Equal Employment Opportunity Commission v. Bloomberg L.P.

778 F. Supp. 2d 458
CourtDistrict Court, S.D. New York
DecidedAugust 16, 2011
Docket07 Civ. 8383(LAP)
StatusPublished
Cited by9 cases

This text of 778 F. Supp. 2d 458 (Equal Employment Opportunity Commission v. Bloomberg L.P.) 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
Equal Employment Opportunity Commission v. Bloomberg L.P., 778 F. Supp. 2d 458 (S.D.N.Y. 2011).

Opinion

Opinion & Order

LORETTA A. PRESEA, Chief Judge.

In a heralded complaint, the United States Equal Employment Opportunity Commission accused Bloomberg L.P. of engaging in a pattern or practice of discrimination against pregnant employees or those who have recently returned from maternity leave in violation of Title VII, 42 United States Code. However, “J’accuse!” is not enough in court. Evidence is re *462 quired. The evidence presented in this case is insufficient to demonstrate that discrimination was Bloomberg’s standard operating procedure, even if there were several isolated instances of individual discrimination. As its standard operating procedure, Bloomberg increased compensation for women returning from maternity leave more than for those who took similarly lengthy leaves and did not reduce the responsibilities of women returning from maternity leave any more than of those who took similarly lengthy leaves.

The law requires that employers not discriminate against pregnant women on the basis of their pregnancy. Considering the evidence, not the accusations, the Court cannot say that the EEOC has proffered evidence from which a factfinder could conclude that Bloomberg engaged in a systemized practice of decreasing the pay, responsibility, or other terms and conditions of the employment of pregnant employees and mothers because they became pregnant or took maternity leave. Therefore, the Court grants the Defendant’s motion for summary judgment on the Plaintiffs pattern or practice claim.

I. BACKGROUND

The basic allegations and procedural history of this case are stated adequately in the Court’s prior opinions, with which the Court assumes familiarity. EEOC v. Bloomberg L.P. (Bloomberg II), 751 F.Supp.2d 628 (S.D.N.Y.2010); EEOC v. Bloomberg L.P. (Bloomberg I), No. 07 Civ. 8383, 2010 WL 3466370 (S.D.N.Y. Aug. 31, 2010). Plaintiff Equal Employment Opportunity Commission (“EEOC”) brought a case on behalf of a class of similarly situated women who were pregnant and took maternity leave (“Class Members”), asserting that Defendant Bloomberg L.P. (“Bloomberg”) engaged in a pattern or practice of discrimination on the basis of the class members’ sex and/or pregnancy. The EEOC alleges that Bloomberg reduced pregnant women’s or mothers’ pay, demoted them in title or in number of directly reporting employees (also called “direct reports”), reduced their responsibilities, excluded them from management meetings, and subjected them to stereotypes about female caregivers, any and all of which violated the law because these adverse employment consequences were based on class members’ pregnancy or the fact that they took leave for pregnancy related-reasons. The EEOC asserted the same claims on behalf of several individual claimants. The EEOC also brought a retaliation case on behalf of several individual claimants, but that portion of this lawsuit has been dismissed for failure to conciliate those claims out of court. Bloomberg II, 751 F.Supp.2d at 643. The EEOC did not bring a hostile work environment claim. Before the Court is Bloomberg’s motion for summary judgment on the pattern or practice claim only. 1

The relevant facts are not disputed. Bloomberg is an international financial services and media company that provides news, information, and analysis. (Bloom-berg R.56.1 ¶ 11.) Its core business is providing the Bloomberg terminal, but it has a website, television and radio stations, a broker-dealer service with an electronic *463 trading platform, and a 24-hour global news service. (Id. ¶¶ 12-18.) Bloomberg employs over 10,000 people. (Id. ¶ 20.) Bloomberg identified to EEOC 603 Bloom-berg employees who were pregnant or took maternity leave in the class period between February 1, 2002, and March 31, 2009. (See id. ¶ 9.) In this lawsuit, three individuals were included in the original complaint, and the EEOC has identified a total of 78 individuals who have claims of discrimination. (Id. ¶ 10; EEOC R.56.1 ¶ 113.)

Bloomberg is divided into functional divisions, which are further divided geographically. (Bloomberg R.56.1 ¶¶ 24-25.) Bloomberg went through a major restructuring in 2001 and it regularly restructures its business units. (Id. ¶¶ 26, 29.) Bloom-berg’s founding philosophy was “hard work, cooperation, loyalty up and down, [and] customer service.” (Id. ¶ 33.) It has “very high standards for people” and demands much “in terms of expertise [and] commitment to the job.” (Id. ¶ 32.) One manager stated that “everyone at Bloom-berg has ... a work/life balance issue because [everyone] work[s] very hard.” 2 (Id. ¶ 34.) Indeed, men and women have complained about their ability to balance family life and their workload at Bloom-berg. (Id. ¶ 35.) The “Code of Standards” for Bloomberg employees is forthright about this fact of life at the company. It states that Bloomberg “is your livelihood and your first obligation.” (EEOC R.56.1 ¶ 90.) But the founder of Bloom-berg started the company with the philosophy that “you pay people a lot and expect a lot from them,” thinking “that’s a good way[ ] for the employees and the company to succeed together.” (Bloomberg R.56.1 ¶ 36.) However, before 2008, Bloomberg did not have a robust training program or formal policy regarding pregnancy discrimination. (EEOC R.56.1 ¶ 100.)

Compensation at Bloomberg, as in most for-profit enterprises, signals to some degree an employee’s performance. At least during the times at issue here, compensation at Bloomberg included both a base salary and variable, additional compensation known as Equity Equivalence Certificate (“EEC”) grants that were redeemable one year after they were granted. (Bloomberg R.56.1 ¶¶38, 41.) EEC giants had an “intended value” based on projected company (not individual) performance, and the intended value of EEC grants plus base salary comprised an employee’s total intended compensation for a given year. (Id. ¶¶ 39-40.) The actual value of an EEC grant could differ from its intended value based on actual company (not individual) financial performance; actual value was determined upon redemption. (Id. ¶¶ 41-42; Bloomberg Reply R.56.1 ¶ 113.) The change in the raw number of EEC grants from year to year did not indicate better or worse performance because an EEC grant did not have a constant intended or actual value year to year. (Bloomberg Reply R.56.1 ¶ 113.) Therefore, an employee’s intended compensation for a given year, rather than actual compensation, is the relevant comparative metric for employee compensation.

An employee who performs well generally would receive an increase in total intended compensation (a combination of base salary and EEC grants) each year. (EEOC R.56.1 ¶ 111.) Among employees in the same group, those who performed *464 relatively better generally would receive relatively larger increases in compensation. (Id.) Poor performers would receive decreased EEC grants, with a grant of zero EECs signaling that employee’s likely termination. (Id.)

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Bluebook (online)
778 F. Supp. 2d 458, Counsel Stack Legal Research, https://law.counselstack.com/opinion/equal-employment-opportunity-commission-v-bloomberg-lp-nysd-2011.