Banas v. American Airlines

969 F.2d 477, 1992 U.S. App. LEXIS 17366, 59 Empl. Prac. Dec. (CCH) 41,646, 59 Fair Empl. Prac. Cas. (BNA) 733, 1992 WL 177383
CourtCourt of Appeals for the Seventh Circuit
DecidedJuly 29, 1992
DocketNo. 91-1044
StatusPublished
Cited by26 cases

This text of 969 F.2d 477 (Banas v. American Airlines) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Banas v. American Airlines, 969 F.2d 477, 1992 U.S. App. LEXIS 17366, 59 Empl. Prac. Dec. (CCH) 41,646, 59 Fair Empl. Prac. Cas. (BNA) 733, 1992 WL 177383 (7th Cir. 1992).

Opinion

WALTER J. CUMMINGS, Circuit Judge.

Eight years after their complaint was filed, and in the middle of trial, plaintiffs’ Title VII, Civil Rights Act of 1964, sex discrimination case was dismissed on the ground that the statute of limitations had run. The principal issue on appeal is whether the Supreme Court’s decision in Lorance v. AT & T Technologies, Inc., 490 U.S. 900, 109 S.Ct. 2261, 104 L.Ed.2d 961, provides the rule for deciding the statute of limitations question in this case, or whether the statute of limitations rule in the Civil Rights Act of 1991 applies. The Civil Rights Act of 1991 was enacted after briefs were filed in this Court but before oral argument.1

I.

Plaintiffs are members of the Kiwi Club, an all-female philanthropic and social group consisting of former (and, since 1976, present) American Airlines flight attendants.2 In early 1970, American created the Kiwi Sales Program (“KSP”), in which interested Kiwi Club members engaged in various speaking and sales promotional activities on American’s behalf, in consideration for wages and travel benefits. The named plaintiffs in this case were partici[479]*479pants in the Chicago-area KSP when it began on September 1, 1970 and, except for Ruth Bañas, continue to be participants in the program. In the mid-1970s, American changed the focus of the KSP from public speaking and public relations to more direct assistance to American’s sales offices. KSP participants now help other American sales employees by answering phone calls from travel agents, assisting with promotional trips, and even taking full responsibility for some smaller accounts.

During most of the pre-trial proceedings, American maintained that KSP participants were not employees but rather were independent contractors. On the eve of trial, American conceded that the participants had some “indicia” of employment. Indeed, the KSP participants are placed on American’s payroll, classified as “Management/Specialist Type 8.” Federal and state taxes as well as FICA are deducted from the compensation paid to KSP participants. KSP participants receive an employee card that lists as their starting date of employment the date they start in the KSP program. We will therefore refer to KSP participants as employees in the remainder of this opinion.

American requires KSP employees to work a minimum of 288 hours a year, or 48 “credits” (each credit is a 6-hour block, and originally corresponded to one speaking engagement). By the time of trial, a maximum of 60 credits per year had been established, absent American’s administrative approval. Numerous KSP employees have worked more than 60 credits per year. American pays wages to KSP employees based on the hours they work and grants travel passes to KSP employees as their only benefit. The only credit that KSP employees receive for seniority is an increase in the number of annual travel passes they receive. Unlike regular full-time and part-time employees, KSP employees do not receive unlimited travel privileges, vacation and sick pay, health benefits, or other benefits. In addition, KSP employees receive no credit for their length of service to American as KSP employees when transferring to other jobs in the company.

American regulations specify other categories of employees that receive little or no benefits. Temporary employees, provisional employees, associate employees and college campus sales reps all do not accrue company-wide seniority for their services. Campus sales reps, who are mostly male, apparently receive similar, limited benefits as do KSP employees.

Plaintiff Ruth Bañas transferred from the KSP program to a full-time position as a ticket lift agent at O’Hare International Airport in Chicago in May 1979. She was given a seniority date of June 11,1979,3 not September 1, 1970, the date she first participated in the KSP program. Within several months after her transfer, Bañas became aware that other employees who became ticket lift agents after she did were given higher seniority than she, because they were given credit for their previous full-time and part-time employment. American published a seniority list every quarter that was distributed to all employees so that the employees could knowledgeably bid for shifts or other positions. In September 1980, Bañas received a letter stating that she would be laid off. Instead of being laid off, however, she was changed to part-time status.4 If she had possessed a September 1,1970, seniority date, Bañas would not have been reduced to part-time status. Bañas apparently has been reduced to part-time status on several occasions since 1980.

II.

On September 10, 1981, Bañas filed a Charge of Discrimination against American with the Chicago District Office of the Equal Employment Opportunity Commission. After receiving notice of her right to sue American from the EEOC, Bañas filed this Title VII class-action complaint on Sep[480]*480tember 7, 1982. Plaintiff identified two primary classes in her complaint: 1) all females currently employed in KSP, and 2) all females formerly employed in KSP who are now employed in different positions by American. Plaintiff also, listed as separate classes those females who would have qualified for one of the above classes but for the fact that their employment was terminated on or after 180 days prior to the filing of Bañas’ charge with the EEOC.

In April 1983, the district court denied American’s motion to dismiss based on Ba-ñas’ failure to file a timely charge of discrimination with the EEOC. American argued in its motion that Bañas knew at least by May 23,1979, the date of her transfer to a regular full-time position, that she was not receiving seniority credit for her time in the KSP program. This awareness triggered the running of the statute of limitations, according to American, and therefore Bañas’ filing in September 1981, more than 300 days after May 23, 1979, was untimely. The district court rejected this argument, relying on In re Consolidated Pretrial Proceedings in Airline Cases, 582 F.2d 1142 (7th Cir.1978) (later reversed on other grounds at 455 U.S. 385, 102 S.Ct. 1127, 71 L.Ed.2d 234 (1982)), and Stewart v. CPC International, Inc., 679 F.2d 117 (7th Cir.1982). The court cited Airline Cases for the proposition that “when the complained-of policy is still in effect at the time a charge is brought and the policy is applicable to the plaintiff at that time, the violation is continuing and plaintiff’s claim cannot be time-barred.” R. 27 at 5.

The district court also held in its 1983 opinion that the statute of limitations did bar Bañas from acting as class representative for current KSP employees because American’s policies with regard to current KSP employees no longer affected her. In November 1983, a first amended complaint was filed which added several named plaintiffs who were current KSP employees to act as representatives for this class. No named plaintiff besides Bañas, however,' ever filed a charge of discrimination with the EEOC.

Plaintiffs’ complaint survived two additional motions to dismiss before trial began. In April 1985, Judge Grady denied American’s motion to dismiss plaintiffs’ class action allegations.

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969 F.2d 477, 1992 U.S. App. LEXIS 17366, 59 Empl. Prac. Dec. (CCH) 41,646, 59 Fair Empl. Prac. Cas. (BNA) 733, 1992 WL 177383, Counsel Stack Legal Research, https://law.counselstack.com/opinion/banas-v-american-airlines-ca7-1992.