Jo Barnard v. Powell Valley Electric Cooperative

Court of Appeals for the Sixth Circuit·Decided April 28, 2022·No. 21-5447·Unpublished

Opinion

NOT RECOMMENDED FOR PUBLICATION File Name: 22a0179n.06

No. 21-5447

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT

FILED

Apr 28, 2022

)

JO ANN BARNARD, ) DEBORAH S. HUNT, Clerk Plaintiff-Appellant, )

) ON APPEAL FROM THE UNITED v. ) STATES DISTRICT COURT FOR ) THE EASTERN DISTRICT OF POWELL VALLEY ELECTRIC ) TENNESSEE COOPERATIVE, )

) OPINION Defendant-Appellee. )

)

Before: GILMAN, STRANCH, and NALBANDIAN, Circuit Judges.

JANE B. STRANCH, Circuit Judge. Jo Ann Barnard, the Director of Finance and Accounting at Powell Valley Electric Cooperative (PVEC), brought claims against her employer, alleging wage discrimination under the Equal Pay Act (EPA) and the Tennessee Human Rights Act (THRA), and retaliation for her engagement in protected activity under the EPA, THRA, and the Tennessee Public Protection Act (TPPA). The district court granted summary judgment to PVEC. Based on our analysis herein, we AFFIRM.

I. BACKGROUND

A. Factual Background PVEC is a consumer/member-owned rural electric cooperative, headquartered in New Tazewell, Tennessee. In 1991, PVEC hired Barnard as its Director of Finance and Accounting, a position that she held for 25 years until her termination on January 6, 2017. In that role, Barnard reported to the General Manager, Randall Meyers, and Meyers reported to PVEC’s Board of

Directors and the Company’s President, Roger Ball. Her “job objective” in that role was “[t]o plan, organize, direct, coordinate, and control the total accounting and financial functions of [PVEC].”

PVEC pays its employees pursuant to a Wage and Salary Plan, which establishes grades for each position in the organization and a corresponding set of merit steps, ranging from 1 to 7, for each job grade. Barnard was hired at step 5 of pay grade 13, amounting to an hourly wage of $19.13 or approximately $40,000 per year. She does not dispute that this initial placement was not discriminatory. By 1993, Barnard had received two step increases, bringing her to step 7 of pay grade 13. She claims that prior to 1993, however, Meyers sexually harassed her, and she received those raises while that conduct persisted. But in late 1993, when Barnard put an end to that conduct, her merit raises ceased, and for the next 23 years, she did not receive a single merit- based raise. Barnard did receive cost of living adjustments each year for the remainder of her career, that she believed to be “generous.”

As PVEC’s Director of Finance and Accounting, Barnard was part of the core management and executive team. The other members of that team were the General Manager, Randell Meyers, and Director of Special Projects, Gary Hatfield. Hatfield, like Barnard, was also in pay grade 13 in 1991, but he had already reached step 7—by 1993, both were at pay grade 13, step 7 with identical compensation.

In her litigation, Barnard pointed to two other PVEC employees who were paid more than she was at the time of her termination and also reported directly to Randell Meyers: Ronnie Williams and Bo Goodin. Williams was hired in 1974, and rose to the position of Crew Leader before being promoted to Area Supervisor in 1993. In that capacity, Williams was responsible for “supervising and coordinating all activities relating to the construction, operations, and

management of [PVEC]’s electrical system within the Tazwell district, which serves approximately one half of [PVEC]’s members.” By the time of Barnard’s termination, Williams was paid at grade 14, step 7. Throughout the time frame that Barnard received no merit increases, Williams received seven raises. Goodin was hired as an entry-level Staking Engineer and ultimately was promoted to Assistant General Manager. Barnard admits that she did not know what Goodin does on a day-to-day basis. But the record showed that Goodin’s job required “background and experience of working with equipment for an electrical distribution system.”

On November 8, 2016, Barnard made a request to Meyers to re-grade her job to a higher grade on the Wage and Salary Plan. She met with him on November 11 to discuss her concerns that she had not received a merit-based pay since 1993 and to inquire about the status of her request to re-grade her job. During that conversation, which Barnard privately recorded, she raised concerns regarding pay disparities between herself and other male managers, systemic sex discrimination in pay involving herself and other coworkers, and concerns about practices she reported to an external auditor earlier that year, which she said were ignored. Barnard described Meyers’s demeanor as “defensive and agitated,” but Meyer ultimately explained that her request required Board approval. To that end, he coordinated a meeting for Barnard and the Audit Committee of the Board of Directors, which was scheduled to take place on November 28.

That morning before the meeting, Barnard sent an e-mail to President Ball, with copies to PVEC’s outside counsel, David Stanifer, and PVEC’s outside labor and employment counsel, Britt Smith. It had several attachments, for presentation to the Audit Committee, including a news article about a scandal involving a different company; a document titled “Personal Problems with Randell” that summarized her claims of sex discrimination and pay discrimination; and a document

titled “PVEC Items of Concern,” which summarized multiple instances of suspected illegal activity by company executives.

Later that day, Barnard met with the committee. Roger Ball, David Stanifer, and the PVEC Board Vice President David Kindle also attended the meeting, though they did not serve on the committee. Barnard provided each member with the documents she attached to her e-mail, and then presented the materials and expressed her concerns that PVEC was engaged in fraudulent activities. She also claimed that Meyers had sexually harassed her during her employment and sexually assaulted her 23 years ago.

That same day, the full PVEC Board of Directors met for their scheduled meeting. The Board discussed Barnard’s presentation to the Audit Committee at length. The Board then voted to place Barnard on “paid administrative leave with full benefits” while “the information she provided could be properly reviewed and considered.” The next day, Stanifer communicated that information to Barnard.

On December 9, PVEC’s counsel met with Barnard to discuss the possibility of settling her complaint. During their conversation, PVEC’s counsel suggested that early retirement could be an option. In an effort to resolve the complaints, Barnard indicated that she was amenable to meeting with the Audit Committee again. A meeting was scheduled for December 15, but Barnard ultimately canceled that meeting.

On December 19, Barnard met with Stanifer and Smith before the Board met for its regularly scheduled meeting. Her meeting lasted three hours, during which Barnard rehashed many of her complaints. In response, Smith stated:

And here’s what I really want to talk to you about today. Okay. I’m afraid, and I can’t tell you that I know this, but I mentioned it to you on the phone a little bit, I’m afraid that there’s been some damage done to people over at the coop by things that you’ve said. It includes a number of people other than just Randell. I’m afraid,

but I don’t know that, that the Board is not going to be willing to let you come back to work.

(R. 55, Recording of Meeting, at 35:19)

Smith also clarified:

What I’m trying to say is, can you think of anything that you could accept that would not involve you coming back, in other words early retirement, and if the Board would agree to go along with something like, then I would try to get NRECA looking at a supplemental early retirement plan.

(Id. at 36:44)

Finally, Smith opined:

What I would love to see is that you retire and that they pay you something that will, if not completely at least partially, for what you feel like you have been cheated out of.

(Id. at 46:31)

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