Tolton v. Jones Day

CourtDistrict Court, District of Columbia
DecidedMay 19, 2020
DocketCivil Action No. 2019-0945
StatusPublished

This text of Tolton v. Jones Day (Tolton v. Jones Day) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Tolton v. Jones Day, (D.D.C. 2020).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

NILAB RAHYAR TOLTON, et al.,

Plaintiffs,

v. Civil Action No. 19-945 (RDM)

JONES DAY,

Defendant.

MEMORANDUM OPINION AND ORDER

This case is before the Court on Defendant’s motion for partial judgment on the

pleadings. Dkt. 37. Plaintiffs Nilab Rahyar Tolton, Andrea Mazingo, Meredith Williams, Saira

Draper, Jaclyn Stahl, and Katrina Henderson, all of whom are attorneys, allege that their former

employer, Jones Day, unlawfully discriminated against them based on gender, pregnancy, and

maternity during their respective tenures at the law firm’s Irvine, California, Atlanta, Georgia,

and New York City offices. Dkt. 41. Asserting claims under a variety of federal, California,

New York, and District of Columbia antidiscrimination laws, Plaintiffs allege that they were paid

less; given fewer opportunities to develop their skills, to benefit from mentorship, and to

advance; and reviewed more harshly than their male counterparts. They further allege that these

outcomes resulted from Jones Day’s “black-box” compensation policy—a policy that, according

to Plaintiffs, is dictated by the law firm’s managing partner, prohibits attorneys from discussing

their pay with one another, relies on highly subjective reviews of associates, and discourages

attorneys from complaining. Some Plaintiffs assert that they were pushed out of the firm after

taking maternity leaves. Plaintiffs also allege that they were subjected to a hostile work environment at Jones Day because of their sex. Some Plaintiffs claim that, when they spoke up

to challenge the alleged discrimination, Jones Day retaliated against them.

Jones Day answered Plaintiffs’ complaint, Dkt. 44, and moved for partial judgment on

the pleadings, Dkt. 37. Jones Day seeks dismissal of: (1) all of Williams’s claims; (2) all of

Henderson’s claims; (3) all disparate impact claims; (4) all claims under the Equal Pay Act and

its state law analogues; (5) all claims brought under the District of Columbia Human Rights Act;

and (6) all claims for injunctive relief. Jones Day does not, at least at this time, challenge the

legal sufficiency of the disparate treatment claims brought by Tolton, Mazingo, Draper, or Stahl.

For the reasons explained below, the Court will GRANT in part and DENY in part Jones

Day’s motion.

I. BACKGROUND

A. Factual Background

The Third Amended Complaint in this action is 135 pages long. Dkt. 41. The Court will

recount only those allegations that are relevant to the pending motion or necessary to provide

context. For the purposes of deciding the motion for judgment on the pleadings, Dkt. 37, the

Court assumes the truth of the following factual allegations, see Doe v. U.S. Dep’t of Justice, 753

F.2d 1092, 1102 (D.C. Cir. 1985); Dial A Car, Inc. v. Transp., Inc., 884 F. Supp. 584, 588

(D.D.C. 1995).

1. Managing Partner System

Plaintiffs allege that Jones Day’s managing partner, Stephen Brogan, “runs the [f]irm

from its Washington, [D.C.] office with essentially unchecked autonomy.” Dkt. 41 at 3 (3d Am.

Compl. ¶ 6). The Third Amended Complaint quotes a version of Jones Day’s website, which has

since been modified, stating that Brogan “is the final decision-maker on virtually every matter of

2 significance for the firm.” Id. (3d Am. Compl. ¶ 9). Plaintiffs allege that “every associate’s

compensation is individualized and determined in a ‘black box’ by [Brogan], who issues every

attorney’s compensation letter annually,” id. at 2 (3d Am. Compl. ¶ 5), and who “is the final

decision-maker on . . . ‘partner and associate compensation,’” id. at 3 (3d Am. Compl. ¶ 9). In

addition to making these individualized compensation decisions, the managing partner also

makes partnership decisions and supervises the annual employee performance evaluations. Id. at

6 (3d Am. Compl. ¶¶ 17, 19). The managing partner “alone possesses ultimate control or

influence over all [f]irm leadership partners and any decision they carry out with respect to

compensation, promotions, assignments, and other employment terms and conditions.” Id. at 6

(3d Am. Compl. ¶ 19).

2. Associate Evaluations and Compensation Decisions

Plaintiffs further allege that Jones Day employs a “black[-]box” compensation scheme, a

term that Plaintiffs use to describe the evaluation and compensation process and various

interrelated policies. Id. at 2 (3d Am. Compl. ¶ 5). They allege that the “black-box” system,

intentionally or unintentionally, causes pay inequality between male and female associates. Id. at

11–12 (3d Am. Compl. ¶¶ 41–42). According to Plaintiffs, associates are evaluated each year,

and those evaluations are used in setting their compensation, including both base pay and

bonuses. Id. at 12, 93 (3d Am. Compl. ¶¶ 42–43, 357–58). Although the more senior lawyers

who have worked with an associate are asked to write an individualized evaluation, the firm

delivers its feedback to each associate via a “consensus statement,” which is supposed to

synthesize all the various reviews as well as the associate’s billable hours and other factors into a

single paragraph that reflects the associate’s performance. Id. at 5 (3d Am. Compl. ¶ 14).

Plaintiffs allege—on information and belief—that the “consensus statements are not written by

3 reviewers, and even Jones Day [p]artners cannot alter them.” Id. The consensus statement is

then read to the associate at her annual review, but the associate is not allowed “to keep a copy of

[the] consensus statement” and is not shown “the underlying individual reviews.” Id.

Either “inadvertently or by design,” according to Plaintiffs, the consensus statement

review process works to disadvantage female attorneys, negatively affecting their “pay and

opportunities for promotion.” Id. at 6 (3d Am. Compl. ¶ 16). They allege that “[t]he ‘consensus

statement’ often cherry picks language from individual evaluations without context, emphasizing

some aspects of performance while completely overlooking other aspects, and attributing the

opinion of one evaluator to that of multiple reviewers.” Id. at 5 (3d Am. Compl. ¶ 15). The

process leaves room for manipulation as well as “gender stereotypes” and allows biases to work

their way into associates’ composite “consensus” reviews. Id. at 6 (3d Am. Compl. ¶ 17).

Plaintiffs quote an earlier version of the Jones Day website, which stated that “associate

evaluations and compensation adjustments [are] based upon the subjective quality of each

person’s overall contribution, including professional achievement, commitment to the [f]irm,

judgment, client service, efficiency, leadership, productivity, and other appropriate factors.” Id.

at 12 (3d Am. Compl. ¶ 43).

Another key component of Jones Day’s black-box compensation scheme is its emphasis

on pay secrecy. See id. at 12 (3d Am. Compl. ¶ 42). Associates and partners alike are strongly

discouraged from discussing their compensation with one another. The following quote from the

Jones Day website, as it existed at the time Plaintiffs brought suit, explains the firm’s approach:

The financial relationship of a lawyer to Jones Day is confidential.

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