Legal Document

487 U.S. 223 108 S.Ct. 2354 101 L.Ed.2d 206 FLORIDA, et al., Petitionersv.Hughlan LONG al. No. 86-1685. Argued Feb. 22, 1988. Decided June Rehearing Denied Sept. 15, See 1263, 109 25. Syllabus Los Angeles Dept. of Water and Power v. Manhart, 435 702, 98 1370, 55 657 (1978), held that unequal pension plan contributions for male female employees based on actuarial tables reflecting women's greater life spans violated the sex discrimination prohibitions Title VII Civil Rights Act 1964. Arizona Governing Committee Tax Deferred Annuity Compensation Plans Norris, 463 1073, 103 3492, 77 1236 (1983), extended this nondiscrimination principle to benefits payments. Florida's Retirement System (Florida System) state local government has always required equal "normal" similarly situated employees. Until Florida also offered three retirement benefit options were calculated in accordance with sex-based yielding lower monthly retirees. Immediately after adopted unisex equalizing under all plans retiring Norris' effective date. Respondents, who had retired before date as optional participants, filed a class action Federal District Court, alleging VII. The court entered summary judgment respondents, awarding relief members Manhart's, Norris', date, by retroactively "topping up" current levels period between Manhart court's judgment. Class awarded topped-up future benefits, commencing latter Court Appeals affirmed. Held: 1. rather than establishes appropriate liability employer-operated discriminatory payment options, may not be imposed pre-Norris conduct. Pp. 229-238. (a) Contrary Appeals' holding, did place notice offering carefully limited its holding contributions, distinct from payments, recognized an open market exception allowing each employee purchase made his or her behalf largest commercially available. In view substantial departure existing practice ordered, fund administrators could have reasonably concluded decision was confined prohibit annuities similar those insurance companies market, long included sex-neutral benefit. Thus, continuance until Norris—which expressly prohibited excluded which duplicating available private companies—does justify imposition retroactive award. 230-235. (b) context, awards are necessary further VII's purposes ensure compliance Court's decisions, since acted immediately Norris correct plans, there is no evidence employers general complied requirements Norris. P. 235. (c) States, governments, other their would inequitable, particularly it impose financial costs threaten security both beneficiaries. appropriateness must upon broad principle, solely particular circumstances case. fact currently possesses surplus can afford against cannot control here, basing award fund's status amount imposing penalty prudent management. Similarly, might speculated internal memoranda discussions continuation authorize awards, meaning scope do rest subjective interpretations discrete, affected persons legal advisers. 235-238. 2. Both impermissible. first award, requires prejudgment adjustments, without doubt therefore decision. second postjudgment fundamentally even though relates increases meant fixed basis contribution assumptions applicable when occurred funding provisions made, thereby undermining plan's basic calculus affecting ability meet accrued obligations. It consider payments already sort continuing violation, ignore essential actuarially funded every case render liable past conduct, regardless whether announced 238-240. 805 F.2d 1542 (CA11 1986), reversed. KENNEDY, J., delivered opinion REHNQUIST, C.J., WHITE, O'CONNOR, SCALIA, JJ., joined. BLACKMUN, concurring part dissenting part, BRENNAN MARSHALL, joined, post, p. ---. STEVENS, opinion, Charles T. Collette, Tallahassee, Fla., petitioners. Woodrow M. Melvin, Jr., Miami, respondents. Justice KENNEDY Court. 1 questions presented here funds covered 1964 offer structures discriminate entitled adjusted eliminate any We revisit our decisions (1983). 2 issues us turn Manhart's invalidation necessarily apprised nondiscriminatory benefits. conclude neither resolved issue nor gave embraced point definitive way hold readjusted structure. 3 * Since 1970, State operated over 1,100 participating governments. Fla.Stat. § 121.011 seq. (1987). defined plan, guarantees lowered once retires selects option. System's normal single employee's life, percentage average highest salary retirement. 121.091(1). Upon retirement, select one options: (1) joint survivorship option providing retiree's lifetime and, event death within 10 years same beneficiary balance 10-year period; (2) annuitant ensuring lives retiree beneficiary; (3) beneficiary, but reducing third, either, surviving individual. 121.091(6). 4 legislature periodically reviews finances operation, determines rates gross compensation §§ 121.031, 121.061, 121.071 Constitution collect sufficient "sound basis." Fla. Const., Art. X, 14. originally employer contributions; but, 1975, been entirely employers. Contributions length service, age, equal. normal, moreover, provided inception System. Only structure dispute here. 5 calculates product two variables, variable statutorily determined credited employment. 121.091(1)(a), If instead then uses third variable, expectancy, determine present value 121.091(6)(b). decision, expectancy using tables. As male's less female's, so too benefit; because presumed exchange caused receive 6 adopt August 1, 1983. Under tables, retirees plans. result, create distinction, either post-Norris sex. II 7 Retirees Hughlan Long S. Dewey Haas brought suit United States Northern various officials responsibility management They alleged petitioners violating 1964, 78 Stat. 253, amended, 42 U.S.C. 2000e seq., operating discriminated sex, requested certify Rule Procedure 23. underpayment 8 On January 20, 1983, approved respondents' action, certifying consisting elected March 24, 1972,1 After orderly progress merits, favor, violation October 1978. up"2 levels. topping up 1978, April 30, 1986, damages calculation. 9 Eleventh Circuit 1542, rehr'g denied, 1552 (1986) (per curiam ). held, sum, placed just reliance Id., at 1547-1548, 1551. granted certiorari, 484 814, 65, 29 (1987), these issues, we reverse. III Two aspects retroactivity analysis options. discuss below principles explored cases controlling question concerns proper implementation nonretroactivity determination. This adjustments ordered should classified prospective. violations claimed here.3 11 identified criteria determining involving use U.S., 719-723, S.Ct., 1380-1383; 1105-1107, 3510-3511; id., 1109-1111, 3512-3513 (O'CONNOR, concurring). Chevron Oil Co. Huson, 404 97, 105-109, 92 349, 354-356, 30 296 (1971). examine established new law, focusing, clearly employer's obligations respect criterion test operation acting deter deliberate grudging compliance. ask will produce inequitable results employers, retirees, 12 criterion, extent law established, significance today. VII, accordingly. disagree. provision "requirement men women make fund." 717, 1380. While language suggested potential application careful reach issue. contributions. 13 "[t]here prohibition sex-differentiated represents marked practice." 722, 1382. Our stated principal limits First, pattern us. stated: 14 "Although Department's [of requiring sex] suggest statute intended revolutionize industries. All today requirement 15 Second, recognizing interaction marketplace. said: 16 "Nothing implies unlawful set aside let accumulated command market." 717-718, 17 references recognition forces left some regarding command. Ensuing expressed conflicting views reach.4 Commentators opinions permissible decision.5 18 Not decided five address matter exception. stating "the classification more pay-out stage pay-in stage." 1081, 3497-3498. addressed uncertainty responded discrete raised Manhart. Granting only narrow exception, duplicated companies. 1087-1088, 3500-3501. condemned value" where differentials resulted. 1082-1083, 3498. Pension alternative noncompliance requirements. 1081-1082, n. 10, 3497-3498, 10. answered close division later case, however, suggests earlier differential far obvious. 19 rely reasonable assurance express qualifications A few months Department Labor completed study impact Equal Employment Opportunity Commission proposal rule. Labor, Cost Study Impact Benefits (Jan.1983) (hereinafter Study). found "[s]ubstantial percentages [defined contribution] types follow customary industry sex-segregated mortality calculating annuity benefits." estimated 45% participants like 74% continued Ibid. 20 experience illustrates difficulty full inception, primary significance, 11-12; Hager & Zimpleman, Decision, Its Implications Application, 32 Drake L. Rev. 913, 938 (1982-1983) (Norris "have little effect form concerned . [since benefit] pays incomes"). 21 range choices convenience. Before that, benefit, prevent wished control, unable finance, alone. L.Rev., 938-939. Employees reduction assumed intend flexibility choosing option, 22 itself reserved determination major issues. narrowed include lump-sum individual purchased company, 1088, 3501, "reasonably lawful 1106, 3510. considered reflected forms differ, they economic substance. 23 does note, while makes compelling, feature establish conforming structures. considerations discussed relevance. 24 support provides relief. required. 720-721, 1381-1382; supra, 1110, see reason depart conclusion modified provide There 25 Finally, inequitable. "drastic changes rules governing funds" reserves unexpected benefits; complexities relied coupled lack authoritative guidance courts administrative agencies; instability programs resulting harm innocent parties; absence believe threat backpay award" compelled apply applied unless plainly commanded result." 720-723, 1381-1383. Noting Congress had, fact, stressed importance "making gradual prospective changes" 721-722, 40, 1382, concluded, terms, "Albemarle presumption favor relief" type suit. 723, 1383. Albemarle Paper Moody, 422 405, 421, 95 2362-2373, 45 280 (1975). 26 reaffirmed inappropriate cases. 3510-3511. Retroactive anticipate 3510-3511 concurring); 1094-1095, 3504-3505 (MARSHALL, part). Buck Research Corporation, Trends Corporate Benefits: Unisex (Oct.1983) (survey Fortune 500 industrial corporations showing 39.8% used decided). 27 Respondents argue "actual discussions" F.2d, 1550. respondents $43 million power order equitable nature flexible, 718-719, 1380; 2000e-5(g), sole determinant That possess early intimations doctrine principle. 42, 42. premise turns status, financially successful pay insecure not. To imposes debates administrators. previously noted "[i]mportant national goals frustrated regime discretion 'produce[d] different breaches duty situations differentiated policy.' " Paper, 417, 2371 (citing Moragne Marine Lines, 398 375, 90 1772, 1790, 339 (1970)). 28 conform standards, hesitate say so. calculate altogether one. informed obligation levels, limit B next separate awards. first, back compensatory covering entire judgment, is, receiving affirming, labeled distinction self-evident. An contain elements order. Unlike ordinary injunction fundamental sense if corrects calculation occurred. altered despite circumstance keyed undermines predicted level 1092, 3503 Such deficiency fund, additional increased forcing violate contractual guarantee many "[w]hen directs change order." Ibid.; 1105, 3510, 31 violation. Bazemore Friday, 478 385, 106 3000, 315 (1986), contrary. wages practices prior week's paycheck work presently performed employee. Further, payroll basis. By contrast, basis, contract assessment expected final salary, projected recognize ignores plan. adjust equality "fundamentally nature." indistinguishable relying precise mandated maintained sound affects 33 retroactivity, result right rate return Spirt Teachers Insurance Assn., 735 23, (CA2 1984). There, increase require rights us, however. essentially disrupt conduct violative time retirements made. "could done anything [Norris ] [the disparity fund] short expending funds." 1095, 3505 34 adjustment consists 35 36 ordered. 37 whom MARSHALL join, part. 38 denies ground actions taken Because I mandate dissent categorically post-Manhart retirees.1 39 amendment manner recapitulate briefly, follows: employee, choose options—a single-life joint-annuitant selecting received tied service. irrelevant paid run afoul If, selected plan—a purpose Because, average, live women, ascribed male's, accordingly, out pension. undisputed prohibits kind 40 course, barred rather, discrimination.2 Although mandatory 706(g), make-whole creates "presumption [that] seldom overcome." 719, 1381. notes, context defeated relevant concerning sufficiently clear Ante, 230. although being lawful. 41 denying concludes 1983 unlawful. point, my view, goes astray. faced paychecks counterparts obtain sought difference noting since, group, lived longer employees, "[t]he cost woman." 705, 1374. cost, argued employer, allowed accepted true proffered rationale nonetheless put it: "The existence nonexistence 'discrimination' comparison characteristics characteristics." 708, 1375. control. 708-709, 1375-1376. Therefore, through 43 difficult important relies stage, surfaced stage. difference. took home Here, take-home same, other. class. plausible theory distinguished situation former, offers none. short, laid down rule differences detriment group 44 "open-market exception" cast holding. majority focuses statement "an market," ignores, explanatory footnote statement, articulated rationale: "Title primarily govern[s] relations parties." 718, 33, 1380 33. evident start open-market nothing Rather, involved party, generally outside confirms, casts on, unlawfulness manifest Justices obvious benefits: 46 "We hesitation question, 1081 (footnotes omitted). 47 "[I]t much 'because sex' woman she man larger 1086, 3500. 48 majority's rejection contribution/benefit almost reasoning came mention 1081-1086, 3497-3500. 1108-1109, 3512 concurring) ("Title allow them trust account, disburse checks women") (emphasis added). 49 Powell's Members thought focused those, administered parties. 1099, 1103, 3507, 3509. His contest reached 3500, "plainly VII" if, scrutiny themselves. 50 Nor, finally, ultimate call 3510 (Powell, part) S.Ct, (referring "pension administrators, extend third-party insurers") assumption lawfulness involvement insurers—simply case.3 51 "clearly foreshadowed" depend "new law" 1109, concurring), naturally disagree "inequitable." contrary, such appropriate. 1093, 3504. Cf. 106, 355, (1971) ("[T]he nonretroactively law") addition, special factors 52 agree pre-Manhart penalize accord deny because, 53 summary: supplies failure Accordingly, concur reasons above, 54 dissenting. collection remedied retroactively. somewhat presented, decided. agreed grant payable future. agree. 56 conceded recovery think month's disparate check constitutes "to retirees." partially directly employees' payments.1 annual App. Pet. Cert. A39. correctly given accordingly nature, defendants permitted "continue discriminate" statute. 1548 1986). "top retirees' akin perpetuation (1986).2 Moreover, equities militating 57 am complete Appeals. BLACKMUN's exposition flaws analysis, affirm entirety. 1972, which, time, public governments "employer" 86 103. 2000e. employers' "Topping compensates A65. 719-720, 36, 1381, (1978) (full equalization "may give victims due"). parties raise 2000e-5(g) petitioners' filing (EEOC) charge 2000e-5(e) plaintiff restricted individuals 300 days EEOC charge. limitations sets liability. Compare Peters Wayne University, 691 235 (CA6 1982) (use males females equal), Colby College, 589 1139, 1146 (CA1 1978) (Coffin, (Manhart preclude system well "actuarially sound" tables), 1054 (unequal ), vacated remanded, 1223, 3566, 1406 Sobel Yeshiva 566 F.Supp. 1166, 1192 (SDNY 1983) (following binding review end "[w]hether Supreme retreat means applying fashion [and] certain comment several distribution avoid problem" (footnote omitted)), rev'd 797 1478 656 587 1987). Jacobs, Case: Sex-Based Differentials Application Pensions, Lab.L.J. 232, 237-238, 244 (1980) (noting "should plain words, invalidate gender-based benefits"), Kistler Healy, Sex Discrimination 229 "resolved uncertainty" extending "prohibit procedure proscribed"), Kimball, Reverse Discrimination: 1979 Am.Bar Found.Research J. 83, 91-92, 138 expansion "far beyond what said hinted," concluding plans), Note, Norris: Mandate W.Va.L.Rev. 437, 452 (1983-1984) significant "for do. 'men making fund' "). ante, 229—230, 3. Like take position properly characterized retroactive. places dated nearly estimated: "In sector, percent 74 tables." (Jan.1983). 233—234. concedes, Labor's survey employer-sponsored Brief Petitioners 27. Yet former category thus throws light Nor find persuasive emphasis single-annuitant 234. explained forbids 'compensation, conditions, privileges employment'. fringe escape he Neither precedents contrary conclusion, explained: "[B]enefits [Florida System] Instead needs. cover unfunded liability." 1551 During 1970 combination 1975 funds. 1545-1546. Bazemore, eradicate created racial engaged extension perpetuated thereafter. wrote: error disparities 1972 thereafter warrant discussion: Extension Service salaries excuse perpetuating became pre-1972 acts discrimination, imposed. "Each delivers black white wrong actionable begun VII." 395-396, 3006-3007 (BRENNAN, unanimous

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