Mickelson v. New York Life Insurance

368 F. Supp. 2d 1196, 2005 U.S. Dist. LEXIS 8076, 2005 WL 1039147
CourtDistrict Court, D. Kansas
DecidedJanuary 24, 2005
DocketCIV.A. 03-2294CM
StatusPublished

This text of 368 F. Supp. 2d 1196 (Mickelson v. New York Life Insurance) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mickelson v. New York Life Insurance, 368 F. Supp. 2d 1196, 2005 U.S. Dist. LEXIS 8076, 2005 WL 1039147 (D. Kan. 2005).

Opinion

MEMORANDUM AND ORDER

NEWMAN, District Judge.

Plaintiff brought this action against defendant on May 22, 2003, claiming that defendant discriminated against her in violation of the Equal Pay Act provisions of the Fair Labor Standards Act, 29 U.S.C. § 206(d)(EPA), and Title VII of the Civil Rights Act of 1964 as amended, 42 U.S.C. § 2000e ei seq. (Title VII). Plaintiff also claims that defendant retaliated against her in violation of Title VII after she made complaints of unequal pay. This matter comes before the court on defendant New York Life Insurance Company’s Motion for Summary Judgment (Doc. 49).

I. Facts

As a preliminary matter, the court notes that plaintiff submitted affidavits of two former employees of defendant, Julie Hammer-Miller and Rhonda Kunz, in support of her opposition to the summary judgment motion. The affidavits set forth Hammer-Miller’s and Kunz’s feelings about their own personal treatment by defendant, as well as allegations of sex and salary discrimination by defendant. The court disregards these affidavits to the extent that they contain conclusory allegations that are not supported by the record. Nichols v. Hurley, 921 F.2d 1101, 1113 (10th Cir.1990) (noting that “conclusory allegations without specific supporting facts have no probative value”) (quoting Evers v. Gen. Motors Corp., 770 F.2d 984, 986 (11th Cir.1985)).

The court construes the facts in the light most favorable to plaintiff as the non-moving party pursuant to Federal Rule of Civil Procedure 56.

A. Defendant’s Organization and the Marketing Services Consultant Position

Defendant sells life insurance products. Defendant markets its products and services to independent brokers throughout the United States through the use of field directors. Field directors are defendant’s sales force responsible for selling defendant’s products. Defendant hired Louis Gardner in 2002, and Gardner has been the head of the internal sales support team from the end of August 2003 to present.

Defendant’s marketing efforts focus on three categories: M financial group, “Bisys,” and Brokerage General Agencies (BGA). The internal sales support team has 10 field directors: five are responsible for BGA, two for Bisys, and three for M financial group.

Traditionally, defendant has sold to basic life insurance markets. In 2002, defendant’s management wanted to move into markets offering more variable life insurance products. In order to market such products, defendant must utilize broker-dealers. Defendant contends that, in order to sell these variable products, a salesperson must have either a series 6 or series 7 securities license. Series 6 and series 7 securities licenses allow a person to sell various products in the life insurance market. In order to obtain a series 7 license instead of a series 6, one must pass *1199 a more rigorous test. Plaintiff contends that a series 7 license is required to become a stockbroker, but that a series 7 license is unnecessary to sell variable insurance products.

Marketing Services Consultants (MSC) are internal sales support people at defendant. Their role is to support field directors and to work with defendant’s producing groups to ascertain information they might need, to run illustrations 1 and to work closely with the field directors to generate business for defendant. Defendant requires that its MSCs have at least a series 6 license. In 2002, a total of six MSCs worked in defendant’s Leawood, Kansas office.

During most of plaintiffs employment, Trade Billings, a female, was classified as a MSC, but also acted as the supervisor of the internal sales support unit. Billings’ starting salary was $70,000. 2

For purposes of setting salaries, among other reasons, employees at defendant are assigned a grade level. John Begley is defendant’s human resources director at the Leawood, Kansas office. Begley testified that defendant did not have written guidelines for setting salaries within a grade range. James Vavra has worked at defendant since May 1997, and is currently vice-president of operations. During his employment with defendant, Vavra has not received any training on setting salaries.

Defendant contends that MSCs are universally assigned grade level 13, and senior MSCs are universally assigned grade level 14. Once a candidate is assigned a grade level, the candidate’s salary is set within the range provided for that grade level. Plaintiff does not dispute that experience could be a relevant factor for defendant to consider when determining a person’s starting salary.

B. Plaintiffs Employment As A Marketing Services Consultant

Plaintiff is a female and was hired in September 2000 as a MSC in defendant’s Leawood, Kansas office. In plaintiffs personnel file, the factors listed for her hiring were her experience, abilities and education. Plaintiff has her Juris Doctorate from the University of Nebraska. 3

Prior to working for defendant, plaintiff worked part-time during college (July 1993 to December 1995 and August 1996 to June 1997) as a data prep clerk at Lincoln Benefit Life (LBL). Between 1997 and 2000, while plaintiff was in law school, her part-time work with LBL consisted of various projects such as updating databases and helping with special mailings. The special mailings were purely clerical work. Plaintiff contends that her position with LBL was full-time during the summers while she was in college and that she held a marketing job very similar to defen *1200 dant’s MSC position. Plaintiff further contends that her experience at LBL qualifies as several years experience in the insurance industry.

Plaintiff graduated from college in 1996 and from law school in 2000. Plaintiff was unemployed between May 2000 and September 2000, just prior to being hired by defendant, except for one week that she worked as a receptionist making ten dollars per hour. When defendant hired plaintiff, she had very little salary history and was making about $30,000 more than she had made in an equivalent full-time basis in any previous job. Plaintiff did not have series 6, 7 or 63 licenses when she began her employment with defendant. Plaintiffs industry-related education consisted only of tests she has taken while at defendant.

Plaintiff was hired at grade level 13, with a starting salary of $50,000. Vavra made the decision to offer plaintiff $50,000. Plaintiff received the job and salary offer in a letter signed by Begley. Begley does not have any notes about why plaintiff was offered that amount, and he is not aware of any documents created in this time frame that explain what factors were used in setting plaintiffs salary.

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Bluebook (online)
368 F. Supp. 2d 1196, 2005 U.S. Dist. LEXIS 8076, 2005 WL 1039147, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mickelson-v-new-york-life-insurance-ksd-2005.