Document: 128 S. Ct. 2361 (2008) KENTUCKY RETIREMENT SYSTEMS, et al., Petitioners, v. EQUAL EMPLOYMENT OPPORTUNITY COMMISSION. No. 06-1037. Supreme Court of United States. Argued January 9, 2008. Decided June 19, *2364 Robert D. Klausner, Plantation, FL, for Petitioners. Malcolm L. Stewart, Washington, D.C., Respondent. E. Joshua Rosenkranz, Kenneth H. Kirschner, Heller Ehrman LLP, New York, NY, Klausner & Kaufman, P.A., C. Joseph Beavin, James Allen, Stoll Keenon Ogden PLLC, Lexington, KY, Gregory Stumbo, David Brent Irvin, Frankfort, Commw. Kentucky. N. Scott Lilly, Second Assistant County Attorney, Louisville, Jefferson County. William P. Hanes, J. Eric Wampler, Kentucky Retirement Systems. Ronald Cooper, Lorraine Davis, Acting Associate General Counsel, Carolyn Wheeler, Dori Bernstein, Paul Clement, G. Garre, Deputy Solicitor General, to the Respondents. Justice BREYER delivered opinion Court. The Commonwealth permits policemen, firemen, and other "hazardous position" workers retire receive "normal retirement" benefits after either (1) working 20 years; or (2) 5 years attaining age 55. See Ky.Rev.Stat. Ann. §§ 16.576, 16.577(2) (Lexis 2003), 61.592(4) Supp.2003). It those who become seriously disabled but have not otherwise eligible retirement immediately "disability benefits. § 16.582(2)(b) 2003). And it treats some individuals more generously than became only becoming on basis age. question before us is whether Kentucky's system consequently discriminates against latter "because . age." Age Discrimination in Employment Act 1967 (ADEA Act), 4(a)(1), 81 Stat. 603, 29 U.S.C. 623(a)(1). We conclude that does not. I A has put place a special plan (Plan) state county employees occupy "[h]azardous position[s]," *2365 e.g., active duty law enforcement officers, firefighters, paramedics, correctional systems. Ky. Rev.Stat. 61.592(1)(a) Supp. Plan sets forth two routes through which such an employee can what called first makes service. second service provided attained 16.577(2), 61.592(4). An under route will pension calculated same way: multiplies times 2.5% final preretirement pay. 16.576(3). provisions hazardous position are yet normal retirement. Where worked five line duty, at once. 16.576(1), 16.582(2) In calculating employee's add certain number ("imputed") actual imputed equals would had continue order benefits, i.e., necessary bring up least when turn 55 (whichever lower). 16.582(5)(a) Thus, if with 17 becomes 48, adds 3 calculates as completed If 54, 1 year retired 18 also imposes ceiling equal previously (i.e., eight cannot additional years), see 16.582(5)(a); provides minimum payment, 16.582(6) 2003); contains various details, none challenged here. B Charles Lickteig, worker Sheriff's Department, 55, continued work, disabled, then 61. his annual (18 years) Because Lickteig he already did impute any purposes calculation. complained discrimination Equal Opportunity Commission (EEOC); EEOC brought this lawsuit Kentucky, administrator, entities (to whom we shall refer collectively "Kentucky"). pointed out that, reached Plan, Lickteig's years. argued failed solely because District Court, making all appropriate evidence-related assumptions *2366 EEOC's favor, Fed. Rule Civ. Proc. 56, held could establish discrimination; granted summary judgment defendants' favor. panel Sixth Circuit affirmed judgment. Cty. Dept., 424 F.3d 467 (2005). rehearing en banc, violate ADEA, reversed remanded further proceedings. 571 (2006). sought certiorari. light potentially serious impact Circuit's decision upon plans effect many States, writ. See, Ind.Code 36-8-8-3.3(b) (c) (West 2004); Mich. Comp. Laws 38.23 38.556(2)(d) 2005); N.C. Gen.Stat. 135-1 135-5 2007); Pa. Ann., Tit. 7, 5102 5704 (Purdon Supp.2007), Tenn.Code 8-36-501(c)(3) (Supp.2007). Reply Brief Petitioners 20-21 (predicting, inter alia, large increase liabilities, potential reduction persons, both); National Association State Administrators al. Amici Curiae 8-14 (same). II ADEA forbids employer "fail refuse hire discharge individual discriminate respect compensation, terms, conditions, privileges employment, individual's 623(a)(1) (emphasis added). Hazen Paper Co. Biggins, 507 U.S. 604, 113 1701, 123 Ed. 2d 338 (1993), explained where, here, plaintiff claims age-related "disparate treatment" intentional age") must prove "actually motivated employer's decision." Id., 610, 1701 added); Reeves Sanderson Plumbing Products, Inc., 530 133, 141, 120 2097, 147 105 (2000). noted "[t]he may relied formal, facially discriminatory policy requiring adverse age, "the been by [age] ad hoc, informal basis." Paper, U.S., 1701. But "[w]hatever decisionmaking process," alleging disparate treatment succeed unless played role process determinative influence outcome." Ibid. Cf. Smith City Jackson, 544 228, 239-240, 125 1536, 161 410 (2005) (plurality opinion) (describing "disparate-impact" theory, here issue, focuses unjustified results). considered claim unlawfully dismissed 62-year-old over 9½ avoid paying vested 10 without evidence intent, forbid dismissal claim. based status was "because. 611-612, Of course, depended service, typically go hand 611, concepts were nonetheless "analytically distinct." easily "take account one while ignoring other." question, purely (related service), embody evils led Congress enact place: "prohibited *2367 stereotype" older workers, produce "attendant stigma" result inaccurate denigrating generalization about 612, At time, indicated sometimes be unlawful particular where served "proxy 613, Suppose, example, "target[ed] assumption these likely older." 612-613, case, suggested, status, motivated" decision-making. left open case vest rather service." consider variation "special case" theme. III turns eligibility having alone condition U.S.C.A. 623(l)(1)(A)(i) Thus decide lawfully part eligibility, differently their (3) automatically Government argues "yes." But, following Paper's approach, come different conclusion. particular, circumstances, taken together, convince instance, differences First, matter pure logic, remain distinct" concepts. That say, conceive decisions actually made of" even itself example pays pension, say 65, 70-year-old retires. Nothing language logic prevents from concluding begun pay simply retired. Second, several background circumstances eliminate possibility though analytically distinct serves age" Plan. id., employment decision, set complex systemwide rules. These systemic rules involve, wages, pensions benefit somewhat flexibly leniently (Supp.2007) (explicitly allowing age); 623(l)(2)(A) (allowing (age-related) determining level severance pay); 623(l)(3) long-term disability benefits). specific issue offered nondiscriminatory terms ex ante. every employee, hired, promised should *2368 prior time Furthermore, approved programs calculate permanent using formula expressly takes For Social Security Administration now uses Disability Insurance 42 415(b)(2)(B)(iii); CFR 404.211(e) (2007). until (and cases after) 1984, federal received just effectively younger 60. 8339(g) (2006 ed.); Office Personnel Management, Under Civil Service System, Facts 4, p. (rev.Nov.1997), http://www.opm.gov/forms/ pdfimage/RI83-4.pdf (as visited 16, 2008, available Clerk Court's file). Third, there clear non-age-related rationale disparity issue. manner important identical significant difference consists fact imputes individuals. needed worker's clearly track obvious, then, whole purpose is, claims, treat after, before, factors into calculation themselves permissibly include consideration. No seeking help way seek care turned other, criteria. so suggested readily construct produces neutral. Suppose (a) day-shift (b) night-shift 15 amount method depends (say, giving $1,000 each service). provide they eligible, create between workers: would, instances, end receiving bigger eligible. pension-eligible $20,000, pension-eligible, 16 $16,000. bias workers. Rather, disparity, *2369 like us, artifact timing do them helps show seeks point pension. nothing more. Fourth, although placed disadvantage cases, work advantage Consider, aged 45 40 scheme, get boost (10 former, latter). confirm underlying motive effort Fifth, rely sorts stereotypical eradicate. rest stereotype capacity "older" relative "younger" Dynamics Land Systems, Inc. Cline, 540 581, 590, 124 1236, 157 1094 (2004) (noting except point, findings statements objectives "either cast effects intensifying couched `older' explicitly implicitly `younger' ones" added)). assume assumes no beyond both disabled; "assumptions" involve stereotypes, apply equally regardless Sixth, nature Plan's requirements means severely cut given (which its present unlawful), lacking criteria how extra older. difficulty finding remedy correct achieve legitimate objectiveproviding sufficient benefit, namely, disabilityfurther suggests objective above together not, face, And, purposes, accept might permit factfinder reach contrary App. 28-30. bears emphasizing our unsettles rule statute suffices ADEA. dealing today quite *2370 differential statuswith explicit blessing ADEAitself turns, part, Further, adopt sort clear: adopts includes factor, plaintiff, adduce status. discussion lead make requisite showing indication meet burden proving IV arguments. looks support amendment Public Employees System Ohio Betts, 492 158, 109 2854, 106 134 (1989). denied ground bona fide program 60, 163, 2854. exempted prohibitions pursuant "`any subterfuge evade of' Act." 161, 2854 (quoting 623(f)(2) (1982 ed., V)). fell within exception. 182, Subsequently amended covered age-based Older Workers Benefit Protection Act, 102, 104 978, 630(l) (2000 ed.). replaced "not subterfuge" exception provision stating disparities lawful justified cost savings. 978-979; 623(f)(2)(B)(i). agree broadened field actions subject antidiscrimination narrowed statutorily justifications differences. facts dispute amendment-related justifications. find relevant precedent. cited beside point. says defer interpretation contained regulation compliance manual. regulation, however, providing workers" Act. 1625.10(a)(2) Government's entitled deference because, "does little restate itself." Gonzales Oregon, 546 243, 257, 126 904, 163 748 (2006) (denying agency own "near equivalence" regulation). *2371 Compliance Manual "equal" insofar "reduces eliminates criterion defined (in part) 2 3, 627:00041 (2001) (bold typeface deleted). "[b]asing definition gives constructive employees" thus violates 627:0010. statements, important, Railroad Passenger Corporation Morgan, 536 101, 111, n. 6, 122 2061, 153 (2002) manuals "`"entitled respect" Skidmore Swift Co., 323 134, 140, 65 89 (1944)'"); Christensen Harris County, 529 576, 587, 1655, 146 621 Following interpret decision. Given reasons Part III, supra, motivation statement reaches conclusiona justifylacks "power persuade" us. (1944). V Appeals reversed. ordered. KENNEDY, SCALIA, GINSBURG, ALITO join, dissenting. ignores established interpreting enforcing most statutes enacted protect Nation's force discrimination, 602, amended, seq. prohibits "discriminate recent employers alike advised Courts Appeals, charged (EEOC), straightforward reading one: When factor facial, deliberate, manner, detriment employees, violation Disparate prohibited exemption defense applies. undercuts basic framework. doing puts wrong course. banc Circuit, reverses, sister Circuits. 571, 573 (overturning Lyon Assn. Professional Staff Union, 53 135 (1995)); also, Jankovitz Des Moines Independent Community School Dist., 421 649, 653-655 (C.A.8 Abrahamson Board Wappingers Falls Central *2372 374 66, 72-73 (C.A.2 Arnett California 179 690, 695-697 (C.A.9 1999); Auerbach Harborfields Dist. Greenlawn, 136 104, 109-114 1998); Huff UARCO, 374, 387-388 (C.A.7 1997). By embracing approach rejected addressed creates unevenness administration, unpredictability litigation, uncertainty rights once thought well settled. consequences, errors require respectful dissent. Even proper motive, submission reveals plan's classification rests analytical As threshold matter, concede paradigm justify powerful young police officer firefighter family heroic performance her duty. payments increased unworked What overlooks, 61-year-old action receives, lower payment reason alone: command express payment. This act Though law, defend justified, 623(f)(2)(B)(ii), do, ought pretend somehow consistent broad statutory regulatory prohibition appears common sides dispute: operates dual systems occupations. she accumulated Commonwealth, longer disability, ineligible Cum.Supp. distinction nomenclature. multiplying percentage 16.576(3) years-of-service multiplier (subject cap served). 16.582(5)(a). words compensated service; bonus, accounts *2373 remained healthy Whether intended divergent formulae compensates similarly situated Consider salary $60,000. accident, 45-year-old $1,250 monthly benefits; 55-year-old $625, half much. results Commonwealth's formula, credit (thereby increasing appliable years-service-multipler 55-year-old's (5 years). instance treatment. True, reduces case. plays fewer receives stipend concludes something past opinions. difficult list arguments holding. compounded analysis. concedes "placed disadvantage," ante, 2369; proceeds hold "`actually motivated' age," 2369. apparent evident face still acted "underlying motive," 2368-2369, less favorably finds text statute. wake (1989), exempt coverage unlawful, establishes entitlement affirmative defenses provided. (OWBPA), codified 623(f). OWBPA, operate "discriminate[s] 623(a), "voluntary early incentive plan" incurred behalf worker," 623(f)(2)(B)(i)-(ii); generally B. Lindemann Kadue, Law 175 (2003). understanding statute's *2374 administers statute, EEOC, understands it. 627:0004 ("[B]enefits age"). shown exemptions matter; liable showing. holding stems, asserts, practice motivated'" protected trait. Ante, 2366 1701; emphasis phrase used qualification, justified. reads passage full (with sentence), proof required deemed face. said this: "In liability trait (under age) States Postal Bd. Governors Aikens, 460 711[, 103 1478, 75 403] (1983); Texas Dept. Affairs Burdine, 450 248, 252-256[, 101 1089, 67 207] (1981); Furnco Constr. Corp. Waters, 438 567, 576-578[, 98 2943, 57 957] (1978). [Trans World Airlines, v.] Thurston, [469 83 523 (1985)]; Los Angeles Water Power Manhart, 435 702, 704-718[, 1370, 657] Or basis. Anderson Bessemer City, 470 564[, 1504, 84 518] (1985); Teamsters [v. 431 324, 334-343, 97 1843, 52 396 (1977)]. Whatever process, context paragraph identifies reliance "facially [a protected] trait" type explicit, mandated, suffice disparate-treatment exemptions), misconstrues precedent entire theory built. right cite holds. Its conclusion conflicts longstanding cases. ruleconfirmed quoted Paperis *2375 less-than-benign required. obvious (or employee) prevail enumerated exemptions. Two examples "formal, polic[ies]," stand proposition. Trans 469 657 Airlines' transfer pilots violated allowed airline mandatory 60 transferred flight engineer. 115-116, 613. 60-year-old pilot bid position. procedures controls outright incompetence) priority forced due 116-117, burden-shifting framework McDonnell Douglas Green, 411 792, 93 1817, 36 668 (1973), determine play, application "discriminatory face." 121, Title VII involved municipal employees' female larger contributions male counterparts. "effect," "that defeat practice, discriminated woman employed Department." 716, 1370. Just majority misunderstands reference practices too overstate meant observed creating virtual safe harbor policies tied directly linked another program. allow, support, result. formally age; recognized correlated (because eligible); found neutral regard precisely plan. "we service"). termination 613-614, saving feature controlling absent opposite Paper. Here present, superseded absent. *2376 (but 20) turn, meaningful sense; merge category. Were facial divided teams ageputting "Team A" B"and paid Team members twice counterparts, (the declare) team designation. Neither nor plain read closest comes reconciling citation Act's 2367. invokes concession condemn makes. event. limited "employee plan[s] [that] provid[e] attainment benefits." There farther reaching subsequent eligibility. extent loophole implicit fits allows tie designation, designation hours, heath reimbursements, job assignments, promotions, office space, transportation vouchers, parking privileges, conceivable employment. recognizes difficulties limit holding, ways permitted previous notes sole instead embedded "complex system-wide rules." suggestion certainly related jurisprudence, permissible among variables. necessarily controlling, outcome-determinative sex much contribute basis; salary, length variables equation. 705, 1370; O.T.1977, 76-1810, 23. higher actuarially sound premise women life expectancies menthe *2377 711, Similarly, ADEA's substantive prohibitions, "derived haec verba VII," Lorillard Pons, 434 575, 584, 866, (1978), "to ignore (absent defense)," perhaps qualified (2004), discriminating favor Reasonable minds disagreed merits Cline's 601, 1236 (SCALIA, J., dissenting); (THOMAS, dissenting). Cline dictate path chooses thing designed combat workers; allow disfavors favoring ones. moreover, achieved word "age" mean "old age" "discriminat[ion] [an] advanced 596, 1236. seems new term "discriminate" bear treated. principled draw distinction, attempt so. 710, 1370 ("[T]here believe group insurance coverage"). recites sees "several `proxy age' Plan." Among "clear rationale," ibid., benefits," 2368. difference, laudable law. rendered motives benign. Automobile Johnson Controls, 499 187, 111 1196, 158 (1991), barring infertile, performing jobs exposed lead. reinforce negative gender stereotypes unborn children risk birth defects. 191, 1196. argument prevail. sex, occupational qualification defense. result, restriction VII. "[T]he absence malevolent [did] convert effect." 199, Still, *2378 operative survive test. need look brief refers complainant follows: "An Mr. 21 devote money, himself family, funds retirement, accruing 40-year-old boost." hypothetical accepts productive him injury did. actuarial sound. impermissible however. idea "productivity competence decline old "very essence discrimination." forbidding "individual," blunt tool assess future productivity. Western Air Lines, Criswell, 472 400, 409, 2743, 86 321 (1985) Labor Department's psychological physiological degeneration caused aging varies individual"). good public instances debatable. Until fit change upholding formula. * dissent, promote interests Americans. Yet small irony so, particularly generous fashion. provision, links function tenure, Accordingly, weaker. notes, 2369, problems imputing alike. lose option and, second, cut. possible remediesthe desire construing encourages reduce policemen firefighters understandable. precedents, "`[a] parcel relationship doled fashion, free all.'" *2379 613 Hishon King Spalding, 69, 75, 2229, 59 (1984)). policy, answer precedents reasons, my view, determination assert cost-justification

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