Document: 435 U.S. 702 98 S.Ct. 1370 55 L.Ed.2d 657 CITY OF LOS ANGELES, DEPARTMENT WATER AND POWER, et al., Petitioners,v.Marie MANHART al. No. 76-1810. Argued Jan. 18, 1978. Decided April 25, Syllabus. This suit was filed as a class action on behalf of present or former female employees petitioner Los Angeles Department Water and Power, alleging that the Department's requirement make larger contributions to its pension fund than male violated § 703(a)(1) Title VII Civil Rights Act 1964, which, inter alia, makes it unlawful for an employer discriminate against any individual because such individual's sex. The plan based mortality tables own experience showing had greater longevity cost average retiree more monthly payments be made female. District Court held contribution differential 703(a)(1), ordered refund all excess antedating amendment plan, while this pending, eliminated sexual distinctions in plan's benefits. Appeals affirmed. Held: 1. challenged 703(a)(1). Pp. 707-718. (a) discriminatory "treatment person manner which but person's sex would different." statute, focuses fairness individuals rather classes, precludes treating simply components group here. Even though is true women outlive men, generalization cannot justify disqualifying whom does not apply. There no reason, moreover, believe Congress intended special definition discrimination context employee insurance, since common considered unfair treat different classes risks they were same. 707-711. (b) Though contends exacted from men factor thus constituted statutory exemption authorized "differential other sex," there evidence employee's accounted 711-713. (c) case readily distinguishable General Electric Co. v. Gilbert, 429 125, 97 401, 50 343, here discriminates basis sex, whereas Gilbert discriminated physical disability. 714-717. 2. It inappropriate allow retroactive monetary recovery case. 718-723. presumption favors relief where violation has been committed, Albemarle Paper Moody, 422 405, 95 2362, 45 280, appropriateness must assessed. Here gave insufficient attention equitable nature remedies. first litigation challenging differences valid actuarial tables, administrators may well have assumed justified differential, resulting prohibition sex-differentiated marked departure past practice. 719-721. In view grave consequences drastic changes legal rules can funds, should given effect unless plainly commanded by legislative action. 721-723. 553 F.2d 581, vacated remanded. David J. Oliphant, Angeles, Cal., petitioners. Robert M. Dohrmann, respondents. Mr. Justice STEVENS delivered opinion Court. 1 As class, live longer men. For Power required employees. We granted certiorari decide whether practice their amended.1 2 many years Department2 administered retirement, disability, death-benefit programs Upon retirement each eligible benefit computed fraction his her salary multiplied service.3 benefits same age, seniority, are equal. Benefits funded entirely Department, augmented income earned those contributions. No private insurance company involved administration payment 3 Based study experience, determined 2,000 employees, average, will few 10,000 retired woman. therefore 14.84% higher comparable employees.4 Because withheld paychecks took home less pay earning salary.5 4 Since effective date Equal Employment Opportunity 1972,6 within meaning 1964. See 42 U.S.C. 2000e (1970 ed., Supp. V). 1973, respondents7 brought United States Central California employed formerly Department. They prayed injunction restitution 5 While Legislature enacted law prohibiting certain municipal agencies requiring males.8 amended January 1, 1975. current draws distinction, either benefits, On motion summary judgment, before plan.9 Ninth Circuit affirmed.10 6 various amici curiae contend that: (1) take-home between offset difference value provided two employees; (2) "other sex" Pay 1963 protected so-called Bennett Amendment;11 (3) rationale requires reversal; (4) event, unjustified. consider these contentions turn. 7 * both real fictional man taller woman; woman driver accident prone man.12 Before 1964 enacted, could fashion personnel policies assumptions about women, valid. 8 now recognized employment decisions predicated mere "stereotyped" impressions characteristics males females.13 Myths purely habitual woman's inability perform kinds work acceptable reasons refusing employ qualified individuals, paying them less. not, however, involve women. involves parties accept unquestionably true: Women, do treated differently fact different. equally true, respective share characteristic differentiates representatives. Many long question, therefore, existence nonexistence "discrimination" comparison characteristics. A answer question language purpose statute command. 9 "to with respect compensation, terms, conditions, privileges employment, race, color, religion, national origin." 2000e-2(a)(1) (emphasis added). statute's focus unambiguous. treatment racial, religious, sexual, class. If height job, tall refused merely because, too short. reason 10 That proposition critical importance assurance working actually fit policy based. man. working, received smaller receive compensating advantage when retire. 11 course, being collected know predecease Therefore, assessed extra charge, subsidized, some extent, employees.14 follows, according justifies assessment 12 But affected essentially matter legislature address. decided classifications like origin unlawful. Actuarial studies identify life expectancy race origin, sex.15 designed irrelevant market, see Griggs Duke Co., 401 424, 436, 91 849, 856, 28 158, reasonably construed permit take-home-pay racial classification.16 13 if clear, basic we classes. Practices classify terms tend preserve traditional groups thoughtful scrutiny individuals. illustrates point. Separate easily interpreted reflecting innate sexes; significant part explained social heavier smokers women.17 14 Finally, coverage. concerned events individually unpredictable, decisions. Individual risks, performance, predicted resort proscribed VII. Indeed, program highlights flaw argument. grouped, better always subsidize poorer risks. Healthy persons medical healthy; unmarried workers pensions married workers;18 who eat, drink, smoke whose habits temperate. Treating purposes never inherently unfair. To insure flabby equivalent alike;19 nothing habit one "subsidy" seem fair other.20 15 An contribute money into woman, man, direct conflict Act. Such pass simple test shows different."21 constitutes exempted affirmative justification. II 16 Shortly enactment Senator proposed providing compensation Act, passed year earlier.22 employers members sexes wages work, except pursuant four specified exceptions.23 fourth exception applies authorizes sex." 17 argues plain, number factors, only one. record contains taken account calculating agree Judge Duniway's observation "say distinction 'based sex.' Sex exactly what on." 588 (1976).24 18 also unpersuaded reliance colloquy Randolph Humphrey during debate Commenting Amendment, expressed understanding under industrial plans, including earlier options women.25 he did address apparently little, any, impact existing plans. His statement cannot, fairly sole guide interpreting adopted earlier; exceptions, ultimately relies. conclude Humphrey's isolated comment Senate floor change plain itself.26 III 19 reversal 343. satisfied, neither holding nor reasoning controlling. 20 exclusion pregnancy employer's disability constitute Relying Geduldig Aiello, 417 484, 94 2485, 41 256, "discrimination upon gender such."27 potential recipients pregnant nonpregnant persons. " 'While exclusively female, second includes sexes.' U.S., at 135, S.Ct., 407. contrast, composed face, 21 note favorable class.28 supported conclusion plaintiffs failed establish prima facie proving prove effect.29 22 case, absence even sufficient prevent establishing theory discriminatory, defeat claim practice, every Department.30 23 essence, arguing rebutted demonstration argument might prevail VII, contained justification defense available price suit.31 courts VII.32 24 Although suggest revolutionize industries. All issue today unequal employer-operated fund. Nothing our implies set aside equal let purchase largest accumulated command open market.33 Nor call industry considering composition force determining probable death plan.34 recognize kind necessary take care fashioning appropriate relief. IV 25 challenges Court's award entire retirees. require district court grant finds "may enjoin [the discrimination] . order appropriate, include, limited to, reinstatement wi hout back deems appropriate." 2000e-5(g) point redundancy, stresses "may" awarded "appropriate." 26 reviewed scope court's discretion remedies concluded "backpay denied applied generally, frustrate central eradicating throughout economy making whole injuries suffered through discrimination." Id., 421, 2373. Applying standard, ruled backpay conditioned bad faith. 422-423, 2373-2374. automatically case.35 27 favor liability seldom overcome, meaningless courts' duty determine appropriate. several reasons, remedies.36 doubt application conscientious intelligent extensive briefs arguments presented us, lawful. silent administrative conflicting views.37 failure act swiftly sign, recalcitrance, problem's complexity. commentators noted, thought unfair—or illegal—to shoulder "actuarial share" burden.38 threat needed cause amend practices conform decision. ignore affecting plans economy. Fifty million Americans participate Social Security. assets trust vast growing—more $400 billion reserved end 1976 reserves increasing almost $50 year.39 These forms depend accumulation large sums cover contingencies. amounts painstaking insurer's likely liability. Risks insurer foresees included calculation liability, rates charged reflect calculation. occurrence major unforeseen contingencies, jeopardizes solvency and, ultimately, insureds' Drastic governing events, effect. Consequently, apply funds retroactively result.40 EEOC itself time adjust gradually VII's demands.41 Courts shown sensitivity dangers awards field. Rosen Public Serv. Elec. & Gas 328 F.Supp. 454, 466-468 (DCNJ 1971). 29 represents tables. Retroactive devastating fund.42 harm fall innocent third parties. If, below contemplated, plaintiffs' recovered fund,43 forced meet unchanged obligations diminished assets.44 reserve proves inadequate, expectations disappointed future security unanticipated reduction 30 Without qualifying relief, error Accordingly, although Appeals' analysis vacate judgement remand further proceedings consistent opinion. 31 so ordered. 32 BRENNAN consideration decision 33 BLACKMUN, concurring judgment. 34 Stewart wrote 256 (1974), joined 343 (1976). White Powell Electric. STEVENS, writes dissent 160, 420. MARSHALL, joins here, dissented 497, 2492; 146, 413. My discomfort latter apparent, I believe, my separate concurrence there. Ibid. 35 "lineups" surely without significance. participation Brothers STEWART, WHITE, POWELL today's majority sign tension indeed, wholly them. am sure so; votes MARSHALL indicate quite contrary. 36 Given —the constitutional, statutory—the just easy expectancy, nonstigmatizing demonstrably females measurable basis. thought, too, arbitrary, irrational, "discriminatory" recognizing objective accepted (see ante, 704, 707, 722) disparity female-male expectancies computing Moreover, unrealistic attempt force, does, individualized basically context. Unlike possibility, example, properly testing job applicants qualifications way advance particular die. 37 rationale, Congress, amended, eliminate "race, origin," 2000e-2(a)(1), factors act. exacerbate consciousness. thing yet upheld challenge. 38 —that permitted "pregnant persons," male, p. 715 seems me easy.* probably drawn. me, serve distinguish principled cuts Electric, inferentially Geduldig, there, 133-136, 406-408, recognition cases continuing precedent somewhat questionable. say necessarily bad. chosen VII—as asserts—so it. feel, posture head thin rationalization tha seeks fails quest. 39 join Part opinion, concur 40 CHIEF JUSTICE BURGER, REHNQUIST joins, dissenting part. opinion; Parts I, II, III, dissent. Gender-based use least 1843,1 statistical validity repeatedly verified.2 annuity, recognizes, "women, men." Ante, 708. Yet, operate economically workable programs, rational rely statistically sound proved disparities irrational assume outlaw that, whatever combination 43 civil rights admitting advertence history, was, soundly revolutionary discriminatory—this expense men—should read clear intent reliable indication history Congress' purpose. casual dismissal apparent assumption "Act plans," 714, dismiss manifestation contemplated. intention abrogate right, narrow context, face historical statistics. Cf. 713 n. 25. 44 reality human reflect. added why clear. categorizing people acknowledged immutable unknown biologically culturally based, both, give significantly says, "that one." 712. seizing constant, "measurable" factor, others account. known variable—or unknown—are elements disparity. And constant used costs plan. Here, petitioners discriminating (1976); Nashville Satty, 434 136, 347, 54 356 (1977). petitioners, falls squarely 1963, 206(d), incorporated 78 Stat. 257, 2000e-2(h). tells us lesser "except .." longevity; umbrella-constant leading grouped assimilated, feature employer—or anyone else, companies—may reliably base "risk" insured. 46 sense "individuals" holds. possible unknowable length life. Individually, possibility outliving essence basing statistics determinations infeasible or, impossible. 47 Of disqualified from, heavy labor generality strong men—a perhaps sometime demonstrable, remain refutable. When, impossible tailor individual, facts disproved until after planning, funding, operating undertaken. 48 find anomalous, contradictory, effect, 717-718, 33, really barrier responding complaints group. states precisely dollar amount secure annuities directly insurer, who, compulsion 135 accumulated, recorded experience.3 49 forbids petitioners' IV. 51 once found, 280 (1975) establishes "presumption liability" "can overcome." 719. deemed overcome especially exercise Appeals. affirm 52 Albermarle supra, subject retains "traditional" locate 'a result,' appellate review hether 'clearly erroneous' factual findings 'abused' discretion." 2375. Fed.Rule Civ.Proc. 52(a) (district "shall clearly erroneous"); Zenith Radio Corp. Hazeltine Research, Inc., 395 100, 123, 89 1562, 1576, 129 (1969). assert erroneous, abuse discretion. Instead, "insufficient attention" striking balance. 53 mentioned relates "complexity" led "a lawful," alternative perceived "unfair[ness]" 720. "should placed notice" illegality 5, 1972, Commission regulations clear.1 ran December 31, 1974, changed program. 706. 1972 beginning early, contends, 719 36,2 nearly three-year period "conscientious administrators," 720, responded EEOC's guidelines. Yet denies knowing efforts ascertain legality. relied "the economy" result rules" applying funds. According Court, "jeopardiz[e] [an] benefits." 721. little reference situation o threatened solvency, indeed "foresee[n]" "included reflected charged," ibid.3 suggested, relatively modest issue—involving small percentage respondents' over 33-month period, 592 (CA9 1976)—could "devastating," 722. "devastating" ample opportunity strike down time. speculative character underscored suggestion paid retirees increase 722-723. taking out "apparently contemplated" below, 723, come from. listed ultimate sources involved, increased lump-sum F.2d, 592. contemplated city revenues, Pet. Cert. 30-31, thereby ordinary arising practices. Hence "harm" falling "innocent" largely chimerical. 56 important appear provide concern presently us. extent believes adequately made, proper course new remedy. When found abused denying Albemarle, formulate award; remanded t e 2374, 2380. deny own; relevant considerations established, task finding best left particularly search 'just result' id., 57 necessary. knowledge state law, 729-730, challenge selected discussed above, threatened, appears unlikely award. indication, short, thinks hypothetical 58 reaffirms relief," principal exists. emphasized "central" "making 2373; 418, 422, 2372, Respondents "made whole" illegally Their compelling situations, receives she working. observed, respondents "actually then VII." strength "restitution"-like claim, ibid., make-whole purpose, 2373, judgment section provides: "It shall "(1) fail refuse hire discharge otherwise ." 255, 2000e-2(a)(1). addition itself, include Board Commissioners Administration. record. brief provides option, most formula 2% last times employment. guaranteed contributes 110% significance illustrated (including interest month) amounted $18,171.40; similarly situated contributed $12,843.53. 86 103 (effective Mar. 24, 1972). five plaintiffs, individuals' union, International Brotherhood Electrical Workers, Local Union 18. Cal.Govt.Code Ann. 7500 (West 1978). preliminary injunction. 387 980 (1975). 581 Two weeks decision, response petition rehearing, panel original Gilbert. 59 Kilkenny dissented. 594. nn. 23, infra. Developments Law, Discrimination 84 Harv.L.Rev. 1109, 1174 (1971). "In forbidding spectrum disparate stereotypes. Section subjects eliminates impediments opportunities enjoyment plagued past." Sprogis Air Lines, 444 1194, 1198 (CA7 size subsidy doubt, survivors' spouses lose "primary" coverage themselves, regain "secondary" wives. white baby 1973 72.2 years; nonwhite expect 65.9 years, 6.3 years. Health Service, IIA Vital Statistics States, Table 5-3. Fortifying banned blacks 19th century. generally James, Metropolitan Life—A Study Business Growth 338-339 (1947). R. Retherford, Changing Differential Mortality 71-82 Other causes, drinking eating habits—perhaps lingering effects discrimination—may affect differential. 1949-1951 showed 20-year-old 60.6 age divorced. married, reach 70.9 93. indicates, benefit—unlike benefit—has expectancies. Under concept fairness, then, neutral funding variation theme gender-neutral violate disproportionately 158. retiree's total actual span ; aggregate "based [a] consequently immune 206(d); cf. itself—assuming disparate-impact fringe 144-145, 352, 356—the prevail. completely inevitably disproportionate another. imply, held, inferred consequences. supra 1170; 1205 (Stevens, J., dissenting). Amendment became 703(h), part: title differentiate differentiation provisions 6(d) Fair Labor Standards 1938, (29 206(d))." provides, "No ployer having discriminate, establishment employed, rate pays opposite jobs performance skill, effort, responsibility, performed similar (i) seniority system; (ii) merit (iii) system measures earnings quantity quality production; (iv) sex: Provided, wage subsection comply subsection, reduce employee." 77 56, 206(d). need "wages" extends Act's exceptions "compensation" covered 22, supra. maintain them, Peters Missouri-Pacific 483 490, 492 (CA5 1973), cert. denied, 414 1002, 356, 238. specious schedule distinguished imperfectly long-lived short-lived distinguishing differing on" longevity, lives short lives. crude pensioners, spans. sort disparity—and explicitly gender-based differential—that authorize. "MR. RANDOLPH. President, wish ask Minnesota [Mr. Humphrey], manager pending bill, clarifying "I mind system, respects, treats differently. widows' automatically; widower qualifies disabled deceased wife. Also, wife entitled additional old benefit; husband not. recall standing. "Am correct, Minnesota, assuming continue operation becomes law? HUMPHREY. Yes. unmistakably adoption amendment; it." 110 Cong.Rec. 13663-13664 (1964). constructions provision look directions. Wage Hour Administrator, enforcing expressly approved rates, said satisfy CFR 800.116(d) At time, stated employing 'factor 800.151 Administrator's ruling illuminating: "To solely rests alone differential—an contrary differentials perpetuate promote very directed, grouping data relates, regard conditions responsibility." conflict, "power persuade" ipse dixit 800.116. Skidmore Swift 323 134, 140, 65 161, 164, L.Ed. 124. Quoting stated: '[T]his far cry Reed Reed, 404 71, [92 251, 225] (1971), Frontiero Richardson, 411 [93 1764, 583] (1973), involving such. exclude eligibility removes condition—pregnancy—from list compensable disabilities.' After quotation, added: "The quoted leaves rejecting appellee's protection California's disability-benefits 130-131, 9, 405. recently noted 144, "did evidence." Rather, rested plaintiff's facial Some business necessity. argue drawn, withdraw get market. 19, 1975 points "adverse selection" presumably wants leave quit theoretically obtained marginally lower normal 13(a) (1976 ed.). Robinson-Patman proof illegal discrimination; negate itself. FTC Morton Salt 334 37, 44-45, 68 822, 827-828, 92 1196. So well-recognized nevertheless defendant escape Defe ses considerably narrower. See, e. g., 30, broad cost-differential rejected law. Representative Findley offered tied "ascertainable specific 109 9217 (1963). He pointed costly matters turnover laws restricting women's hours. 9205. supporters handled focusing caused differences, absenteeism hours worked. redundant 9217. Report, hand, defense, "all women." S.Rep. 176, 88th Cong., 1st Sess., difficult supporting defense; attempted primarily govern relations employer, suggest, avoid responsibilities delegating corporate shells. "any agent" 2000e(b) V), acting indirectly relation 203(d). board agent successfully argued inseparable shared city's immunity 1983. bans "individual" "such individual's" prohibits "within establishment," defined "paying employer] work. 206(d)(1). Neither requirements establishment's force. Specifically, prejudiced initial waiver claims absolved court. 2374. kind—on "protective" differentiation—would save 423 defendant's begin day issued interpretation casting varieties discrimination. Fed.Reg. 6835-6837. put defendants notice illegally, early. difficulty amending accomplished overnight. conclusive weight guideline. 141, 411. rulings cases, 259, follow EEOC. Further raised full victims due. undifferentiated actuar al table were, low period. ordering actuarially nondiscriminatory earlier, 26, position Administrator confusing. general rule lent support equalize Compare (1977) 800.116(d). §§ 1604.9(e) (f) responsibility adhere position. 60.20.3(c) (Office Federal Contract Compliance); 86.56(b)(2) (1976) (Dept. Health, Education, Welfare). 24135 (HEW). "If charges reversed: chooses formula, complain per month. quick made—because long-term compound interest—women still allege dilemma: damned does." Note, Sex-Based Tables, B.U.L.Rev. 624, 633-634 (1973) (footnotes omitted). American Council Life Insurance, Pension Facts 1977, pp. 20-23. underlined gradual prospective year, bill regulating programs. Employee Retirement Income Security 88 829. careful problem retroactivity. wide variety dates p ovisions law; fully 1984, decade enacted. 1970 V 1061(a) (Sept. 2, 1974); 1031(b)(1) (Jan. 1975); 1086(b) (Dec. 1114(c)(4) (June 1977); 1381(c)(1) 1978); 1061(c) 1980); 1114(c) 1984). February 1968, guidelines disapproving ages. September counsel schedules complying how speedily "would carry considerable weight." Chastang Flynn Emrich 541 1040, 1045 (CA4 1976). crippling defendants, alone. flexible founded principle. "Important goals frustrated regime 'produce[d] results breaches situations differentiated policy.' 417, 2371. Employers liable improper charge unusual filed, see, Occidental Ins. EEOC, 432 355, 2447, 402 (3 months), delay prelude consumed litigation. expected award, imposing "might under-funded." observation, suggested series solutions problem—the lowered, burden increased, enough unexpected loss. urging danger "staggering damage awards," cure judicial "discretion [to] hardship acted good faith Bernstein Williams, Problem Classifications Programs, 74 Colum.L.Rev. 1203, 1226, 1227 (1974). Stevens, strongly protested accurate describe dividing ' "potential groups—pregnant persons." classification risk not." 161-162, 421. H. Moir, Sources Characteristics Principal Tables 10, (1919). Nations Demographic Yearbook 710-729 709, 16. qualification incorporation pertained following regulations: 'It [VII] other.' 1604.9(e)." 980, 981 (CD Cal.1975). 1604.9(b) (employer "discriminate benefits") (also Apr. 1972); 1604.9(f) (employer's "differentiat[e] sex") (adopted "and plan." 36. point, text, event awarded, complete denial merits, place footing co-workers unreasonable; June awarded. know, have—acted ensure outcome viability by, escrowing contingency losing prudent administrator, however position, ignored contingency. Thus, correct ensue "major contingencies," adversely financial integrity 721, 722 42. hardly prior filing since, 722, 42; instant began run 1973.

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