Equal Employment Opportunity Commission v. Ferris State College

493 F. Supp. 707, 23 Fair Empl. Prac. Cas. (BNA) 434, 24 Wage & Hour Cas. (BNA) 887, 1980 U.S. Dist. LEXIS 13218, 24 Empl. Prac. Dec. (CCH) 31,359
CourtDistrict Court, W.D. Michigan
DecidedApril 29, 1980
DocketG75-302 CA1
StatusPublished
Cited by3 cases

This text of 493 F. Supp. 707 (Equal Employment Opportunity Commission v. Ferris State College) is published on Counsel Stack Legal Research, covering District Court, W.D. Michigan 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. Ferris State College, 493 F. Supp. 707, 23 Fair Empl. Prac. Cas. (BNA) 434, 24 Wage & Hour Cas. (BNA) 887, 1980 U.S. Dist. LEXIS 13218, 24 Empl. Prac. Dec. (CCH) 31,359 (W.D. Mich. 1980).

Opinion

OPINION

DOUGLAS W. HILLMAN, District Judge.

THE CASE

The Secretary of Labor initiated a civil suit in July, 1975, against Ferris State Col *709 lege for violations of the Equal Pay Act amendments to the Fair Labor Standards Act (29 U.S.C. § 201, et seq.). The complaint charges that Ferris State impermissibly underpaid its female maintenance employees for work which was substantially similar to that performed by male maintenance employees.

Ferris State College subsequently moved for dismissal of the complaint based upon National League of Cities v. Usery, 426 U.S. 833, 96 S.Ct. 2465, 49 L.Ed.2d 245 (1976), where the Supreme Court struck down as unconstitutional extension to state employees of the minimum wage and overtime provisions of the Fair Labor Standards Act.

In addition, Ferris State filed a third-party complaint seeking contribution from Local 1609 of the American Federation of State, County & Municipal Employees and Council 7 of the Michigan State Employees Union (hereinafter “unions”) for any liability it may incur as a result of the unions’ joint involvement in the purportedly illegal wage scheme. The unions have moved to dismiss the third-party complaint alleging that no authority exists under the Equal Pay Act for damage actions against labor organizations. They additionally contend that Ferris State College has failed to state a claim upon which relief can be granted.

Due to a recent reassignment of the case, both motions are currently before me. For the reasons set out below, I deny defendant college’s motion to dismiss, and grant the unions’ motion dismissing the third-party complaint.

THE FACTS

Ferris State College is a state supported institution of higher learning in the Michigan educational system. The State of Michigan is the primary source of its income, although tuition provides additional revenue. The college first began to employ female maintenance personnel (hereinafter “housekeepers”) in 1955. Male maintenance personnel (hereinafter “custodians”) were initially hired in 1961.

Employees at Ferris State College were not represented by a labor organization until 1966. Prior to that year, the narrowest wage differential between maintenance personnel was in 1961 when housekeepers received 59 cents per hour less than did custodians. This disparity rose to 67 cents per hour in 1965, 1 the fiscal year preceding approval of the college’s first collective bargaining agreement.

Following the initiation of union representation, these wage differentials dropped to 28 cents per hour. Under subsequent employment contracts, however, these inequalities progressively increased. By 1972, custodians were receiving 40 cents per hour more than were housekeepers.

The events surrounding the 1972 and 1974 employment contract negotiations between the unions and the college form the basis of this litigation. Ferris State College alleges that the 42 cents per hour wage differential adopted in the 1972 contract originated out of the unions’ initial wage demands. The defendant college avers that although wage equalization was discussed during the 1972 negotiation session, the unions and college together concluded that housekeepers’ and custodians’ jobs were not substantially similar. For that reason, the defendant college contends, the unions were the “cause” of whatever discrimination may have existed. Moreover, it is asserted, in 1972 Ferris State in fact offered to narrow the disparity between custodians and housekeepers by 5 cents per hour. The unions allegedly rejected this offer.

To the contrary, the unions contend that they did in fact propose wage equalization during the 1972 negotiations. They assert that in order to equalize wages, they were willing to accept an increase of 5 cents per hour less than what they otherwise would *710 have accepted. They allege, however, that Ferris State College was adamant about retaining the differential in maintenance employees’ wages, and contend that a strike over the issue was at that time inadvisable.

In 1974, the unions and college again discussed the question of discriminatory wages. The unions’ wage proposal contained a combined job classification for both housekeepers and custodians which was designed to erase the controversial disparity. It is alleged that Ferris State strongly opposed this offer and instead presented its own proposal containing a 44 cents per hour differential. The college, however, contends that in fact this one-classification system was never seriously discussed.

For various reasons, negotiations broke off. In December of 1974, while the college’s employees were between employment contracts, Ferris State unilaterally equalized wages in order to limit its potential liability.

Prior to the 1972 employment contract, Ferris State was investigated by the Department of Labor (hereinafter “DOL”), and was informed that the college’s wage scheme was discriminatory. On March 30, 1972, James L. Stokes a Grand Rapids attorney who represented Ferris State College in its 1972 and 1974 negotiations with the unions, wrote to the DOL to advise that the college would be in compliance with the Equal Pay Act by July 1, 1972. In fact, Ferris State did not then equalize wages. Instead, on April 11, 1973, G. A. Hartford, Jr., the vice-president of business operations for the college, informed the DOL that in the college’s opinion, housekeepers’ and custodians’ jobs were not substantially alike. A letter by Stokes to the DOL in August, 1973, offered to resolve the dispute via an immediate pay increase for all housekeepers. The college nevertheless maintained its 42 cents per hour disparity.

Following Ferris State College’s unilateral equalization of wages in late 1974, Stokes again proposed settlement. In a letter to the DOL, the college sought to limit its liability by maintaining that the unions were jointly responsible for the alleged discrimination because they were signatories to the employment contract. For this reason, the college subsequently rejected the DOL’s settlement proposal covering most of the housekeepers’ back pay.

The Secretary of Labor brought suit against Ferris State College on July 14, 1975, for violations of the 1963 Equal Pay Act amendments to the Fair Labor Standards Act of 1938, as amended (29 U.S.C. § 201, et seq.) (hereinafter “FLSA”). Specifically, the Secretary charged that Ferris State College, by maintaining a wage differential between custodians and housekeepers, violated § 6(d)(1) of the FLSA by discriminating between employees on the basis of sex for work which required substantially equal skill, effort and responsibility. Section 6(d)(1) reads, in part, as follows:

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493 F. Supp. 707, 23 Fair Empl. Prac. Cas. (BNA) 434, 24 Wage & Hour Cas. (BNA) 887, 1980 U.S. Dist. LEXIS 13218, 24 Empl. Prac. Dec. (CCH) 31,359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/equal-employment-opportunity-commission-v-ferris-state-college-miwd-1980.