Allen v. Isaac

99 F.R.D. 45, 35 Fair Empl. Prac. Cas. (BNA) 1564, 37 Fed. R. Serv. 2d 351, 1983 U.S. Dist. LEXIS 14964
CourtDistrict Court, N.D. Illinois
DecidedAugust 2, 1983
DocketNo. 81 C 911
StatusPublished
Cited by41 cases

This text of 99 F.R.D. 45 (Allen v. Isaac) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allen v. Isaac, 99 F.R.D. 45, 35 Fair Empl. Prac. Cas. (BNA) 1564, 37 Fed. R. Serv. 2d 351, 1983 U.S. Dist. LEXIS 14964 (N.D. Ill. 1983).

Opinion

MEMORANDUM OPINION AND ORDER

WILLIAM T. HART, District Judge.

This is a class action brought on behalf of black bank examiners employed nationwide by the Federal Deposit Insurance Corporation (“FDIC”) alleging that the FDIC utilizes discriminatory training and promotion procedures. The primary allegation of the one count amended complaint is that the Progress Evaluation Examination (“PE”), ostensibly a prerequisite to promotion from a grade GG-9 assistant bank examiner to a grade GG-11 commissioned examiner, is “wholly subjective” and neither standardized nor validated as allegedly required by the Uniform Guidelines on Employee Selection Procedure (“Guidelines”), 20 C.F.R. §§ 60-3 et seq.

The PE is a three and one-half day oral and written examination which is administered in Washington, D.C. by a panel of three commissioned bank examiners. The minimum standard for eligibility to take the PE is completion of at least one year as a GG-9 assistant bank examiner. According to an in-house FDIC review of the PE, panel members are instructed to judge

the candidate’s FDIC and banking background and experience, extent of the method of preparation for the evaluation, judgment and analytical ability, initiative, personality and their [sic] ability to grow professionally and to represent the Corporation as a Commissioned Examiner.

Kieper Report at p. 17. Plaintiffs cite as discriminatory this subjective, non-numerical grading criteria.

Persons who take the PE receive one of three ratings: (1) “favorable”—which leads to immediate promotion; (2) “deferred”— which leads to promotion in the future; and (3) “reevaluate”—promotion can occur only subsequent to another PE. Generally a favorable or deferred rating on the PE is required for advancement to commissioned bank examiner plus a final recommendation by the applicant’s Regional Director. Candidates who receive a reevaluate rank must retake the PE before promotion is possible. However, the Regional Directors apparently may promote reevaluate candidates and waive the taking of another PE.

Plaintiffs claim that in the Chicago region at least four white reevaluates were promoted to commissioned examiner without retaking the PE. Black reevaluates allegedly are not similarly favored. Rather, plaintiffs say that approximately 50% of all black assistant examiners who take the PE receive either deferred or reevaluate ratings and that those blacks who are deferred experience longer delays in promotion than do nonblack deferred candidates. The 50% “pass” rate for blacks allegedly is in contrast to a 77.9% “pass” rate for whites.

Also alleged is that the FDIC has haphazard and subjective training procedures which inappropriately and discriminatorily prepare blacks to take the PE. According to the plaintiffs, this “stacked deck” accounts for the fact that when this suit was instituted, fewer than 35 of the 2000 commissioned examiners in the FDIC network were black.

Jurisdiction is invoked pursuant to Title VII of the Civil Rights Act of 1964, 42 U.S.C. §§ 2000 et seq. (“Title VII”). A wide range of relief is requested including a [48]*48declaration that the PE is invalid due to its alleged discriminatory impact on blacks, negative and positive injunctions seeking promotions, back pay, discontinuance of the PE and institution of nondiscriminatory training and promotion practices.1

Presently before the Court is a motion for certification of a class pursuant to Fed.R. Civ.P. 23(a) and 23(b)(2). The class proposed is very broad and is described as:

All black persons employed by the FDIC as assistant bank examiners or commissioned examiners who have been or will be adversely affected by the promotional policies of the FDIC complained of in this action.

That class is said to include all black assistant bank examiners who took the PE during a relevant time period and initially were rated as either deferred or reevaluate, those who will take the PE and be rated deferred or reevaluate and those who were or will become eligible to take the PE but whose ambition is “chilled” allegedly due to the PE’s discriminatory nature.

The named plaintiffs, Agee Allen (“Allen”) and Ronald Battle (“Battle”), are employed by the FDIC in its Chicago region. In 1980, Allen and Battle took the PE and each was rated as reevaluate. Allen was promoted to the rank of commissioned bank examiner after a delay of approximately three years. Battle has never been promoted and has recently received a notice of termination. Both Allen and Battle complied with 29 C.F.R. § 1613.602(a), which requires federal employees to file administrative charges of class discrimination with an Equal Employment Opportunity (“EEO”) counselor within 90 days of the alleged discriminatory action.

Also before the Court are motions to intervene brought by Severa Jones (“Jones”) and Irvin Faust (“Faust”). Jones, employed by the FDIC in the Philadelphia region, received a deferred rating on the PE on September 9, 1979. He brought an informal complaint of individual discrimination within thirty days of the PE evaluation, as is required by 29 C.F.R. § 1613.-214(a)(l)(i). Jones was promoted approximately six months after his deferral. Faust, a New York region FDIC employee, was minimally eligible to take the PE in September of 1978 but he did not take it until November 1981. He received a reevaluate rating and has not been promoted.

For the reasons stated below, the motion for certification of a class pursuant to Fed. R.Civ.P. 23(b)(2) is granted. However, the contours of the proposed class are narrowed to include

All black assistant bank examiners employed nationwide by the FDIC who took the Progress Evaluation Examination for promotion to commissioned bank examiner on or after August 30, 1979 and were rated either as “deferred” or “reevaluate” or who will take the Progress Evaluation Examination during the pendency of this litigation and will be rated either as “deferred” or “reevaluate.”

Thus, the class certified will include black assistant bank examiners who were promoted to commissioned examiners, but only after some period of delay following a deferred or reevaluate rating on the PE. As of the date of filing, that number is 17. See appendix for list. Incident to the litigation, a determination will be made as to what period of delay, if any, is discriminatory and what period is nondiscriminatory. See Hazelwood School District v. United States, 433 U.S. 299, 97 S.Ct. 2736, 53 L.Ed.2d 768 (1977); Clark v. Chrysler Corp., 673 F.2d 921 (7th Cir.), cert. denied, - U.S. -, 103 S.Ct. 161, 74 L.Ed.2d 134 (1982) (statistical evidence on disparate impact of alleged discrimination must demonstrate a “significant” or “substantial” disparity). Those class members who experienced nondiscriminatory delays will be excluded from the class.

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Bluebook (online)
99 F.R.D. 45, 35 Fair Empl. Prac. Cas. (BNA) 1564, 37 Fed. R. Serv. 2d 351, 1983 U.S. Dist. LEXIS 14964, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allen-v-isaac-ilnd-1983.