Wildi v. ALLE-KISKI MEDICAL CENTER

659 F. Supp. 2d 640, 2009 U.S. Dist. LEXIS 85710, 107 Fair Empl. Prac. Cas. (BNA) 747, 2009 WL 3053714
CourtDistrict Court, W.D. Pennsylvania
DecidedSeptember 18, 2009
DocketCivil Action 08-284
StatusPublished
Cited by9 cases

This text of 659 F. Supp. 2d 640 (Wildi v. ALLE-KISKI MEDICAL CENTER) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wildi v. ALLE-KISKI MEDICAL CENTER, 659 F. Supp. 2d 640, 2009 U.S. Dist. LEXIS 85710, 107 Fair Empl. Prac. Cas. (BNA) 747, 2009 WL 3053714 (W.D. Pa. 2009).

Opinion

MEMORANDUM OPINION

CONTI, District Judge.

Pending before the court is a motion for summary judgment (Doe. No. 22) filed by defendant Alle-Kiski Medical Center (“defendant” or “Alle-Kiski”) seeking judgment in defendant’s favor with respect to all claims asserted by plaintiff Lorri Sue Wildi (“plaintiff’ or “Wildi”), a former vice-president of operations of defendant. Plaintiff filed a complaint asserting two counts (Doc. No. 1). Plaintiff asserts claims for (1) unequal pay in violation of the Equal Pay Act, 29 U.S.C. § 206(d) (the “Equal Pay Act”) and (2) retaliation in violation of 29 U.S.C. § 215(a)(3) of the Fair Labor Standards Act, 29 U.S.C.A. § 201 et seq. (“FLSA”), after Wildi was fired subsequent to complaints related to the Equal Pay Act.

Factual Background

Defendant Alle-Kiski is a medical facility that is part of the West Penn Allegheny Health System. Cindy Schamp (“Schamp”) became the CEO of Alle-Kiski in the spring of 2003. (Defendant’s Statement of Material Facts not in Dispute (“DSMF”) ¶ 2 1 .) Plaintiff began working for Alle-Kiski in 1983 as director of operations. By the fall of 2003, plaintiff was promoted to the position of vice-president of operations. (DSMF ¶ 1.) Plaintiff had a masters degree in public management and her bachelor’s degree in health planning and administration. (DSMF ¶ 26.)

Schamp was president and CEO of Alle-Kiski during the duration of Wildi’s employment as vice-president. (DSMF ¶ 4.) Schamp made recommendations for restructuring a new organizational team for the West Penn Allegheny System in 2003 after she was hired. (DSMF ¶ 5.) Schamp created four vice-president positions, one of which was filled by Wildi. The other three vice-presidents were Michael Harlovic (“Harlovic”), the vice-president of patient care services; George Sandora (“Sandora”), the vice-president of business operations and director of fi *646 nance; and Bill Englert (“Englert”), the vice-president of operations and business development. All vice-presidents were members of defendant’s senior management team. Other members of the senior management team were Arthur Jackson Davis (“Davis”), the director of human resources, and Radha Kambhampati, M.D. (“Kambhampati”), the vice-president of medical affairs. (Def.’s Mot. for Summ. J., Ex. B (“Wildi Dep.”) at 41; DSMF ¶ 2.) Plaintiffs Salary Concerns

Vice-presidents were compensated with a combination of base salaries and executive bonuses. The bonuses were generated based upon an evolving compensation formula determined by the performance of the overall organization. (Def.’s Mot. for Summ. J., Ex. C (“Schamp Dep.”) at 38-39.) The health system generated a pool of funds for bonuses, which was later divided into individual bonuses. (Id.) Schamp would evaluate the goals set out by each vice-president and determine which individual goals furthered the overall performance of Alle-Kiski the most. (Id.) Schamp recommended what percentage of the pool should be allocated to each vice-president. The bonuses were set as a percentage of the base salary.

When the vice-presidents first assumed their positions, they all made the same base salary of $103,001.60. (DSMF ¶ 7.) Despite receiving an identical salary in 2004, the vice-presidents received different bonus compensation. In 2004, Harlovic and Sandora each received a bonus of $30,000.00, Englert received a bonus of $28,000.00, and Wildi received a bonus of $26,000.00. (PSMF ¶ 36; Schamp Dep. at 38-39.)

In 2005, the bonuses increased for each individual. Harlovic and Sandora each received $35,000.00, Englert received $31,900.00, and Wildi received $28,800.00. (PSMF ¶ 40.) The next year, 2006, was a less robust financial year and the bonuses decreased slightly for each employee. Harlovic received $31,300.00, Sandora $31,100.00, Englert $29,500.00, and Wildi $23,000.00. (PSMF ¶ 45.)

By 2007, the salaries of the four vice-presidents continued to diverge. The base salaries, which were the same from 2004 through 2006, were no longer identical. The base salaries were: (1) Harlovic — • $133,348.80, (2) Sandora — $126,723.20, (3) Englert — $114,192.00, and (4) Wildi— $113,360.00. (PSMF ¶ 46.) In addition, all four received executive bonuses. (PSMF ¶¶ 51-52.) That year, Harlovic earned the largest bonus measured in either percentage of base salary or in total dollar amount; Wildi earn the smallest bonus measured either in terms of percentage or dollar amount. (Id.)

Schamp testified that even though Wildi and Englert had comparable jobs, Englert received a higher merit bonus because Wildi experienced some work setbacks. (Schamp Dep. at 55.) Wildi struggled with core laboratory transition in 2007, which was one, but not the sole, benchmark for why Wildi earned a lower merit bonus. Schamp factored in feedback from the system team members and meetings with other departments. (Id.)

Defendant contends that Harlovic and Sandora consistently made more money because the pool of individuals qualified for a chief financial officer and chief nurse executive positions were particularly small. (Schamp Dep. at 59-61.) According to Schamp, the positions held by Harlovic and Sandora required more on-the-job experience and additional licenses such as CPA and nursing licenses. (Id.) Schamp testified that Englert’s position was not like the other members of the team, and therefore, his salary was not comparable to *647 the other vice-president positions. (Id. at 59.)

Formal Complaints to CEO

In 2004, plaintiff began to suspect that her salary was lower than her male counterparts and also lower than what other vice-presidents made in similar jobs. Through her contact with her colleagues, plaintiff felt there was a serious salary discrepancy. (Wildi Dep. at 50.) Plaintiff testified that, in discussing issues with Englert with respect to market compensation:

We had discussed the fact that based on our relationships that we had with colleagues within the system and information that he had and, of course, I had through my travels, that Alle-Kiski Medical Center vice presidents were paid less than other vice presidents with similar or equal duties and responsibilities, skill sets, et cetera, at our sister facilities.

(Wildi Dep. at 52.) When comparing her own salary to those of neighboring facilities such as West Penn Hospital, Allegheny General, and Forbes Regional, Wildi felt that she, along with her colleagues, were not paid their market value and consequently were paid less than vice-presidents at those other facilities. (Wildi Dep. at 52.)

Wildi became frustrated that she was making less money than her male counterparts, whose jobs she perceived were equal to her job. (See Id.) On April 26, 2007, Wildi made a direct complaint to Schamp. (Wildi Dep. at 61-62.) Wildi expressed three concerns. First, she requested a salary review. She sought a salary review because she “was being paid less than [her] counterparts on the senior team,

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659 F. Supp. 2d 640, 2009 U.S. Dist. LEXIS 85710, 107 Fair Empl. Prac. Cas. (BNA) 747, 2009 WL 3053714, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wildi-v-alle-kiski-medical-center-pawd-2009.