James D. Hodgson, Secretary of Labor, U. S. Department of Labor v. The Behrens Drug Company

475 F.2d 1041
CourtCourt of Appeals for the Fifth Circuit
DecidedMarch 7, 1973
Docket72-1680
StatusPublished
Cited by127 cases

This text of 475 F.2d 1041 (James D. Hodgson, Secretary of Labor, U. S. Department of Labor v. The Behrens Drug Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
James D. Hodgson, Secretary of Labor, U. S. Department of Labor v. The Behrens Drug Company, 475 F.2d 1041 (5th Cir. 1973).

Opinion

RIVES, Circuit Judge:

In this case brought by the Secretary of Labor under the Fair Labor Standards Act, the district court found that Behrens Drug Company (hereinafter Behrens) discriminated against certain female employees by compensating them at a lower rate than their male counterparts. Behrens appeals, arguing that each contested male-female wage differential rests on legitimate grounds — that the males involved are either participating in a bona fide training program or performing unequal work.

The Equal Pay Act of 1963, 29 U.S.C. § 206(d)(1), 1 an amendment to the Fair Labor Standards Act of 1938, prohibits sex-based wage discrimination between employees performing equal work under similar conditions. The Secretary of Labor, commissioned champion of the female worker by the Act, 2 brought this action on behalf of several female employees in Behrens’ Tyler, Texas, warehouse.

The district court, after finding that Behrens breached the Equal Pay Act, en *1044 tered judgment enjoining Behrens from further violations of the Act’s equal pay requirements and restraining the continued withholding of $17,423.99 in back wages found due as a result of Behrens’ violations. The district court ruled that Behrens paid four separate categories of female workers a diseriminatorily low wage. Behrens appeals the ruling as to each category.

I. ORDER CLERKS

For many years Behrens has employed females in its Tyler division warehouse as “order clerks.” The principal responsibilities of an “order clerk” include: arranging merchandise on the warehouse shelves, filling customer orders by gathering the requested stock and sending it along to the “checker,” and restocking the shelves. [App. 211.] Behrens admitted and the district court found that certain male employees, designated “sales trainees,” performed work substantially equal to that of the female “order clerks” during the period in question. [App. 211.]

Behrens acknowledged that the male “sales trainees” were paid a higher wage than “order clerks” for doing the same work, but sought to justify this wage discrepancy as based on a bona fide training program, purportedly constituting a legitimate distinguishing factor other than sex.

29 U.S.C. § 206(d)(1) recognizes four exceptions to the general prohibition of disparate wage payments between workers of the opposite sex. The first three exceptions to the Equal Pay Act are specific (a seniority system, a merit system, and a system which measures earnings by quantity or quality of production), but the last is stated in general terms— “any other factor other than sex,” 29 U.S.C. § 206(d) (l)(iv). 29 C.F.R. § 800.148, 3 the Secretary’s Interpretative Bulletin, expressly designates bona fide training programs as one factor other than sex which may validly produce a male-female wage gap. Behrens contends that its male “sales trainees” are all participants in a bona fide training program, providing a legitimate basis for their higher wage rate than that of female “order clerks.”

In order to verify the structure of its training program, Behrens offered the testimony of its president, treasurer, Tyler division manager, and four salesmen.

Behrens’ president, W. Lacy Clifton, admitted that his company’s sales training program has never included a woman. [App. 553.] He sought to explain the program’s male dominance by reference to its origin:

“I would say that when this program was started [1946] that females were never considered as suitable for traveling. . . .You think about putting a female out on a job where she might have a flat tire at night.” [App. 546.]

In recent years, Clifton claimed, inclusion of females in the sales training program has been considered, and one woman, Annette Neeley, was offered a *1045 sales job on a temporary basis. Miss Neeley turned the job down for reasons which are contested. 4 However, Clifton admitted that present company policy calls for active solicitation of young men as sales trainees, but not women, and Miss Neeley, while she was offered a sales job, was not offered a position as a sales trainee. [App. 554.]

The district court found and both parties, with minor exceptions, agree that the Behrens’ sales training program has the following characteristics:

1) No written or formal plan of training;
2) a regular system of rotation through each of the different warehouse jobs with progression to the next position based on satisfactory familiarity with the position before it;
3) no specific identifiable point of termination; 5
4) sales trainees are informed upon hiring that they are entering a training program;
5) some formal sales training, including meetings, study of sales literature and travel with current salesmen, is provided upon reaching the final job in rotation — the city order desk. [Although the district court made no express finding on this point, testimony to that effect appears at App. pp. 580-582.]

In addition, uncontradicted testimony established that a male trainee carries out productive work and rotates through the training program without regard to personnel 'needs, except that the final advance to the position of salesman is contingent upon an opening in that slot. [App. 561, 562.]

In the seminal case interpreting the bona fide training program exception to the Equal Pay Act, Shultz v. First Victoria National Bank, 5 Cir. 1969, 420 F.2d 648, this Court ruled that two separate male-dominated “executive training programs” for bank tellers did not constitute a factor other than sex which would permit payment of lower wages to female tellers not included in the training programs. Those particular programs were found to be merely “post-event justifications for disparate pay to men and women from the commencement of employment up through advancement.” Shultz, supra, at 655.

The elements of the two bank training programs in Shultz, which that court listed as conclusive of their fatal imprecision, were:

1) Employees were not hired with the knowledge that they were trainees.
2) The plans were not in writing.
3) The “rotation” of trainees through the various bank positions did not follow any definite sequence, but depended on personnel needs.

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