Christiana v. Metropolitan Life Insurance

839 F. Supp. 248, 1993 U.S. Dist. LEXIS 17873, 64 Empl. Prac. Dec. (CCH) 43,083, 63 Fair Empl. Prac. Cas. (BNA) 865, 1993 WL 525225
CourtDistrict Court, S.D. New York
DecidedDecember 13, 1993
Docket92 Civ. 7816 (VLB)
StatusPublished
Cited by17 cases

This text of 839 F. Supp. 248 (Christiana v. Metropolitan Life Insurance) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Christiana v. Metropolitan Life Insurance, 839 F. Supp. 248, 1993 U.S. Dist. LEXIS 17873, 64 Empl. Prac. Dec. (CCH) 43,083, 63 Fair Empl. Prac. Cas. (BNA) 865, 1993 WL 525225 (S.D.N.Y. 1993).

Opinion

MEMORANDUM ORDER

VINCENT L. BRODERICK, District Judge.

I

This case involves an alleged violation of the Equal Pay Act (the “Act”), 29 U.S.C. § 206(d)(1), brought by the plaintiff Victoria Christiana (the “plaintiff’) against her employer Metropolitan Life Insurance Company (the “employer”). It presents the question of whether a company-wide or location-wide salary retention policy is a legitimate defense under the Act as .a “seniority system” or “factor other than sex,” justifying a wage disparity between individual employees of different genders and so as not to constitute a violation of the Equal Pay Act. I answer the question affirmatively as applied to this case, grant the defendant’s motion for summary judgment and deny the plaintiffs cross motion.

II

The core facts are not in dispute. Plaintiff, a woman employee of the employer who continues to work for it, has received continued pay increases over recent years. Her duties involve reviewing insurance claims and handling fraud investigations.

The employer has a company-wide salary retention program designed to permit it to keep experienced employees. Application of this program led male employees with greater longevity with the company and earning higher sums, when transferred so as to perform functions equivalent to plaintiff, to receive higher pay than plaintiff at plaintiffs location, a unit of the Kingston, New York regional office of the large national employer. The same program has led to women receiving higher pay than male employees in similar circumstances in other locations.

m

The Equal Pay Act was enacted in 1963 seeking to remedy wage discrimination based on gender in private industry. See Usery v. Bettendorf Community School Dist., 423 F.Supp. 637 (D.Iowa 1976). The Act’s declaration of policy articulates Congress’ desire to overcome the harmful repercussions that result for the underpaid sex. Congress found such wage differentials to

(1) depress wages and living standards for employees necessary for their health and efficiency; (2) prevent the maximum utilization of the available labor resources; (3) tend to cause labor disputes thereby burdening, affecting and obstructing commerce; (4) burden commerce and the free flow of goods in commerce; and (5) constitute an unfair method of competition.

Pub.L. No. 88-38, § 2, 77 Stat. 56 (1963).

The Act provides that “[n]o employer ... shall discriminate ... between employees on the basis of sex,” 29 U.S.C. § 206(d)(1), by paying lower wages to employees of one sex than another, for work “which requires equal skill, effort,-and responsibility, and which is performed under similar working conditions.” Id. The Act permits an employer to justify a wage disparity between employees if due to a differential based on “(i) a seniority system; (ii) a merit system; (iii) a system which measures earnings by quantity- or quality of production; or (iv) ... any other factor other than sex.” Id.

The four exceptions are affirmative defenses that must be shown by an employer in response to a prima facie showing of a wage disparity by a plaintiff. Corning Glass Works v. Brennan, 417 U.S. 188, 196, 94 S.Ct. 2223, 2229, 41 L.Ed.2d 1 (1974). The *250 legislative history of the Act reveals that industry representatives criticized the concept of equal work alone as too vague and argued that defenses for only seniority and merit systems were incomplete. Equal Pay Act: Hearings on H.R. 3861 and Related, Bills Before the Special Subcomm. on Labor of the House Comm, on Education and Labor, 88th Cong., 1st Sess. 99 (1963) (statement of W. Boyd Owen, Vice President of Personnel Administration, Owens-Illinois Glass Co.). See Coming Glass, 417 U.S. at 200, 94 S.Ct. at 2230. Congress subsequently added specific elements for job evaluation — skill, effort, responsibility and working conditions — as well as the broad “factor other than sex” defense in response to employers’ concerns.

Congress included the “factor other than sex” defense to prevent “bona fide job evaluation systems used by American businesses [from] otherwise be[ing] disrupted.” County of Washington v. Gunther, 452 U.S. 161, 171 n. 11, 101 S.Ct. 2242, 2249 n. 11, 68 L.Ed.2d 751 (1981). Courts hesitate to substitute their judgment for that of the employer “who has established and applied a bona fide job rating system,” Gunther, 452 U.S. at 171, 101 S.Ct. at 2249, quoting 109 Cong.Rec. 9209 (1963) provided that it does not discriminate on the basis of gender. See also Hodgson v. Robert Hall Clothes, Inc., 473 F.2d 589 (3d Cir.), cert. denied 414 U.S. 866, 94 S.Ct. 50, 38 L.Ed.2d 85 (1973).

The language of the Act implies that any factor other than gender could qualify as a legitimate defense to a charge of wage discrimination. This-term was chosen to provide a “broad general exception” because Congress realized it would be “impossible to list each and every” conceivable yet legitimate business need justifying a wage disparity. H.Rep. 309, 88th Cong., 1st Sess. (1963), reprinted in 1963 U.S.Code Cong. & Admin.News pp. 687, 689 (Purpose and Summary of Major Provisions). An exclusive list of factors would be incomplete and might hinder the operation of a valid job classification system used by a company with peculiarities requiring a differential not specifically enumerated — but a bona fide business reason nonetheless. 1

Only a “bona fide job classification program that does not discriminate on the basis of-sex will serve as a valid defense to a charge of discrimination.” H.Rep. 309, 88th Cong., 1st Sess. (1963), reprinted in 1963 U.S.Code Cong. & Admin.News pp. 687, 689 (Purpose and Summary of Major Provisions).

Gender-neutral business-related factors that are purely job related will justify a wage disparity between employees of different sexes. See City of Los Angeles Dep’t of Water & Power v. Manhart, 435 U.S. 702, 98 S.Ct. 1370, 55 L.Ed.2d 657 (1978) (rejecting the cost of employing one sex compared to the other as a bona fide factor other than sex necessary to justify a wage disparity).

IV

This case involves an alleged violation of the Equal Pay Act by the employer due to the payment of a lower salary to the plaintiff, a woman, than to her male co-workers, Employees A, B and C. 2

Plaintiff was hired as a Junior Claim Approver trainee on a part-time basis by the employer in October, 1985, and was appointed to a full time position in the Kingston Fraud Unit on July 20, 1987.

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839 F. Supp. 248, 1993 U.S. Dist. LEXIS 17873, 64 Empl. Prac. Dec. (CCH) 43,083, 63 Fair Empl. Prac. Cas. (BNA) 865, 1993 WL 525225, Counsel Stack Legal Research, https://law.counselstack.com/opinion/christiana-v-metropolitan-life-insurance-nysd-1993.