Rudebusch v. Hughes

313 F.3d 506, 2002 WL 31741478
CourtCourt of Appeals for the Ninth Circuit
DecidedDecember 9, 2002
DocketNo. 01-15287
StatusPublished
Cited by37 cases

This text of 313 F.3d 506 (Rudebusch v. Hughes) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rudebusch v. Hughes, 313 F.3d 506, 2002 WL 31741478 (9th Cir. 2002).

Opinions

Opinion by Judge McKEOWN; Partial Concurrence and Partial Dissent by Judge KLEINFELD.

McKEOWN, Circuit Judge:

We address here a challenge to the onetime base pay adjustments given to certain women and minority faculty by Northern Arizona University in an effort to achieve pay equity mandated by federal regulations. The appeal presents claims under both the Equal Protection Clause as against the university president and under Title VII as against the University. We affirm the finding of qualified immunity for the university president. We analyze the Title VII claim in accordance with the Supreme Court’s framework in Johnson v. Transportation Agency, 480 U.S. 616, 107 S.Ct. 1442, 94 L.Ed.2d 615 (1987). Because the aggrieved professors did not challenge the jury’s determination that a manifest imbalance justified the pay equity plan, we do not disturb this finding on appeal. Although we hold that the plan did not unnecessarily trammel the rights of the professors who brought suit, we nonetheless reverse and remand because the question whether the adjustments were more than remedial raises a factual issue that cannot, as occurred here, be decided on summary judgment.

Background

This lawsuit stems from events that took place almost a decade ago. At the time of this action, Northern Arizona University (“NAU” or “the University”) was a recipient of significant federal funding and thus subject to federal regulations requiring it to implement an affirmative action plan. The plan adopted by the University and approved by the federal government’s Office of Federal Contract Compliance Programs broadly mandated an increase in the recruitment and retention of minority faculty as well as an assurance of parity between men and women in all areas of employment. In terms of pay equity, the plan required the University to evaluate all employees’ compensation annually for purposes of gender equity and minority integration, and at least with respect to salary inequities attributable to gender, the University was required to remedy such disparities within one year of their identification. The ultimate responsibility for assessment of disparities fell to Dr. Eugene Hughes, NAU’s president.

[511]*511Evidence of Discrimination and Pay Disparity

By 1989, six of 133 fall professors were women (up from three in 1985), and thirty-four of 188 associate professors were women (up from eighteen in 1985). The majority of female faculty occupied the lowest ranks of assistant professors, and even there they were far out-numbered by male faculty.

Five out of 53 faculty openings during this same time period were filled by minorities. And despite recruitment goals set for minority hiring in later years, NAU reported to the federal government in 1993 that it had lost twice as many minority faculty as it had hired during the 1991-1992 academic year. In fact, the University had lost over a quarter of its minority faculty in the two years preceding the pay adjustments — despite new hires.

Upon review of available statistics, Hughes concluded not only that there was a hiring disparity, but that overall pay inequity was also apparent. In 1989, female faculty were making on average over $8,000 a year less than male faculty. Minority faculty did not fare much better. The University’s 1988 annual study noted that their mean salary was over $6,700 less than that of non-minority faculty.

These disparities prompted Hughes to conclude that some form of corrective action was necessary as early as 1990. That same year, the Arizona legislature allocated funds to NAU for general “market adjustments” to faculty salaries (i.e., adjustments ostensibly intended to make the University’s salaries competitive with those of other schools). Department heads at the University were entrusted with making recommendations for individual adjustments. Hughes observed that these adjustments did not alleviate existing sex and race-based pay disparities, an observation that was confirmed by subsequent annual pay studies.

Hughes and NAU were not the only ones with concerns about pay disparity. Around the same time, the Arizona Board of Regents established the Commission on the Status of Women to report on this issue with regard to female faculty at the State’s three universities. In 1991, the Commission published a study that included many of the above findings about female faculty employment between 1985 and 1989.

The Commission concluded that the absolute differences in pay “were quite large.” Although some disparity could be attributed to “the clustering of women at the lower professional ranks and their overrepresentation within disciplines that have lower salaries on the national market,” the Commission concluded that even “[w]hen rank was controlled, the differences were still substantial.” Additionally, the Commission noted that making adjustments for rank may be problematic since “rank is itself affected by a faculty member’s sex. If it were the case that male faculty are more likely to be promoted than female, controlling for rank in the analysis would result in underestimating salary inequities.”

Chambers’ 1993 Annual Equity Report

Close on the heels of the Commission’s study was NAU’s own 1993 annual equity report, authored by the head of its office of institutional research, Dr. Stephen Chambers. Chambers had been producing these reports for the University since 1986. As he explained at trial, the regression analysis Chambers employed was similar to the model used by hundreds of institutions across the United States. In this context, regression analysis is a statistical application used to predict how salary (the dependent variable) should vary based on rank, years of service, discipline, and [512]*512the like (considered independent variables). The regression model isolates the likelihood that factors other than legitimate differences such as rank, i.e., factors such as discrimination, play a role in the salary disparities. The likelihood is determined by predicting what the salary should be given the legitimate factors, and measuring the difference to the actual salary (in standard deviations).

Based on this time-tested analysis, the Chambers’ report concluded that there were “statistical differences in gender and ethnic equity” which could be removed with $278,966 in adjustments. The report ultimately recommended various adjustments for 72% of the female faculty. A majority of the adjustments were in the $1,001 to $3,000 per year range. The amount of each adjustment depended on how far an individual’s salary fell below the predicted salary of a similarly situated white male professor. Those women who were at or above this predicted salary received no adjustment.

Using the same benchmark as that used for female faculty adjustments — the predicted salary of a similarly situated white male professor — the report recommended adjustments ranging from $250 to $6,945 for about half of the minority male faculty. The majority of the adjustments were in the $2,001 to 3,000 range.

Considering the findings of the 1993 equity report and the 1991 study on the status of women, as well as the requirements of the University’s affirmative action plan, Hughes testified that he felt compelled to take remedial action in mid-1993.

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