United States: Court Certifies Title VII Discrimination Case Based On Discretionary Decision-Making

In Rollins v. Traylor Brothers, Case No. 14-CV-1414 (W.D. Wash. Jan. 21, 2016),  Judge John Coughenour of the U.S. District Court for the Western District of Washington certified the claims of a class of workers alleging claims of discrimination under both disparate impact and disparate treatment liability theories. Id. at 6-12, 18. The Court also approved plaintiffs' request to proceed through a two-stage trial process, whereby if plaintiffs established a discriminatory policy or disparate impact during stage one, "each class member would be awarded a rebuttable inference that all class members were victims of defendants' allegedly discriminatory practices and/or suffered a disparate impact" in stage two. Id. at 16.

The Court's order serves as another reminder that, even after Wal-Mart Stores, Inc. v. Dukes, 131 S. Ct. 2541 (2011), judges may still certify a discrimination class action based on subjective decision-making, at least when presented with the types of facts before the Court in this case.

Case Background

In Rollins, defendants were contractors for the Sound Transit "University Link" light-rail projects, which included making hiring and firing decisions for laborers the Union dispatched to the Project. In response to "allegations of discrimination and harassment" by black laborers, Sound Transit hired an investigator and statistician, who made findings and prepared a report concluding that the defendants' "subjective decision-making had a disparate impact on black laborers." Id. at 2. Specifically, the statistician concluded that black laborers dispatched to defendants' site had a "threefold higher risk" of not being hired or of being terminated and that, on average, white and Hispanic laborers worked twice as many hours a week as black laborers. Id. Notably, while it expressly disavowed relying on the report's ultimate conclusion, the Court referenced the report and its factual findings throughout the decision.

The District Court's Certification Decision

To certify the class, the Court first undertook its own modifications to the class definition. The Court rejected plaintiffs' proposed "class of laborers of African-American decent with dark skin and/or appearing African American" — a description the Court noted that one of the named plaintiffs may not fit. Instead, the Court defined the class as "laborers who identify as black or believe that Defendants perceived them as black." Id. at 4. Similarly, the Court also rejected as potentially ambiguous plaintiffs' inclusion of laborers "who were dismissed shortly after being hired, dismissed after working only a few shifts, and/or otherwise treated unfairly." Id. Rather, the Court, on its own initiative, reformulated the description to include laborers who "were not hired after being dispatched, were hired but later terminated, and or believe they were otherwise treated unfairly." Id.

The Court's certification decision focused a substantial amount of its analysis on findings supporting commonality. Specifically, the Court concluded that substantial anecdotal and statistical evidence supported both disparate treatment and disparate impact theories of liability.  For example, the Court detailed a number of racially insensitive and derogatory comments made by supervisors tasked with hiring and firing decisions. The Court also noted instances that could be interpreted as retaliation for complaining about unfair treatment. The Court also highlighted the statistical disparity between terminations and hours worked by black laborers and white laborers. The Court rejected defendants' contention that black laborers were simply less qualified, comparing the statistics at defendants' site to that of related project site run by a different contractor utilizing the same Union dispatch process where the racial disparities were substantially less. Accordingly, based on what the Court described as "substantial anecdotal and statistical evidence that site-wide discrimination affected employment decisions," the Court concluded that plaintiffs established common questions of liability relating to the specific project site. Id. at 9, 11.

In certifying the class, the Court also rejected defendants' administrative exhaustion argument.  Defendants argued that plaintiffs could not bring claims under a disparate impact theory because this theory was not alleged in any of the prerequisite EEOC charges. The Court concluded, however, that plaintiffs' disparate impact theory was not procedurally barred because it "could reasonably be expected to grow out of the charge of discrimination." Id. at 13. The Court emphasized that in this case, both the disparate treatment and disparate impact theories were "connected to Defendants' alleged failure to institute policies to guide their managers' discretionary decision-making," and thus, "it would be reasonable to expect that EEOC investigators would look into Defendants' job assignment, discipline, and termination policies" that the plaintiffs contended support the disparate impact theory. Id.

The District Court's Trial Plan

Finally, the Court approved plaintiff's bifurcated trial plan. In stage one, plaintiffs would bear the burden of establishing liability, by a preponderance of the evidence, on their disparate treatment and disparate impact claims, as well as the availability of punitive damages. The Court noted that "if successful on these claims, Plaintiffs would be awarded a rebuttable inference that all class members were victims of Defendants' allegedly discriminatory practices and/or suffered a disparate impact from its neutral employment policies." Id. at 16. In stage two, the Court noted that it would hold individual hearings before a separate jury, in which each individual class member would need to show that "he suffered an adverse employment decision or was adversely affected by a challenged policy or practice."  The burden would then shift to defendants to show that any such adverse action was taken for legitimate reasons or to raise any other applicable affirmative defenses.

Implications For Employers

The Court's decision highlights that, despite the hurdles to certifying class actions alleging discrimination under Title VII after Wal-Mart, courts may be willing to certify class actions where the action is defined to a specific job location and where the plaintiffs can bring forth "substantial" statistical and anecdotal evidence.

However, the Court's decision still leaves ambiguity regarding how a trial of such claims can proceed. While the Court laid out the general procedures for the bifurcated trial, the Court emphasized that it had not determined "the exact details of how trial will proceed." Id. at 17-18.  Accordingly, the Court ordered further briefing on the issue. Id. at 18. As such, despite the Court's extensive order, there are still open questions regarding how this matter will be tried in a manner that comports with due process. We will continue to follow developments as the parties file their briefs and keep our readers informed.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
In association with
Related Topics
 
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions