Krueger v. New York Telephone Co.

163 F.R.D. 433, 1995 U.S. Dist. LEXIS 14090, 80 Fair Empl. Prac. Cas. (BNA) 873, 1995 WL 574642
District Court, S.D. New York·Decided September 22, 1995·No. Nos. 93 Civ. 0178 (JGK); 93 Civ. 0179 (JGK)·Published·Cited by 42 cases

Opinion

OPINION AND ORDER

KOELTL, District Judge.

These eases are brought by two plaintiff groups (the Krueger plaintiffs and the Carroll plaintiffs) claiming age discrimination under the Age Discrimination in Employment Act, 29 U.S.C. § 621 et seq. (“ADEA”) and the New York Human Rights Law, Executive Law § 290 et seq. (the “HRL”). Additionally, the Krueger plaintiffs assert claims for unlawful interference with pension rights under the Employee Retirement Income Security Act, 29 U.S.C. § 1001 ef seq. (“ERISA”). The Krueger plaintiffs seek to (i) certify a class action pursuant to Fed. R.Civ.P. 23 with respect to both the state HRL and ERISA claims, and (ii) authorize a collective action with respect to the ADEA claims pursuant to the Fair Labor Standards Act, 29 U.S.C. § 216(b) (the “FSLA”) as provided in § 626(b) of ADEA. The Carroll plaintiffs seek only to proceed as a collective action with respect to their ADEA claims.1 [437] For the reasons that follow, the Court grants the motions.

I.

Between October 13, 1992 and December 11, 1992, the New York Telephone Company decided to implement a reduction in force (the “Fall 1992 RIF”) of some 600 management employees. The Fall 1992 RIF was implemented in accordance with an approach described in the Force Management Plan (the “FMP”), a plan designed by NYT’s parent, NYNEX Corp. The FMP provided procedures and guidelines 2 under which individual NYNEX business units would effectuate workforce reductions. The basic procedure involved the creation of “banding entities” or “bands” comprised of employees sharing certain characteristics, such as salary level, job function and geographic location. Under the FMP, employees within each band were to be evaluated by teams of NYT supervisors on the basis of two categories, “Added Value” (further categorized as “knowledge, skills, investment and potential”) and “Performance.” Once evaluated, employees were rated as “Maximum, High, Medium, or Low” and ordered by seniority within each rating. The least senior employee with a Low rating was first eligible to be placed “at risk,” and more senior employees with Low ratings would follow. (See Davies Aff. dated Apr. 30, 1993, ¶¶ 4r-12.)

For the Fall 1992 RIF, NYT created sixty-nine separate banding entities consisting of employees from twelve departments as well as all Division and District Managers and Secretaries. After employees were banded and evaluated and ranked, approximately 600 employees were placed at risk. About 100 of these employees accepted other jobs at NYT or other NYNEX companies. Approximately 200 employees, many of whom were never at risk, separated voluntarily from NYT. Approximately 271 employees were discharged involuntarily on December 11, 1992. (See Davies Aff. ¶¶ 13-15.) Among these were the Krueger plaintiffs, the Carroll plaintiffs, and the employees who have signed consents to participate in their respective ADEA collective actions. (Vladeck Aff. dated Jan. 11, 1995 ¶ 5, Ex. A; Compl. ¶¶ 4-9, 16.)

The plaintiffs’ lawsuits are based in part on several specific provisions of the Fall 1992 RIF.3 First, NYT excluded from the banding process at the outset employees who had either (i) been hired within two years of the RIF; or (ii) received a promotion within the past year. (See Compl. ¶ 27; Bruek Aff. dated Oct. 21, 1994, Ex. B; Davies Dep. dated June 16, 1994 at 153-54.) Second, evaluations of banded employees included in general as a component of “Added Value” whether the employee had been awarded an academic degree within the past two years. (Davies Dep. at 474-75.) The application of these provisions forms the basis of the Krueger and Carroll plaintiffs’ ADEA claims under a disparate impact theory and their claims under New York’s Human Rights Law. Additionally, the Krueger and Carroll plaintiffs assert ADEA claims under a disparate treatment theory based on the allegedly discriminatory way in which NYT and NYNEX managers executed the FMP and the plaintiffs point to numerous allegedly discriminatory remarks by management employees. The Krueger plaintiffs’ ERISA claims are also based on the implementation of the FMP and the alleged plan to interfere with plaintiffs’ attainment of their service pension and other pension benefits to which they would have become entitled.

[438] II.

The Krueger plaintiffs seek to certify a class action with respect to both the HRL claims and the ERISA claims pursuant to Rule 23 of the Federal Rules of Civil Procedure. Rule 23(a) sets out the requirements for certification:

One or more members of a class may sue or be sued as representative parties on behalf of all only if (1) the class is so numerous that joinder of all members is impracticable, (2) there are questions of law or fact common to the class, (3) the claims or defenses of the representative parties are typical of the claims or defenses of the class, and (4) the representative parties will fairly and adequately protect the interests of the class.

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Krueger v. New York Telephone Co., 163 F.R.D. 433, 1995 U.S. Dist. LEXIS 14090, 80 Fair Empl. Prac. Cas. (BNA) 873, 1995 WL 574642 (S.D.N.Y. 1995).

163 F.R.D. 433 (Krueger v. New York Telephone Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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