Dayton v. Oakton Cmty. Coll.

907 F.3d 460
CourtCourt of Appeals for the Seventh Circuit
DecidedOctober 11, 2018
DocketNo. 18-1668
StatusPublished
Cited by9 cases

This text of 907 F.3d 460 (Dayton v. Oakton Cmty. Coll.) 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
Dayton v. Oakton Cmty. Coll., 907 F.3d 460 (7th Cir. 2018).

Opinion

Flaum, Circuit Judge.

*463Traditionally, Oakton Community College employed retired state employees as part-time and adjunct faculty. But in November 2014, Oakton changed its hiring practices so that as of July 1, 2015, Oakton would no longer employ retired state employees if they were also beneficiaries of the State University Retirement System. This decision affected eighty-four individuals, including Barry Dayton. As a result, Dayton filed this lawsuit, on behalf of himself and a certified class of similarly-situated part-time and adjunct faculty, against Oakton and several individuals who were involved in adopting the policy,1 alleging claims under the Age Discrimination in Employment Act ("ADEA"), 29 U.S.C. § 623 ; 42 U.S.C § 1983 ; and Illinois law. The district court granted defendants' motion for summary judgment. We affirm.

I. Background

A. Factual Background2

Oakton Community College participates in the State University Retirement System ("SURS"), as provided by the Illinois Pension Code. See 40 Ill. Comp. Stat. 5/15-101 et seq. Eligible employees make contributions to SURS until they retire, at which point they may begin collecting a retirement annuity from SURS. Once an annuitant retires and begins receiving benefits, the annuitant may return to work, but the annuitant is subject to earnings limitations under SURS. See id. § 5/15-139(b).

In 2012, the Illinois legislature amended the SURS return-to-work provisions to impose a penalty on covered employers that employ "affected annuitant[s]." Id. § 5/15-139.5(e). Since the enactment, the legislature has refined the definition of an affected annuitant several times. When Oakton changed its hiring policy in November 2014, the second version of the statute, which was effective from November 19, 2013 to May 31, 2015, was the operative version; it provided:

A person receiving a retirement annuity from [SURS] becomes an 'affected annuitant' on the first day of the academic year following the academic year in which the annuitant first meets the following condition: ... While receiving a retirement annuity ..., the annuitant was employed on or after August 1, 2013 by one or more [SURS-covered] employers ... and received or became entitled to receive during an academic year compensation for that employment in excess of 40% of his or her highest annual earnings prior to retirement.3

Id. § 5/15-139.5(b). The third version of the statute took effect on June 1, 2015, which was one month before Oakton began enforcing its policy, and it remained valid until December 7, 2017. Under that version, an employee could also become an affected annuitant if "[t]he annuitant received an annualized retirement annuity ... of at least $10,000." Id. § 5/15-139.5(b)(3).

*464The fourth and current version of the statute, which went into effect on December 8, 2017, includes both conditions.

Covered employers who employ an affected annuitant must make a SURS contribution equal to "12 times the amount of the gross monthly retirement annuity payable to the annuitant for the month in which the first paid day of that employment in that academic year occurs." Id. § 5/15-139.5(e).

Before the legislature amended the statute, Oakton often employed individuals who had retired and who were receiving a SURS retirement annuity. Following the amendment, Oakton attempted to comply with the new requirements by monitoring the earnings of the annuitants it employed throughout the 2013-2014 academic year. Despite these efforts, a monitoring error led Oakton to employ affected annuitants inadvertently; the mistake cost Oakton approximately $75,000 in penalties.

When a human resources specialist discovered the oversight, she informed Oakton's chief human resources officer, Mum Martens. In turn, Martens advanced the issue to Oakton's then-president, Margaret Lee. While evaluating how to respond to this situation, the president's advisory council considered the fact that some annuitants Oakton employed were not at risk of becoming affected annuitants under the second version of the statute (because there were caps on adjunct compensation and on the number of "lecture hour equivalents" adjunct faculty could teach per semester). But, after weighing the risk that another monitoring error could cost the college thousands of dollars, the council came to the view that it would be fiscally irresponsible to employ any annuitant, regardless of whether she was likely to become an affected annuitant. Ultimately, Lee decided that Oakton should abandon employing all SURS annuitants.

In November 2014, Oakton announced its decision to no longer employ SURS annuitants effective July 1, 2015.4 Martens sent an e-mail to all annuitants Oakton employed, explaining that the decision was based on "challenges" Oakton experienced with monitoring annuitants' earnings and "concerns" Oakton had about SURS's administration and enforcement of the new statutory requirements. Several nonaffected annuitants asked Oakton to reconsider the decision and filed grievances. Oakton did not rescind its policy.

In total, Oakton refused to rehire approximately eighty-four annuitants because of the policy. Each of those individuals was over the age of fifty-five. Although Oakton continued to employee individuals over the age of forty after the policy went into effect, those individuals were not annuitants.

B. Procedural Background

Approximately one year after filing a charge with the Illinois Department of Human Rights, Dayton filed a complaint with the United States District Court for the Northern District of Illinois, bringing claims under the ADEA, § 1983, and Illinois law.

Two other annuitants, Daniel Filipek and Donald Krzyzak, also filed individual suits against Oakton, alleging violations of the ADEA and the Illinois Human Rights Act, 775 Ill. Comp. Stat. 5/2-102. The district court consolidated the three lawsuits, and on May 17, 2017, it granted plaintiffs' motion for collective and class certification. The certified class was defined as: "all *465

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Shalak v. City Of Chicago
N.D. Illinois, 2025
Bates v. Pace Bus Co.
N.D. Illinois, 2023
Lewis v. Macon County
C.D. Illinois, 2022
Sloan v. County of Macon
C.D. Illinois, 2022
Sally Gaetjens v. Winnebago County, Illinois
4 F.4th 487 (Seventh Circuit, 2021)
Antoinette Wonsey v. City of Chicago
940 F.3d 394 (Seventh Circuit, 2019)

Cite This Page — Counsel Stack

Bluebook (online)
907 F.3d 460, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dayton-v-oakton-cmty-coll-ca7-2018.