed his claim, concluding that § 4(a)(2) of the Age Discrimination in Employment Act did not authorize job applicants like Kleber to bring a disparate impact claim against a prospective employer. A divided panel of this court reversed. We granted en banc review and, affirming the district court, now hold that the plain language of § 4(a)(2) makes clear that Congress, while protecting employees from disparate impact age discrimination, did not extend that same protection to outside job applicants. While our conclusion is grounded in § 4(a)(2)'s plain language, it is reinforced by the ADEA's broader structure and history.
I
In March 2014, Kleber, an attorney, applied for a senior in-house position in CareFusion's law department. The job description required applicants to have "3 to 7 years (no more than 7 years) of relevant legal experience." Kleber was 58 at the time he applied and had more than seven years of pertinent experience. CareFusion passed over Kleber and instead hired a 29-year-old applicant who met but did not exceed the prescribed experience requirement.
Kleber responded by bringing this action and pursuing claims for both disparate treatment and disparate impact under § 4(a)(1) and § 4(a)(2) of the ADEA. Relying on our prior decision in
EEOC v. Francis W. Parker School
,
II
A
We begin with the plain language of § 4(a)(2). "If the statutory language is plain, we must enforce it according to its terms."
King v. Burwell
, --- U.S. ----,
Section 4(a)(2) makes it unlawful for an employer
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.
By its terms, § 4(a)(2) proscribes certain conduct by employers and limits its protection to employees. The prohibited conduct entails an employer acting in any way to limit, segregate, or classify its employees based on age. The language of § 4(a)(2) then goes on to make clear that its proscriptions apply only if an employer's actions have a particular impact-"depriv[ing] or tend[ing] to deprive any individual of employment opportunities or otherwise adversely affect[ing] his status as an employee." This language plainly demonstrates that the requisite impact must befall an individual with "status as an employee." Put most simply, the reach of § 4(a)(2) does not extend to applicants for employment, as common dictionary definitions confirm that an applicant has no "status as an employee." See Merriam-Webster's Collegiate Dictionary 60, 408 (11th ed. 2003) (defining "applicant" as "one who applies," including, for example, "a job [applicant]," while defining "employee" as "one employed by another usu[ally] for wages or salary and in a position below the executive level").
Subjecting the language of § 4(a)(2) to even closer scrutiny reinforces our conclusion. Congress did not prohibit just conduct that "would deprive or tend to deprive any individual of employment opportunities." It went further. Section 4(a)(2) employs a catchall formulation-"or otherwise adversely affect his status as an employee"-to extend the proscribed conduct. Congress's word choice is significant and has a unifying effect: the use of "or otherwise" serves to stitch the prohibitions and scope of § 4(a)(2) into a whole, first by making clear that the proscribed acts cover all conduct "otherwise affect[ing] his status as an employee,"
and, second, by limiting the reach of the statutory protection to an individual with "status as an employee." See
Villarreal v. R.J. Reynolds Tobacco Co.
,
Kleber begs to differ, arguing that § 4(a)(2)'s coverage extends beyond employees to applicants for employment. He gets there by focusing on the language in the middle of § 4(a)(2)-"deprive or tend to deprive any individual of employment opportunities"-and contends that the use of the expansive term "any individual" shows that Congress wished to cover outside job applicants. If the only question were whether a job applicant counts as "any individual," Kleber would be right. But time and again the Supreme Court has instructed that statutory interpretation requires reading a text as a whole, and here that requires that we refrain from isolating two words when the language surrounding those two words supplies essential meaning and resolves the question before us. See,
e.g.
,
United Sav. Ass'n of Tex. v. Timbers of Inwood Forest Assocs., Ltd.
,
Reading § 4(a)(2) in its entirety shows that Congress employed the term "any individual" as a shorthand reference to someone with "status as an employee." This construction is clear from Congress's use of language telling us that the provision covers "any individual" deprived of an employment opportunity because such conduct "adversely affects his status as an employee." Put differently, ordinary principles of grammatical construction require connecting "any individual" (the antecedent) with the subsequent personal possessive pronoun "his," and upon doing so we naturally read "any individual" as referring and limited to someone with "status as an employee." See
Flora v. United States
,
Our conclusion becomes ironclad the moment we look beyond § 4(a)(2) and ask whether other provisions of the ADEA distinguish between employees and applicants. See
Mount Lemmon Fire Dist. v. Guido
, --- U.S. ----,
Right next door to § 4(a)(2) is § 4(a)(1), the ADEA's disparate treatment provision. In § 4(a)(1), Congress made it unlawful for an employer " 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."
Yet a side-by-side comparison of § 4(a)(1) with § 4(a)(2) shows that the language in the former plainly covering applicants is conspicuously absent from the latter. Section 4(a)(2) says nothing about an employer's decision "to fail or refuse to hire ... any individual" and instead speaks only in terms of an employer's actions that "adversely affect his status as an employee." We cannot conclude this difference means nothing: "when 'Congress includes particular language in one section of a statute but omits it in another'-let alone in the very next provision-the Court presumes that Congress intended a difference in meaning."
Loughrin v. United States
,
There is even more. A short distance away from § 4(a)(2) is § 4(c)(2), which disallows labor organizations from engaging in particular conduct. Section 4(c)(2), in pertinent part, makes it unlawful for a labor organization
to limit, segregate, or classify its membership ... in any way which would deprive or tend to deprive any individual of employment opportunities ... or otherwise adversely affect his status as an employee or as an applicant for employment , because of such individual's age.
The parallel with § 4(a)(2) is striking: both provisions define the prohibited conduct in terms of action that "would deprive or tend to deprive any individual of employment opportunities," only then to include the "or otherwise adversely affect" catchall language. But there is a big difference between the two provisions: § 4(c)(2)'s protection extends to any individual with "status as an employee or as an applicant for employment ," whereas Congress limited § 4(a)(2)'s reach only to someone with "status as an employee."
Consider yet another example. In § 4(d), Congress addressed employer retaliation by making it "unlawful for an employer to discriminate against any of his
employees or applicants for employment"
because such an individual has opposed certain unlawful practices of age discrimination.
Each of these provisions distinguishes between employees and applicants. It is implausible that Congress intended no such distinction in § 4(a)(2), however, and instead used the term employees to cover both employees and applicants. To conclude otherwise runs afoul of the Supreme Court's admonition to take statutes as we find them by giving effect to differences in meaning evidenced by differences in language. See
Mount Lemmon Fire Dist.
,
In the end, the plain language of § 4(a)(2) leaves room for only one interpretation: Congress authorized only employees to bring disparate impact claims.
B
Kleber urges a different conclusion in no small part on the basis of the Supreme Court's 1971 decision in
Griggs v. Duke Power Co.
,
A commonsense observation is warranted at the outset. If Kleber is right that
Griggs
, a Title VII case, compels the conclusion that § 4(a)(2) of the ADEA authorizes outside job applicants to bring a disparate impact claim, we find it very difficult to explain why it took the Supreme Court 34 years to resolve whether anyone-employee or applicant-could sue on a disparate impact theory under the ADEA, as it did in
Smith v. City of Jackson
,
Kleber's position fares no better within the four corners of
Griggs
itself. Several African-American employees of Duke Power challenged the company's practice of conditioning certain job transfers and promotions on graduating from high school and passing a standardized aptitude test. See
Kleber would have us read Griggs beyond its facts by focusing on language in a couple of places in the Court's opinion that he sees as covering employees and applicants alike. We decline the invitation. Nowhere in Griggs did the Court state that its holding extended to job applicants. And that makes perfect sense because nothing about the case, brought as it was by employees of Duke Power and not outside applicants, required the Court to answer that question. The language that Kleber insists on reading in isolation must be read in context, and the totality of the Griggs opinion makes clear that the Court answered whether Duke Power's African-American employees could bring a claim for disparate impact liability based on practices that kept them from pursuing different, higher-paying jobs within the company.
What happened a year after Griggs cements our conclusion. In 1972, Congress amended § 703(a)(2) of Title VII-the provision at issue in Griggs -by adding language to expressly include "applicants for employment."
Pub. L. No. 92-261, § 8(a),
The Supreme Court endorsed this precise course of analysis-giving effect to "Congress's decision to amend Title VII's relevant provisions but not make similar changes to the ADEA"-in
Gross v. FBL Financial Servs., Inc.
,
And so it is here. Congress's choice to add "applicants" to § 703(a)(2) of Title VII but not to amend § 4(a)(2) of the ADEA in the same way is meaningful.
Gross
teaches that we cannot ignore such differences in language between the two enactments. And, at the risk of understatement,
Gross
is far from an aberration in statutory construction. A mountain of precedent supports giving effect to statutory amendments. See,
e.g.
,
United States v. Quality Stores, Inc.
,
In no way does this analysis downplay Griggs , as our dissenting colleagues contend. We have approached Griggs as binding precedent and construed its holding not only by reading what the Supreme Court's opinion says (and does not say), but also in light of Congress's immediately amending Title VII (but not § 4(a)(2) of the ADEA) to cover "applicants" as well as the broader development in the law ever since, including with precedents like Smith in 2005 and Gross in 2009.
The upshot is clear: while Congress amended § 703(a)(2) of Title VII in 1972 to cover "applicants for employment," it has never followed suit and modified § 4(a)(2) of the ADEA in the same way. And this is so despite Congress's demonstrating, just a few years after
Griggs,
that it knew how to amend the ADEA to expressly include outside job applicants. See
Villarreal
,
Today, then, § 703(a)(2) of Title VII differs from § 4(a)(2) in at least one material respect: the protections of the former extend expressly to "applicants for employment," while the latter covers only individuals with "status as an employee." We underscored this exact difference 14 years ago in our opinion in
Francis W. Parker
, and we do so again today. See
C
Beyond his reliance on
Griggs
, Kleber invites us to read the ADEA against the backdrop of Congress's clear purpose of broadly prohibiting age discrimination. On this score, he points us to the Supreme Court's decision in
Robinson v. Shell Oil Company
,
In
Robinson
, the Court held that § 704(a) of Title VII extended not just to "employees" (a term used in § 704(a) ), but also to former employees. See
id
. at 346,
The Wirtz Report reflected the Labor Department's response to Congress's request for recommended age discrimination legislation, and a plurality of the Supreme Court in
Smith
treated the Report as an authoritative signal of Congress's intent when enacting the ADEA. See
Smith
,
Nobody disputes that the Wirtz Report reinforces Congress's clear aim of enacting the ADEA to prevent age discrimination in the workplace by encouraging the employment of older persons, including older job applicants. But we decline to resolve the question presented here on the basis of broad statutory purposes or, more specifically, to force an interpretation of but one provision of the ADEA (here, § 4(a)(2) ) to advance the enactment's full objectives.
Our responsibility is to interpret § 4(a)(2) as it stands in the U.S. Code and to ask whether the provision covers outside job applicants. We cannot say it does and remain faithful to the provision's plain meaning. It remains the province of Congress to choose where to draw legislative lines and to mark those lines with language. Our holding gives effect to the plain limits embodied in the text of § 4(a)(2).
The ADEA, moreover, is a wide-ranging statutory scheme, made up of many provisions beyond § 4(a)(2). And a broader look at the statute shows that outside job applicants have other provisions at their disposal to respond to age discrimination. Section 4(a)(1), for example, prevents an employer from disparately treating both job applicants and employees on the basis of age. See
Today's decision, while unfavorable to Kleber, leaves teeth in § 4(a)(2). The provision protects older employees who encounter age-based disparate impact discrimination in the workplace. And Congress, of course, remains free to do what the judiciary cannot-extend § 4(a)(2) to outside job applicants, as it did in amending Title VII.
For these reasons, we AFFIRM.
Dissenting Opinion
I do not join the majority's opinion, because the statute lacks a plain meaning.
Robinson v. Shell Oil Corp.
,
But neither do I join all of Judge Hamilton's dissent, which relies on legislative purpose. The purpose of a law is imputed by judges; it is not a thing to be mined out of a statute. Even when we know what direction the legislature wanted to move, we must know how far to go-and making that choice is a legislative task. See, e.g.,
Rodriguez v. United States
,
Section 623(a) provides:
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 word "individual" in paragraph (1) includes applicants for employment; everyone agrees on this much. "Individual" reappears in paragraph (2), and normally one word used in adjacent paragraphs means a single thing. See Antonin Scalia & Bryan A. Garner, Reading Law: The Interpretation of Legal Texts (2011) (Canon 25: Presumption of Consistent Usage). Maybe the trailing phrase in paragraph (2)-"otherwise adversely affect his status as an employee"-implies that the word "individual" in paragraph (2) means only employees. That's what the majority believes. But maybe, as Part I.C of Judge Hamilton's dissent suggests, this phrase establishes an independent set of rights for employees, without implying that applicants for employment are not "individuals."
The statutory context does not point ineluctably to one understanding. The majority does not explain why the statute would use "individual" in dramatically different ways within the space of a few words. But the principal dissent does not explain how we can read "individual" in paragraph (2) to include "applicant" without causing paragraphs (1) and (2) to converge. If that happens, then paragraph (2) applies disparate-impact analysis to all employment actions. That leaves little or nothing for paragraph (1) to do, for paragraph (2), no less than paragraph (1), prohibits disparate treatment.
Smith v. Jackson
,
Because neither text nor purpose offers a satisfactory solution, we should stop with precedent.
Griggs v. Duke Power Co
.,
Hamilton, Circuit Judge, dissenting, joined by Wood, Chief Judge, and Rovner, Circuit Judge, and joined as to Part II by Easterbrook, Circuit Judge.
We should reverse the district court's Rule 12(b)(6) dismissal of plaintiff Dale Kleber's disparate impact claim and remand for further proceedings. The key provision of the Age Discrimination in Employment Act prohibits both employment
practices that discriminate intentionally against older workers and those that have disparate impacts on older workers.
We should hold that the disparate-impact language in § 623(a)(2) protects both outside job applicants and current employees. Part I of this opinion explains why that's the better reading of the statutory text that is at worst ambiguous on coverage of job applicants. While other ADEA provisions protect job applicants more clearly, the Supreme Court guides us away from the majority's word-matching and toward a more sensible and less arbitrary reading. See
Robinson v. Shell Oil Co
.,
Part II explains that protecting outside job applicants tracks the Supreme Court's reading of identical statutory language in Title VII of the Civil Rights Act of 1964. In
Griggs v. Duke Power Co
.,
Part III explains that protecting both outside applicants and current employees is also more consistent with the purpose of the Act (as set forth in the statute itself) and avoids drawing an utterly arbitrary line. Neither the defendant nor its amici have offered a plausible policy reason why Congress might have chosen to allow disparate-impact claims by current employees, including internal job applicants, while excluding outside job applicants. The en banc majority does not even try to do so, following instead a deliberately naïve approach to an ambiguous statutory text, closing its eyes to fifty years of history, context, and application.
I. The Text of the ADEA's Disparate-Impact Provision
A. Statutory Text of Disputed Provision
We begin with the statutory language, of course. We analyze the specific words and phrases Congress used, but we cannot lose sight of their "place in the overall statutory scheme," since we "construe statutes, not isolated provisions."
King v. Burwell
, --- U.S. ----,
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 older employees.
Start with the critical statutory language, which includes two parallel provisions that prohibit employers from engaging in certain behavior. Under paragraph (a)(1), an employer may not intentionally discriminate against an older individual by firing or failing to hire or promote her because she is older-i.e., engage in disparate treatment of older individuals. Paragraph (a)(2) prohibits an employer from creating an internal employee classification or limitation that has the effect of depriving "any individual of employment opportunities" or adversely affecting his or her status as an employee because of age-i.e., creating an internal classification system with a disparate impact against older individuals.
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 within the meaning of paragraph (a)(2). If that classification "would deprive or tend to deprive any individual of employment opportunities" because of the person's age, 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-i.e., whether the employer has classified jobs in a way that tends to limit
any
individual's employment opportunities based on age. See
Smith
,
B. The Majority's Cramped Reading
To avoid this conclusion, the majority emphasizes the phrase "or otherwise adversely affect his status as an employee," reading it to limit the statute's disparate-impact protection "to an individual with 'status as an employee.' " Ante at 482-83. Note that the key "with" in that phrase-repeated several times in the majority opinion-comes only from the majority, not from the statute itself. It's not correct. The antecedent of "his" is "any individual," and "otherwise adversely affect" is even broader than "deprive or tend to deprive any individual of employment opportunities."
The crux of the majority's argument is that if "any individual" is not already employed by the employer in question, 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 majority thus concludes that a "person's status as an employee" cannot be affected unless the person is already an employee. If that's true, then paragraph (a)(2) subtly limits its protections from disparate impacts to people who already possess "status as an employee" with the defendant-employer.
The majority's analysis nullifies the two uses of the broad word "individual," which certainly reaches job applicants. What Congress meant to say, the majority argues, is that it's unlawful for an employer "to limit, segregate, or classify his employees in any way which would deprive or tend to deprive any current employee [not "any individual"] of employment opportunities or otherwise adversely affect his status as an employee, because of such employee's [not "individual's"] age."
How does one read a bar against depriving "any individual" of "employment opportunities" to exclude all cases where a person is looking for a job? And if Congress meant to limit the provision's coverage only to current employees, why didn't it just use the word "employee"? It had used that word twice in this provision already. Courts are generally loath to read statutory terms out of a textual provision and to insert limitations that are not evident in the text. See
Mount Lemmon Fire District v. Guido
, --- U.S. ----,
C. The Better Reading
If we look at the language of paragraph (a)(2) in isolation, the majority's mechanical reading has some superficial plausibility, but it should be rejected. At the textual level, there are three distinct and fundamental problems.
First, as Judge Easterbrook points out, the majority's theory gives the phrase "any individual" very different meanings in adjoining paragraphs (a)(1) and (a)(2) of § 623. Ante at 488-89. See also, e.g.,
Mohasco Corp. v. Silver
,
Second, the majority merely assumes that "affect his status as an employee" necessarily
limits
the already broad phrase, "deprive or tend to deprive any individual of employment opportunities." It is not self-evident-at least as a matter of
plain
meaning-that the latter "status" phrase must be read as limiting the former. A list culminating in an "or otherwise" term can instead direct the reader to consider the last phrase as a catch-all alternative, "in addition to" what came before, to capture prohibited actions that might otherwise escape the statute's reach. For example, an employer can violate the ADEA by adversely affecting the status of its employees (e.g., by giving bigger raises to junior employees, as alleged in
Smith
,
In
Helsinn Healthcare S.A. v. Teva Pharmaceuticals USA, Inc.
, 586 U.S. ----,
Third, even if "status as an employee" must be affected to state a disparate-impact claim under (a)(2), the majority's conclusion also depends entirely on the unlikely notion that "status as an employee" is not "adversely affected" when an employer denies an individual the opportunity to become an employee in the first place. Refusing to hire an individual has the most dramatic possible adverse effect on that individual's "status as an employee." Reading "status as an employee" broadly, to include whether the individual is an employee or not, is consistent with the actual words Congress used in repeatedly referring to "individuals," and with ordinary usage. Courts often speak of "denying status" of one sort or another.
In short, the effect of the phrase "otherwise adversely affects his status as an employee" on job applicants is at worst ambiguous for applicants like Kleber. The majority loads onto that phrase more weight than it can bear. If Congress really meant to exclude job applicants from disparate-impact protection, the phrase "status as an employee" was a remarkably obscure and even obtuse way to express that meaning.
D. Comparing § 623(a)(2) to Other ADEA Provisions
Congress no doubt could have written § 623(a)(2) to make clearer its protection of outside job applicants, as it did in other ADEA provisions and other statutes. As explained by Justice Thomas for a unanimous Supreme Court in
Robinson v. Shell Oil
, however, that observation does not prove that Congress chose
not
to provide that protection. 519 U.S. at 341-42,
The first statutory text that provides guidance on how to read § 623(a)(2) is the statute's stated purpose, which the majority largely disregards. Congress told us it set out to address "the incidence of unemployment, especially long-term unemployment" among older workers.
The majority, however, focuses on comparing § 623(a)(2) to several neighboring provisions in the ADEA that distinguish clearly between current employees and job applicants. The majority, to support its improbable result, reads too much into the differences in wording.
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.
The majority compares three of those ADEA provisions: the labor union provision in § 623(c)(2), the retaliation provision in § 623(d), and the federal government provision in § 633a(a). All three of these provisions use the phrase "applicant for employment." The majority invokes the common presumption that a difference in statutory wording signals a difference in Congressional intent and meaning. That presumption, however, is only a tool, not an inflexible rule. We need some basis beyond simple word-matching to believe that these particular differences in language were intended to distinguish the ADEA's disparate-impact provision from these other provisions to produce such an improbable result as excluding older job applicants from disparate-impact protection.
Instructive here is the Supreme Court's approach to interpreting the term "employee" in Title VII's anti-retaliation provision.
Robinson v. Shell Oil
, 519 U.S. at 339-41,
Adopting an approach that fits here, the Court wrote: "Because the term 'applicants' in § 704(a) is not synonymous with the phrase 'future employees,' there is no basis for engaging in the further (and questionable) negative inference that inclusion of the term 'applicants' demonstrations intentional exclusion of former employees."
In short, the Court concluded, an "inclusive interpretation of 'employees' in § 704(a) that is already suggested by the broader context of Title VII"-and that is not "destructive of [the] purpose" of the statute by allowing an employer to escape liability for "an entire class of acts"-"carry persuasive force given their coherence and their consistency with a primary purpose" of the statutory provision.
Instead, the majority's reading of § 623(a)(2) creates a strange incongruity. All actors who regularly recruit job applicants-employment agencies, labor unions, and federal agencies-are prohibited from engaging in age discrimination, including disparate-impact discrimination. See
Half a century after the ADEA was enacted, we can see that Congress could have been more precise in phrasing the disputed provision. The majority errs, though, in concluding boldly that the text "leaves room for only one interpretation." Ante at 485. The majority naively puts on blinders, considers only the language of the ADEA in isolation, and, as we'll see, ignores precedent, legislative history, and practical consequences to offer one cramped reading for the scope of § 623(a). The text alone does not provide sufficient grounds for choosing between two readings of one of the statute's most important protections, one that protects outside job applicants, and one that excludes them.
II. Griggs, Title VII, and the ADEA
A. Griggs and "Job-Seekers"
The most reliable basis for choosing between these two readings of the statutory text is to follow the Supreme Court's interpretation of identical language in Title VII of the Civil Rights Act of 1964 in
Griggs v. Duke Power
,
1. Parallel Statutory Texts
The ADEA's § 623(a)(2) tracks word-for-word the parallel provision for race, sex, religious, and national origin discrimination in Title VII of the Civil Rights Act of 1964, as it was enacted in 1964, as it stood when the ADEA was enacted, and as it stood when Griggs was decided. Here's the original language of Title VII's parallel disparate-treatment and disparate-impact provisions:
(a) 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 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.
In
Griggs
, the Supreme Court unanimously held that Title VII "proscribes not only overt discrimination but also practices
that are fair in form, but discriminatory in operation"-e.g., practices with disparate impacts against protected groups.
Griggs
,
The majority contends Griggs offers no guidance here because "nothing about the case, brought as it was by employees of Duke Power and not outside applicants, required the Court to answer th[e] question" whether Title VII's disparate impact provision extended to job applicants. Ante at 485. The majority treats the Supreme Court's references in Griggs to hiring as careless slips of the pen. As a general rule, that is not how lower federal courts should read Supreme Court opinions. More specifically, a closer look at Griggs shows that the majority's approach is 180 degrees off course.
2. The Facts of Griggs
Beyond reasonable dispute, the
Griggs
holding included job applicants. The majority ignores the fact that
Griggs
was a class action. The district court had certified a class "defined as those Negroes presently employed, and who subsequently may be employed, at [Duke Power's plant] and all Negroes
who may hereafter seek employment
"-i.e., job applicants.
Griggs v. Duke Power Co.
,
And that was for good reason. The
Griggs
class challenged employment practices that had the effect of segregating the workforce. Duke Power classified its employees into two main groups: (1) the "inside departments," historically staffed by white employees, with higher pay and responsible for tasks such as operating the boilers and maintaining the plant equipment; and (2) the Labor Department, the lowest-wage unit, "responsible generally for the janitorial services" and historically staffed by black employees.
Griggs v. Duke Power Co
.,
As the civil rights movement picked up steam, Duke Power "initiated a new policy
as to hiring
and advancement," requiring "a high school education or its equivalent ... for
all new employees
, except as to those in the Labor Department."
Id
. at 1228-29 (majority) (emphasis added). On the day Title VII took effect, Duke Power "added a further requirement for
new employees
"-the passage of "two professionally prepared aptitude tests, as well as to have a high school diploma."
Griggs
,
Notwithstanding the new rule, if an "inside" position opened, the grandfathered white employees from "inside departments" without high school diplomas faced "no restriction on transfer from any of the inside departments to the other two inside departments."
Id
. at 1246 (Sobeloff, J., dissenting). It was "only the outsiders" (e.g., entirely new applicants or black Labor Department employees) who "must meet the questioned criteria."
Thus, it made no legal difference that the named class representatives were existing Labor Department employees challenging their restricted ability to transfer (read: apply) to the higher-paying units staffed with white employees. The Court's legal analysis was not limited to intra-company transfers:
all
new applicants and the Labor Department plaintiffs had to meet Duke's educational and testing standards to apply for non-janitorial open positions.
Griggs,
3. The Supreme Court's Analysis
Thus it was neither accidental nor surprising that the Supreme 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.
Everyone understood that Griggs was the case testing disparate-impact coverage nationally. Given the class definition that included future job applicants, all judicial officers, parties, and amici understood that the stakes included protection for job applicants.
Against this background, there can be no serious doubt that
Griggs
recognized disparate-impact protection for both current employees and job applicants. Even the Court's takeaway instructions for employers also addressed hiring:
"
Congress has now required that the posture and condition of the job-seeker be taken into account. ... If an employment practice which operates to exclude Negroes cannot be shown to be related to job performance, the practice is prohibited."
The majority in this case therefore has its facts exactly backwards in asserting that "[n]owhere in Griggs did the Court state that its holding extended to job applicants." Ante at 485. One cannot reasonably read hiring and job applicants out of the opinion. After Griggs , no competent lawyer would have counseled employers that they were prohibited from basing only intra-company transfers and promotions on "neutral" but non-job-related tests, but remained free to use the same tests when hiring new employees.
B. Griggs' Aftermath and Title VII's 1972 Amendment
1. Later Judicial Treatment of Griggs
Unlike the majority here, courts, employers, and scholars took
Griggs
at its word that its holding was broad and not limited to intra-company transfers and promotions. Within two years, a "plethora of prominent and forceful federal court
rulings-from district court judges to the Supreme Court but perhaps most pointedly from the courts of appeal-had already won ... sweepingly wide proactive employer compliance with Title VII's strictures." David J. Garrow,
Toward a Definitive History of Griggs v. Duke Power Co
.,
Later Supreme Court decisions continued to read
Griggs
as governing hiring practices. E.g.,
Albemarle Paper Co. v. Moody
,
2. Title VII's 1972 Revision
None of the Court's later references to
Griggs
'
application to hiring even mention, let alone rely on, the fact that, as part of a major 1972 revision to Title VII, Congress also engaged in some statutory housekeeping and added an express reference to "applicants for employment" to the disparate-impact provision, § 2000e-2(a)(2). Pub. L. No. 92-261, § 8(a),
The year after Griggs , Congress enacted the Equal Employment Opportunity Act of 1972. It was a major bill designed to expand the powers of the EEOC and the scope of Title VII. But not every provision was important or controversial. The Act included this minor amendment not to change the law but to codify existing law as decided in Griggs .
The 1964 Act had confined the EEOC's role to "investigation, persuasion, and conciliation," and unlike other major agencies, it "lacked the authority to issue cease-and-desist orders or to initiate legal action in the federal courts." Herbert Hill, The Equal Employment Opportunity Acts of 1964 and 1972 , 2 Berkeley J. Emp. & Labor L. 1, 7-8 (1977). The Department of Justice, which did have authority to sue to enjoin employment discrimination, filed "few suits" and "obtain[ed] only minimal benefits for the complainants." Id. at 29. By the end of 1971, the year Griggs was decided, the EEOC was already "handicapped by a backlog of more than 23,000 unresolved complaints of discrimination"
and was subject to withering criticism. Id . at 31-33. There was concern that Title VII's results had been "disappointing" and "in most respects, proved to be a cruel joke to those complainants who have in good faith turned toward the Federal Government [which] cannot compel compliance"; thus there was general resolve that "promises of equal job opportunity made in 1964 must be made realities in 1971." Id. at 47-48, quoting S. Rep. No. 415, 92nd Cong., 1st Sess. 8 (1971).
The EEOC's limited powers were noted early. Efforts to strengthen it began almost immediately after the 1964 enactment. Id . at 32-33. It was clear, however, "that employers were vigorously opposed to any measure designed to increase the effectiveness of the law," and "[b]usiness interests conducted an intensive lobbying campaign against the various proposals to extend Title VII coverage, provide enforcement power to the EEOC, or strengthen the antidiscrimination statute in any way." Id. at 33.
This years-long battle culminated in the 1972 Act. The Act's major provisions: authorized the EEOC "to initiate civil suits in federal district courts"; retained the then-controversial private right of action; created a new Office of General Counsel; expanded coverage to a larger number of private employers, most state and local government employees, and federal employees; and deleted the exemption for educational institutions. Id. at 50-58; Conf. Rep. on H.R. 1746, reprinted in 118 Cong. Rec. 7166, 7166-69 (March 6, 1972).
3. Clarifying the Title VII Disparate-Impact Provision
Along with these major changes, § 8(a) of the 1972 Act amended Title VII's disparate-impact language in § 2000e-2(a)(2) to add the reference to "applicants for employment." Pub. L. No. 92-261, § 8(a),
First, Congress was well aware of
Griggs
. The Court's opinion was mentioned several times in the lengthy legislative history-always favorably and typically described in terms tracking the discussion of
Griggs
above. One House report quoted
Griggs
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." H.R. Rep. 92-899 at 21-22, reprinted in 118 Cong. Rec. 2156-57 (March 2, 1972), quoting
Griggs
,
Amid the major policy changes in the 1972 Act, the addition of "applicants for employment" to the disparate-impact provision was a minor change, mentioned only briefly as incorporating existing law. The conference committee report to the Senate said that this addition was "merely declaratory of present laws." 118 Cong. Rec. at 7169. Congress noted its intention to "make it clear that discrimination against applicants for employment ... is an unlawful employment practice" under both
clauses of Title VII's § 2000e-2(a). 118 Cong. Rec. at 7169. 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 the provision, see
Consider these sparse comments in context. The recognition of disparate-impact liability in Griggs had been controversial and hard-fought between civil rights advocates and employers. If Congress thought in 1972 that it was changing the law to extend disparate-impact protection to reach job applicants, that change surely would have been significant enough to mention in the detailed committee reports.
And beyond Congress's silence about such a supposedly major change in the legislation, it beggars belief to think that employer groups would have let such an amendment pass without mention.
The majority is right that courts often assume that statutory amendments are intended to change the law. Ante at 486, citing, e.g.,
United States v. Quality Stores, Inc
.,
The distinction is relevant most often in disputes over whether to give an amendment retroactive effect. Substantive amendments that change the law are rarely given retroactive effect, while "clarifying" amendments are routinely given such effect. See, e.g.,
United States ex rel. Garbe v. Kmart Corp
.,
How to tell when an amendment is substantive and when only clarifying? We explained in Garbe :
In deciding whether an amendment is clarifying rather than substantive, we consider "[1] whether the enacting body declared that it was clarifying a prior enactment; [2] whether a conflict or ambiguity existed prior to the amendment; and [3] whether the amendment is consistent with a reasonable interpretation of the prior enactment and its legislative history."
The evidence on all three of these factors shows that the 1972 amendment to the Title VII disparate-impact language was clarifying, not substantive. As shown above: (1) The enacting body announced that the new language only declared current law and was consistent with Griggs . (2) Before the 1972 amendment, disparate-impact coverage for outside job applicants had been established in Griggs ; that coverage was certainly no worse than ambiguous. (3) The 1972 amendment was "consistent with a reasonable interpretation of the prior enactment and its legislative history." That's exactly how the Supreme Court had read the language a year earlier in Griggs and how the decision was described in the 1972 amendment's legislative history.
In short, the facts refute the majority's unsupported claim that the 1972 amendment showed Congress's "swift and clear desire to extend Title VII's disparate impact protection to job applicants." Ante at 486. Without evidence that Congress was "extending" Title VII, there is no foundation here for the majority's further inference that Congress in 1972 was silently endorsing a narrower interpretation of identical language in the ADEA. The ADEA was never mentioned in the larger 1972 Act itself or in the conference report describing it. The 1972 Act amended only provisions of the 1964 Act and provides no support for the majority's narrower interpretation of the ADEA.
C. Griggs and Smith v. City of Jackson
In a further effort to diminish
Griggs
, the majority offers what it calls a "commonsense observation." If it was so clear that
Griggs
'
Title VII analysis should apply to the ADEA's identical disparate-impact language, then it is "very difficult to explain why it took the Supreme Court 34 years to resolve whether anyone-employee or applicant-could sue on a disparate impact theory under the ADEA, as it did in
Smith v. City of Jackson
,
After emphasizing Title VII and the ADEA's "identical text" and "striking" contextual parallels,
Smith
noted somewhat bemusedly: "Indeed, for over two decades after our decision in
Griggs
, the Courts of Appeals uniformly interpreted the ADEA as authorizing recovery on a 'disparate-impact' theory in appropriate cases."
In
Hazen Paper Co. v. Biggins
,
The Supreme Court then granted review in
Smith
to resolve the circuit split.
In fact,
Smith
cited with approval cases allowing disparate-impact ADEA claims by job applicants and others who did not have, according to the majority here, "status as an employee."
Id
. at 237 n.8,
Smith
did not end the long tug-of-war between employers and workers over competing interpretations of civil rights legislation. The authors of
Hazen Paper
concurred in
Smith
but planted the seed of today's dispute. Justice O'Connor, joined by Justices Kennedy and Thomas, concurred in the judgment "on the ground that disparate impact claims are not cognizable."
Smith
,
and (a)(2) and asserted that "only" § 623(a)(1) protects applicants and therefore the EEOC regulation "must" have read a disputed ADEA provision to "provide a defense against claims under [ § 623(a)(1) ]-which unquestionably permits only disparate treatment claims."
Still, here we are. The resources that employers deployed in
Smith
to try to avoid all ADEA disparate-impact claims have been repurposed. Now they are deployed in a new campaign to show that the "plain text" of § 623(a)(2) permits employers to maintain irrational policies that disadvantage older individuals so long as those individuals have not yet been hired by the employer. Today's majority is not the first circuit to bite on this argument. The Eleventh Circuit has beaten us to it, ironically producing four opinions on the "plain" meaning of the text.
Villarreal v. R.J. Reynolds Tobacco Co.
,
III. Practical Consequences and Statutory Purpose
The text and precedent favor the view that job applicants may bring disparate-impact claims under the AEDA. In construing ambiguous statutory language, it also makes sense to consider the practical consequences of the different readings of § 623(a)(2) and how they fit with the overall statute's design and purpose. E.g.,
Graham County
,
A simple hypothetical shows how improbable and arbitrary the majority's reading is. Suppose the majority is correct that § 623(a)(2) applies only to current employees. Imagine two applicants for the defendant's senior counsel position here. 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 works for 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 majority, the inside applicant can sue for a disparate-impact violation, but the outside one cannot.
That result is baffling, especially under a statute with the stated purpose "to prohibit arbitrary age discrimination in employment."
Under the majority's interpretation, still further arbitrary line-drawing will now be needed. Suppose the applicant is currently employed by a sister subsidiary of the employer. Does she have the right "status as an employee" so that she can assert a disparate impact claim? Should the answer depend on some sort of corporate veil-piercing theory? 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 position through a temporary employment agency, working side-by-side with employees. I see no arguable reason to exclude any of these applicants from the disparate-impact protection of paragraph (a)(2).
Neither the majority nor the defendant or its amici have offered a reason why Congress might have chosen to allow the inside applicant but not the outside applicant to assert a disparate-impact claim. I can't either. Faced with the arbitrary consequences of drawing this line half a century after Congress drafted the legislation, the majority shrugs and says tautologically that it's "the province of Congress to choose where to draw legislative lines and to mark those lines with language." Ante at 488.
Of course, Congress can and often does draw arbitrary lines when it wants to do so. When it does, courts enforce those lines, absent constitutional problems. See, e.g.,
Stephens v. Heckler
,
The majority's arbitrary line undermines the stated purpose of the statute. Statutory purpose here is not a matter of judicial inference but of statutory declaration in the text enacted by both Houses of Congress and signed by the President. Congress enacted the ADEA to address unfair employment practices that make it harder for older people to
find
jobs.
Under the majority's reading of § 623(a)(2), the ADEA's protection of the "employment opportunities" of "any individual" prohibits employment practices with disparate impacts in firing older workers and in promoting, paying, and managing them,
but not in hiring them!
Congress was 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
,
A central goal-arguably the most central goal-of the statute was to prevent age discrimination
in hiring.
Congress and the Wirtz Report explained that the problem stemmed not just from explicit bias against older workers (i.e., disparate treatment), but also from "[a]ny formal employment standard" neutral on its face yet with adverse effects on otherwise qualified older applicants. Wirtz Report at 3; see also
Smith
,
Against this evidence of contemporary understandings, the majority offers no plausible policy reasons, but only its wooden and narrow textual interpretation, which is anything but inevitable. Wearing blinders that prevent sensible interpretation of ambiguous statutory language, the majority adopts the improbable view that the Act outlawed employment practices with disparate impacts on older workers, but excluded from that protection everyone not already working for the employer in question.
* * *
Given the statutory language in § 623(a)(2), the interpretation of that language in Smith and identical language in Griggs , the practical consequences of the interpretive choice, and the absence of any policy rationale for barring outside job applicants from raising disparate-impact claims, we should reject the improbable and arbitrary distinction adopted by the majority. We should hold that outside job applicants like Kleber may bring disparate-impact claims of age discrimination. I respectfully dissent.
Justice Scalia joined Parts I, II, and IV of the
Smith
opinion by Justice Stevens and wrote that he also agreed with Justice Stevens's reasoning in Part III.
Judge Martin's dissent in
Villarreal v. R.J. Reynolds Tobacco Company
collected several examples.
We have also used this "denial of status" phrasing in a variety of contexts.
Bell v. Kay
,
To be precise, the coal handling department was the one unit staffed by white employees that had been subject to the high school diploma requirement for transfer. The aptitude tests were offered at the coal employees' request as "a means of escaping from that department" and were then made available to employees in the Labor Department.
Griggs
,
Judge Sobeloff's dissent in the Fourth Circuit was prescient: "The decision we make today is likely to be as pervasive in its effect as any we have been called upon to make in recent years."
Griggs
,
The Chamber of Commerce attorney also talked about hiring in oral argument: "We're talking about objective means of choosing which employee should fit in to a particular job or
which employee should be hired in the first place
...." Transcript of Oral Argument,
Griggs
,
The House version of the conference committee report contained the text of § 8(a) but provided no explanation. 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 mentioned § 8(a) only in passing in the section-by-section analysis. See id . at 20-22, 30, reprinted in 1972 U.S.C.C.A.N. at 2155-57, 2165.
Just months earlier, the Chamber of Commerce's attorney had argued to the Griggs Court:
This case is one which is a vital concern to employers, both small and large throughout the United States. In today's labor market, there are often many applicants for the job, just as there are many employees who desire to be promoted [and] the employer must make a choice ... often a difficult one.
Transcript of Oral Argument,
Griggs
,
A year after
Hazen Paper
, we held that the ADEA did not permit any disparate-impact liability.
EEOC v. Francis W. Parker School
,
The Chamber of Commerce again weighed in, arguing against extending
Griggs'
disparate-impact analysis to the ADEA. The Chamber had still not, however, hit upon the textual reading argued here, that job applicants should be excluded from the ADEA's disparate-impact provision. Brief of Amicus Curiae Chamber of Commerce of the United States of America in Support of Respondents,
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.
,
Justice Scalia's concurrence specifically rejected that reasoning as to the EEOC regulation and, since the line drawing between applicants and current employees was beyond the scope of
Smith
itself, expressed his agnosticism on that issue.
Smith
,
Far from offering a reason, defendant defiantly claims that just because Congress has drawn the line between "employees" and "applicants" "for no good reason, and that the line might create hypothesized anomalies, [that] is no reason to disregard Congress' words." Petition for Rehearing En Banc, Dkt. 43 at 10 (May 10, 2018). The Chamber of Commerce amicus brief feints toward ascribing intent to Congress, arguing that foreclosing applicants from recourse was "[o]ne of the careful lines drawn by Congress" because the ADEA "strikes a careful balance between prohibiting irrational barriers to employment of older workers and preserving employers' ability to adopt sound hiring policies." Dkt. 19 at 3, 1 (Sept. 6, 2018). There is no evidence of such a deliberate choice in § 623(a)(2). Under the Chamber's theory, that "balance" is shifted entirely in employers' favor. An employer can set wildly irrational hiring criteria-such as requiring Twitter, Instagram, and Snapchat proficiency for an entry-level position at a fast-food joint, which would likely have a large disparate impact on older workers. As long as that position is not open to internal applicants, that would be a highly effective yet immune "barrier to employment of older workers." That's not a "careful line." It's nonsense.
Reference
- Full Case Name
- Dale E. KLEBER, Plaintiff-Appellant, v. CAREFUSION CORPORATION, Defendant-Appellee.
- Cited By
- 16 cases
- Status
- Published