Opinion ID: 665874
Heading Depth: 3
Heading Rank: 2

Heading: The Affirmative Defense

Text: 34 We cannot affirm summary judgment regarding the Group 1 comparators unless defendants prevailed on their affirmative defense to the EPA claim. The district court did not reach defendants' affirmative defense. 12 We reverse summary judgment as to the Group 1 comparators because nothing in the record or in the district court order suggests that defendants met their burden of persuasion on an affirmative defense under the EPA. 13 GROUP 2 COMPARATOR 1. The Prima Facie Case 35 The district court ruled that plaintiff's job and that of Group 2 comparator William Hill did not require substantially similar skills, efforts, and responsibilities, and that Hill's and Mulhall's working conditions were dissimilar. Thus, the court found that plaintiff failed to establish a prima facie case sufficient to withstand the motion for summary judgment on the EPA claim. 36 In Equal Pay Act cases, we compare the jobs, not the individual employees holding those jobs. Miranda, 975 F.2d at 1533. Only the skills and qualifications actually needed to perform the jobs are considered. Id. Comparators' prior experience is not relevant to the substantially similar inquiry. Id. The examination also rests on primary, as opposed to incidental or insubstantial job duties. Id. Job titles are a factor for consideration, but are not dispositive. Id. The plaintiff need not prove that her job and those of the comparators are identical; the test is one of substantiality, not entirety. Id. Nonetheless, in EPA cases [t]he standard for determining whether jobs are equal in terms of skill, effort, and responsibility is high. Waters v. Turner, Wood & Smith Ins. Agency, Inc., 874 F.2d 797, 799 (11th Cir.1989). If plaintiff's evidence, with all inferences drawn in her favor, establishes an EPA violation and there is sufficient evidence such that a jury could find in her favor, then summary judgment for defendants is improper. Id. 37 William Hill joined Advance in 1988 when defendants created an investigations division to supplement their security services. Hill's responsibilities included formulating the new business, obtaining clients, and creating administrative processes and marketing strategies. He also reviewed ICA's affirmative action plan, maintained employee hiring and promotion logs, administered the EEO policy, and coordinated activities with other components of Advance. 38 We have no doubt that investigative and administrative work are dissimilar. However, the initial question presented is whether the administrative work of starting and running a new division was substantially similar to the administrative work performed by the Vice President for Administration. Both positions are fairly described as corporate department heads, with both plaintiff and Hill reporting to Advance's president. Many of the job functions are identical. For example, both employees had responsibilities vis-a-vis affirmative action, EEO, and coordination with other corporate entities. 39 Defendants place much emphasis on Hill's responsibility to acquire clients. Plaintiff argues that preparing bids for new clients and managing the resulting contracts require equal skill, effort and responsibility. She asserts that Advance's government contracts were obtained and maintained as a result of her efforts. [Exhibit 3 to Defendant's Deposition of Marilyn Mulhall on April 30, 1991.] We cannot say as a matter of law, drawing all inferences in favor of plaintiff as nonmovant in this motion for summary judgment, that this aspect of plaintiff's and Hill's positions are not substantially similar. Nor do we find any evidence in the record to support the district court's finding that Hill and Mulhall worked in dissimilar conditions. 14 40 We cannot so easily dismiss the investigative component of Hill's job. While there is no evidence before us of the time actually spent in this particular job function, investigative skills no doubt play some role in one's ability to direct investigations, making investigative knowledge more than an incidental part of Hill's position. Plaintiff does not assert that she possessed any investigative skills. Accordingly, we agree with the district court that under the strict similarity requirement imposed in EPA cases, the plaintiff failed to establish a prima facie case as it relates to the Group 2 comparator, William Hill. We affirm this aspect of the district court's ruling and go no further as to this comparator. GROUP 3 COMPARATOR 1. The Prima Facie Case 41 The district court determined that plaintiff failed to establish a prima facie case regarding Larry Nelson, Vice-President, Controller of Advance, because his job required different skills, effort, and responsibilities. Thus, the district court ruled that Nelson, who did not become controller until 1989, was an improper comparator for the EPA action. 42 Transformations in the controller position punctuated the years in question. From 1984 to 1985, both plaintiff's position and that of the controller (Nelson's predecessor) were identified as job class IV. Advance labelled both positions vice-president. Defendants do not seem to dispute the proposition that the assignments entailed substantially similar skills, efforts, and responsibilities in the early 1980's. Neither the controller nor Mulhall were accountants. During these years the controller earned approximately $7000 more than plaintiff. In 1985, plaintiff's executive performance appraisal reflected an evaluation of 45.5 points with a recommended merit increase of 12%. Defendant Figgie reduced the increase in plaintiff's compensation to 6.7%. At the same time, the Vice-President, Controller received an evaluation of 34.2 points and obtained a merit increase of 5.9%. 43 In 1986, Advance upgraded the controller position to job class V and shifted many of his responsibilities to plaintiff's position by 1987. Defendants do not explain the reason for upgrading the controller's position while divesting him of numerous functions. Nor do they explain why plaintiff's job class was not raised when she was assuming responsibilities previously assigned to another vice president. We also note that defendant placed plaintiff in its executive compensation plan in 1984, when the only other participants were the president and the controller. Drawing all inferences in favor of the non-movant, as we must, we find nothing in the record defeating plaintiff's contention that the vice presidents' positions were substantially similar from as early as 1984 until at least 1987. 15 Thus, we hold that plaintiff established a prima facie case regarding the pay disparity for at least that period. 16 44 Advance fired Nelson's predecessor in 1988. The position was quickly upgraded to job class VI, and then upgraded without being filled to job class VII (a category matching Nelson's previous assignment) just before Nelson assumed the position. Meanwhile, plaintiff remained in job class IV until her resignation. The district court apparently focused on the controller position as it currently exists, granting summary judgment for defendants due to disparity in the skills, efforts and responsibilities entailed in filling the positions since Nelson's arrival. 45 The position now carries responsibility to plan, organize, direct and control defendants' accounting and financial functions, including credit collection and billing. We are not convinced that skills needed in the controller position, even as it is currently structured, are not substantially similar to those of the vice-president for administration. Advance's economic well-being is obviously the controller's main responsibility, but he also manages a staff and credit collection and billing--functions steeped in the administrative tradition. Meanwhile, monetary concerns permeate all aspects of plaintiff's position. 17 46 Nelson is an accountant; plaintiff is not. Defendants deny that an accounting degree is a job requirement but seemingly rely on Nelson's understanding and belief that a degree in accounting as well as accounting experience are required for the proper performance of these duties. [Nelson Affidavit p 5.] Although one could argue that defendants' argument raises, rather than eliminates a question of material fact, we need not reach that conclusion in order to dispose of this alleged distinguishing factor. We have previously stated that the prima facie case is made out by comparing the jobs held ... not by comparing the skills and qualifications of the individual employees holding those jobs. Brock, 765 F.2d at 1032. 18 Thus, Nelson's education and his opinion about a controller's preferred academic background are irrelevant at this juncture. Accordingly, we cannot agree with the district court that plaintiff's and Nelson's positions were distinguishable on the basis of skills. 47 Given our discussion of the skills involved, little analysis of the relative effort demanded to accomplish plaintiff's and Nelson's jobs is required. Both positions obviously necessitated great effort. If anything, we believe a jury could conclude that plaintiff's position, because of its diverse components, took greater effort than did the controller's relatively homogenous job tasks. Defendants failed to demonstrate that the controller exerts greater effort in his job than does plaintiff. 48 Moving then to the question of responsibility, we observe that both plaintiff and the controller reported directly to Advance's president, and both had ultimate responsibility as corporate heads for their divisions. Both were responsible for millions of dollars in corporate spending. Defendants apparently believe that the ultimate responsibility for corporate money is greater in kind than the ultimate responsibility for administration of the business as a whole. 19 One vice president manages money primarily and people secondarily; the other manages people and things primarily and money secondarily. We cannot agree with the district court that as a matter of law responsibilities inherent in the controller's and plaintiff's positions were not substantially similar. 49 A reasonable jury could certainly infer, as plaintiff suggests, that her position and that of the controller are substantially similar for purposes of the EPA. Accordingly, plaintiff met her burden of establishing a prima facie case regarding the vice president, controller. 2. The Affirmative Defense 50 We cannot affirm summary judgment regarding the Group 3 comparator unless defendants prevailed as a matter of law on their affirmative defense to the EPA claim. The district court did not reach defendants' affirmative defense. 20 We reverse summary judgment as to the Group 3 comparator because nothing in the record or in the district court order suggests that defendants met their burden of persuasion on an affirmative defense under the EPA. 21 Again, we note the difficulty inherent in disposing of such an issue by way of summary judgment. Credibility and the weight to be given such explanations are traditionally matters left to the consideration of fact finders. GROUP 4 COMPARATORS 1. The Prima Facie Case 51 The district court found, and we agree, that plaintiff established a prima facie case regarding the comparators in Group 4 (Massimei and Gregg, Vice-Presidents, Operations, and Trumbull, Regional Manager). Accordingly, we move directly to review the district court's ruling that defendants proved their affirmative defense by a preponderance of the evidence. 2. The Affirmative Defense 52 Defendants responded to the prima facie case by claiming that a factor other than sex justified the pay disparity, to wit: the comparators were formerly owners or principals in businesses purchased by Advance and their salaries were set as part of the negotiated sale of the businesses. In ruling for defendants, the district court relied on the principle of red-circling. 53 The term red circle describes certain unusual, higher than normal, wage rates which are maintained for many reasons. Gosa v. Bryce Hospital, 780 F.2d 917, 918 (11th Cir.1986). Congress intended to include this practice as a factor other than sex that explains a wage differential and constitutes an affirmative defense. Id., H.R.Rep. No. 309, 88th Cong., 1st Sess. 3 (1963), reprinted in 1963 U.S.Code Cong. & Ad.News 687-689. An example of legitimate red circling is when an employer transfers an employee from a skilled job to a less demanding position but continues to pay the transferee at the higher pay rate in order to have her available again when needed in the former job. U.S.Code Cong. & Ad.News at 689. Numerous courts, including ours, acknowledge red-circling where current employees are transferred to lower paying positions but retain their higher pay. Corning Glass Works, 417 U.S. at 210, 94 S.Ct. at 2235-36; Gosa, 780 F.2d at 918; Maxwell v. Tucson, 803 F.2d 444, 445 (9th Cir.1986); Grann v. Madison, 738 F.2d 786, 790 (7th Cir.), cert. denied, 469 U.S. 918, 105 S.Ct. 296, 83 L.Ed.2d 231 (1984) (extending red circling to a promoted employee); Bence v. Detroit Health Corp., 712 F.2d 1024, 1029-30 (6th Cir.1983), cert. denied, 465 U.S. 1025, 104 S.Ct. 1282, 79 L.Ed.2d 685 (1984); Pettway v. American Cast Iron Pipe Co., 494 F.2d 211, 249 n. 99 (5th Cir.1974). When a claimant identifies a legitimately red circled employee as a comparator, the employer has an affirmative defense. 54 Neither the district court nor defendants direct us to any case explicitly extending the red-circling affirmative defense to a situation involving new employees paid higher wages than existing employees in comparable jobs. Nor has our research identified such a case. Furthermore, legislative history suggests that this extension was not considered: the congressional explanation for red-circling refers to wages maintained (not created ) for a valid reason. This terminology, in combination with the examples given, convinces us that legislators did not contemplate applying the term red-circling to a situation like that at bar where a plaintiff makes a prima facie case of discriminatory wage differential between herself and new employees brought into the organization to fill comparable positions. 55 With red circling removed as the justification for the wage disparity, we examine the record for evidence of another factor other than sex upon which defendant may properly rest its defense. The exception also applies when the disparity results from unique characteristics of the same job; from an individual's experience, training, or ability; or from special exigent circumstances connected with the business. Glenn v. General Motors Corp., 841 F.2d 1567, 1571 (11th Cir.1988), cert. denied, 488 U.S. 948, 109 S.Ct. 378, 102 L.Ed.2d 367 (1988); 1963 U.S.Code Cong. & Ad.News 689. 56 Defendants argue that the wages were simply part of the larger negotiation picture surrounding the purchase of the comparators' businesses. Defendants seemingly suggest that market forces demanded paying higher wages to the men in order to sweeten the purchase deals. 22 Assuming some truth underlies defendants' assertion, we are still unable to explain defendants' failure to at some point raise plaintiff's pay to match or exceed that of the comparators when her profit center outperformed Massimei's during four out of five years and Trumbull's during all three years of comparison. 23 Defendants hope to ward off this analysis by labelling the argument one of comparable worth. We need not decide the merits of the comparable worth theory here for two reasons: first, plaintiff's argument does not, by definition, depend on comparable worth; 24 second, defendants made employees' contributions relevant to salary increases in their response to interrogatories. 25 57 We do not hold that an employer may never pay higher wages to a new employee whose position results from the purchase of his business. We simply hold that the record before us does not establish as a matter of law that comparators' superior experience, training or ability, or exigent business circumstances justified greater compensation than received by plaintiff who occupied a similar position for five years before the comparators' arrival and who consistently outperformed two of the three comparators on the very measures defendants admit constitute a basis for setting salaries. Nothing in the record establishes that the disparity in plaintiff's and the comparators' wages was attributable solely to any recognized exception to the EPA. 58 Because we find that plaintiff established a prima facie case as to the Group 4 comparators, and that defendant did not establish that there is no genuine issue of material fact as to its affirmative defense, we reverse the district court's grant of summary judgment on plaintiff's EPA claims to the extent they are based on Group 4 comparators. Summary--Equal Pay Act Claims 59 We reverse the district court's grant of summary judgment for defendants as it relates to the comparators in Groups 1, 3, and 4. We find that genuine issues of material fact exist regarding whether plaintiff and the men in Group 1 worked in a single establishment, and whether plaintiff and the Group 3 comparator performed substantially similar work. We further hold that defendants failed to establish their affirmative defense as a matter of law as it relates to Groups 1, 3, and 4 comparators. We affirm the district court's grant of summary judgment to defendants regarding the Group 2 comparator, William Hill, whose job was not substantially similar to that held by plaintiff under the strict standards employed in Equal Pay Act cases.