Ladik v. Wal-Mart Stores, Inc.

291 F.R.D. 263, 85 Fed. R. Serv. 3d 1151, 2013 WL 2351866, 2013 U.S. Dist. LEXIS 77154, 118 Fair Empl. Prac. Cas. (BNA) 984
CourtDistrict Court, W.D. Wisconsin
DecidedMay 24, 2013
DocketNo. 13-cv-123-bbc
StatusPublished
Cited by15 cases

This text of 291 F.R.D. 263 (Ladik v. Wal-Mart Stores, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Ladik v. Wal-Mart Stores, Inc., 291 F.R.D. 263, 85 Fed. R. Serv. 3d 1151, 2013 WL 2351866, 2013 U.S. Dist. LEXIS 77154, 118 Fair Empl. Prac. Cas. (BNA) 984 (W.D. Wis. 2013).

Opinion

OPINION AND ORDER

BARBARA B. CRABB, District Judge.

This is a lawsuit brought under Title VII of the Civil Rights Act of 1964 by plaintiffs Sandra Ladik, Penny Perkins, Jackie Goebel, Marie Coggins and Sondra Steeb-Lamb, who are current or former employees of defendant Wal-mart Stores, Inc. Each plaintiff would have been a class member in Wal-Mart Stores, Inc. v. Dukes, — U.S. —, 131 S.Ct. 2541,180 L.Ed.2d 374 (2011), a case involving allegations of companywide sex discrimination, but the Supreme Court denied class certification on the ground that the plaintiffs had not shown any common questions of law or fact as required by Fed. R.Civ.P. 23(a)(2). In this case, plaintiffs are alleging again that defendant has engaged in widespread sex discrimination in both pay and advancement opportunities, but they seek to represent a smaller class involving only employees in “Region 14,” which includes Wisconsin, Illinois, Indiana and Michigan. In particular, plaintiffs’ proposed class includes women who have been employed by defendant in that region since December 26, 1998 and “who have been or may be subject to” a denial of a promotion or equal pay.

Three motions filed by defendant are before the court: its motion to dismiss the class allegations and two motions to take judicial notice of various documents it filed with its motion to dismiss. Dkt. # # 16, 18 and 32. In its motion to dismiss, defendant argues that plaintiffs cannot proceed as a class action for two reasons: (1) the statute of limitations has run since plaintiffs filed this ease and the potential class members are not entitled to tolling; and (2) the complaint does not identify a common question of law or fact as required by Fed.R.Civ.P. 23. Aternatively, defendant argues that any class certified must be limited to those who have filed administrative charges with the Equal Employment Opportunity Commission and who have claims that may be brought in Wisconsin under Title VII’s venue requirements.

Athough I conclude that the statute of limitations does not bar the claims of the proposed class members, I am granting defendant’s motion to dismiss because plaintiffs have failed to identify any common questions [265]*265of law or fact. In particular, they have not shown how the class they propose solves any of the problems the Court found in Dukes. This makes it unnecessary to consider defendant’s arguments about exhaustion and venue. I am denying the motions to take judicial notice because it was not necessary to consider any of the documents in order to resolve the motion to dismiss.

In concluding that plaintiffs cannot proceed as a class action, I do not mean to question the seriousness of the allegations in the complaint. These allegations paint a disturbing picture about defendant’s attitude and treatment of its female employees over the course of many years. If true, they demand immediate and comprehensive action by defendant to investigate and correct the problems. However, even the most serious problems cannot always be resolved by a class action lawsuit. In Dukes, the Supreme Court established a rigorous standard for courts to apply in assessing whether far-reaching eases such as this one comply with the federal rules. Because plaintiffs’ complaint does not meet that standard, I must grant defendant’s motion to dismiss.

Plaintiffs fairly allege the following facts in their complaint.

ALLEGATIONS OF FACT

A. Defendant’s Policies and Practices

Defendant Wal-Mart Stores, Inc. owns retail stores throughout the country, including Wisconsin, Illinois, Indiana and Michigan. This case involves employees in defendant’s “Region 14,” which covers areas in those four states.

Within Region 14, support managers are the highest level hourly supervisory positions and they assume the duties of assistant managers when necessary. Defendant often selects employees for these positions arbitrarily through what is referred to as a “tap on the shoulder” promotional system. Employees in these positions are often groomed for further advancement.

Before 2004 defendant had no system for posting positions for the management training program. No formal application process or job-related criteria for making selections existed for these positions.

In January 2003, defendant instituted a “one-time, online application process” for entry into the management training program. Potential applicants were required to accept the conditions that they would travel for up to six weeks at a time and be subject to a varied and irregular schedule. Failure to accept these conditions precluded consideration as an applicant.

In 2006 defendant adopted a “formalized” application process for certain positions called the “career preferences program.” However, female employees who qualified for the program have complained that they were not selected to be interviewed. For example, Margie Bracken never heard about promotion opportunities until after male employees received the promotions. In addition, female employees have complained of unwarranted “coaching” and progressive discipline after showing interest in a promotion through the program. For example, when defendant posted a new management position, Tammy Nichols was frequently coached for minor issues, which disqualified her for the promotion.

Entry into the management training program is a requirement for advancement into salaried management positions. However, before 2006, hourly employees in Region 14 were not provided any information about how to become a manager, what the requirements or qualifications were or how to apply for the program. Even after defendant initiated the career preferences program in 2006, “the tap on the shoulder” system continued, with management instructing certain people to apply when openings arose without regard to objective criteria.

Defendant has “uniform guidelines” establishing minimal eligibility criteria for promotion into the management training program. These include minimum tenure, age, absence of current “active” discipline, satisfactory recent performance evaluation and willingness to relocate. However, managers retain the ability to make subjective judgments. (Defendant’s founder, Sam Walton, conceded in 1992 that the relocation requirement creates unnecessary barriers to female advancement.)

[266]*266Regional vice presidents select co-managers, subject to approval by the divisional senior vice president. The minimal eligibility requirements for promotion to co-manager include satisfactory performance and willingness to relocate, but there are no job-related criteria for making selections among those who meet the minimum requirements or in determining where to assign a new co-manager.

B. Gender Disparities

Female employees in Region 14 have been much less likely than their male counterparts to receive promotion to management track positions, even when they possess equal or better qualifications than their male counterparts. Females employed in Region 14 must wait significantly longer to be promoted into management track positions than men with equal or lesser qualifications. Defendant’s “management” is aware of gender disparities in promotions in Region 14 and has failed to take any remedial action.

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291 F.R.D. 263, 85 Fed. R. Serv. 3d 1151, 2013 WL 2351866, 2013 U.S. Dist. LEXIS 77154, 118 Fair Empl. Prac. Cas. (BNA) 984, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ladik-v-wal-mart-stores-inc-wiwd-2013.