Equal Employment Opportunity Commission v. Illinois Department of Employment Security

995 F.2d 106, 37 Fed. R. Serv. 1004, 1993 U.S. App. LEXIS 12417, 61 Empl. Prac. Dec. (CCH) 42,266, 61 Fair Empl. Prac. Cas. (BNA) 1385
CourtCourt of Appeals for the Seventh Circuit
DecidedMay 26, 1993
Docket92-3013
StatusPublished
Cited by17 cases

This text of 995 F.2d 106 (Equal Employment Opportunity Commission v. Illinois Department of Employment Security) 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
Equal Employment Opportunity Commission v. Illinois Department of Employment Security, 995 F.2d 106, 37 Fed. R. Serv. 1004, 1993 U.S. App. LEXIS 12417, 61 Empl. Prac. Dec. (CCH) 42,266, 61 Fair Empl. Prac. Cas. (BNA) 1385 (7th Cir. 1993).

Opinion

EASTERBROOK, Circuit Judge.

Believing that the transcript of an unemployment compensation hearing contains evidence relevant to an investigation it is conducting, the Equal Employment Opportunity Commission asked the Illinois Department of Employment Security for a copy. The IDES refused, citing a state statute making unemployment compensation proceedings confidential. 820 Ill.Comp.Stat. § 405/1900. The EEOC then asked the district court to enforce a subpoena for the transcript. The Commission is entitled to “any evidence ... that relates to unlawful employment practices covered by [the laws it administers] and is relevant to the charge under investigation.” 42 U.S.C. § 2000e-8(a). When a person refuses to provide relevant information, the EEOC may apply to a court for aid. 42 U.S.C. § 2000e-9, incorporating the subpoena provision of the National Labor Relations Act, 29 U.S.C. § 161. A district judge concluded that the transcript of the unemployment proceeding is indeed relevant to the EEOC’s proceeding. But the judge refused to order the IDES to give the EEOC a copy, ruling that the state agency’s interest in confidentiality outweighs the federal agency’s interest in conducting its investigation. 1992 WL 159480, 1992 U.S.Dist. Lexis 9236.

When state and federal statutes clash, the Supremacy Clause of the Constitution gives the federal statute controlling force. Rule 501 of the Federal Rules of Evidence reinforces this message in the domain of evidentiary privileges. State privileges are honored in federal litigation only when state law supplies the rule of decision. When federal law governs, as it does here, only privileges recognized by the national government matter. Because state law does not apply, Rule 501 tells us to use “the principles of the common law as they may be interpreted by the courts of the United States in the light of reason and experience.” Unless we absorb the state’s unemployment-insurance privilege into the common law of the United States, the EEOC’s subpoena must be enforced. Cf. Memorial Hospital v. Shadur, 664 F.2d 1058, 1061 (7th Cir.1981) (incorporating one state privilege as a matter of comity). That the IDES is a third party rather than the complainant’s employer does not matter. Nothing in §§ 2000e-8(a) and 161 distinguishes third-party subpoenas from others for purposes of evidentiary privileges.

Federal common law recognizes many privileges, and the traditional ones are available even though a federal agency invokes a broad statutory power to gather evidence. E.g., Upjohn Co. v. United States, 449 U.S. 383, 397-99, 101 S.Ct. 677, 686-87, 66 L.Ed.2d 584 (1981) (summonses issued by the IRS under 26 U.S.C. § 7602 are subject to established privileges such as the attorney work-product doctrine). University of Pennsylvania v. EEOC, 493 U.S. 182, 110 S.Ct. 577, 107 L.Ed.2d 571 (1990), warns against augmenting the list. A university contended that the disclosure of details about evaluations of candidates for tenure would jeopardize the advancement of knowledge by interfering with candid, and thus accurate, assessment of academic achievements and potential. The Court conceded that disclosure might have such effects but concluded that existing law nonetheless entitled the Commission to obtain the information. Courts should honor statutes granting access to information. University of Pennsylvania joined other recent decisions that have de- *108 dined opportunities to create new evidentia-ry privileges or expand old ones. E.g., Trammel v. United States, 445 U.S. 40, 100 S.Ct. 906, 63 L.Ed.2d 186 (1980); Branzburg v. Hayes, 408 U.S. 665, 92 S.Ct. 2646, 38 L.Ed.2d 626 (1972).

An unemployment-insurance privilege is no more compelling than an academic-deliberation privilege or a reporters’-source privilege (the subject of Branzburg)’, indeed it is less so. Illinois justifies its privilege as a way to encourage truthful and complete disclosure to state officials; people who do not fear that evidence will fall into the hands of persons who may use it against them will be more forthcoming, the argument goes. This is far from clear; one could as readily say that people who know that third parties will not examine the evidence have less to fear from telling lies — for the truth is less likely to emerge. Perhaps secrecy emboldens workers to seek unemployment benefits, freeing them from the fear that the employer will reply by advancing “cause” for the discharge that will hinder their efforts to find other jobs. Again, however, this is a two-edged argument: an employee with less to fear from calumny is more likely to claim benefits to which he is entitled, but secrecy also enables employees to bamboozle other employers by hiding the true reasons for their separations. Finally, Illinois tells us that confidentiality makes adjudication of requests for unemployment compensation simpler. Administrative convenience has never been an adequate reason to keep evidence out of prosecutors’ hands. See United States v. Wilson, 960 F.2d 48 (7th Cir.1992), holding that Illinois must disclose unemployment compensation records to a federal prosecutor for use in a mail fraud case. The EEOC investigates and prosecutes civil rights cases; it has no lesser entitlement to these records.

Unless a federal statute diminishes the EEOC’s access to unemployment data. Perhaps one has. The Illinois privilege statute contains numerous exceptions, drawn in accord with 42 U.S.C. § 503. Congress demanded that states make their unemployment compensation records fully available to the Railroad Retirement Board, § 503(c)(1), and provide selected information to other federal agencies, such as the Department of Agriculture for use in operating the food stamp program, § 503(d)(1)(A). This sets up a skirmish of interpretive maxims. Illinois invokes expressio unius est exclusio alterius: having given designated federal agencies access to specified unemployment records, Congress implicitly excluded other federal agencies from unbridled access to these documents. The EEOC responds with the presumption that Congress knows the law.

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995 F.2d 106, 37 Fed. R. Serv. 1004, 1993 U.S. App. LEXIS 12417, 61 Empl. Prac. Dec. (CCH) 42,266, 61 Fair Empl. Prac. Cas. (BNA) 1385, Counsel Stack Legal Research, https://law.counselstack.com/opinion/equal-employment-opportunity-commission-v-illinois-department-of-ca7-1993.