Bates v. United Parcel Service, Inc.
Eric BATES; Bert Enos; Babaranti Oloyede; Eric Bumbala; Edward Williams, on Behalf of Themselves and All Others Similarly Situated, Plaintiffs-Appellees, v. UNITED PARCEL SERVICE, INC., Dba UPS, Defendant-Appellant
Attorneys
Mark A. Perry (argued), Gibson, Dunn & Crutcher, LLP, Washington, D.C., Christopher J. Martin, Gibson Dunn & Crutcher, LLP, Palo Alto, CA, Rachel S. Brass and Amanda M. Rose, Gibson, Dunn & Crutcher, LLP, San Francisco, CA, for the defendant-appellant., Laurence W. Paradis (argued) and Kevin M. Knestrick, Disability Rights Advocates, Berkeley, CA, Todd M. Schneider and Guy B. Wallace, Schneider & Wallace, San Francisco, CA, for the plaintiffs-appel-lees., James L. Lee, Carolyn L. Wheeler, Vincent J. Blackwood and Barbara L. Sloan (argued), Equal Employment Opportunity Commission, Washington, D.C., for amicus curiae Equal Employment Opportunity Commission., Claudia Center and Lewis Bossing, The Legal Aid Society-Employment Law Center, San Francisco, CA, for amici curiae American Association of People with Disabilities et al., Rae T. Vann, McGuiness Norris & Williams, LLP, Washington, D.C., for ami-cus curiae Equal Employment Advisory Council., Robin S. Conrad and Shane Brennan, National Chamber Litigation Center, Inc., for amicus curiae Chamber of Commerce of the United States of America., Robert Digges, Jr., American Trucking Associations, Inc., Alexandria, VA, J. Brett Busby and Jeffrey L. Oldham, Mayer, Brown, Rowe & Maw LLP, Houston, TX, for amicus curiae American Trucking Associations, Inc.
Full Opinion (html_with_citations)
Opinion by Judge MCKEOWN; Partial Concurrence and Partial Dissent by Judge BERZON.
This appeal under the Americans with Disabilities Act (ADA) requires us to consider the intersection of a safety-based qualification standard and the âbusiness necessityâ defense. United Parcel Service (UPS) imposes a Department of Transportation (DOT) hearing standard on all package-car drivers, even though the DOT standard is federally mandated only for higher-weight vehicles. A class of hearing-impaired UPS employees and applicants who cannot meet the DOT hearing requirement challenges UPSâs policy under Title I of the ADA, 42 U.S.C. §§ 12101-12213, the California Fair Employment and Housing Act (FEHA), Cal. Govât Code §§ 12900-12996, and the Un-ruh Civil Rights Act (Unruh Act), Cal. Civ.Code § 51.
After a bench trial on liability, the district court found UPS liable on all of Batesâs claims, enjoined UPS from using the blanket qualification standard, and required individualized assessment of candidates for the package-car driver positions. The court founded its analysis on the pattern-or-practice burden-shifting framework of International Brotherhood of Teamsters v. United States, 431 U.S. 324, 97 S.Ct. 1843, 52 L.Ed.2d 396 (1977). In determining whether UPS met its asserted âbusiness necessityâ defense, the district court looked to our earlier decision involving hearing-impaired UPS drivers, Morton v. United Parcel Service, Inc., 272 F.3d 1249 (9th Cir.2001). Morton imported into its ADA analysis concepts from both the traditional Title VII business necessity defense to disparate impact claims and the âbona fide occupational qualificationâ (BFOQ) standard from Title VII disparate treatment challenges to a proscribed classification.
We granted rehearing en banc to consider the contours of a claim that an employerâs safety qualification standard discriminates against otherwise âqualifiedâ persons with disabilities, see 42 U.S.C. § 12112(a), (b)(6), and the showing required of an employer to successfully assert the business necessity defense to use of such qualification under 42 U.S.C. § 12113(a). Because this case involves a facially discriminatory qualification standard, we conclude that the Teamstersâ burden-shifting protocol is inapplicable. In addition, we over-rule Morton to the extent that it imposes a BFOQ standard under the ADA, as the plain language of the ADA does not support such a construction. Because the district court considered this case under the framework of Teamsters and Morton, we vacate and remand for further proceedings. We do not consider the merits of the FEHA claim because the pertinent FEHA. law has changed since the district court issued its decision. Finally, following our decision in Bass v. County of Butte, 458 F.3d 978 (9th Cir.2006), we reverse the district courtâs finding that UPS violated the Unruh Act.
Background
UPS and Package-Car Drivers
UPS package-car drivers deliver and pick up packages for UPS in the familiar brown UPS trucks. UPS employs more than 320,000 employees in the United States, over 70,000 of whom are package-car drivers.
When an opening for a driving position becomes available, UPS contacts the individual in that UPS center with the highest seniority who has bid on such a position.
At issue in this appeal is the hearing standard that is part of the DOT physical. An individual satisfies the DOT hearing standard if he
[f]irst perceives a forced whispered voice in the better ear at not less than 5 feet with or without the use of a hearing aid or, if tested by use of an audiometric device, does not have an average hearing loss in the better ear greater than 40 decibels at 500 Hz, 1,000 Hz, and 2,000 Hz with or without a hearing aid when the audiometric device is calibrated to American National Standard (formerly ASA Standard) Z24.5-1951.
49 C.F.R. § 391.41(b)(ll). According to the district court, the forced-whispered standard requires that potential drivers not only hear the sounds made but understand the words spoken.
Unlike UPS, which requires drivers of all package cars to pass the DOT physical, the DOT imposes this standard only for those driving vehicles with a GVWR of at least 10,001 pounds. See 49 U.S.C. § 31132(1)(A); 49 C.F.R. § 391.41. A âgross vehicle weight ratingâ is the actual weight of the vehicle plus any cargo capacity. As of October 2003, UPSâs fleet contained 65,198 vehicles, of which 5,902 vehicles had a GVWR of less than 10,001 pounds. The GVWR of the lighter vehicles ranged from 7,160 to 9,318 pounds, with the majority of these vehicles weighing 8,600 pounds. By way of comparison, automobiles, which include passenger cars, sport utility vehicles, light trucks and minivans, average 3,240 pounds.
Proceedings in the District Court
In November 2001, the district court certified a nationwide federal class on the ADA claim that includes â[tjhose persons throughout the United States who (i) have been employed by and/or applied for employment with [UPS] at any time since June 25,1997, up through the conclusion of this action, (ii) use sign language as a primary means of communication due to a hearing loss or limitation, and (iii) allege that their rights have been violated under Title I of the ADA on account of [UPSâs] policies and procedures.â
Phase one of the bifurcated bench trial was conducted over several weeks in the spring and fall of 2003. At the close of Batesâs evidence, UPS moved pursuant to Federal Rule of Civil Procedure 52(c) for judgment on partial findings. UPS argued that its invocation of the DOT hearing
Following phase one of the trial, the district court issued detailed findings of fact and conclusions of law. The district court found that Bates satisfied his prima facie case based upon a combination of two factors: first, UPSâs policy operated as a blanket exclusion of deaf individuals, and second, at least one named plaintiff, Ba-baranti Oloyede, and at least one class member, Elias Habib, were âqualifiedâ individuals with a disability with standing to sue under the ADA by virtue of having satisfied all prerequisites for the driving position other than the DOT hearing requirement. The court further concluded that Bates did not have the burden to establish at that stage that any plaintiffs were âqualifiedâ in the sense that they were capable of driving safely. Accordingly, the district court denied UPSâs motions for judgment under Rule 52(c) and to de-certify the class.
Critical to its ruling, the district court next found that, under Morion, UPS failed to satisfy its burden under the business necessity defense. Thus, the court reasoned, UPSâs categorical exclusion of individuals who do not meet the DOT hearing requirement violates the ADA (and, accordingly, the FEHA and the Unruh Act as well). The district court entered an injunction requiring UPS to âcease using the DOT hearing standard to screen applicants for package-car driver positionsâ with respect to vehicles weighing 10,000 pounds or less and to âperform an individualized assessmentâ of applicants that meet the threshold qualifications, other than the hearing standard. Upon UPSâs motion, the district court stayed all further proceedings pending UPSâs interlocutory appeal.
Analysis
I. JURISDICTION
UPSâs interlocutory appeal of the order granting a permanent injunction falls squarely within the scope of 28 U.S.C. § 1292(a)(1), which grants us jurisdiction over â[ijnterlocutory orders of the district courts ... granting ... injunctions.â Our review of the permanent injunction properly includes review of the merits of the district courtâs determination of liability. Smith v. Vulcan Iron Works, 165 U.S. 518, 525, 17 S.Ct. 407, 41 L.Ed. 810 (1897); e.g., Long v. Bureau of Economic Analysis, 646 F.2d 1310, 1317-18 (9th Cir.1981) (per curiam), vacated on other grounds, 454 U.S. 934, 102 S.Ct. 468, 70 L.Ed.2d 242 (1981). Review is particularly appropriate in cases like this one, in which the appeal is taken from a permanent, rather than preliminary, injunction, and â[t]he district court has completed its consideration of the liability issue, retaining jurisdiction only for an accounting of damages.â Marathon Oil Co. v. United States, 807 F.2d 759, 764 (9th Cir.1986).
We likewise have jurisdiction to consider the district courtâs denial of UPSâs Rule 52(c) motion for judgment on partial findings or, in the alternative, for class decertification under Rule 23(c)(1) and (d), because the district courtâs determinations as to both motions are inextrica
II. Article III Standing
The district court did not grapple with the Article III standing issue, apparently because UPS did not raise a standing challenge below but instead framed its challenge as one to Batesâs failure to prove his prima facie case. Standing is a threshold matter central to our subject matter jurisdiction. We must assure ourselves that the constitutional standing requirements are satisfied before proceeding to the merits. United States v. Hays, 515 U.S. 737, 742, 115 S.Ct. 2431, 132 L.Ed.2d 635 (1995); Casey v. Lewis, 4 F.3d 1516, 1524 (9th Cir.1993).
In a class action, standing is satisfied if at least one named plaintiff meets the requirements. See Armstrong v. Davis, 275 F.3d 849, 860 (9th Cir.2001). The plaintiff class bears the burden of showing that the Article III standing requirements are met. See id. at 860-61. As we know from the oft-repeated passages in Lujan, standing requires that (1) the plaintiff suffered an injury in fact, i.e., one that is sufficiently âconcrete and particularizedâ and âactual or imminent, not conjectural or hypothetical,â (2) the injury is âfairly traceableâ to the challenged conduct, and (3) the injury is âlikelyâ to be âredressed by a favorable decision.â Lujan v. Defenders of Wildlife, 504 U.S. 555, 560-61, 112 S.Ct. 2130, 119 L.Ed.2d 351 (1992) (quotation marks and citations omitted). Standing must be shown with respect to each form of relief sought, whether it be injunctive relief, damages or civil penalties. Friends of the Earth, Inc. v. Laidlaw Envtâl Servs. (TOC), Inc., 528 U.S. 167, 185, 120 S.Ct. 693, 145 L.Ed.2d 610 (2000). Here, only liability and equitable relief were at issue in the district court, not damages. Thus, we consider only whether at least one named plaintiff satisfies the standing requirements for in-junctive relief.
The standing formulation for a plaintiff seeking prospective injunctive relief is simply one implementation of Lu-janâs requirements. The plaintiff must demonstrate that he has suffered or is threatened with a âconcrete and particularizedâ legal harm, Lujan, 504 U.S. at 560, 112 S.Ct. 2130, coupled with âa sufficient likelihood that he will again be wronged in a similar way.â City of Los Angeles v. Lyons, 461 U.S. 95, 111, 103 S.Ct. 1660, 75 L.Ed.2d 675 (1983). As to the second inquiry, he must establish a âreal and immediate threat of repeated injury.â OâShea v. Littleton, 414 U.S. 488, 496, 94 S.Ct. 669, 38 L.Ed.2d 674 (1974). â[P]ast wrongs do not in themselves amount to [a] real and immediate threat of injury necessary to make out a case or controversy.â Lyons, 461 U.S. at 103, 103 S.Ct. 1660. However, âpast wrongs are evidence bearing on whether there is a real and immediate threat of repeated injury.â OâShea, 414 U.S. at 496, 94 S.Ct. 669. In addition, the claimed threat of injury must be likely to be redressed by the prospective injunctive relief. Graham v. Fed. Emergency Mgmt. Agency, 149 F.3d 997, 1003 (9th Cir.1998) (recognizing that â[p]laintiffs need not demonstrate that there is a âguaranteeâ that their injuries will be redressed by a favorable decisionâ but âonly that a favorable decision is likely
Although the district court did not make explicit findings on standing, it made detailed findings on relevant and analogous issues sufficient to support standing. â[W]e will affirm standing ... unless those findings are clearly erroneous.â Armstrong, 275 F.3d at 861. Based on the district courtâs findings regarding named plaintiff Barbaranti Oloyede, we conclude that he and class member Elias Habib satisfy the standing requirements with respect to injunctive relief.
As a general matter, the class includes only those individuals who failed or would fail the DOT hearing test. Oloyede worked for UPS beginning in 1991, first applied for a package-car driver position in 1998, and expressed interest in that position several additional times, most recently in 2003. His supervisor told him in 2000 that he would have to pass a hearing exam to become a driver. Oloyede was not hired as a package-car driver.
Both aspects of the injury requirement are met in this case. First, UPSâs failure to hire Oloyede as a package-car driver was a sufficiently âconcrete and particularizedâ harm, in that the injury affected him âin a personal and individual way.â Lujan, 504 U.S. at 560 n. 1, 112 S.Ct. 2130. Second, the crux of this lawsuit is the challenge to UPSâs written qualification standard, including the DOT hearing standard. Where, as here, âthe harm alleged is directly traceable to a written policy ... there is an implicit likelihood of its repetition in the immediate future.â Armstrong, 275 F.3d at 861; see also Fortyune v. Am. Multi-Cinema, Inc., 364 F.3d 1075, 1081 (9th Cir.2004).
The causation element of standing is easily satisfied. Oloyedeâs claimed injury&emdash;failure to hire him as a package-car driver because of a hearing disability&emdash;was caused and will continue to be caused by UPSâs application of the DOT hearing standard. See, e.g., Mortensen v. County of Sacramento, 368 F.3d 1082, 1086 (9th Cir.2004) (holding that plaintiff showed there was a âsignificant possibilityâ that he would suffer future injury based upon countyâs written policy regarding compensatory time off, where the policy had been applied to him in the past and remained in place).
Finally, we turn to the issue of redressability. After certification of the class in 2001, Oloyede accepted a position at UPS which, due to the terms of a collective bargaining agreement, precludes him from presently bidding for a package-car driver position. UPS argues that because Oloyede cannot now bid for a package-car driver slot, he could never be a âqualifiedâ applicant who would benefit from an injunction. This argument is a backhanded way of attacking Oloyedeâs standing as a named plaintiff and suggesting that his claim is moot. Indeed, mootness is described as âthe doctrine of standing set in a time frame.â United States Parole Commân v. Geraghty, 445 U.S. 388, 397, 100 S.Ct. 1202, 63 L.Ed.2d 479 (1980) (quoting Henry P. Monaghan, Constitutional Adjudication: The Who and When, 82 Yale L.J. 1363,1384 (1973)).
Even if UPS is correct that Oloyedeâs claim is either not redressable or is moot because he is no longer in a driver-eligible position, questions we do not decide, the remaining class members are not foreclosed from attaining relief since the class was long ago duly certified. The Supreme Court has acknowledged that âthere is tension in [its] prior casesâ with respect to standing and adequacy in the class action context. Gratz v. Bollinger, 539 U.S. 244, 263 n. 15, 123 S.Ct. 2411, 156 L.Ed.2d 257 (2003). The same tension exists with re
As the Court reasoned in Sosna v. Iowa, once a class action has been certified, âthe class of unnamed persons described in the certification acquire[s] a legal status separate from the representative.â Sosna v. Iowa, 419 U.S. 393, 399, 95 S.Ct. 553, 42 L.Ed.2d 532 (1975). Sosna involved a class action challenging the constitutionality of a state statute imposing a one-year residency requirement for instituting a divorce action. Id. at 397, 95 S.Ct. 553. At the time of the district court judgment, plaintiff had not yet met the residency requirement. Id. at 398, 95 S.Ct. 553. By the time the case reached the Supreme Court, however, plaintiff had not only met the residency requirement but also obtained a divorce in another state. Id. at 398 & n. 7, 95 S.Ct. 553. With regard to mootness, the Supreme Court held that the âcases or controversiesâ requirement of Article III â which requires a plaintiff with a live case or controversy, not only at the time of filing and at the time of class certification, but also when a court reviews the case â is satisfied by âa named defendant and a member of the class represented by the named plaintiff, even though the claim of the named plaintiff has become moot.â Id. at 402, 95 S.Ct. 553. As one commentator put it, â[w]hat saved Sosna from being moot was class certification.â Bums, 22 U.C.D.L. Rev. at 1248.
The following year the Court clarified Sosna in Franks v. Bowman Transportation Company, 424 U.S. 747, 96 S.Ct. 1251, 47 L.Ed.2d 444 (1976), which involved a class action against an employer for racially discriminatory employment practices. Although the named representative no longer had a personal stake in the outcome because he had been hired and properly discharged for cause, the Court held that â[t]he unnamed members of the class involved are identifiable individuals, individually named in the record,â and â[n]o questions are raised concerning the continuing desire of any of these class members for the seniority relief presently in issue.â Id. at 756, 96 S.Ct. 1251.
The Court cited Franks just one year later in East Texas Motor Freight and observed that if âthe initial certification was proper and decertification not appropriate, the claims of the class members would not need to be mooted or destroyed because subsequent events or the proof at trial had undermined the named plaintiffsâ individual claims.â 431 U.S. at 406 n. 12, 97 S.Ct. 1891.
These cases are instructive in analyzing class standing in this appeal. It is not disputed that Oloyede had standing at the time of certification, which is the snapshot in time for determining initial standing. Even if his claim later became moot or nonredressable, an identifiable member of the class, Elias Habib, surely has standing. According to the district court, Ha-bib, who is completely deaf, has a valid driverâs license and twenty-seven years of driving experience. The district court also
III. Legal Framework Applicable to a âQualification Standardâ Claim Under The ADA
A. Initial Considerations
The hearing standard at issue here is a facially discriminatory qualification standard because it focuses directly on an individualâs disabling or potentially disabling condition. See, e.g., McGregor v. Natâl R.R. Passenger Corp., 187 F.3d 1113, 1116 (9th Cir.1999) (holding that a policy requiring employees to be â100% healedâ or âfully healedâ after an injury is facially discriminatory and constitutes a per se violation of the ADA). Instead of recognizing this posture, the district court analyzed the claim as a âpattern-or-practiceâ disparate treatment claim, applying the burden-shifting protocol set out in Teamsters. See 431 U.S. at 360, 97 S.Ct. 1843.
A burden-shifting protocol is, however, unnecessary in this circumstance. The fact to be uncovered by such a protocol&emdash; whether the employer made an employment decision on a proscribed basis (here, disability in the form of hearing impairment)'&emdash;-is not in dispute. See Monette v. Elec. Data Sys. Corp., 90 F.3d 1173, 1182-83 (6th Cir.1996) (noting that when a defendant admits to taking account of disability status, the burden-shifting framework sometimes applicable to disparate treatment claims is unnecessary).
In addition, whether Bates established a prima facie case of employment discrimination in the summary judgment âburden-shiftingâ sense is moot after trial. The relevant inquiry now is simply whether the evidence presented at trial supports a finding of liability. See U.S. Postal Serv. Bd. of Governors v. Aikens, 460 U.S. 711, 715, 103 S.Ct. 1478, 75 L.Ed.2d 403 (1983); Costa v. Desert Palace, Inc., 299 F.3d 838, 855-56 (9th Cir.2002) (en banc), aff'd, 539 U.S. 90, 123 S.Ct. 2148, 156 L.Ed.2d 84 (2003).
B. Applicable Provisions of the ADA
The enforcement provision of Title I of the ADA, under which Bates brought suit, provides:
No covered entity shall discriminate against a qualified individual with a disability because of the disability of such individual in regard to job application procedures, the hiring, advancement, or discharge of employees, employee compensation, job training, and other terms, conditions, and privileges of employment.
42 U.S.C. § 12112(a). Thus, under the ADA, an employee bears the ultimate burden of proving that he is (1) disabled under the Act, (2) a âqualified individual with a disability,â and (3) discriminated against âbecause ofâ the disability. Nunes v. Wal-Mart Stores, Inc., 164 F.3d 1243, 1246 (9th Cir.1999).
There is no dispute that the class members, who are hearing impaired, are disabled. Instead, we focus on the two other key terms in the statute: âqualified individualâ and âdiscriminate.â To unpack the meaning of these terms, we look to the statute.
Discrimination under the ADA includes the use of âqualification standards, employment tests or other selection criteria that screen out or tend to screen out an individual with a disability or a class of individuals with disabilities unless the standard, test or other selection criteria, as used by the covered entity, is shown to be job-related for the position in question and is consistent with business necessity.â 42 U.S.C. § 12112(b)(6) (emphasis added).
In a case involving the use of a qualification standard, the ADA provides employers with a âbusiness necessityâ defense:
It may be a defense to a charge of discrimination under this chapter that an alleged application of qualification standards, tests, or selection criteria that screen out or tend to screen out or otherwise deny a job or benefit to an individual with a disability has been shown to be job-related and consistent with business necessity, and such performance cannot be accomplished by reasonable accommodation, as required under this subchapter.
42 U.S.C. § 12113(a) (emphasis added).
Where an across-the-board safety âqualification standardâ is invoked, the question then becomes what proof is required with respect to being a âqualified individual,â that is, one who can perform the jobâs essential functions. Before an employee can challenge an employerâs qualification standard, however, an employee must first prove that he is a âqualified individualâ within the meaning of the ADA, that is, one who can perform the jobâs essential functions with or without reasonable accommodation. Bates argues that he meets all of the essential functions of the package-car driver position, including being a âsafeâ driver. Although Bates acknowledges that class members do not meet the DOT hearing standard, he contends that hearing is not an essential function, and thus there are qualified indi
UPS, on the other hand, urges that class members are not qualified individuals because they cannot meet UPSâs requirement that all drivers pass the DOT hearing standard, and thus cannot meet an essential function of the job â DOT certification to drive all commercial vehicles. UPS also argues that each class member is required to show not only that he is a âsafeâ driver in the sense that he has a âclean driving record,â but also that he is a safe driver despite being hearing impaired.
We turn first to the qualified individual inquiry and then to the question of discrimination.
C. Qualified Individual With a Disability
As the plaintiff, Bates bears the burden to prove that he is âqualified.â See Nunes, 164 F.3d at 1246; Kennedy v. Applause, Inc., 90 F.3d 1477, 1481 (9th Cir.1996). Qualification for a position is a two-step inquiry. The court first examines whether the individual satisfies the ârequisite skill, experience, education and other job-related requirementsâ of the position. The court then considers whether the individual âcan perform the essential functions of such positionâ with or without a reasonable accommodation. 29 C.F.R. § 1630.2(m); 42 U.S.C. § 12111(8); see Humphrey v. Memorial Hospitals Assân, 239 F.3d 1128, 1135 (9th Cir.2001); see also EEOC v. Convergys Customer Management Group, Inc., 491 F.3d 790, 794-95 (8th Cir.2007); Branham v. Snow, 392 F.3d 896, 904 (7th Cir.2004).
1. Job Requisites
The package-car driver job requires an applicant to meet UPSâs threshold seniority requirements for the package-car driver position, complete an application, be at least twenty-one years of age, possess a valid driverâs license, and have a clean driving record by UPSâs local standards. The district courtâs finding that named plaintiff Oloyede and class member Elias Habib meet these prerequisites is not clearly erroneous.
2. Essential Functions
To prove that he is âqualified,â the applicant also must show that he can perform the âessential functionsâ of the job. 42 U.S.C. § 12111(8). See Nunes, 164 F.3d at 1246; Kennedy, 90 F.3d at 1481. As noted earlier, a jobâs âessential functionsâ are âfundamental job duties of the employment position ... not including] the marginal functions of the position.â 29 C.F.R. § 1630.2(n)(l); see also id. § 1630.2(n)(2)-(3) (elaborating on reasons and evidence relevant to an essential function showing). âEssential functionsâ are not to be confused with âqualification standards,â which an employer may establish for a certain position. Whereas âessential functionsâ are basic âduties,â 29 C.F.R. § 1630.2(n)(l), âqualification standardsâ are âpersonal and professional attributesâ that may include âphysical, medical [and] safetyâ requirements. Id. § 1630.2(q). The difference is crucial.
The statute does not require that a person meet each of an employerâs established âqualification standards,â however, to show that he is âqualified.â And, indeed, it would make little sense to require an ADA plaintiff to show that he meets a qualification standard that he undisputedly cannot meet because of his disability and that forms the very basis of his discrimination challenge.
At trial the parties agreed that two of the âessential functionsâ of the package-car driver position are (1) âthe ability to communicate effectivelyâ and (2) âthe ability to drive safely.â UPS urged that âthe ability to drive DOT-regulated vehiclesâ was another essential function. The district court rejected that contention, finding that UPS permits other drivers who cannot drive all DOT-regulated vehicles to drive package cars.
Only the second essential function, âsafe driving,â is at issue in this appeal. UPS argues that âhearingâ at a level sufficient to pass the DOT hearing standard is either a stand-alone essential job function or part and parcel of being a safe driver. This point illustrates the critical difference between a jobâs essential functions â âeffective communicationâ or âsafe drivingââ versus a qualification standard based on âpersonal or professional attributes,â such as hearing at a certain level. The question, then, is whether plaintiffs established that they meet the essential function of safe driving.
The district court found that Oloyede met UPSâs threshold requirements of having no accidents or moving violations within the last year, no DUI within the last three years, and no more than three moving violations in the last three years. Ha-bib also met the prerequisites to apply for the position: a valid driverâs license, twenty-seven years of driving experience, and no evidence of even a minor traffic accident.
UPS urges that Oloyede and Habib are required to show not only that they are âsafeâ drivers in the sense that they have a âclean driving record,â but also that they are safe drivers even though they are hearing impaired. The district court rejected that argument, stating that imposing this burden would require plaintiffs to disprove the employerâs business necessity affirmative defense, i.e., that the employer is justified in imposing a qualification standard that facially screens out individuals with a specific disability.
Because UPS has linked hearing with safe driving, UPS bears the burden to prove that nexus as part of its defense to use of the hearing qualification standard. The employees, however, bear the ultimate burden to show that they are qualified to perform the essential function of safely driving a package car. In so doing, Olo-yede and Habib need not disprove the validity of the hearing standard, but must demonstrate their safe driving ability visa-vis package cars. The inquiry is not whether Oloyede and Habib are capable of safely driving their personal cars, but rather whether they can drive the package cars at issue in this litigation. The district court did not make a finding with respect to plaintiffsâ ability to drive package cars safely. Merely finding an absence of evidence with respect to driving a package car is insufficient. In short, Oloyede and Habib bear the burden of proving that they are qualified individuals with disabilities. They must show that they can perform the essential job function of safely driving package cars. Only if they meet this burden does the question become whether the qualification standard used by the employer satisfies the business necessity defense.
By requiring UPS to justify the hearing test under the business necessity defense, but also requiring plaintiffs to show that they can perform the essential functions of the job, we are not saying, nor does the ADA require, that employers must hire employees who cannot safely perform the job, particularly where safety itself is an essential function. Nor are we saying that an employer can never impose a safety standard that exceeds minimum requirements imposed by law. However, when an employer asserts a blanket safe
This approach is parallel to the one adopted in a âdirect threatâ case under the ADA. 42 U.S.C. § 12113(b) (âThe term âqualification standardsâ may include a requirement that an individual shall not pose a direct threat to the health or safety of other individuals in the workplace.â). Although the specifics of proof in direct threat and business necessity cases may vary, the frameworks are parallel. We emphasize that UPS is not required to meet the requirements of the direct threat defense, but rather that cases under that section of the ADA illuminate our analysis.
In Branham, the Seventh Circuit considered a qualification standard that disqualified an individual from being an IRS criminal investigator if the applicant had â[a]ny condition that would hinder full, efficient performance of the duties of the[ ] position[ ] or that would cause the individual to be a hazard to himselfiherself or to others....â 392 F.3d at 900 (quoting IRS qualification standard). Safety was an issue in Branham, as it is here. The parties did not dispute that an essential job requirement was the ability to function safely under the working conditions imposed on such employees. Id.
The IRS claimed that the applicantâs diabetes placed him at risk of âsubtle and/or sudden incapacitation, which would place the applicant and others ... at an extreme risk of safety that would be unacceptable.â Id. (citation and quotation marks omitted). The IRS also argued that the applicant bore the burden of establishing as part of his prima facie case that he did not pose a direct threat to himself or others. Id. at 906. In rejecting the IRSâs position, the Seventh Circuit concluded that the applicant need only establish that he was âotherwise qualifiedâ for the criminal investigator job by meeting the jobâs âessential functions.â Id. at 904-05. And, because the IRSâs âsafetyâ qualification standard regarding the medical condition incorporated the âdirect threatâ defense under the ADA, the employer bore the burden of proving that the employee was a direct threat. Id. at 906-07. The employee did not have to disprove the claim that he was a direct threat as part of his prima facie case of discrimination. Id. at 906-07.
The Branham approach works equally well in framing our analysis of UPSâs hearing qualification standard. The employee does not bear the burden to invalidate the employerâs safety-based qualification standard. Nor is the employee required to disprove UPSâs contention that, in order to be safe, the driver must pass the DOT hearing standard â the very qualification standard disputed in this case. See, e.g., Cripe, 261 F.3d at 889-90 (holding that a service requirement that rendered only disabled officers ineligible for specialized assignments could not be applied to them unless it was shown to be job-related and consistent with business necessity, and performance could not be achieved through reasonable accommodation); McGregor, 187 F.3d at 1116 (explaining that the ADA generally requires individualized assessment of whether a qualified individual is able to perform essential functions with or without reasonable accommodation, rather than use of blanket qualification standards, like a â100% healedâ or âfully healedâ policy, as substitute for such individualized determination).
The last step of the âqualified individualâ inquiry requires a plaintiff to show that he is qualified âwith or without reasonable accommodation.â 42 U.S.C. § 12111(8). If the plaintiff proves that he can perform the jobâs essential functions either without a reasonable accommodation or with such an accommodation, then he has met his burden to show he is qualified. See McGregor, 187 F.3d at 1115; Deane v. Pocono Med. Ctr., 142 F.3d 138, 146 (3d Cir.1998) (en banc). Here, the district court did not explicitly discuss reasonable accommodation, although in finding that Oloyede and Habib met the job requisites and could perform the essential function of safe driving, it implicitly found that no accommodation was necessary to meet those baseline requirements for UPS package-car driver applicants.
Because the district court did not analyze whether Oloyede and Habib are âqualified individualsâ capable of performing the âessential functionâ of safely driving a package car in the framework discussed above, nor did it directly undertake the âqualified individualâ inquiry, we remand to the district court for the employees to prove that they are so qualified and for an analysis of reasonable accommodation. Thus, we vacate the district courtâs order denying UPSâs motion for judgment on partial findings under Rule 52(c), and in the alternative to decertify the nationwide class under Rule 23(c)(1) and (d).
D. DISCRIMINATION BECAUSE OF DISABILITY
An employee bears the burden of proving that he was discriminated against âbecause ofâ a disability. 42 U.S.C. § 12112(a). See Costa, 299 F.3d at 857 (âThe employeeâs ultimate burden of proof in all cases remains the same: to show by a preponderance of the evidence that the challenged employment decision was âbecause of discrimination.â). The qualification standard at issue'&emdash;the DOT hearing standard&emdash;is facially discriminatory and falls squarely within the ADAâs definition of discrimination. 42 U.S.C. § 12112(b)(6) (âdiscriminationâ includes using qualification standards, employment tests or other selection criteria that screen out or tend to screen out an individual with a disability or a class of individuals with disabilities).
The district court found, and UPS does not contest, that UPS applies a qualification standard that has the effect of discriminating on the basis of disability and/or screens out the class of employees who cannot pass the DOT hearing standard. See 42 U.S.C. § 12112(b)(6). Such discrimination violates the ADA unless UPS can prove a valid defense to its use of the DOT hearing standard. We therefore turn to UPSâs defense that its reliance on the DOT hearing standard is justified under the business necessity defense.
E. Employerâs âBusiness Neoessityâ Defense
Under the ADA, an employer may assert an affirmative defense to a claim that application of a qualification standard, test or selection criteria discriminates on the
We most recently addressed the ADAâs business necessity defense in Morton, 272 F.3d 1249. There, we held that the ADAâs version of the business necessity defense incorporates concepts from both the traditional Title VII business necessity defense to disparate impact claims and the BFOQ defense in Title VII and Age Discrimination in Employment Act (ADEA) disparate treatment challenges to a proscribed classification. Id. at 1260-63. Today, we revisit our conception of the business necessity defense under the ADA and overrule Motion to the extent that it conflicts with this opinion.
We look first and foremost to the text of the ADA:
It may be a defense to a charge of discrimination under this chapter that an alleged application of qualification standards, tests, or selection criteria that screen out or tend to screen out or otherwise deny a job or benefit to an individual with a disability has been shown to be job-related and consistent with business necessity, and such performance cannot be accomplished by reasonable accommodation, as required under this subchapter.
42 U.S.C. § 12113(a) (emphasis added). To successfully assert the business necessity defense to an allegedly discriminatory application of a qualification standard, test or selection criteria, an employer bears the burden of showing that the qualification standard is (1) âjob-related,â (2) âconsistent with business necessity,â and (3) that âperformance cannot be accomplished by reasonable accommodation.â Id.; see Cripe, 261 F.3d at 890 (holding that the employer bears the burden of proving affirmative defense of business necessity).
Rather than analyzing each of these statutory components of the business necessity defense, Morton looked to other provisions of the ADA (the âqualified individualâ requirement, the âundue hardshipâ defense, and the âreasonable accommodationâ provision of the business necessity defense), and concluded that these provisions âsuggest that Congress must have intended to permit across-the-board exclusion of employees based upon disability-related safety criterion only on a showing somewhat similar to the one used for safety qualifications under the Title VII and ADEA [BFOQ] standard.â Morton, 272 F.3d at 1261-62. We mistakenly concluded that â[i]f a transportation employer can demonstrate neither that all persons who fail to meet a disability-related safety criterion present an unacceptable risk of danger nor that it is highly impractical more discretely to determine which disabled employees present such an unacceptable risk â the Title VII/ ADEA [BFOQ] safety standard requirements' â we would not think that the safety criterion would pro
However, as Morton recognized, âthere is no [BFOQ] defense as such in the ADA.â Id. at 1261. UPS argues, and we agree, that it is improper to import the BFOQ standard into the ADA business necessity defense. Instead, we return to the statutory provisions Congress set out for the ADAâs version of the business necessity defense.
To show âjob-relatedness,â an employer must demonstrate that the qualification standard fairly and accurately measures the individualâs actual ability to perform the essential functions of the job. See Cripe, 261 F.3d at 890; H.R.Rep. No. 101-485(111), at 32 (1990), reprinted in 1990 U.S.C.C.A.N. 445, 454-55;
To show that the disputed qualification standard is âconsistent with business necessity,â the employer must show that it âsubstantially promote[s]â the businessâs needs. Cripe, 261 F.3d at 890 (quoting Bentivegna v. U.S. Depât of Labor, 694 F.2d 619, 621-22 (9th Cir.1982) (interpreting the term âbusiness necessityâ for purposes of the Rehabilitation Act of 1973)). As we observed in Cripe: âThe âbusiness necessityâ standard is quite high, and is not to be confused with mere expediency.â Cripe, 261 F.3d at 890 (citation, quotation marks and alteration omitted). For a safety-based qualification standard, â[i]n evaluating whether the risks addressed by ... [the] qualification standard constitute a business necessity, the court should take into account the magnitude of possible harm as well as the probability of occurrence.â EEOC v. Exxon Corp., 203 F.3d 871, 875 (5th Cir.2000) (noting that â[t]he acceptable probability of an incident will vary with the potential hazard posed by the particular position: a probability that might be tolerable in an ordinary job might be intolerable for a position involving atomic reactors, for exampleâ).
Finally, to show that âperformance cannot be accomplished by reasonable accommodation,â the employer must demonstrate either that no reasonable accom
The ADA does not provide a comprehensive recitation of what is encompassed by a reasonable accommodation, but gives some examples of what the term âmay include.â 42 U.S.C. § 12111(9); 29 C.F.R. § 1630.2(o)(2); see also 29 C.F.R. §§ 1630.2(o)(l) (defining âreasonable accommodationâ to include â[mjodifications or adjustmentsâ to application processes, work environment, and access to benefits and privileges of employment). Among the examples are accommodations such as:
(A) making existing facilities used by employees readily accessible to and usable by individuals with disabilities; and
(B) job restructuring, part-time or modified work schedules, reassignment to a vacant position, acquisition or modification of equipment or devices, appropriate adjustment or modifications of examinations, training materials or policies, the provision of qualified readers or interpreters, and other similar accommodations for individuals with disabilities.
42 U.S.C. § 12111(9). Making a showing as to reasonable accommodation âmay entail adopting an alternative, less discriminatory criterion.â H.R. Rep. 101-485(11), 1990 U.S.C.C.A.N. 303, 354 (1990); accord S.Rep. No. 101-116.
In rejecting UPSâs business necessity defense to application of the DOT hearing standard to' all package-car driving positions, the district court concluded that âUPS has demonstrated neither that all or substantially all deaf drivers pose a higher risk of accidents than non-deaf drivers nor that there are no practical criteria for determining which deaf drivers pose a heightened risk and which do not. Additionally, UPS has not demonstrated that it would be impossible to develop empirical evidence that would be sufficient to make either showing.â This finding does not track the statutory elements of the business necessity defense. Because the district court understandably based its rationale on the then-extant Morton framework, we vacate the finding that UPS violated Batesâs rights under the ADA, vacate the injunction, and remand for proceedings consistent with this opinion. We leave to the district court the determination whether additional evidence is appropriate in light of the significant change in the legal landscape of this case.
Here, UPS offered up the DOT standard as evidence that, for safety purposes, a certain level of hearing is necessary to drive non-DOT-regulated vehicles. According to UPS, there is complete congruity between the positions of driving a DOT-regulated package car (more than 10,000 pounds) and driving a vehicle that weighs a little less. UPS argued that package cars weighing almost five tons do not have operating characteristics similar to passenger cars and pose greater risks than do passenger cars.
To be sure, DOTâs regulation does not apply to the category of vehicles at issue in this case. However, that circumstance does not mean that the standard has no relevance to the employerâs safety argument. UPS is entitled to use as some evidence of its business necessity defense the fact that it relied on a government safety standard, even where the standard is not applicable to the category of conduct at issue. To the extent Morton suggests or is interpreted to the contrary, it is overruled. Cf. Albertsonâs, 527 U.S. at 577, 119 S.Ct. 2162 (holding that an employer is not required to justify its decision to require that employees meet an applicable government safety regulation, even if the government permits waiver of the applicable requirements under an experimental policy). The parallel consideration applies to an employee; that is, an employee may offer as evidence challenging the validity or applicability of a safety standard the governmentâs refusal to adopt such standard to govern the conduct at issue. See, e.g., 53 Fed.Reg. 18042, 18044 (discussing DOTâs rejection of UPSâs attempt to apply DOTâs physical requirements to trucks under 10,000 pounds because (1) smaller trucks and vans have âoperating characteristicsâ more comparable to cars; and (2) smaller trucks and vans pose a lesser âsafety riskâ than large trucks).
Thus, while certainly not dispositive of UPSâs showing of job-relatedness, business necessity or the reasonableness of potential accommodations, UPSâs reliance on the government safety standard with respect to other vehicles in its fleet should be entitled to some consideration as a safety benchmark. Whether, as UPS puts it, ânon-DOT package cars in the UPS fleet share significant risk characteristics with their slightly larger cousinsâ is a factual question of the eongruity between vehicles and drivers in UPSâs non-DOT fleet and those regulated by DOT. See Johnson v. Mayor & City Council, 472 U.S. 353, 371, 105 S.Ct. 2717, 86 L.Ed.2d 286 (1985) (federal rules on mandatory retirement age for firefighters may be relevant to nonfederal firefighters, depending on eongruity of the occupations). We leave it to the fact finder to determine how much weight to give such evidence.
IV. California State Law Claims
A. FEHA
UPS challenges the district courtâs holding that it violated the FEHA, arguing that there is no âqualifiedâ plaintiff under the FEHAâs requirements. UPS also argues that because different defenses are available under the FEHA than the ADA,
The California Supreme Court recently interpreted the FEHA as in accord with the ADAâs requirement that a plaintiff asserting disability discrimination bears the burden of proving that he is a âqualified individual.â Green v. California, 42 Cal.4th 254, 262, 64 Cal.Rptr.3d 390, 396, 165 P.3d 118, 123 (2007). In a supplemental submission to this court, UPS, citing Green, contends that Oloyede â a named plaintiff and class representative of the California subclass â has not met his burden to show that he is a qualified individual within the meaning of the FEHA. UPS argues, as it did with respect to the ADA claims, that Oloyede is not qualified because he is unable to pass the DOT hearing test and he has not otherwise demonstrated that he can drive package cars safely.
As the court in Green explained:
Under the FEHA, it is unlawful â[f]or an employer, because of the race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition ... of any person, ... to bar or to discharge the person from employment or from a training program leading to employment, or to discriminate against the person in compensation or in terms, conditions, or privileges of employment.â [Cal. Govât Code § 12940(a)] Although section 12940 proscribes discrimination on the basis of an employeeâs disability, it specifically limits the reach of that proscription, excluding from coverage those persons who are not qualified, even with reasonable accommodation, to perform essential job duties: âThis part does not prohibit an employer from refusing to hire or discharging an employee with a physical or mental disability ... where the employee, because of his or her physical or mental disability, is unable to perform his or her essential duties even with reasonable accommodations, or cannot perform those duties in a manner that would not endanger his or her health or safety or the health or safety of others even with reasonable accommodations.â (§ 12940, subd. (a)(1).)
Id. at 395, 165 P.3d at 123.
Thus, a plaintiff asserting a disability employment discrimination claim under the FEHA must show that he is a âqualified individual,â meaning that he âcan perform the essential duties of the employment position with reasonable accommodation.â Id. at 397, 165 P.3d at 124 (citing Cal. Govât Code § 12940(a)(1)). The court further observed: âWe see no statutory basis for construing the FEHA any differently from the ADA with regard to a plaintiff employeeâs burden of proof.â Id.
The bases for UPSâs challenge to Olo-yedeâs âqualified individualâ status under the FEHA are identical to the arguments we rejected with respect to his qualified individual showing under the ADA.
After the district courtâs decision, we had occasion to address the interplay be
Because our clarification of the applicable legal standard may bear on the district courtâs analysis, we do not address the finding that UPS violated the FEHA. Instead, on remand, the district court will have ample opportunity to reconsider this issue in light of EEOC v. United Parcel Service, Inc. See 424 F.3d at 1075 (âFEHAâs safety-of-others defense requires an individualized showing that safety would be compromised by each [employeeâs] performance of driving duties,â although â[cjategorical evidence can be relevant.â).
B. Unruh Act
UPS also appeals the district courtâs holding that it violated the Unruh Act. The Unruh Actâs central substantive statutory provision states that
[a]ll persons within the jurisdiction of this state are free and equal, and no matter what their sex, race, color, religion, ancestry, national origin, disability, medical condition, marital status, or sexual orientation are entitled to the full and equal accommodations, advantages, facilities, privileges, or services in all business establishments of every kind whatsoever.
Cal. Civ.Code § 51(b). Section 51(f) of the Unruh Act provides that â[a] violation of the right of any individual under the Americans with Disabilities Act of 1990 shall also constitute a violation of this section.â Id. § 51(f) (citation omitted). Bates contends that because UPS violated the ADAâs employment law provisions, it follows from section 51(f) that UPS also violated the Unruh Act.
Batesâs argument is foreclosed by our recent decision in Bass v. County of Butte, in which we held that the Unruh Act does not incorporate the employment discrimination provisions under Title I of the ADA. See 458 F.3d at 982. We reverse the district courtâs conclusion that the Unruh Act serves as a basis for relief against UPS.
Y. Injunction
The district court stayed enforcement of its injunction pending UPSâs interlocutory appeal. We vacate the injunction and remand to the district court for further proceedings consistent with this opinion.
VACATED IN PART, REVERSED IN PART, AND REMANDED. Each party shall bear its own costs on appeal.
. The original lead plaintiff, Eric Bates, passed the DOT physical examination, includ
. UPS is divided into sixty-one districts, each of which includes various package delivery "centersâ covering different geographical areas.
. David A. Buckingham, U.S. Geo. Survey, Steel Stocks in Use in Automobiles in the United States 1 (2006).
. The district court also certified a subclass of California plaintiffs on the state law claims.
. In the First Amended Complaint, Bates alleged that UPSâs hearing standard constituted discrimination under § 12112(b)(6), set out above, and under § 12112(b)(3), which defines discrimination to include "utilizing standards, criteria, or methods of administration [] that have the effect of discrimination on the basis of disability.â 42 U.S.C. § 12112(b)(3)(A). The district court, and the parties on appeal, focused only on § 12112(b)(6).
. While the plain language of the statute suffices to support our conclusion, it bears not
. The determination of essential functions is a factual finding we review for clear error. See EEOC v. E.I. Du Pont de Nemours & Co., 480 F.3d 724, 730 (5th Cir.2007) (âAppellate review of the jury's determination of the essential functions of [the employee's] job is highly deferential.â).
. It appears from the record (though it is not entirely clear) that neither Oloyede nor Habib was permitted to take UPSâs road test or proceed to driver training because they could not meet the DOT hearing standard.
. The question of reasonable accommodation also arises in the context of the business necessity defense, as discussed below in § III.E.
. We do agree with Mortons conclusion that the ADAâs business necessity defense may be asserted to defend against disparate treatment, disparate impact, and failure to accommodate claims under the ADA. Morton, 272 F.3d at 1260-61 (discussing interplay among 42 U.S.C. § 12112(b)âs various definitions of discrimination and § 12113(a)âs provision of the business necessity defense); see Raytheon Co. v. Hernandez, 540 U.S. 44, 52-53, 124 S.Ct. 513, 157 L.Ed.2d 357 (2003) (recognizing applicability of business necessity defense to both disparate treatment and disparate impact claims under the ADA).
. "If a person with a disability applies for a job and meets all selection criteria except one that he or she cannot meet because of a disability, the criterion must concern an essential, and not marginal, aspect of the job ... [and] be carefully tailored to measure the actual ability of a person to perform an essential function of the job.â H.R.Rep. No. 101-485(111), at 32 (1990), reprinted in 1990 U.S.C.C.A.N. 445, 454-55.
. In Belk, the Eighth Circuit formulated its test as follows:
An employer urging a business necessity defense must validate the test or exam in question for job-relatedness to the specific skills and physical requirements of the sought-after position. Furthermore, an examiner must consider meaningful work-related information, including the type of activity to be performed [and] the level and duration of effort required.
Belk, 194 F.3d at 951 (citation and quotation marks omitted).
. S.Rep. No. 101-116, at 27 ("[T]his legislation prohibits use of a blanket rule excluding people with certain disabilities except in the very limited situation where in all cases physical condition by its very nature would prevent the person with a disability from performing the essential functions of the job, even with reasonable accommodations.â)
. Application of the business necessity defense is fact-intensive and requires close analysis by the district court. We note, however, that the employer is entitled to use a method of selecting drivers that will retain the overall safety record of its driver pool. Any suggestion in the district court's opinion that hearing-impaired drivers may be held to a lower safety standard than hearing drivers is disapproved. Ultimately, a disabled driver bears the burden to demonstrate that he can safely drive a package car.
. UPS also argues that Oloyede is an inadequate class representative because he is unable to bid for a package-car driver position from his current position with UPS. We disposed of this argument with respect to the issue of standing and conclude that the scope of relief, if any, is best addressed by the district court on remand.
. A California Court of Appeal held similarly in Williams v. Genentech, Inc., 42 Cal.Rptr.3d 585 (Cal.Ct.App.2006). On August 23, 2006, the California Supreme Court granted review of Williams, 49 Cal.Rptr.3d 210, 142 P.3d 1185 (2006), but deferred briefing pending the decision in Green v. California. Now that the decision in Green has been issued, if the California Supreme Court reaches a different conclusion in Williams than we did in Bass, our holding here will not be the law of the case. See Dimidowich v. Bell & Howell, 803 F.2d 1473, 1482 (9th Cir.1986) (writing that a federal appellate court "will follow a state supreme courtâs interpretation of its own statute in the absence of extraordinary circumstancesâ); Ingle v. Circuit City, 408 F.3d 592, 594 (9th Cir.2005) (holding that a district court abuses its discretion in applying the law of the case doctrine if "an intervening change in the law [has] occurredâ). Instead, the California Supreme Court decision will be binding on any later proceedings as they relate to Batesâs Unruh Act claim.