Krishna Reddy v. Department of Education, The State of Alabama

CourtCourt of Appeals for the Eleventh Circuit
DecidedApril 2, 2020
Docket18-14433
StatusUnpublished

This text of Krishna Reddy v. Department of Education, The State of Alabama (Krishna Reddy v. Department of Education, The State of Alabama) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Krishna Reddy v. Department of Education, The State of Alabama, (11th Cir. 2020).

Opinion

Case: 18-14433 Date Filed: 04/02/2020 Page: 1 of 23

[DO NOT PUBLISH]

IN THE UNITED STATES COURT OF APPEALS

FOR THE ELEVENTH CIRCUIT ________________________

No. 18-14433 Non-Argument Calendar ________________________

D.C. Docket No. 2:16-cv-01844-SGC

KRISHNA REDDY, GLORIA SELLMAN, M.D.,

Plaintiffs-Appellants,

versus

DEPARTMENT OF EDUCATION, THE STATE OF ALABAMA,

Defendant-Appellee.

________________________

Appeals from the United States District Court for the Northern District of Alabama ________________________

(April 2, 2020)

Before JILL PRYOR, BRANCH, and ANDERSON, Circuit Judges.

PER CURIAM: Case: 18-14433 Date Filed: 04/02/2020 Page: 2 of 23

Krishna Reddy and Gloria Sellman, two female doctors, appeal the district

court’s grant of summary judgment in favor of their employer, the Alabama

Department of Education (“DOE”), on their claims of sex-based wage

discrimination. The Alabama Disability Determination Services (“DDS”), a

division of DOE, hired Reddy and Sellman as full-time Disability Determination

Physicians (“DDPs”) in 2009 and 2010, respectively. As DDPs, Reddy and

Sellman evaluate claimants to determine whether they qualify for disability

benefits. The DDP position is a permanent, classified position within the State of

Alabama Merit System, and is subject to rules governing all aspects of

employment, including initial salary, salary increases, and performance

evaluations.

Upon learning that a subsequently hired male DDP, Peter Sims, was

appointed at a higher initial salary than they were, Reddy and Sellman filed a

complaint in the United States District Court for the Northern District of Alabama,

alleging sex-based wage discrimination in violation of the Equal Pay Act (“EPA”)1

1 The relevant provision here, 29 U.S.C. § 206(d)(1), provides:

No employer having employees subject to any provisions of this section shall discriminate, within any establishment in which such employees are employed, between employees on the basis of sex by paying wages to employees in such establishment at a rate less than the rate at which he pays wages to employees of the opposite sex in such establishment for equal work on jobs the performance of which requires equal skill, effort, and responsibility, and which are performed under similar working conditions, except where such payment is made pursuant to

2 Case: 18-14433 Date Filed: 04/02/2020 Page: 3 of 23

and Title VII of the Civil Rights Act of 1964. 2 At the conclusion of discovery, all

parties filed motions for summary judgment. In dividing Reddy and Sellman’s

claims into two categories—initial salary disparity at appointment and pay

disparity post-appointment—the district court found that Reddy and Sellman failed

to show that DOE’s legitimate explanations for the difference in initial salaries

were pretext and that, because Reddy’s and Sellman’s salaries had increased as

much as allowable under the rules regulating DOE, any pay disparity post-

appointment was irrelevant. The district court therefore granted DOE’s motion

and dismissed Reddy’s and Sellman’s claims. We affirm.

I. Background

A. The Alabama Merit System

(i) a seniority system; (ii) a merit system; (iii) a system which measures earnings by quantity or quality of production; or (iv) a differential based on any other factor other than sex: Provided, That an employer who is paying a wage rate differential in violation of this subsection shall not, in order to comply with the provisions of this subsection, reduce the wage rate of any employee. 2 The relevant provision here, 42 U.S.C. § 2000e-2(a), provides:

It shall be an unlawful employment practice for an employer--(1) to fail or refuse to hire or to discharge any individual, or otherwise to discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment, because of such individual's race, color, religion, sex, or national origin; or (2) to limit, segregate, or classify his employees or applicants for employment in any way which would deprive or tend to deprive any individual of employment opportunities or otherwise adversely affect his status as an employee, because of such individual's race, color, religion, sex, or national origin. 3 Case: 18-14433 Date Filed: 04/02/2020 Page: 4 of 23

DDS processes applications for social security disability benefits in

Alabama. Some positions at DDS, including DDPs, are classified positions within

the State of Alabama Merit System (“Merit System”), codified in Ala. Code § 36-

26-1 et. seq. (1975). State regulations govern Merit System employees’ salaries.

As in effect when DDS hired Reddy, Sellman, and Sims (the comparator), Rule

670-X-8.02 of the Alabama Administrative Code provided:

The salary rate of a new employee upon entrance into the service shall normally be the minimum rate of the range for the class of positions to which appointed. In the event it should prove impossible to obtain qualified personnel at such rate, the Appointing Authority may recommend and the Director may approve a hiring rate above the minimum rate but not to exceed the Base Maximum Rate of the range.

Ala. Admin. Code r. 670-X-8-.02 (1983). 3 The annual salary range for DDPs as

set by the State of Alabama Personnel Department (“SPD”) is $116,277.60 to

$177,266.40. Within that assigned range are eighteen “steps,” which represent the

salary level of an employee. For DDPs, “Step 1” is the base level salary of

$116,277.60. An employee’s salary increases at each step. The highest step a

DDP can achieve is “Step 18,” which represents the maximum salary of

3 In 2015, that regulation was amended to exclude the sentence beginning with: “In the event it should prove impossible to obtain qualified personnel at such rate…” See Ala. Admin. Code r. 670-X-8-.02 (2015). In their reply briefs, Reddy and Sellman describe DOE’s omission of this language throughout this case as a “critical oversight.” Because DOE requested that all current DDPs receive an above the minimum initial salary upon hire, including Reddy, Sellman, and Sims, this amendment does not affect the analysis. The 2015 amendment also added that “[t]he above the minimum hiring rate will be based on the recent salary or experience of the new employee or competitive market.” See Ala. Admin. Code r. 670-X-8-.02 (2015). 4 Case: 18-14433 Date Filed: 04/02/2020 Page: 5 of 23

$177,266.40. Thus, pursuant to the Alabama Administrative Code, DOE must

receive approval from SPD in order to hire an employee with a salary exceeding

$116,277.60 (the minimum rate). See Ala. Admin. Code r. 670-X-8-.02 (1983).

SPD provides not only a general floor, but also an individualized ceiling for

Merit System employees’ initial salaries. In general, the applicant’s initial salary

cannot significantly exceed his current salary: SPD will not approve a request for

more than five percent above the applicant’s current salary or salary within the

preceding six months. But if the applicant previously contracted with the state

entity, SPD determines the maximum allowable salary by calculating the salary

that the applicant would have received according to the Merit System had the

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