Opinion ID: 2192890
Heading Depth: 1
Heading Rank: 1

Heading: offer of reinstatement

Text: The first issue presented is whether the Wisconsin Fair Employment Act should be interpreted to allow a valid offer of reinstatement to terminate an employer's back pay obligation as of the date the offer is rejected. The commission concluded that such an offer can terminate the accrual of back pay. Although the reviewing court is not bound by the commission's interpretation of the Act (a conclusion of law), such interpretation will be affirmed if a rational basis for it exists. Dairy Equipment Co. v. ILHR Dept., 95 Wis. 2d 319, 327, 290 N.W.2d 330 (1980). Questions of law such as statutory construction are reviewable ab initio by this court and are properly subject to judicial substitution of judgment. American Motors Corp. v. ILHR Dept., 101 Wis. 2d 337, 353-54, 305 N.W.2d 62 (1981). Section 111.36(3) (b), Stats. 1973, provides that amounts earnable with reasonable diligence by the person discriminated against shall operate to reduce back pay otherwise allowable. It seems logical that the principle of mitigation of wages lost would embody an offer of reinstatement as well as the acceptance of other employment. However, the Fair Employment Act does not contain a specific provision to this effect, and Wisconsin cases have not directly addressed the issue. Therefore, it is appropriate to consider federal decisions under Title VII of the federal Civil Rights Act, 42 U.S.C. sec. 2000e, et seq., for guidance in interpreting and applying the Wisconsin Far Employment Act. Bucyrus-Erie Co. v. ILHR Dept., 90 Wis. 2d 408, 421 n. 6, 280 N.W.2d 142 (1979). [1] Under federal law, a valid offer of reinstatement terminates the accrual of the employer's back pay obligation. Cofield v. Goldman, Sachs & Company, 364 F. Supp. 1372 (S.D. N.Y. 1973); N.L.R.B. v. Huntington Hospital, Inc., 550 F.2d 921, 924 (4th Cir. 1977). We feel that such a rule is sound and is consistent with the language of sec. 111.36(3) (b), Stats. 1973. We therefore adopt the rule that a valid offer of reinstatement ends the accrual of back pay. The question of what constitutes a valid offer is unresolved in Wisconsin. Having concluded that a valid offer of reinstatement ends the accrual of back pay as of the date the offer is rejected or accepted by the former employee, we next address the question of whether Diel's offer of March 27, 1974, to Anderson was sufficient to terminate Diel's back pay obligation. When weighing the merits of the different interpretations of the Act advanced by the parties, the purpose of the Act must be kept in mind. That purpose, which is stated in the Act itself, is to encourage and foster to the fullest extent practicable the employment of all properly qualified persons regardless of their age, race, creed, color, handicap, sex, national origin or ancestry. This subchapter shall be liberally construed for the accomplishment of this purpose. Section 111.31(3), Stats. 1973. (Emphasis added.) The Fair Employment Act is designed to prevent discrimination which tends to deprive the victims of the earnings which are necessary to maintain a just and decent standard of living.... Section 111.31 (1) Stats. 1973. [6] Under federal law, the burden of proving a failure to mitigate damages in an employment discrimination suit is on the employer. Sprogis v. United Air Lines, Inc., 517 F.2d 387, 392 (7th Cir. 1975); Kaplan v. Intern. Alliance of Theatrical, Etc., 525 F.2d 1354, 1363 (9th Cir. 1975); Sias v. City Demonstration Agency, 588 F.2d 692, 696 (9th Cir. 1978). [7] Also, under Title VII, whether back pay continues to accrue after an offer of reinstatement has been made depends upon the circumstances under which the offer was made or rejected, including the terms of the offer and the reasons for refusal. Claiborne v. Illinois Cent. R.R., 583 F.2d 143, 153 (5th Cir. 1978). It is apparent to this court that a requirement that an offer of reinstatement be specific and unconditional would inure to the benefit of both employers and their employees. A discharged employee should be encouraged to accept reinstatement; an equivocal, unclear offer by the employer would not accomplish this end. Additionally, employers should be able to determine what their responsibilities are in this situation. Therefore, we feel it is necessary to set forth guidelines in this area. First, the offer of reinstatement must be for the same position or a substantially equivalent position. Comparability in salary should not be the sole test of a reasonable offer of alternative employment; it is only one factor to be considered. Comparability in status is often more important, especially as it relates to opportunities for advancement or for other employment. Williams v. Albemarle City Board of Education, 508 F.2d 1242, 1243 (4th Cir. 1974). [8] Accordingly, a discharged or demoted employee is not required in mitigation of damages, to accept alternative employment of an `inferior kind,' or of a more `menial nature,' or employment outside of his usual type or for which he is not sufficiently qualified by experience, or employment the inferiority of which might injuriously affect the employee's future career or reputation in his profession. Id. (Footnote omitted.) Second, the offer of reinstatement must be unconditional. Any requirements attached to the offer must be the usual job requirements. See, N.L.R.B. v. Huntington Hospital, Inc., 550 F.2d at 924. Third, the employee must be afforded a reasonable time to respond to the offer of reinstatement. The employee then has the responsibility of informing his employer of his intentions concerning reinstatement within the stated reasonable time after he receives notice of the offer. N.L.R.B. v. Betts Baking Company, 428 F.2d 156, 158 (10th Cir. 1970). Whether the time allowed is reasonable will depend on the totality of the circumstances surrounding the making of the offer and the employee's response thereto. Id.; N.L.R.B. v. Izzi, 395 F.2d 241 (1st Cir. 1968). [2] Finally, the offer should come directly from the employer or its agent who is authorized to hire and fire, rather than from another employee or other unauthorized individual. This requirement, we believe, will further facilitate the goal of giving the employee a clear, definite offer which he would not reasonably hesitate to accept. [3] In the case before us, the commission found that Anderson rejected a valid offer of reinstatement by Diel on March 27, 1974. Under ch. 227, Stats., an administrative agency's findings of fact are conclusive if supported by substantial evidence in the record. Chicago, M., St. P. & P. RR Co. v. ILHR Dept., 62 Wis. 2d 392, 396, 215 N.W.2d 443 (1974). The only evidence of any offer of reinstatement by Diel is the statement in the investigator's report that Diel, through Healy, offered Anderson the baler job on March 27, 1974. Although this may be substantial evidence to support a finding that an offer was in fact made, there was not substantial evidence to show that there was a valid offer. As Anderson has pointed out, the report did not show that the new job being offered to her would be a position substantially equivalent to her former job. There was no evidence that Diel gave Anderson a reasonable time in which to accept or reject the offer. The offer was not communicated to Anderson by her employer, and Healy, the department investigator, was not authorized under ch. 111 to act as an agent of Diel. The commission stated that the offer was unconditional, unpersuasively explaining, it cannot be held that [Diel's] job offer was not unconditional, when as here, Complainant summarily rejected the job because she was employed elsewhere and no longer wanted to work for [Diel]. We cannot agree with the circuit court that the statement in the investigator's report constitutes substantial evidence to support the commission's finding. As we have previously noted, that statement is bereft of many significant facts regarding Diel's offer of reinstatement to Anderson, and Diel, as the employer, has the burden of showing that a valid offer was made. Therefore, we cannot accept the commission's finding that Diel made a valid offer of reinstatement to Anderson.