Donaldson v. Microsoft Corp.

205 F.R.D. 558, 2001 U.S. Dist. LEXIS 23396, 2001 WL 1705025
CourtDistrict Court, W.D. Washington
DecidedNovember 16, 2001
DocketNo. C00-1684P
StatusPublished
Cited by8 cases

This text of 205 F.R.D. 558 (Donaldson v. Microsoft Corp.) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Donaldson v. Microsoft Corp., 205 F.R.D. 558, 2001 U.S. Dist. LEXIS 23396, 2001 WL 1705025 (W.D. Wash. 2001).

Opinion

ORDER ON PLAINTIFFS’ MOTION FOR CLASS CERTIFICATION AND DEFENDANT’S MOTION FOR PARTIAL SUMMARY JUDGMENT

PECHMAN, District Judge.

Pending before the Court are two related motions. Plaintiffs have brought a motion for class certification. Dkt. No. 108. Defendant has brought a motion for partial summary judgment. Dkt. No. 137.

Having reviewed all materials submitted by the parties, as well as the remainder of the Court’s files, and having heard oral argument on October 19, 2001, the Court ORDERS as follows:

1. Plaintiffs’ motion for class certification is DENIED.

2. Defendant’s motion for partial summary judgment is GRANTED in part and DENIED in part.

I. FACTS

Plaintiffs have filed suit on behalf of current and former female and African American employees of Microsoft in the United States. See Second Consolidated Amended Complain (“Compl.”) H16. The proposed class includes all non-executive positions.1 Plaintiffs’ Memorandum in Support of Motion for Class Certification (“Pis.’ Class Cert. Mem.”) at 1. Plaintiffs bring allegations of disparate impact on the basis of race and gender in violation of § 703 of Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e-2, disparate treatment on the basis of race and gender in violation of § 703 [562]*562of Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e-2, and intentional discrimination against African American employees in violation of 42 U.S.C. § 1981. Compl. 111176-89. Plaintiffs also bring an allegation of retaliation against both African American and female employees in violation of both § 704(a) of Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e-3 and 42 U.S.C. § 1981. Id. 111190-94.

Plaintiffs’ allegations stem primarily from them dissatisfaction with defendant’s “set of practices involving compensation and promotions.” Pis.’ Class Cert. Mem. at 1. Specifically, plaintiffs allege that “Microsoft uses an excessively subjective evaluation system.” Compl. 1110. While plaintiffs concede that “this broad subjectivity in employment practices is not itself discriminatory,” plaintiffs argue that the undue subjectivity afforded to Microsoft’s supervisors has enabled discrimination in the workplace. Pis.’ Class Cert. Mem. at 1. Plaintiffs argue that female and African American employees at Microsoft were hired a disproportionately low salary level, were assigned to disproportionately low grade levels at initial hire, were inadequately promoted to higher grade levels during the course of their employment, and received disproportionately low raises, bonuses, and stock options. Comp KU11,12.

In support of their motion for class certification, plaintiffs rely on three categories of data. First, plaintiffs challenge the very structure of Microsoft’s hiring, classification, promotion, and compensation system. Second, plaintiffs rely on anecdotal data to support their contention that Microsoft’s employment practices have resulted in discrimination. Third, plaintiffs offer statistical data to support them claims of disparate treatment and disparate impact against women and African Americans. These three categories of data will be outlined one at a time. Finally, there are facts which are specific to defendant’s motion for partial summary judgment. For purposes of clarity, these facts will be addressed separately.

A. Microsoft’s hiring, classification, promotion, and compensation system

Microsoft characterizes itself as a “meritocracy.” Microsoft’s Memorandum of Point and Authorities in Opposition to Plaintiffs’ Motion for Class Certification (“Class Cert. Opp.”) at 4. Upon entry into a position, employees are compensated based on relevant prior experience and (if applicable) previous performance-based merit raises. Popenoe Decl. H 6.

All employees are reviewed twice per year. Declaration of Denise White in Support of Defendant Microsoft Corporation’s Opposition to Motion for Class Certification (“White Decl.”) Ex. A. At each review, every employee is assigned a score of 1.0-5.0. Id. Microsoft uses a strict “curve” in rating employees. Id. 25% of employees in a work group will be assigned a score of 3.0 or below; 40% of employees in any work group will be assigned a score of 3.5; 35% of employees in any work group will be assigned a score at or above 4.0. Id. Managers must rate employees against previously-identified job goals and objectives. In addition, the employee is rated in comparison to other employees doing comparable work in the same work group. Id.

An employee’s evaluation score will directly impact the size of that employee’s annual bonus, annual stock options award, annual salary adjustment, and promotional opportunities. Popenoe Decl. Ex. F. However, an employee’s rating is not the sole factor which determines the scope of that employee’s promotion and compensation. Promotions are based on other factors as well, such as the needs of the corporation. White Decl. Ex. A. In addition, bonuses may be distributed for a job well done during a limited time period, such as excessive hours worked in preparation for a product launch. Id. Finally, Microsoft encourages its managers to use stock awards to retain those employees perceived to have the most potential long-term benefit to the company. Id.; Popenoe Decl. Ex. I.

B. Anecdotal evidence

Plaintiffs have submitted declarations from the three named class representatives, as well as from seventeen additional potential [563]*563class members.2 Dkt. Nos. 112-131. These declarations detail the variety of experiences that one might expect from any cross-sampling of employees at a major corporation. Many of the declarants describe both, successes and failures, promotions and demotions during their tenure at Microsoft. See, e.g., Declaration of Monique Donaldson and Ronald Douglass. Dkt. Nos. 112, 113. Several declarants describe incidents which appear to be motivated by race or gender-based animus. See, e.g. Declarations of Carolyn Codwell and Endre Glenn. Dkt. Nos. 117, 121. However, for the most part, those declarants who experienced setbacks or difficulties while at Microsoft can only speculate that their experiences were the result of racism or sexism.

C. Statistical data.

In support of their motion for class certification, plaintiffs rely on the Corrected Declaration of Charles R. Mann, Ph.D.3 (“Mann Deck”). Dr. Mann alleges that his statistical analysis reveals statistically significant adverse effects in the Microsoft workplace experienced by women and African Americans. See, generally, Mann Deck HH 13-16. Dr. Mann failed to include in his declaration his own data which revealed concurrent statistical significant advantages to women and African Americans. See, generally, Mann Dep.

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

Related

Gutierrez v. Johnson & Johnson
269 F.R.D. 430 (D. New Jersey, 2010)
Puffer v. Allstate Insurance
255 F.R.D. 450 (N.D. Illinois, 2009)
King v. Enterprise Rent-A-Car Co.
231 F.R.D. 255 (E.D. Michigan, 2004)
Dukes v. Wal-Mart Stores, Inc.
222 F.R.D. 137 (N.D. California, 2004)
Rhodes v. Cracker Barrel Old Country Store, Inc.
213 F.R.D. 619 (N.D. Georgia, 2003)
McReynolds v. Sodexho Marriott Services, Inc.
208 F.R.D. 428 (District of Columbia, 2002)

Cite This Page — Counsel Stack

Bluebook (online)
205 F.R.D. 558, 2001 U.S. Dist. LEXIS 23396, 2001 WL 1705025, Counsel Stack Legal Research, https://law.counselstack.com/opinion/donaldson-v-microsoft-corp-wawd-2001.