Hill v. Workday, Inc.

District Court, N.D. California·Decided June 14, 2024·No. 3:23-cv-06558·Unknown

Opinion

Case No. 23-cv-06558-PHK Plaintiff, ORDER GRANTING DEFENDANTS v. WORKDAY, INC., SUSAN DAHM, LISA MCFALL, AND KATIE HAUCK’S WORKDAY, INC., et al., MOTIONS TO DISMISS Defendants. Re: Dkts. 12, 23, 35

Now before the Court are the Motions to Dismiss filed by Defendants Workday, Inc. (“Workday”), Susan Dahm, Lisa McFall, and Katie Hauck, each seeking dismissal of Plaintiff Anthony C. Hill’s Complaint asserting various causes of action in connection with Plaintiff Hill’s employment at Defendant Workday. [Dkts. 12, 23, 35]. After thorough consideration of the briefs and oral arguments, the Court issues this Order GRANTING all the Motions to Dismiss. Id. The Court incorporates by reference its rulings and directives at the hearing on these motions, including the Court’s verbal indication at the hearing that the Court was inclined to grant the motions to dismiss with leave to amend. As discussed herein, Plaintiff Hill is GRANTED LEAVE TO AMEND the Complaint and indeed the Court notes that, in compliance with the Court’s rulings at the hearing on these motions, Hill has already filed his Amended Complaint. [Dkt. 53]. The following background constitutes facts alleged by Plaintiff Hill, as detailed in his Complaint. [Dkt. 1]. A. Factual background of Plaintiff Hill and Defendants Plaintiff Hill is a Maryland resident. [Dkt. 1 at 9]. Plaintiff Hill is a black male who worked as in-house counsel for Defendant Workday. Id. at 11. Workday is a Delaware corporation organized to do business in the State of California, with its headquarters in Alameda County. Id. Specifically, Workday has an office in Pleasanton, California. Id. Plaintiff Hill began his employment at Defendant Workday starting at or around early 2021. Id. at 58. Defendant Hauck is a New York resident. Id. at 9. Defendant Hauck is a white female and Plaintiff Hill’s direct supervisor. Id. at 21. Defendant Dahm is a California resident. Id. at 9. Defendant Dahm is a white female and Defendant Hauck reports to Defendant Dahm. Id. at 21. Defendant McFall is a California resident. Id. at 9. B. Allegations centered on Plaintiff Hill’s employment at Workday Plaintiff Hill was hired as an attorney in the Workday legal department. Id. at 19. During numerous, weekly one-on-one meetings, Plaintiff Hill sought a promotion from Defendant Hauck. Id. at 21. Defendant Hauck suggested that Plaintiff Hill create a “plan” to be promoted. Id. at 21. Plaintiff Hill created a “Career Growth and Continued Success Plan” for himself to be promoted from Senior Counsel to Assistant General Counsel. Id. at 21. After reviewing the plan, Defendant Hauck complimented Plaintiff Hill on the plan, but indicated that Plaintiff would need “at least one year” as Senior Counsel. Id. at 21–22. Defendant Hauck told Plaintiff Hill that she would give the “Career Growth and Continued Success Plan” to one of her other direct reports, a white female. Id. at 22. Defendant Workday promoted that white female from Senior Counsel to Assistant General Counsel shortly thereafter. Id. at 22. In or around May 2021, Plaintiff Hill requested that Defendant Hauck hire an individual who would assist Plaintiff Hill with his work. Id. at 22. Defendant Hauck responded that she did not have funding for such a role. Id. at 22. Christine Fedrow, who leads the Workday Integrity Team, informed Plaintiff Hill that the Integrity Team had funding for the role. Id. at 22–23. In June 2021, Christina Strelow, a white female, was hired as the Program Manager for Federal Ethics and Hill served as Ms. Strelow’s de facto manager/supervisor. Id. In October 2021, Ashley Brown, a black female working in Defendant Workday’s Finance Team, was having problems allegedly relating to race with her manager Ann Allen, a white female. Id. at 24. Ms. Brown sought help from Plaintiff Hill; additionally, she asked Plaintiff Hill if he thought she would be a suitable candidate for an open, interim, non-attorney role who would report to Defendant Hauck. Id. Plaintiff Hill contacted Defendant Hauck and confidentially told her that Ms. Brown believed she was having problems with her manager because of her race and inquired about whether Ms. Brown might be interviewed for the open role. Id. Subsequently, Defendant Hauck informed Plaintiff Hill that she had spoken to Ms. Allen about Ms. Brown, and Defendant Hauck determined that Ms. Brown “would not be a good fit.” Id. Upon information and belief, Ms. Brown’s employment with Workday ended shortly thereafter. Id. Upon information and belief, Defendant Hauck did not report Plaintiff Hill’s race-based discrimination concerns. Id. at 25. During the first week of January 2022, Plaintiff Hill met with Rich Sauer, Defendant Workday’s Chief Legal Officer, regarding potentially creating a role titled “Lead or Head Public- Sector Compliance Counsel” to handle Defendant Workday’s legal obligations. Id. at 20. Plaintiff Hill indicated that he would be the ideal candidate for such a role. Id. Mr. Sauer was receptive to the initiative and requested that Plaintiff Hill create a formal written document proposing the role. Id. Plaintiff Hill provided the formal proposal to Mr. Sauer on January 7, 2022. Id. Mr. Sauer did not respond to Plaintiff Hill. Id. Months later, Plaintiff Hill emailed Mr. Sauer regarding Plaintiff Hill’s desire to be included in Defendant Workday’s Leadership Council on Legal Diversity Fellows Program. Id. at 25–26. Mr. Sauer did not respond to Plaintiff Hill. Id. In August of 2022, Defendants were preparing to host the “Rising” marketing event in Orlando, Florida. Id. at 26. Defendants’ Sales Team wished to invite a former Baltimore City government official to the “Rising” event. Id. Plaintiff Hill expressed a potential ethical problem as the former Baltimore City government office was under investigation for alleged criminal conduct that occurred while that the government official worked for the city. Id. After Plaintiff Hill informed the Defendant Workday individuals associated with the “Rising” event about the potential 27. Defendant Hauck ordered Plaintiff Hill to review the Baltimore City contract to determine if Defendants were legally prevented from inviting this individual, a task which Plaintiff Hill had already previously performed. Id. After his second review of the contract, Plaintiff Hill drafted a full analysis which indicated there was no legal prohibition to the invitation; rather, there was an ethical prohibition. Id. Defendant Hauck responded only after Plaintiff Hill included all relevant team members in an email requesting a decision from Defendant Hauck. Id. at 28. Ultimately Defendant Hauck decided that the former official should not receive an invitation. Id. In September 2022, Plaintiff Hill made a presentation to Defendants Dahm, McFall, and Hauck, along with various Workday personnel including Mr. Sauer. Id. at 29. Plaintiff Hill was assisted by Ms. Strelow. Id. At the meeting, Plaintiff Hill recommended that Defendant Workday implement an annual compliance training which Plaintiff Hill had developed. Id. Defendant McFall passionately disagreed with Plaintiff Hill’s recommendation. Id. Mr. Sauer overruled Defendant McFall and requested that Plaintiff Hill work with Defendant McFall and others interested in implementing the annual compliance training. Id. at 29–30. Defendant McFall was visibly angry during this exchange. Id. at 30. On September 16, 2022,1 Defendants Hauck and Dahm demoted Plaintiff allegedly without just cause in retaliation. Id. at 31. The Complaint alleges that “Defendants arbitrarily and capriciously prohibited Plaintiff from working with, receiving aid from, and/or supervising Ms. Strelow[.]” Id. at 32. According to Plaintiff Hill, Defendant Hauck indicated that Defendant Dahm made the decision to demote Plaintiff Hill. Id. Defendants Hauck and Dahm indicated a “desire to ensure that ‘the resources we are using feel appropriately used and that we aren’t over taxing them.’” Id. On S

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Hill v. Workday, Inc., (N.D. Cal. 2024).

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