Gormin v. Brown-Forman Corp.

744 F. Supp. 1100, 12 Employee Benefits Cas. (BNA) 2202, 1990 U.S. Dist. LEXIS 10977, 54 Empl. Prac. Dec. (CCH) 40,319, 53 Fair Empl. Prac. Cas. (BNA) 750, 1990 WL 120640
CourtDistrict Court, M.D. Florida
DecidedJuly 11, 1990
Docket88-1036-Civ-T-15C
StatusPublished
Cited by3 cases

This text of 744 F. Supp. 1100 (Gormin v. Brown-Forman Corp.) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Gormin v. Brown-Forman Corp., 744 F. Supp. 1100, 12 Employee Benefits Cas. (BNA) 2202, 1990 U.S. Dist. LEXIS 10977, 54 Empl. Prac. Dec. (CCH) 40,319, 53 Fair Empl. Prac. Cas. (BNA) 750, 1990 WL 120640 (M.D. Fla. 1990).

Opinion

ORDER

CASTAGNA, District Judge.

The Court now turns attention to the several pending motions in this consolidated age discrimination action.

*1101 i.

First to consider is the motion by the Equal Employment Opportunity Commission [EEOC] for leave to intervene (D-84). 1 Since filing this motion, the EEOC filed its own lawsuit against the defendant raising the same claims, and the separate suits have been consolidated (D-9 of Case No. 89-1331). Under these circumstances the motion to intervene is moot, as intervention has effectively been accomplished through consolidation.

Consolidation has also effectively mooted defendant’s motion to dismiss (D-91). The motion to dismiss suggests that, since some of the plaintiffs who had opted into the original suit, Case No. 88-1036, subsequently became involved as plaintiffs in Case No. 89-1185, and there raised the same claims, their claims here should be dismissed. Whether or not defendant's contentions are correct, any defect of which the defendant complains has been remedied by bringing all plaintiffs together into one suit.

Plaintiff’s motion for leave to amend complaint (D-101) requests leave to add Jack Adams as a named plaintiff and William Gormin as an opt-in plaintiff. The Court finds no substantial reason to deny the relief requested. See Espey v. Wainwright, 734 F.2d 748, 750 (11th Cir.1984).

II.

Defendant’s motion for dismissal and summary judgment against plaintiff Gor-min (D-106) contends that Gormin failed to file a timely charge with the EEOC and that his claims are barred by a release signed by him. On November 19, 1986, before bringing this suit, Gormin signed a severance agreement with defendant for which he received, among other things, sixty-one weeks of pay, which came to $56,-003.00. The agreement provides that “the severance pay is consideration for your complete and total release of all claims of whatsoever nature you may have against Brown-Forman, its subsidiaries, divisions, officers, agents, or assigns, now or in the future....” The last line repeated the effect of the agreement: “I have read the terms and conditions of my termination of employment and fully understand my signature is a voluntary release of any claims of whatever nature I have against Brown-Forman.”

Gormin contends that the release is unenforceable as a matter of law. Claims for back wages based on the Fair Labor Standards Act [FLSA], 29 U.S.C. § 201 et seq., may not be settled unless the settlement agreement is approved by the Secretary of Labor or by the court where the suit is filed. Lynn’s Food Stores v. United States, 679 F.2d 1350 (11th Cir.1982); see D.A. Schulte, Inc. v. Gangi, 328 U.S. 108, 66 S.Ct. 925, 90 L.Ed. 1114 (1946); Brooklyn Savings Bank v. O’Neil, 324 U.S. 697, 65 S.Ct. 895, 89 L.Ed. 1296 (1945). The Age Discrimination in Employment Act [ADEA], 29 U.S.C. § 621 et seq,, provides that the “Act shall be enforced in accordance with the powers, remedies, and procedures provided in ... the Fair Labor Standards Act....” 29 U.S.C. § 626(b). Plaintiff argues that because the ADEA incorporates the procedural framework of the FLSA, and because unsupervised settlements of FLSA claims are not allowed to bar a subsequent action, it follows that unsupervised settlements of ADEA claims should also not be upheld.

A controversy currently rages over how unsupervised settlements of ADEA disputes should be treated. Those involved in this tempest include not only the courts, but also the Congress and the EEOC. As no rule has yet been established in this Circuit on the question, it is appropriate to review the debate in some detail.

A.

The Age Discrimination in Employment Act of 1967 generally prohibits employment discrimination because of age. President Johnson recommended the Act to the Congress on January 23, 1967, and present *1102 ed the following message concerning why the law was necessary:

Hundreds of thousands, not yet old, not yet voluntarily retired, find themselves jobless because of arbitrary age discrimination. Despite our present low rate of unemployment, there has been a persistent average of 850,000 people age 45 and over who are unemployed. Today more than three-quarters of the billion dollars in unemployment insurance is paid each year to workers who are 45 and over. They comprise 27 percent of the unemployed, and 40 percent of the long-term unemployed.

1967 U.S.Code Cong. & Ad.News 2213, 2214. The Congress agreed that “the incidence of unemployment, especially long-term unemployment with resultant deterioration of skill, morale, and employer acceptability is, relative to the younger ages, high among older workers; their numbers are great and growing; and their employment problems grave_” 29 U.S.C. § 621(a)(3).

Enforcement of the ADEA was originally entrusted to the Secretary of Labor, who was to act according to the procedures provided in the FLSA. 29 U.S.C. § 626(b). In 1978 all functions of the Secretary of Labor were transferred by President Carter to the EEOC. Reorg. Plan No. 1 of 1978, 3 C.F.R. § 321, 43 Fed.Reg. 19,807 (1978).

The debate over the validity of unsupervised waivers of age discrimination claims may be divided into two basic positions. See generally Note, Waivers Under the Age Discrimination in Employment Act: Putting the Fair Labor Standards Act Criteria to Rest, 55 Geo.Wash.L.Rev. (1987); Note, Waiver of Rights Under the Age Discrimination in Employment Act of 1967, 86 Colum.L.Rev. 1067 (1986). One side makes the plaintiff’s argument that the ADEA’s incorporation of the FLSA enforcement provisions includes the case law which provides that unsupervised waivers of rights may not bar subsequent litigation. The other side, here represented by the defendant, disputes this interpretation, and instead contends that the standards enunciated in Title VII, 42 U.S.C. § 2000e, cases should apply. Claims under Title VII may be privately settled provided the employee’s waiver of rights was “knowing and voluntary.” Alexander v. Gardner-Denver Co., 415 U.S. 36, 52 n. 15, 94 S.Ct. 1011, 1021 n. 15, 39 L.Ed.2d 147 (1974).

B.

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744 F. Supp. 1100, 12 Employee Benefits Cas. (BNA) 2202, 1990 U.S. Dist. LEXIS 10977, 54 Empl. Prac. Dec. (CCH) 40,319, 53 Fair Empl. Prac. Cas. (BNA) 750, 1990 WL 120640, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gormin-v-brown-forman-corp-flmd-1990.