Kolstad v. Fairway Foods, Inc.

457 N.W.2d 728, 1990 Minn. App. LEXIS 666, 1990 WL 89653
CourtCourt of Appeals of Minnesota
DecidedJuly 3, 1990
DocketC2-90-230
StatusPublished
Cited by6 cases

This text of 457 N.W.2d 728 (Kolstad v. Fairway Foods, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kolstad v. Fairway Foods, Inc., 457 N.W.2d 728, 1990 Minn. App. LEXIS 666, 1990 WL 89653 (Mich. Ct. App. 1990).

Opinion

OPINION

PARKER, Judge.

Fairway Foods, Inc., appeals, by writ of certiorari, the finding of an administrative law judge (AU) that it engaged in unfair, gender-based discriminatory practices with regard to Laurie Kolstad, a former employee. The AU found Fairway discriminated against Kolstad by giving her an ultimatum to resign or be put on 30 days’ probation and by giving higher compensation to Kolstad’s male successor for similiar duties. Fairway argues that Kolstad failed to carry her burden of proving that its articulated reason for her departure and the disparate pay were a pretext for discrimination. Fairway also asserts that the AU’s findings of fact and conclusions of law are not supported by substantial evidence in the record. We affirm as modified.

FACTS

Laurie Kolstad began working for Fairway Foods as a transportation clerk in 1983. In September 1986 she was promoted to the position of management trainee/inventory coordinator. She was regarded by management as a dedicated, assertive and hard-working person. She became the first female to hold a position directly supervising warehouse employees. She had no prior supervisory experience.

As a management trainee on the 10 p.m. to 6 a.m. shift, she oversaw warehouse inventory control operations, directly supervising two to three employees plus other warehouse personnel in the absence of the shift supervisor. •

The night transportation supervisor from September 1986 through February 1987 was Randy Mittag, who was responsible for all ten employees on that shift, directing truck drivers and warehouse employees, authorizing changes on routes and loads, substituting drivers and resolving all loading problems. The night shift was scheduled to be reduced to four warehouse employees and a janitor as of March 1, 1987, with Mittag switching to an earlier shift. Mittag, informed of the change in January 1987, decided to resign rather than work different hours.

Upon learning of Mittag’s resignation, the management team decided to assign Kolstad management responsibilities between 2 a.m. and 6 a.m. starting February 15, 1987, with other supervisors assisting her during those hours until March 1,1987, when the night shift was to be reduced. Kolstad asked several managers if she could be given Mittag’s job and was told she was being considered for it. On February 12, 1987, Kolstad saw a memorandum posted on a manager’s office door that she would provide primary coverage from 2 a.m. to 6 a.m. in Mittag’s absence.

On March 1, 1987, Kolstad became the sole supervisor between 2 a.m. and 6 a.m. She supervised the four warehouse employees, a cycle counter, a billing clerk and approximately 8-15 incoming truck drivers per night. She thus took over Mittag’s previous duties, though with fewer persons to supervise and fewer loads to deal with, in addition to the inventory duties she had performed since September. She was given no raise in salary or change in title. Sometime in March 1987 Kolstad was informed without further explanation that Mittag’s position had been dissolved.

Between March 1 and mid-June 1987, Kolstad became frustrated, feeling that her shift was understaffed and that she sometimes had to perform tasks that diverted her from supervisory duties. She voiced these complaints to her immediate supervisor, Paul Johnson, and the other managers. She also complained about the work of other managers.

. Management also became increasingly dissatisfied with Kolstad’s failure to adhere to its directives to focus more inwardly and *731 less on the responsibilities of others. Johnson also became concerned with her difficulties in delegating responsibilities and her reported mood shifts. Yet Johnson also expressed general satisfaction with Kolstad’s work performance and that of the employees she supervised, telling her personally that she was doing a good job. Johnson testified that he felt Kolstad caused more problems than any other employee, yet Kolstad received no warnings about poor performance from management and was considered to be a hard-working, dedicated employee by co-workers.

On June 17,1987, Kolstad met with Johnson for more than two hours to discuss her problems, again complaining that she could use additional staff on her shift, that others’ shortcomings were making her job more difficult, that she might prefer to do physical work and not supervise others, and that maybe she should resign.

Johnson and another managerial employee thereafter drafted a letter to her that concluded that it was in Kolstad’s and Fairway’s best interests for her to resign. They attached a resignation letter. The letter stated that if she did not resign, her performance would be evaluated over the next 30 days and that if no “dramatic improvement” were shown she would be terminated without severance pay, which she would receive if she resigned immediately.

Johnson presented this letter to Kolstad on June 19 with no further definition of what would constitute a “dramatic improvement,” although she asked for an explanation. Johnson did not discuss her performance at all and told her she had to decide that day whether or not she would resign immediately.

The letter stunned Kolstad and she testified that she concluded she had no choice but to resign. She was not offered an opportunity to transfer to another position at Fairway, although she had observed at least one other salaried employee who was so transferred after friction between that employee and a supervisor.

Evidence was presented that a salaried employee, also supervised by Johnson, received a written warning from him stating that future attendance problems would result in additional disciplinary action, including suspension without pay and/or termination. Johnson testified that he was unaware that salaried employees could be suspended; this testimony appeared to be contradicted by Johnson’s actions toward the employee he warned.

After Kolstad departed, Fairway hired a male at a starting salary of $19,500 to fill her position, for which she had been paid $17,000. The man hired had a B.A. in business administration, 21 months of supervisory experience in a furniture factory, and four years of experience in the grocery business. This position did not require a college degree and neither Kolstad nor Mit-tag had one. Kolstad would have been eligible, by September 1987, for an increase in pay of up to 20 percent, raising her salary to $20,400.

After receiving unemployment compensation for 2.25 months, Kolstad began work as a welder making $7.55 per hour, with quarterly increases to $8.80 per hour by November 1988. She was injured on the job in 1988 and was laid off in March 1989. She is no longer able to work as a welder due to the work injury and resultant surgery on both wrists. There was evidence of several other stressors in her life between the time she lost her job at Fairway and the hearing on this suit in 1989.

In December 1988 Kolstad was evaluated by John Taborn, Ph.D., a licensed consulting psychologist, who met with her for two hours. He attributed part of her “moderately severe depression/anxiety” to her perceived unfair treatment by Fairway.

Kolstad was also evaluated, on behalf of the defense, by Phillip Haber, Psy.D., in August 1989.

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Cite This Page — Counsel Stack

Bluebook (online)
457 N.W.2d 728, 1990 Minn. App. LEXIS 666, 1990 WL 89653, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kolstad-v-fairway-foods-inc-minnctapp-1990.