Equal Employment Opportunity Commission v. Hay Associates

545 F. Supp. 1064, 50 Rad. Reg. 2d (P & F) 1201, 25 Wage & Hour Cas. (BNA) 858, 1982 U.S. Dist. LEXIS 14274, 30 Empl. Prac. Dec. (CCH) 33,017, 29 Fair Empl. Prac. Cas. (BNA) 994
CourtDistrict Court, E.D. Pennsylvania
DecidedAugust 20, 1982
DocketCiv. A. 78-3262
StatusPublished
Cited by19 cases

This text of 545 F. Supp. 1064 (Equal Employment Opportunity Commission v. Hay Associates) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania 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. Hay Associates, 545 F. Supp. 1064, 50 Rad. Reg. 2d (P & F) 1201, 25 Wage & Hour Cas. (BNA) 858, 1982 U.S. Dist. LEXIS 14274, 30 Empl. Prac. Dec. (CCH) 33,017, 29 Fair Empl. Prac. Cas. (BNA) 994 (E.D. Pa. 1982).

Opinion

OPINION AND ORDER

EDWARD R. BECKER, * District Judge.

I. Preliminary Statement

This is an employment discrimination action brought by the Equal Employment Opportunity Commission to redress defendant Hay Associates’ alleged discrimination against Joann R. Bay because of her sex, in violation of Title VII of the 1964 Civil Rights Act, 42 U.S.C. §§ 2000e to 2000e-17 (1976). After we granted Bay leave to intervene as a party-plaintiff, she filed a complaint alleging in addition that Hay violated the Equal Pay Act, 29 U.S.C. § 206(d) (1976). Together the complaints assert that Hay discriminated against Bay with respect to her compensation and opportunities for promotion while she was employed as an executive financial analyst and counsellor; *1068 that Hay constructively discharged her; and that Hay refused to rehire her in retaliation for her claims of discrimination.

The parties agreed to bifurcate the trial, reserving certain damages issues relating to compensation for the second phase. Trial of the first phase consumed about three weeks, after which the parties filed voluminous post-trial submissions. This opinion constitutes our Rule 52(a) findings of fact and conclusions of law on the liability issues. 1 We take this opportunity to compliment the excellent trial and post-trial work of the three very able lawyers for the parties.

The case arises in a professional setting in which employment decisions are rarely based on quantifiable, objective criteria. Instead, the subjective judgments of managers are often the reason for decisions about promotion and compensation. It is also true that the responsibilities of professional employees are often not amenable to exact description. Nonetheless, a clear picture of what actually occurred during Bay’s employment at Hay emerged from the testimony at trial and the large number of exhibits submitted by the parties.

Hay is a partnership whose main office is located in Philadelphia. Its principal business, conducted in numerous American and foreign offices, is management consulting with particular emphasis on job classification, evaluation, and compensation. 2 In 1970 Hay created a division known as the Executive Financial Counselling Service (“EFCS”) to furnish personal financial services to the executives of Hay’s corporate clients. From the beginning EFCS has been an insular unit within Hay and not directly related to Hay’s principal business activities.

Bay came to work at EFCS in March 1973. She was then age forty-six, having graduated from Bucknell University in 1948 and having completed a course of training at the Institute for Paralegal Training in Philadelphia in 1973. Immediately after finishing college, Bay taught school for two years and then left the work force to raise her family. During her years at home she participated in a wide variety of important community activities. In 1972 she decided to re-enter the work force. This decision led her to take the six-month paralegal training course, from which she was recruited by Hay.

Bay was employed by Hay until July 4, 1977, when she resigned. During that period she performed many tasks relating to personal financial analysis and planning. She received one significant promotion and several salary increases, but never achieved the title or compensation of men working in or hired into the division during her tenure, even though, she submits, she was doing work equivalent to theirs. Thus the plaintiffs contend that Hay violated section 703(a) of Title VII, 42 U.S.C. § 2000e~2(a) (1976), by delaying one promotion and refusing another to Bay because of her sex; by paying her a lower salary than men were paid for work requiring substantially the same skill, effort, and responsibility; and by constructively discharging her. 3 The *1069 plaintiffs also allege that Hay violated the Equal Pay Act by paying Bay less than men were paid for substantially equal work.

In addition to taking issue with the plaintiffs’ factual contentions, Hay interposes a number of legal defenses. It raises statute of limitations defenses to significant portions of the Title VII and Equal Pay Act claims. It contends that Bay’s allegations about her compensation are insufficient to establish either an Equal Pay Act violation or a Title VII “comparable work” claim. It also submits that the evidence does not, as a matter of law, permit the conclusion that Bay’s resignation resulted from a constructive discharge.

In the wake of the trial, the parties have presented us with a very large number of proposed findings of fact, covering even the minutiae of the record. But we need not address the minutiae, because the critical facts emerge boldly from the record. We will therefore proceed to make findings only of the important subsidiary facts and then to state broadly our ultimate factual findings. This procedure is exceptionally appropriate with respect to Bay’s equal pay claims, for we find no merit in many of them. We do, however, find that Bay was denied equal pay for equal work in the spring of 1977. We find in addition that, from 1975 through 1977, Bay was not promoted as she should have been because of her sex, and we conclude that this refusal to promote was a continuing violation of Title VII. Finally, we hold that Bay was constructively discharged in July 1977.

To place our findings in perspective, and because Hay has filed a post-trial motion to amend its answer to raise a statute of limitations defense, we turn first to the applicable limitations period.

II. The Limitations Period

Hay asserts two defenses based on the applicable statutes of limitations. For evaluating these defenses, the pertinent dates are the following. Bay filed her charge of discrimination with the EEOC on December 9, 1977. The complaint of the EEOC was filed on September 29, 1978, alleging violations of Title VII. Bay’s complaint in intervention was filed on April 3, 1979, alleging violations of the Equal Pay Act and Title VII.

Hay argues first that Bay cannot recover for any violations of the Equal Pay Act occurring before April 3, 1977, or before April 3, 1976, if they were willful, under 29 U.S.C. § 255(a) (1976). The predicate of this argument is that the filing date of Bay’s rather than the EEOC’s complaint is the pertinent one because the EEOC did not allege Equal Pay Act violations. The EEOC takes issue with this assumption because it now is empowered to enforce the Equal Pay Act, although it did not have that authority when its complaint in this action was filed. 4 The EEOC relies on Fed. R.Civ.P. 8

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Bluebook (online)
545 F. Supp. 1064, 50 Rad. Reg. 2d (P & F) 1201, 25 Wage & Hour Cas. (BNA) 858, 1982 U.S. Dist. LEXIS 14274, 30 Empl. Prac. Dec. (CCH) 33,017, 29 Fair Empl. Prac. Cas. (BNA) 994, Counsel Stack Legal Research, https://law.counselstack.com/opinion/equal-employment-opportunity-commission-v-hay-associates-paed-1982.