Barrett v. Forest Laboratories, Inc.
Megan BARRETT v. FOREST LABORATORIES, INC. and Forest Pharmaceuticals, Inc.
Attorneys
David W. Sanford, Katherine Leong, Katie Mueting, Lubna Aftab Alam, Thomas J. Henderson, Sanford Heisler, LLP, Washington, DC, Deborah Kristine Marcuse, Jeremy Heisler, Michael Douglas Palmer, Sanford Heisler, LLP, New York, NY, Stefanie Roemer, Sanford Heisler, LLP, San Francisco, CA, for Plaintiffs., Gary Drew Friedman, Weil, Gotshal & Manges LLP, New York, NY, for Defendants.
Full Opinion (html_with_citations)
OPINION AND ORDER
Plaintiffs are eleven current or former female employees of Defendants Forest Laboratories, Inc. and Forest Pharmaceuticals, Inc. (collectively, âDefendants,â âForestâ or âthe Companyâ). In their Second Amended Class Action Complaint (âSACâ), Plaintiffs allege primarily that Defendants discriminated against female employees with respect to pay and promotions.
Before the Court is Defendantsâ motion to dismiss each of Plaintiffsâ class claims and the majority of their individual claims. In the alternative to dismissing the class claims, Defendants ask the Court to narrow the putative class.
For the following reasons, Defendantsâ motion is granted in part and denied in part. To summarize: in addition to stating a number of individual claims, the Court concludes that Plaintiffs have plausibly alleged that Defendants have engaged in a pattern or practice of gender-based discrimination with respect to pay and promotions, and that several- of Defendantsâ policies have a disparate impact on women. With one modification, the Court grants Defendantsâ request to narrow the scope of the putative class.
BACKGROUND
The Court draws the following facts from the SAC, all of which it assumes to be true for purposes of this motion. See, e.g., Fahs Constr. Grp., Inc. v. Gray, 725 F.3d 289, 290 (2d Cir.2013).
A. Defendants
Defendant Forest Laboratories, Inc. is âa multi-national corporation engaged in the business of developing, manufacturing, and marketing pharmaceutical products.â (SAC ¶ 22.) Its wholly-owned subsidiary,
B. Plaintiffs
Although many of Plaintiffsâ claims are similarâin that all allege some form of gender-based discriminationâthe Court details briefly the circumstances surrounding each Plaintiffs employment as alleged in the 126-page SAC.
1. Plaintiff Megan Barrett
Defendants hired Barrett in January 2004 as a Territory Representative.
As do all but one other Plaintiff, Barrett identifies a âmale colleagueâ and alleges â[u]pon information and beliefâ that he was paid a higher base salary than she was, âeven though he did not have superior qualifications, and even though Ms. Barrett and he held jobs requiring the same skills, efforts and responsibilities, which they performed under similar working conditions.â (Id. ¶ 30.) She alleges further that the Companyâs policy âof awarding merit increases as a percentage of salaryâ exacerbated this pay disparity. (Id. ¶ 31.)
The thrust of Barrettâs allegations is that her male manager began to mistreat her after she returned from maternity leave in February 2009âdespite her excellent sales recordâand continued mistreating her after she returned from another maternity leave in February 2010. Manager performance assessments, known as âField Trip Evaluationsâ or âFTEâs,â are a significant component of an employeeâs annual review score. (Id. ¶¶ 39^41.) Barrett alleges that when she returned from maternity leave in February 2009, her manager began rating her 2.4 or 2.5 on a 5.0 scaleâthe lowest ratings she had received, and well below the 3.0 or higher she had received before her maternity leave began in âlate 2008.â (Id. ¶40.) These low scores 'âresulted] in a reduction in her bonus compensationâ and rendered Barrett ineligible to apply for promotions. (Id. ¶ 41-42.)
This mistreatment allegedly worsened after Barrett returned from maternity leave in February 2010, which led her to contact a human resources representative after she was issued a disciplinary letter in July 2010. (Id. ¶ 50.) Aside from recommending that she document her concerns, Barrett alleges, the Company did not contact her again or investigate her complaint. (Id. ¶¶ 50-51.) In December 2010, her manager placed her on âprobation,â which required her to undertake certain remedial measures, such as submitting weekly self-assessments. (Id. ¶ 52.)
Barrett asserts that she was singled out for such treatment, alleging that she was the only member of her team placed on probation, even though âother team members had performance numbers lower or similar to hers.â (Id. ¶ 54.) She further alleges that a male team member committed âa serious infraction,â but was not disciplined, and the manager allegedly told this individual âDonât worry, I have your back,â (Id. ¶ 56.) Barrett remained on probation even though she continued to âachieve her sales goalsâ and receive praise from customers. (Id. ¶¶ 55-58.)
2. Plaintiff Lindsey Houser
Defendants employed Houser from June 2003 to November 2010, initially as a Territory Representative and then as a Sales Representative, in several offices in Texas. (Id. ¶ 60.) In addition to identifying male colleagues who were paid a higher base salary despite equivalent qualifications and responsibilities (id. ¶ 63), Houser alleges that she earned certain bonus payments in the quarter before she took maternity leave, but never received those payments because of a Company policy prohibiting representatives âwho are on leave for a period of more than six weeksâ from collecting âbonuses distributed during the leave period.â (Id. ¶ 84).
In her allegations, Houser also describes applying for a promotion while eight months pregnant, asserting that the questions at her interview focused almost exclusively on her pregnancy. (Id. ¶¶ 75-76.) Despite being told by a previous supervisor that management would be âcrazyâ not to promote her, Houser alleges, Defendants instead promoted another employeeâwho also happened to be pregnant, but was not visibly so at the time of the interview. (Id. ¶ 77.)
The SAC further asserts that Houserâs manager began reducing her FTE scores after her return from maternity leave
3. Plaintiff Jennifer Jones
Jones worked as a Territory Representative at the Companyâs Fort Worth, Texas office from January 2008 to September 27, 2010. (Id. ¶ 104.) Like the other Plaintiffs, Jones alleges that a similarly-qualified male, performing a similar job, received a higher base salary. (Id.% 106.) Unlike the nine other Plaintiffs who allege discrimination in base pay, the SAC states precisely how much Jonesâs male comparator was paid. (Id. ¶ 106.)
Jones alleges that her manager engaged in overt sexual harassment at a work function one evening, which included (1) mouthing to another employee, about Jones, âYou need to fuck herâ; (2) remarking to a table of employees, after Jones excused herself to use the restroom, that âhe would âfuck the shit out of herâ â and asking why no one had done so yet; (3) walking Ms. Jones back to her condominium and then propositioning her, an overture that she rejected; and (4) âaggressively urg[ing] her not to say anything to anyoneâ about what happened. (Id. ¶¶ 108-10.)
In the following months, the manager continued to confirm with Jones that she
Over two months after the phone call to the âCompliance Hotlineââduring which time Jones continued to report to her alleged harasser (id. ¶ 120)âan HR director interviewed Jones (id. ¶¶ 121-22). According to Jones, âthe majority of the meetingâ was spent discussing her work performance, and she was ultimately placed on âprobationââdespite being ranked sixteenth in her region out of one hundred sales representatives. (Id. ¶ 121.) Another individual, who also âacted as a witness on Ms. Jonesâ behalf during the investigationâ was also interviewed and placed on âprobation.â (Id. ¶ 122.) Jones resigned from the Company five days after her interview. (Id. ¶¶ 121,123.)
4. Plaintiff Jennifer Seard
Seard served as a Territory and Specialty Sales Representative in the Waco, Texas region from December 2003 until April 2011. (Id. ¶ 124.) She is the only Plaintiff who does not allege that a male comparator received a higher base salary than her for performing the same work. She does allege, however, that she was denied bonus compensation during her two maternity leaves âbased on Forestâs policy of denying bonuses to representatives on leave, even for commissions earned before the period of leave.â (Id. ¶ 126.)
According to Seard, after she unsuccessfully requested a job-sharing position in March 2010, her manager âbegan reviewing Ms. Seardâs assignments with unusual detail,â and told her that she âhad no place at Forest.â (Id. ¶¶ 138-39.) Despite ranking âfirst in salesâ on her team and placing in the top quarter of sales representatives nationwide, her manager gave her some of the lowest FTE rankings she had received since her first year as a sales representative, resulting in lower annual salary increases. (Id. ¶¶ 140-41.) Seard sought advice from the Companyâs HR department; in subsequent discussions with her manager, he would make remarks such as âAre you going to call HR again? I thought we were over that,â and âWhile youâre at it, why donât you just copy HR on it?â (Id. ¶¶ 145^16.) After continued scrutiny from her manager, Seard resigned in April 2011. (Id. ¶¶ 147-52.)
5. Plaintiff Kimberly Clinton
Clinton worked as a Territory Representative in the Companyâs Norwich, Connecticut territory from May 2011 until November 30, 2012. (Id. ¶ 153.) She alleges that her base salary was lower than a male coworkerâs, who performed a similar job and was no more qualified. (Id. ¶ 156.)
Clintonâs allegations reveal a contentious relationship with her coworkers. According to the SAC, Clintonâs male coworkers accused her of forging doctorsâ signatures and falsifying call information; these accusations ultimately resulted in the Company issuing Clinton a âFormal Warning Letter.â (Id. ¶¶ 164, 175.) Clinton believed that these accusations were discriminatory, and alleges that her coworkers made comments to her about being a single parent (id. ¶ 165), and that on one occasion, her manager encouraged her to be more
Clinton further alleges that her manager decreased her FTE scores after she filed the complaint with HR, (Id. ¶ 188.) She eventually resigned on November 30, 2012. (Id. ¶ 192.)
6. Plaintiff Erin Eckenrode
Eckenrode worked as a Territory Representative and Specialty Sales Representative in the Harrisburg and York, Pennsylvania territories from October 2003 until May 2012. (Id. ¶ 48.) She alleges that three male Territory Representatives, from her territory or nearby territories, were paid higher base salaries even though they performed similar jobs and had similar qualifications. (Id. ¶ 198.)
According to Eckenrode, the Company waited almost a decade to promote her, even though she twice applied for a promotion and was the most qualified candidate. (Id. ¶¶ 202-206.) On the first occasion, the Company gave the promotion to a male employee; on the second, it promoted a female employee who, unlike Ecken-rode, was not pregnant. (Id. ¶¶ 202-03, 206.) Eckenrode was promoted on her third tryâdespite the hiring managerâs lament, during Eckenrodeâs interview for the promotion, that âeverybody who works for me gets pregnant.â (Id. ¶¶ 217-18.) Eckenrode further alleges that once she was promoted to Specialty Sales Representative, she still received a lower base salary than two other male Specialty Sales Representatives, even though the other employees had similar responsibilities and were no more qualified. (Id. ¶ 221.) She resigned in May 2012. (Id. ¶ 223.)
7. Plaintiff Julie Smyth
Smyth served as a Territory Representative and Specialty Sales Representative from May 2005 to August 2012 in the Hershey, Harrisburg, and York territories in Pennsylvania, (Id. ¶¶ 224-25.) She alleges that a male colleague, who was also a Territory Representative, received a higher base salary, even though he performed a similar job and did not have superior qualifications. (Id. ¶ 228.) In fact, according to the SAC, this individual did not have any prior sales experienceâwhereas Smyth had three yearsâand he joined the Company four months after Smyth did. (Id.)
Smyth was promoted to Specialty Sales Representative the year after she joined the Company. (Id. ¶ 230.) Several years later, she applied for another promotion, but was unsuccessful; according to the SAC, the position was awarded to a male Specialty Sales Representative who, â[u]pon information and belief,â had a shorter tenure as a Specialty Sales Representative and who had not performed as well as Smyth had in the year prior to the promotion. (Id. ¶ 234.)
Smyth further alleges that after she learned she did not receive the promotion, her manager asked her to step down from her Specialty Sales Representative position, and stated that if she âdid not agree to step down, he would gradually lower her ride-along scores until she received a Letter of Concern that would effectively place her on probation.â (Id. ¶ 238.) He then gave her âthe lowest ride-along score she had received to date.â (Id.) Later that day, Smyth informed her managerâs supervisor about these comments; the manager
After Smyth returned from maternity leave, she inquired about a job-sharing position. (Id. ¶ 247.) She then applied three timesâaccepting a voluntary demotion to Territory Representative based on a supervisorâs representation that such a demotion was necessaryâbut did not receive the job-sharing position. (Id. ¶¶ 247-57.) Smyth âreluctantly resignedâ in August 2012. (Id. ¶ 258.)
8. Plaintiff Marie Avila
Avila served as a Territory Representative in the Companyâs Los Angeles territory from June 2010 through August 2011. (Id. ¶ 260.) As do most of her eo-Plain-tiffs, she alleges that a male colleague was paid a higher base salary, despite holding a similar job and despite being no more qualified. (Id. ¶ 263.)
Avila alleges that after she inquired about job-sharing (so she could care for her two young children), her manager denied her request, remarked âMaybe this job isnât for you if youâre not committed,â and gave her a low FTE score. (Id. ¶¶ 267-269.) Subsequently, her manager twice extended her probationâon which all new employees are placed, typically for only their first six months of employmentâand also set unrealistic sales goals and assigned Avila certain administrative tasks that he did not assign to other employees he supervised. (Id. ¶¶ 270-75.) Avila alleges that before she inquired about job-sharing, she had received only positive feedback (id. ¶ 266), and was ranked in the top five percent of sales representatives nationwide when she re-, ceived this low score (id. ¶ 273). During a subsequent âride-alongâ assessment, the manager asked Avila âif she was planning on having more children.â (Id. ¶ 286.)
Because her manager twice extended her probation, Avila was ineligible to apply for a promotion to a Specialty Representative position that opened in her territory. (Id. ¶ 284.) A male employeeâwho joined the Company at the same time Avila did and, according to the SAC, had a less impressive sales recordâobtained the promotion instead. (Id. ¶ 285.)
Avila resigned from the Company in August 2011, â[d]ue to the continued discrimination and retaliation.â (Id. ¶ 289.)
9. Plaintiff Andrea Harley
Harley served as a Territory Representative in the Companyâs Louisville, Kentucky territory from March 2011 until June 2013. (Id. ¶ 291.) A âmale colleague,â who âwas hired by Forest at the same time as Ms. Harleyâ and who also served as a Territory Representative, was paid a higher base salary, despite being no more qualified and despite performing a similar job. (Id. ¶ 293.)
Harley alleges that her manager initially gave her strong FTE scores, offering positive feedback and telling her that she was âvery coachable.â (Id. ¶ 295.) After she informed him that she was four months pregnant, however, this positive feedback changed. (Id. ¶ 296.) Her manager began to give her lower FTE scores, called her âunteachable,â and reviewed her performance more often than he did that of her team members. (Id. ¶ 296-99, 306.) Eventually, Harley was issued a âLetter of Concern,â which placed her on ninety-day probationâeven though at the time she was ârated number one among the 400 sales representatives in Forestâs âFPL group.â â (Id. ¶ 297.)
Harley complained to the Companyâs HR department about this discriminatory treatment on three separate instancesâin August, September, and October 2012. (Id. ¶¶ 302, 307, 309.) She did not receive
10. Plaintiff Christy Lowder
Lowder was hired as a Specialty Representative in the Companyâs Champaign and Springfield, Illinois territories in September 2010. (Id. ¶ 312.) She identifies three male Specialty Representatives who, â[u]pon information and belief,â were paid higher base salaries than Lowder, even though they were no more qualified and performed the same job. (Id. ¶ 315.)
The SAC alleges that one of Lowderâs managers, Pennington, âhas insinuated that Ms. Lowderâs success in the field is due to sexual favors she performs for clients in exchange for prescriptionsâ and once suggested that she â âfuckâ a doctor.â (Id. ¶ 319-20.) Lowder continues by alleging that she has been subjected to degrading remarks from other Territory Representatives (id. ¶¶ 317, 321), and that Lowderâs supervisor refused to take action after he was notified of this harassment (id. ¶ 322).
The SAC also details Lowderâs unsuccessful attempts to apply for promotions. During one such attempt, her manager informed her that she was ineligible to apply because she was on probation for a disciplinary infraction; according to Low-der, two male employees, who were also on probation for the infraction, were permitted to apply for the promotion and one obtained it (the other obtained a different promotion). (Id. ¶ 327.) On another occasion, her manager noted âthat he was surprised by the strength of Ms. Lowderâs application and asked if her husband had written the applicationâ; Lowder did not receive that promotion, either. (Id. ¶ 328.)
According to Lowderâs allegations, her coworkers were not the only ones who acted inappropriately. The SAC alleges that several of Lowderâs clientsâboth of whom were doctorsâmade sexually explicit comments and, on one occasion, one of the doctors âleaned into [Lowder], pulled her breast out from her shirt, and attempted to lick it.â (Id. ¶¶ 330-32.) When Lowder reported these incidents to her manager, he âcommented how important it was to make a saleâ and insisted âthat he did not wish to know about clientsâ indiscretionâ because âif he heard the full extent of such incidents, he would be obligated to report them to management, which could lead those doctors to stop prescribing Forest products.â (Id. ¶¶ 331-34.) The SAC alleges that Lowder complained about this behavior to HR; although the SAC states that HR initially did not remove the doctors from Lowderâs âcall panelâ (id. ¶ 339), the SAC does not indicate whether the doctors were ultimately removed.
Lowder also alleges that after joining the instant lawsuit, her coworkers stopped communicating with her, and a promotion she applied for was given to another male employee âwith far less experience than Ms, Lowderâs two-and-[a-]half-years at Forest and ten years as a sales representative in the industry.â (Id. ¶¶337, 344.)
11. Plaintiff Tracy Le
Le was hired in March 2012 as a Territory Representative in the Companyâs Southern California region, and continued to work at the Company as of the filing of the SAC. (Id. ¶ 347.) Like most of her co-Plaintiffs, she alleges that a âmale colleagueâ is paid a higher base salary, even though he and Le perform the same job and have comparable qualifications. (Id. ¶ 349.)
The SAC alleges that one of Leâs coworkers, Steve Yeu, would â âaccidentallyâ brush his hands over Ms. Leâs breasts and touch her leg,â and commented âthat Ms.
Although Le reported Geraceâs behavior to HR, at the time of the SAC her probation had been extended again, and she remained ineligible for merit increases, awards, and promotions. (Id. ¶ 375.)
C. Procedural History
Plaintiffs filed their Complaint in the instant action on July 5, 2012, and filed an Amended Complaint on November 5, 2012. (Dkt. nos. 1, 13.) After Defendants moved to dismissâraising arguments similar to those now before the CourtâPlaintiffs sought leave to file the SAC. (Dkt. no. 27.) The Court granted Plaintiffs leave to amend and stated that the SAC âwould be Plaintiffsâ final opportunity to amend to cure any pleading deficiencies.â (Dkt. no. 33.)
The SAC seeks to certify a class (the âClassâ) consisting of â[a]ll female Sales Representatives who are, have been, or will be employed by Forest in the United States from 2008 to the date of judgment. âSales Representativesâ include Territory Sales Representatives, Field Sales Representatives, Medical Sales Representatives, Professional Sales Representatives, Specialty Sales Representatives, Field Sales Trainers, and Regional Sales Trainers.â (SAC ¶ 402.) It also seeks to certify a âPregnancy Sub-class,â defined as âAll female Sales Representatives who are, have been, or will become pregnant while employed by Forest in the United States from 2008 to the date of judgment.â (Id.) Additionally, the SAC seeks to bring an opt-in collective action under the Equal Pay Act of 1963 (âEqual Pay Actâ or âEPAâ) on behalf of âall current, former, and future female Sales Representativesâ who were subjected to unequal pay in one of four enumerated ways.
In total, the SAC asserts seven counts: (1) pay discrimination under Title VII of the Civil Rights Act of 1964 (âTitle VIIâ) on behalf of the Class and all Plaintiffs; (2) promotion discrimination under Title VII on behalf of the Class and all Plaintiffs; (3) pregnancy discrimination under Title VII on behalf of âClass Representatives Ms. Barrett, Ms. Houser, Ms. Eckenrode, Ms.
The Court notes at the outset that the organization of the SAC makes it difficult to understand the exact nature of many of Plaintiffsâ claims. The SAC begins with eighty-nine pages of factual allegations, providing a narrative of each of the eleven Plaintiffsâ experiences while employed by Defendants. (Id. ¶¶ 25-376.) Following these allegations, the SAC lists each of the policies or practicesâapproximately fifteen in totalâthat it asserts are discriminatory. (Id. ¶¶ 377-93.) After class and collective allegations (id. ¶¶ 394-435), the SAC conclusorily recites the elements of each of its seven claims (id. ¶¶ 436^195).
Whether intentionally or not, Plaintiffs have left it to the Court to attempt to sort out which policy or practice corresponds to each claim. Although the task is straightforward for some policies or practices, it is more difficult for others. For instance, as described below, the SACâs allegations about Defendantsâ job-sharing policies could relate to Plaintiffsâ pay discrimination claim, their promotion discrimination claim, their pregnancy discrimination claim, or some combination of the three. The SAC does not specify. At oral argument on the instant motion, Plaintiffs twice acknowledged that aspects of the pleadings in the SAC were âinartful.â (Jan. 16, 2014 Tr. at 27:5, 38:16.) In the Courtâs view, this is an understatement.
In spite of the SACâs somewhat haphazard organization, the Court concludes that its factual allegations state a number of plausible claims.
DISCUSSION
To survive a motion to dismiss, âa complaint must contain sufficient factual matter, accepted as true, to âstate a claim to relief that is plausible on its face.â â Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)). A claim is plausible if âthe plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.â Id. Although the Court accepts as true all the facts alleged in the complaint, it need not credit legal conclusions: âThreadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do . not suffice.â Id. Determining whether the complaint states a plausible claim is a âcontext-specific task that requires the reviewing court to draw on its judicial experience and common sense.â Id. at 679, 129 S.Ct. 1937.
A. Legal Framework for Title VII Claims
Counts One through Three of the SAC assert claims under Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq. These claimsâand, as described below, a closely related claim under the Equal Pay Act in Count Fourâform the heart of the SAC and are the focus of the majority of Defendantsâ arguments on the
Title VII âprohibits employment discrimination on the basis of race, color, religion, sex, or national origin.â Ricci v. DeStefano, 557 U.S. 557, 577, 129 S.Ct. 2658, 174 L.Ed.2d 490 (2009). The law protects employees from âboth intentional discrimination (known as âdisparate treatmentâ) as well as, in some cases, practices that are not intended to discriminate but in fact have a disproportionately adverse effect on minorities (known as âdisparate impactâ).â Id.
1. Disparate Treatment
Disparate treatment is âthe most easily understood type of discriminationâ and was âthe most obvious evil Congress had' in mind when it enacted Title VII.â Intâl Bhd. of Teamsters v. United States, 431 U.S. 324, 335 n. 15, 97 S.Ct. 1843, 52 L.Ed.2d 396 (1977) (âTeamstersâ). To that end, Title VII makes it unlawful for an employer âto fail or refuse to hire or to discharge any individual, or otherwise to discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment, because of such individualâs race, color, religion, sex, or national origin.â 42 U.S.C. § 2000e-2(a)(l). âProof of discriminatory motive is criticalâ in disparate treatment claims, âalthough it can in some situations be inferred from the mere fact of differences in treatment.â Teamsters, 431 U.S. at 335 n. 15, 97 S.Ct. 1843.
Disparate treatment may be shown in one of two ways. An individual plaintiff may prove disparate treatment under the familiar McDonnell Douglas framework
Alternatively, a âgroup of plaintiffs, entitled to be certified as a class, may also initiate a pattern-or-practice suit.â United States v. City of New York, 717 F.3d 72, 82 (2d Cir.2013). Whereas an individual disparate impact claim ârequires an intent to discriminate against one person,â id. at 83, a pattern-or-practice claim requires plaintiffs to show that âdiscrimination was the companyâs standard operating procedureââthe âregular rather than the unusual practice,â Teamsters, 431 U.S. at 336, 97 S.Ct. 1843âand that âthe discrimination was directed at a class of victims,â City of New York, 717 F.3d at 83
A plaintiffs initial burden in a pattern-or-practice case âis heavier in one respect and lighter in another respect than the burden in an individual case.â Id. at 84. It is heavier âin that the plaintiff must make a prima facie showing of a pervasive policy of intentional discrimination,â instead of only âa single instance of discriminatory treatment.â Id.; see also Cooper v. Fed. Reserve Bank of Richmond, 467 U.S. 867, 878, 104 S.Ct. 2794, 81 L.Ed.2d 718 (1984) (â[A] class plaintiffs attempt to prove the existence of a companywide policy, or even a consistent practice within a given department, may fail even though discrimination against one or two individuals has been proved.â). The burden in a pattern-or-practice claim is lighter âin that the plaintiff need not initially show discrimination against any particular present or prospective employeeâ: although âinstances of discrimination against particular employees are relevant to show a policy of intentional discrimination, they are not required,â and âa statistical showing of disparate impact might suffice.â City of New York, 717 F.3d at 84.
As in an individual claim, once plaintiffs make their initial showing in a pattern-or-practice case, the burden of production shifts to the employer to rebut the inference of discrimination, which it may do by attacking plaintiffs statistical evidence or by offering affirmative evidence demonstrating the absence of an intent to discriminate (such as the existence of an affirmative action program). Id. at 85-87. The trier of fact then must determine whether plaintiffs have proven âthe ultimate fact at issueâ: whether the employer has âa policy of intentional discrimination.â Id. at 87.
If plaintiffs successfully establish the existence of a âpattern or practiceâ of discrimination, the Court may fashion classwide injunctive relief. Robinson v. Metro-N. Commuter R.R. Co., 267 F.3d 147, 159 (2d Cir.2001), abrogated on other grounds âą by Wal-Mart Stores, Inc. v. Dukes, â U.S.-, 131 S.Ct. 2541, 180 L.Ed.2d 374 (2011). The litigation then proceeds to a âremedialâ stage, at which individual employees seeking relief are entitled to a presumption âthat any particular employment decision, during the period in which the discriminatory policy was in force, was made in pursuit of that policy. The burden then rests on the employers to demonstrate that the individual applicant was denied an employment opportunity for lawful reasons.â United States v. City of New York, 717 F.3d 72, 87-88 (2d Cir.2013) (quoting Teamsters, 431 U.S. at 362, 97 S.Ct. 1843) (alterations omitted).
2. Disparate Impact
Title VII also prohibits âemployersâ facially neutral practices that, in fact, are discriminatory in operation.â Ricci, 557 U.S. at 577-78, 129 S.Ct. 2658. To establish a prima facie violation, a plaintiff must show that the employer âuses a particular employment practice that causes a disparate impact on the basis of race, col-
To make out a prima facie disparate impact case, a plaintiff therefore must â(1) identify a specific employment practice or policy; (2) demonstrate that a disparity exists; and (3) establish a causal relationship between the two.â Chin, 685 F.3d at 151 (citation omitted). The facially-neutral âpolicyâ must be something more than an isolated incident. See, e.g., Collette v. St. Lukeâs Roosevelt Hosp., 132 F.Supp.2d 256, 277 (S.D.N.Y.2001) (Lynch, /.) (concluding that âone alleged instance of the defendantâs failure to post a jobâ was insufficient âto plead an actionable employment practice or policyâ). The complaint must then plead a connection between the policy at issue and the disparity. See Brown v. Coach Stores, Inc., 163 F.3d 706, 712 (2d Cir.1998) (âAllegations which contend only that there is a bottom line racial imbalance in the work force are insufficient.â).
3. Pleading Standard for an Individual Disparate Treatment Claim
The elements required to make out a prima facie disparate treatment claim are well-established, as is the subsequent burden-shifting analysis. What a disparate treatment plaintiff must allege in her complaint is, however, somewhat of an open question in the Circuit.
Prior to Swierkiewicz v. Sorema N.A., 534 U.S. 506, 122 S.Ct. 992, 152 L.Ed.2d 1 (2002), the Second Circuit required plaintiffs to plead a prima facie case under McDonnell Douglas in order to state a claim. See id. at 510, 122 S.Ct. 992. In Swierkiewicz, however, the Supreme Court reversed the Second Circuit, holding that a plaintiff need not allege a prima facie case of discrimination, but rather need provide only âa short and plain statement of the claim showing that the pleader is entitled to relief.â Id. at 513, 122 S.Ct. 992 (quoting Fed.R.Civ.P. 8(a)(2)). This statement âmust simply give the defendant fair notice of what the plaintiffs claim is and the grounds upon which it rests,â the Court explained. Id. âLiberal discovery rules and summary judgment motions,â the Court continued, are the appropriate means to âdefine disputed facts and issuesâ and âdispose of unmeritorious claims.â Id.
Five years later the Supreme Court handed down Bell Atlantic Corp. v. Twom-bly, 550 U.S. 544, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)âwhich subjected complaints to the familiar âplausibilityâ requirement, id. at 570, 127 S.Ct. 1955âand in it, expressly affirmed the validity of Swierkiewicz, see id. at 569-70, 127 S.Ct. 1955. The Second Circuit is yet to address how district courts should treat Swierkiewicz in the wake of Twombly and Ashcroft v. Iqbal, 556 U.S. 662, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009). Recently, the Circuit noted that it was âskepticalâ of decisions by other courts that âquestioned the continued vitality of Swierkiewicz.â Brown v. Daikin Am. Inc., 756 F.3d 219, 228 & n. 10 (2d Cir.2014). The Circuit in Daikin, however, concluded that the plaintiff had plausibly alleged a Title VII claim under both the pre-Swierkiewicz âprima facieâ standard as well as the Swierkiewicz âfair noticeâ standard and thus declined to
Other courts in this District, before the Second Circuitâs most recent discussion of the issue in Daikin, have treated the elements of a prima facie case as âan outline of what is necessary to render a plaintiffs employment discrimination claims for relief plausibleâ and have âconsidered] these elements in determining whether there is sufficient factual matter in the complaint which, if true, gives Defendant a fair notice of Plaintiffs claim and the grounds on which it rests.â Kassman v. KPMG LLP, 925 F.Supp.2d 453, 461 (S.D.N.Y.2013); accord Graham v. Women in Need, Inc., No. 13 Civ. 07063(LGS), 2014 WL 2440849, at *2 (S.D.N.Y. May 30, 2014); Pahuja v. Am. Univ. of Antigua, 11 Civ. 4607(PAE), 2012 WL 6592116, at *9 (S.D.N.Y. Dec. 18, 2012). This standard reconciles Swierkiewicz, Twombly, and Iqbal, and the Court applies it in this case.
4. Pleading Standard for a Pattern- or-Practice Claim
A similar question arises with respect to pattern-or-practice claims: although the law is clear that a pattern-or-practice claim requires a plaintiff to show a âpervasive policy of intentional discrimination,â City of New York, 717 F.3d at 84, few courts have addressed what a complaint must allege in order to state a plausible pattern- or-practice claim.
Defendants assertâin an argument they repeat with respect to each of Plaintiffs pattern-or-practice claimsâthat Plaintiffs must allege statistics in order to make their claims plausible. (E.g., Defs.â Mem. of Law at 16, 19-20.) To be sure, statistics are an important way of proving pattern-or-practice claims, and Plaintiffs will be unlikely to survive summary judgment without them. See Robinson, 267 F.3d at 158 (âThe heavy reliance on statistical evidence in a pattern-or-practice disparate treatment claim distinguishes such a claim from an individual disparate treatment claim proceeding under the McDonnell Douglas framework.â); 1 Arthur Larson et al, Employment Discrimination § 9.03[1] (2014) (âPlaintiffs have typically depended upon two kinds of circumstantial evidence to establish the existence of a policy, pattern, or practice of intentional discrimination:. (1) statistical evidence aimed at establishing the defendantâs past treatment of the protected group, and (2) testimony from protected class members detailing specific instances of discrimination.â).
None of the cases Defendants cite, however, stand for the proposition that statistics must be pled in the complaint in order to survive a motion to dismiss. Indeed, the weight of the case law from other district courts points in the opposite direction. See E.E.O.C. v. Performance Food Grp., Inc., 16 F.Supp.3d 584, 590, NO. CIV.A. MJG-13-1712, 2014 WL 1760936, at *5 (D.Md. Mar. 11, 2014) (âTo the extent that PFG contends the EEOCâs use of statistical allegations in the Amended Complaint is insufficient to support a
Additionally, at least âwhen there is a small number of employees, anecdotal evidence alone can sufficeâ to survive summary judgment and even to impose liability after a trial. Sidor v. Reno, 95 CIV. 9588(KMW), 1997 WL 582846, at *10 (S.D.N.Y. Sept. 19, 1997); see United States v. City of New York, 713 F.Supp.2d 300, 318 (S.D.N.Y.2010) (concluding, after a bench trial, that anecdotal evidence was sufficient to show a pattern of gender-based discrimination among bridge painters employed by New York Cityâs Department of Transportation); see also Stoler v. Inst. for Integrative Nutrition, 13 Civ. 1275, 2013 WL 6068598, at *7 (S.D.N.Y. Nov. 18, 2013) (âIn class actions such as this, individual and class issues are not readily separated. Evidence of company-wide policies of discrimination strengthen individual discrimination claims and vice versa.â). It follows that allegations of a sufficient number of instances of discrimination may permit a plausible inference that discrimination was the defendantâs standard operating procedure, even if the defendant is a multinational company.
This is not to say that every complaint that alleges instances of discrimination necessarily states a pattern or practice claim. See Gen. Tel. Co. of Sw. v. Falcon, 457 U.S. 147, 159, 102 S.Ct. 2364, 2371, 72 L.Ed.2d 740 (1982) (âIf one allegation of specific discriminatory treatment were sufficient to support an across-the-board attack, every Title VII case would be a potential companywide class action,â). Plaintiffs must still plead facts supporting an inference that discrimination was the Companyâs âstandard operating procedure,â and allegations of statistical disparities will go a long way toward making such a claim plausible. Statistics are not necessary, however, if a complaint pleads other facts that allow the court to infer a pattern of discrimination.
The question, then, is how many instances of discrimination are sufficient to allege a pattern in the absence of statistics. Reviewing a verdict after trial, the Second Circuit explained that â[w]hile the definition of a pattern or practice is not capable of a precise mathematical formulation, more than two acts will ordinarily be required.â Ste. Marie v. E.R. Assân, 650 F.2d 395, 406 (2d Cir.1981) (citations omitted). If, however, âthere were evidence that a policy of discrimination had been adopted, perhaps two or even one confirmatory act would be enough.â Id. Several years later, in Cooper v. Federal Reserve Bank of Richmond, 467 U.S. 867, 879, 104
With these principles in mind, the Court considers the sufficiency of Plaintiffsâ allegations.
B. Count One: Title VII Pay Discrimination
The SAC alleges that Defendants discriminate against women (1) with respect to the determination of their initial base pay and (2) with respect to payment of annual salary increases, bonuses, and other compensation.
1. Discrimination in Base Pay
Plaintiffs assert class pattern-or-practice, disparate impact, and individual disparate treatment claims with respect to base pay.
Pattern-or-Practice Claim,: The SAC alleges that âat the time of hire and in connection with promotions or assignments to different positions, women are disproportionately afforded lower base salaries than men.â (SAC ¶ 377.) Ten of the eleven Plaintiffs identify a male employee and allege that the male colleague was paid a higher base salary, despite being no more qualified and despite holding a job ârequiring the same skills, efforts and responsibilities,â which was âperformed under similar working conditions,â (Id. ¶¶ 30 (Barrett), 63 (Houser), 106 (Jones), 156 (Clinton), 198 (Eckenrode), 228 (Smyth), 263 (Avila), 293 (Harley), 315 (Lowder), 349(Le).)
In Defendantsâ view, the SACâs allegations fail to state a plausible pattern-or-practice claim of discrimination in base pay.
First, Defendants assert that the claim fails because Plaintiffs have only alleged âupon information and beliefâ that their male comparators received higher base salaries. (Defs.â Mem. of Law at 10; Reply at 7.) Of the ten Plaintiffs who allege that a male coworker received a higher base salary, only one PlaintiffâJonesâ specifies her male comparatorâs base salary. (SAC ¶ 106.) The nine other Plaintiffs simply allege âupon information and beliefâ that an identified male, who performed a similar job, was paid more. (Id. ¶¶ 30 (Barrett), 63 (Houser), 156 (Clinton), 198 (Eckenrode), 228 (Smyth), 263 (Avila), 293 (Harley), 315 (Lowder), 349(Le).) According to Defendants, these Plaintiffs have not stated a plausible claim because they have failed to allege the facts supporting their âbelief.â
âWhen a plaintiff sets out allegations on information and belief, he is representing that he has a good-faith reason for bĂ©lieving what he is saying, but acknowledging that his allegations are âbased on secondhand information that [he] believes to be true.â â Pirelli Armstrong Tire Corp. Retiree Med. Benefits Trust v. Walgreen Co., 631 F.3d 436, 442 (7th Cir.2011) (quoting Blackâs Law Dictionary 783 (7th ed.1999)) (alteration in original). The Second Circuit has explained that the âTwombly plausibility standard ... does not prevent a plaintiff from pleading facts alleged âupon information and belief where
Yet Defendantsâ argument in this case is not without force: a plaintiff who invokes the protection of the federal courts by asserting that a male coworker is paid more should have some reason for doing so. Even if the plaintiff cannot allege the precise amount of her coworkerâs salary, she should at least be able to allege the facts that form the basis for her belief that he is paid more, as some courts in this District have required in other contexts. See JBCHoldings NY, LLC v. Pakter, 931 F.Supp.2d 514, 527 (S.D.N.Y.2013) (â[Although a plaintiff may do so [plead facts upon information and belief] where the facts are peculiarly within the possession and control of the defendant or where the belief is based on factual information that makes the inference of culpability plausible, such allegations must be accompanied by a statement of the facts upon which the belief is founded.â (citations omitted)); Prince v. Madison Square Garden, 427 F.Supp.2d 372, 385 (S.D.N.Y.2006) (âHowever, allegations pled on âinformation and belief are proper if âaccompanied by a statement of the facts upon which the belief is founded.â â).
Although the Court is skeptical of Plaintiffsâ inability to allege any facts supporting their belief that the male comparators receive a higher base salary, at this early stage of the case Plaintiffs have the better of the argument. The Court need not decide the appropriateness of pleading âupon information and beliefâ in every circumstance: deciding the plausibility of a complaint is, of course, a âcontext-specific task.â Ashcroft v. Iqbal, 556 U.S. 662, 679, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009). Here, the SACâs pleading âupon information and beliefâ is not fatal to Plaintiffsâ claims because each of the ten Plaintiffs (1) states the amount of her base salary, (2) identifies at least one male comparator, and (3) alleges that the comparator received a higher base salary.
These allegations are sufficient to state a claim under Twombly/Iqbal and Swier-kiewicz. Both Twombly and Iqbal recognize that, on a motion to dismiss, courts must assume as true the factual allegations in a complaint. See Iqbal, 556 U.S. at 678, 129 S.Ct. 1937 (citing Twombly, 550 U.S. at 555, 127 S.Ct. 1955). Here, the allega- âą tion that an identified male coworker receives a higher base salary is a factual allegation, not a legal conclusion. In holding that plaintiffs need not prove a prima facie McDonnell Douglas case to survive a motion to dismiss, the Supreme Court in Swierkiewicz emphasized that a complaint need only âgive the defendant fair notice of what the plaintiffs claim is and the grounds upon which it restsâ and that â[t]his simplified notice pleading standard relies on liberal discovery rules and summary judgment motions to define disputed facts and issues and to dispose of unmeri-torious claims.â 534 U.S. at 512, 122 S.Ct. 992. Here, the allegation that an identified coworker received a higher salary gives Defendants fair notice of the nature of Plaintiffsâ claims. If this assertion is inaccurateâif the comparator is not paid any more than the plaintiffâthe complaint can be disposed of quickly on summary judgment after minimal discovery.
Some cases suggest that when allegations are made on the basis of information and belief, the facts on which the pleaderâs belief is founded also should be alleged. Such supporting allegations seem to be unnecessary and inconsistent with the philosophy of the federal pleading rules,- except when the stricter pleading requirements of Rule 9, which relate to such matters as fraud and special damages, are involved or the matter pleaded in some way casts aspersions on the defendantâs moral character.
Id. § 1224 (footnote omitted). In view of this authority, the Court concludes that Plaintiffsâ allegations made âupon information and beliefâ are sufficient at this stage.
Defendants next assert that Plaintiffsâ claims fail because they have not alleged facts supporting their claim that their male comparators engaged in similar work. This argument is similarly unpersuasive.
Each of the ten Plaintiffs who claims discrimination in base pay alleges that an identified âmale colleagueâ was paid a higher base salary, âeven though he did not have superior qualificationsâ and even though he and Plaintiff âheld jobs requiring the same skills, efforts and responsibilities, which they performed under similar working conditions.â Of the ten Plaintiffs, four allege no additional facts in support of their allegation that their male comparators performed similar work. (SAC ¶¶ 30 (Barrett), 156 (Clinton), 263 (Avila), 349(Le).) Three others add that their male comparators held the same title as they did. (Id. ¶¶ 60-63 (Houser), 291-293 (Harley), 312-15 (Lowder).) Plaintiff Smyth describes specifically why she believed her qualifications were superiorâ noting that her male comparator had been hired four months after her and had no prior sales experience, whereas she had three yearsâ experience (id. ¶ 228)âand Plaintiffs Eckenrode and Jones allege that their comparators held the same title and worked in the same (or a neighboring) territory (id. ¶¶ 104, 106, 109 (Jones), 198, 221 (Eckenrode)).
The Court also concludes that the four Plaintiffs who did not identify their male comparatorâs job title nonetheless state a plausible claim. In Downes v. JP Morgan Chase & Co., 03 Civ. 8991(GEL), 2004 WL 1277991, at *7 (S.D.N.Y. June 8, 2004), plaintiff alleged that her employer âdiscriminated against her because it compensated male employees, who had jobs that required equal skill, effort and responsibility and were performed under similar working conditions as [plaintiffâs] job, at a higher rate than [plaintiff].â Judge Lynch denied Defendantâs motion to dismiss. Citing âthe liberal notice-pleading standards of Rule 8â and âthe Supreme Courtâs recent admonition to heed this standard in employment discrimination casesâ in Swierkiewicz, the Court explained that the âcomplaint gives [defendant] adequate notice of the essence of [plaintiffs] claim: that similarly-situated male employees received higher wages than she did.â Id.
The majority of cases Defendants cite in response are distinguishable because they addressed complaints in which the plaintiff alleged, in conclusory fashion, that male employees received more compensation, without identifying any comparators or providing additional salient facts. (See Defs.â Mem. of Law at 8-9 & n. 11 (citing Frasier v. Gen. Elec. Co., 930 F.2d 1004, 1007-08 (2d Cir.1991); Akinfaderin v. W.P. Carey & Co. LLC, 11 Civ. 3184(LBC), 2011 WL 6961403, at *5 (S.D.N.Y. Dec. 28, 2011); Emmons v. City Univ. of New York, 715 F.Supp.2d 394, 413-14 (E.D.N.Y.2010); Black v. New York Univ. Med. Ctr., 94 Civ. 9074(SS), 1996 WL 280802, at *4 (S.D.N.Y. May 24, 1996)).) Indeed, one of the cases Defendants cite suggests that the plaintiffs failure to âoffer a male counterpart with a higher salaryâ was one reason why she had failed to state a claim. Bass v. World Wrestling Fedân Entmât, Inc., 129 F.Supp.2d 491, 503 (E.D.N.Y.2001). Although the Court does not hold that plaintiffs must necessarily identify a male comparator to state a plausible [Title VII wage discrimination claim, doing so will certainly strengthen the complaintâs allegations.
Finally, Defendants argue that Plaintiffsâ allegations of unequal base salaries fail because ânothing in these allegations suggests intentional gender-based discrimination.â (Defs.â Reply at 7.)
It is well-established that a showing that female employees were treated âless favorablyâ than âsimilarly situatedâ male employees gives rise to an inference of discrimination. E.g., Brown v. Daikin Am. Inc., 756 F.3d 219, 229-30 (2d Cir.2014). Factual allegations demonstrating that this practice was sufficiently âpervasive,â City of New York, 717 F.3d at 84, would therefore seem sufficient to state a plausible pattern-or-practice claim of intentional discrimination.
Even assuming the disparate treatment itself is insufficient, the SAC contains additional circumstantial evidence of intentional discrimination. Several of the Plaintiffs allege that the Companyâs Human Re
These comments may well be the result of a few âbad apples,â and ultimately Plaintiffs will need to prove that the disparities in base pay occurred âpursuant to a deliberate effort to pay women less than men because they are women.â E.E.O.C. v. Madison Cmty. Unit Sch. Dist. No. 12, 818 F.2d 577, 588 (7th Cir.1987); see also Brennan v. City of White Plains, No. 97 Civ. 2709(RWS), 1998 WL 75692, at *9 (S.D.N.Y. Feb. 20, 1998) (âThere must be an intent to discriminate and the intent must encompass an actual desire to pay âą women less than men because they are women.â). For purposes of a motion to dismiss, however, Plaintiffsâ allegations that a number of managers made sexist comments, coupled with allegations that the Company repeatedly ignored complaints of harassment and discrimination, permits at least a plausible inference that the disparities in base pay occurred as the result of intentional discrimination. Plaintiffs have therefore pled a plausible pattern-or-practice claim with respect to discriminatory base pay.
Disparate Impact Claim: As described above, to make out a disparate impact claim, Plaintiffs must identify a facially-neutral employment practice or policy, demonstrate that a disparity exists on the basis of gender, and show a causal connection. Chin v. Port Auth. of New York & New Jersey, 685 F.3d 135, 151 (2d Cir.2012). The SAC alleges that â[o]n information and belief, the manner in which Forest management determines the base salary to be paid to employees, including the criteria considered and weighted, disproportionately adversely affects and has a disparate impact upon women.â (SAC ¶ 377.)
Defendants respond largely by reiterating their disparate treatment argumentâ that allegations made âupon information and beliefâ are insufficient to state a plausible claim. For the reasons described above, the Court rejects that argument, as it does Defendantsâ argument that Plaintiffs cannot state a plausible claim without alleging statistics.
Nor is it problematic that the SAC identifies one practice in support of both a pattern-or-practice disparate treatment claim and a disparate impact claim. Of course, were the case to go to trial, the manner in which the Company assigns base salaries cannot support both claims:
Individual Claims: As described above, ten of the eleven Plaintiffs allege that they received a lower base salary than a similarly-situated male employee. (Id. ¶¶ 30 (Barrett), 63 (Houser), 106 (Jones), 156 (Clinton), 198 (Eckenrode), 228 (Smyth), 263 (Avila), 293 (Harley), 315 (Lowder), 349(Le).) In addition to forming the basis for the Title VII pattern-or-practice claim, these allegations plausibly state individual claims of disparate treatment with respect to pay. See, e.g., Woodard v. TWC Media Solutions, Inc., No. 09-CV-3000(BSJ)(AJP), 2011 WL 70386, at *13 (S.D.N.Y. Jan. 4, 2011) (noting that a Title VII pay discrimination claim survives summary judgment if plaintiff produces âproduce some evidence to show that she was âsubstantially similarâ to a member outside of her protected class who received more compensationâ). The eleventh Plaintiff, Seard, does not make any allegations related to her base salary.
Plaintiffs have thus plausibly alleged pattern-or-practice and disparate impact claims with respect to base pay, and ten of the eleven Plaintiffs (all but Seard) have stated individual base pay discrimination claims.
2. Discrimination in Other Compensation
In addition to alleging discrimination in the setting of their base salaries, Plaintiffs allege that Defendants discriminated against them with respect to their bonuses, annual salary increases, and other compensation.
Pattern-or-Practice Claim: The SAC describes two ways in which Defendants allegedly effected this discrimination: âForestâs predominantly male managers disproportionately rate women lower than men on th[eir] performance assessments, resulting in disproportionately lower annual ratings for women and thus relatively lower annual merit increases for womenâ (SAC ¶ 378), and managers âdisproportionately place [female employees] on probation, resulting in disproportionately fewer awards and accompanying compensation than womenâs objective sales performance would meritâ (id. ¶ 382). The SAC notes in particular that âForest management has a practice of disproportionately lowering the performance reviews of women who inquire about or seek to participate in the job-sharing program,â and of âlowering the performance reviews of women who have become pregnant and who have had children, after their return from maternity leave.â (Id. ¶¶ 379-80).
The SAC also asserts that the âinclusion of or weight given by Forest policy to manager-supplied performance assessments and FTEs [âField Trip Evaluationsâ], in comparison to objective sales performance, has a disparate impact on the performance reviews and merit increases of women that is not justified by business necessity.â (Id. ¶ 378.) Similarly, the SAC alleges that Defendantsâ emphasis on âmanager-supplied performance assessmentsâ has a âdisparate impact on womenâ with respect to âawards and accompanying
These latter two allegations, though styled as disparate impact claims, are really claims of disparate treatment. The gravamen of the SAC on this point is that managers discriminated against women by giving them unjustifiably low performance evaluations and placing them on probation without reason for doing so, which resulted in reduced compensation. Although, according to the SAC, Defendantsâ policy of giving weight to these discriminatory assessments â caused the discrimination, the real source of the disparity is the managersâ allegedly discriminatory reviews and probation decisions. Accepting the SACâs factual allegations as true, this is not a situation where Defendants followed a facially-neutral practice that created a disparity; this is a situation in which managers intentionally treated male and female employees differently. That is a disparate treatment claim. See Maresco v. Evans Chemetics, Div. of W.R. Grace & Co., 964 F.2d 106, 115 (2d Cir.1992) (dismissing disparate impact claim because the âfacially neutral employment practice that [plaintiff] invokes as the premise for disparate impact liability coalesces with the discharge which he claims to have constituted disparate treatmentâ). The Court therefore considers whether the SAC plausibly alleges a pattern-or-practice of gender-based discrimination with respect to bonuses, salary increases, and other compensation.
Four Plaintiffs allege that their bonuses or annual raises were reduced as a result of unjustifiably low performance assessment scores. Plaintiffs Barrett and Houser allege that they began receiving low scores only after they returned from maternity leave. (SAC ¶¶ 40 (Barrett), 94 (Houser).)
Standing alone, these five instances of discrimination might be insufficient to sustain a plausible pattern-or-practice claim.
Apart from these five instances of discrimination in bonuses and annual raises, the SAC includes allegations by ten of the eleven Plaintiffs that an identified male comparator received a higher base salary for performing the same work;
Disparate Impact Claim: Although several of the policies the SAC alleges have a disparate impact are more appropriately construed as allegations of disparate treatment, one such policy is properly considered under a disparate impact theory: Forestâs alleged policy âof refusing to pay earned bonuses to employees on leave for six weeks or more,â which, according to the SAC, âdisproportionately disqualifies women from receiving bonuses earned prior to their maternity leave.â (SAC ¶ 381.)
Plaintiff Houser alleges that â[a]ccord-ing to Forestâs pay policies, representatives who are on leave for a period of more than six weeks are not entitled to collect bonuses distributed during the leave period even though bonuses are paid out based on performance during the preceding quarter.â (Id. ¶ 84.) Houser further alleges that â[a]s a result of this policy,â she âwas not eligible to receive bonus payments when she went out on maternity leaveâ from July to November 2009. (Id. ¶¶ 80, 84.) Plaintiff Seard alleges that she âwas denied bonus compensation during her two maternity leavesâfrom March to June 2007 and from March to June 2009â based on Forestâs policy of denying bonuses to representatives on leave, even for commissions earned before the period of leave.â (Id. ¶ 126.)
Defendants assert that âthe SAC simply does not support a plausible finding that this purported policy of denying earned bonuses to employees on leaves of absence for more than six weeks actually existsâ because four PlaintiffsâBarrett (id. ¶ 33), Eckenrode (id. ¶ 195), Smyth (id. ¶¶ 246, 254), and Lowder (id. ¶¶ 335-36)âalso
There is an important difference, however, between an employee failing to allege that she was denied a bonus while on leave and affirmatively alleging that she was paid a bonus while on leave. If the four Plaintiffsâ allegations fell into the latter category, Defendantsâ argument would have more force, and the Court would need to resolve whether the existence of such a policy is plausible in the face of contradictory allegations. Here, although one might have expected Barrett, Eckenrode, Smyth, and Lowder to allege that they were denied an earned bonus while on leave if in fact their bonuses were withheld, nothing in their allegations contradicts the allegations of Houser and Seard.
Both Houser and Seard allege that they were denied their earned bonuses while on leave pursuant to a Company policy that precludes payment of bonuses even for work performed prior to leave. (Id. ¶¶ 84, 126.) The Court credits those nonconclu-sory factual allegations, as it must on a motion to dismiss. See Iqbal, 556 U.S. at 678, 129 S.Ct. 1937. The SAC also alleges the existence of a significant disparity caused by this policy. (See SAC ¶ 381 (âBecause maternity or parental leave taken by women is normally greater than six weeks, the policy disproportionately disqualifies women from receiving bonuses earned prior to their maternity leave.â).) From these allegations, the Court concludes that the SAC plausibly states a claim that the Companyâs policy of not paying earned bonuses to employees on leave for greater than six weeks has a disparate impact on women.
Individual Claims: Plaintiffs Barrett, Houser, Seard, Le, and Jones allege that they received reduced bonuses, raises, or other compensation as a result of unjustifiably low performance evaluations or extended probationâBarrett and Houser after they returned from maternity leave (SAC ¶¶ 40, 94), Seard after she inquired into job-sharing opportunities (id. ¶ 137), and Le and Jones after they complained about sexual harassment (id. ¶¶ 121, 358).
The Court has already concluded that Barrett, Houser, Le, and Jones stated plausible pay discrimination claims with respect to their base salary. With these allegations, Seardâthe only Plaintiff who did not allege that she received a lower base salary than a male comparatorâhas plausibly alleged a pay discrimination claim based on her allegation that discrimi-natorily low ratings caused her to receive a reduced annual salary increase.
To summarize: Plaintiffs have plausibly alleged (1) a pattern or practice of pay discrimination (both with respect to base salaries as well as bonuses and annual raises), (2) a disparate impact claim, based on the method by which Defendants set base salaries and the alleged policy of denying earned bonuses to employees on leave for greater than six weeks; and (3) eleven individual disparate treatment Title VII pay claims.
In addition to asserting individual promotion discrimination claims, the SAC articulates several companywide practices that it alleges gives rise to pattern-or-practice disparate treatment or disparate impact claims. (SAC ¶¶ 383-89.)
Although Defendants reiterate, by way of a footnote, their arguments from Count I that Plaintiffsâ allegations are insufficient to form a pattern or practice (see Defs.â Mem. of Law at 40 n. 62), their primary argument with respect to Count II focuses on Plaintiffsâ individual claims. Specifically, Defendants assert that several of the Plaintiffs âfail to allege any open position in which they were even interested,â and that those Plaintiffs who do identify such a position âfail to allege the requirements for any of these positions, let alone facts about their own background and qualifications demonstrating that they satisfied those requirements.â (Id. at 39-40.)
The Court therefore begins by considering whether Plaintiffs have plausibly alleged any individual failure-to-promote claims.
1. Individual Claims
Ten of the eleven Plaintiffs allege that gender-based discrimination precluded them, in some way, from being promoted.
To establish a prima facie Title VII failure-to-promote claim, a plaintiff must show: â(1) she is a member of a protected class; (2) she applied and was qualified for a job for which the employer was seeking applicants; (3) she was rejected for the position; and (4) the position remained open and the employer continued to seek applicants having the plaintiffs qualifications.â Petrosino v. Bell Atl., 385 F.3d 210, 226 (2d Cir.2004). In Brown v. Coach Stores, Inc., 163 F.3d 706, 709-11 (2d Cir.1998), the Second Circuit affirmed the dismissal of a plaintiffs complaint because she failed to allege âthat she made some specific effort to apply for a particular position or positions.â Id. at 710. The Circuit noted that even if plaintiff had adequately alleged that the defendant employerâs discriminatory practices would have made an application futile, plaintiffs complaint would still be dismissed because she âfailed to allege the specific positions to which she would have applied had the alleged discriminatory practices not existed.â Id. at 711.
Brown was decided before the Supreme Courtâs decision in Swierkiewicz, which held that a complaint âneed not plead a prima facie case of discriminationâ to survive a motion to dismiss. 534 U.S. at 515, 122 S.Ct. 992, At a minimum, Swierkiewicz
Although this Court need not determine the precise relationship between Brown and Swierkiewicz, the Court concludes that these three Plaintiffsâ general assertions that they were ineligible to apply for promotions are insufficient to state plausible failure-to-promote claims. Plaintiffs have not alleged that they were interested in a promotion or that there was an open position to which they could have (or would have) applied.
Plaintiff Barrett also alleges that her low scores rendered her ineligible for promotions, but adds that on one occasion a Regional Sales Trainer (âRSTâ) told Barrett and her manager that Barrett would perform the RST job well. (SAC ¶ 45.) Her manager later stated to Barrett âwhile rolling his eyes and shaking his head, Youâre not interested in becoming an RST, are you?â â (Id.) According to Barrett, â[b]y his words and actions,â her manager âclearly expressed to Ms. Barrett that he would not approve nor support her in seeking a promotion at Forest.â (Id.)
By contrast, four other Plaintiffs identify a particular opening and allege either that they applied for that position and were rejected (id. ¶¶ 202-03 (Eckenrode), 232-34 (Smyth)), or that they would have applied for the position but were precluded from doing so (id. ¶¶ 284 (Avila), 327 (Lowder)). Another Plaintiff, Clinton, alleges that she discussed a particular opening with her manager, that he emphasized that she was competing against âtwo very well qualified candidatesâ who were both male, and that, based on his statements, she âunderstoodâ that he âwas clearly advising her not to apply.â (Id. ¶ 161.)
As noted above, Defendants assert that these Plaintiffsâ claims must be dismissed because they âfail to allege the requirements for any of these positions, let alone facts about their own background and qualifications demonstrating that they satisfied these requirements.â (Defs.â Mem. of Law at 39.) They rely principally on then-Judge Sotomayorâs decision in Cruz v. Coach Stores, Inc., 202 F.3d 560, 565 (2d Cir.2000). In that case, Plaintiff, who was a secretary for the leather goods company, alleged that she was promised that she would be promoted to a new âcoordinatorâ position which the company was to create, that she never received this promotion, and that the company instead hired two non-minority individuals as âfinancial analystsâ and gave them many of the analytical responsibilities the company had previously entrusted to her. Id. at 565. In affirming the District Courtâs dismissal for failure to state a claim, the Circuit concluded that the allegations in the complaint failed to support âthe inference that Cruz was fit for the positionâ because the complaint âeontain[ed] no information about either the responsibilities of a financial analyst or Cruzâs employment skills.â Cruz v. Coach Stores, Inc., 202 F.3d 560, 566 (2d Cir.2000). Absent an allegation that plaintiff âwas qualified for the job,â and âabsent any claim that she applied for the financial analyst position,â the Circuit continued, plaintiffs complaint âfail[ed] to state a prima facie case for failure to promote.â Id.
As with the Circuitâs decision in Brown, Cruz must be considered in light of Swier-kiewicz, which held that plaintiffs were not required to plead a prima facie case in order to survive a motion to dismiss. Even assuming that the holding of Cruz remains fully intact, however, the allegations of the five Plaintiffs described above satisfy any requirements Cruz imposes. Three of the Plaintiffs describe why they were more qualified than the male who received the promotion, by reference to prior experience, length of service at the Company, sales performance, or some combination of the three. (SAC ¶¶ 201-02 (Eckenrode), 234 (Smyth), 285 (Avila).) Plaintiff Lowder alleges that â[w]ith more than eight years in the field, including relevant experience training representatives when she worked at pharmaceutical companies Schering Plough and Abbot Laboratory, Ms. Lowder believed she was
Plaintiff Clinton describes the duties of the Field Sales Trainer position she sought, notes that she worked as a sales representative for a different pharmaceutical company for two-and-a half years, explains that she joined Forest âwith the intention of using her past experience in the industry to advance into management,â and then states that â[accordingly, Ms. Clinton expressed interest in the Field Sales Trainer positionâ to her manager, (SAC ¶ 161.) Although a closer question, these allegations also permit the inference that Clinton was qualified for the position.
The final Plaintiff, Houser, alleges that she applied for a promotion for which she was well qualified; that she âwas and appeared eight months pregnantâ during the interview; and that the interviewers âasked her a number of probing questions regarding her pregnancyâ but âdid not ask her any questions about her presentation or business strategy.â {Id. ¶¶ 73-76.) Houser then alleges that another female employee was selected for the position who âwas-also pregnantâ but âdid not appear to be pregnant at the time of the interview.â {Id. ¶ 77.) Under the principles discussed above, these allegations are sufficient to state a claim for discrimination. This claim, however, is appropriately considered under Count III, which alleges pregnancy discrimination.
To summarize: ten of the eleven Plaintiffs allege that, under circumstances suggesting discrimination, they did not receive a promotion. Four of those ten claims are dismissed because Plaintiffs do not identify a specific position or state that they were even interested in such a position. Of the remaining six Plaintiffs, five state plausible gender-based failure-to-promote claims, and the sixth is addressed under the SACâs pregnancy discrimination claims.
2. Pattern-or-Practice Claim
The next question is whether, in addition to these individual claims, Plaintiffs have plausibly alleged that it was Defendantsâ âstandard operating procedureâ to discriminate on the basis of gender with respect to promotions. Teamsters, 431 U.S. at 336, 97 S.Ct. 1843. At this pre-discovery stage, Plaintiffsâ allegations are sufficient to state a plausible pattern-or-practice claim.
The SAC plausibly alleges that managers effected this discrimination by âdisproportionately pre-select[ing] men to approve and support for promotionâ and by âdisproportionatelyâ rating women âlower than men on manager-supplied performance assessments and FTEs,â thereby rendering them ineligible for promotions. (SAC ¶¶ 382-83.)
In particular, five Plaintiffs allege that they applied for a promotion but were rejected in favor of a less-qualified male, or that they expressed interest in a specific opening but were prohibited from or warned against applying. Plaintiff Low-der alleges that her manager told her she was ineligible to apply for a certain promotion because she was on probation âfor having too much alcohol on the receipt for a work function with doctors.â (Id ¶ 327.) She further alleges that two male employees were also on probation âfor this infraction but were permitted to apply,â and that one of these employees received the promotion. (Id) According to Lowder, an HR director later told her that she should not have been precluded from applying for this promotion. (Id ¶ 341).
Plaintiff Eckenrode, meanwhile, alleges that a less-qualified male employee was awarded a promotion to which she applied, and that she later learned from a colleague âthat it was well known at Forest that the hiring managerâ had âalready decidedâ to promote the male employee âeven before Ms, Eckenrode interviewed.â (Id ¶¶ 202-OS.) Plaintiff Smyth alleges that shortly before she was to interview for a promotion, her manager told her that the âtiming was not rightâ for her to seek the position. (Id ¶ 233.) The position was awarded to one of Smythâs male coi-leagues, who allegedly âhad inferior sales performance to Ms. Smyth the year prior to the interview, as well as a shorter tenure as a specialty representative.â (Id) Plaintiff Clinton alleges that, notwithstanding her qualifications, her manager indirectly âadvis[ed] her not to applyâ for a promotion, for which two male employees had also applied. (Id ¶ 161.) Plaintiff Avila alleges that, despite being informed by one of her managers that she âwas performing according to Company standards,â another manager placed her on probation, which rendered her ineligible to apply for a Specialty Representative position that had opened in her territory. (Id ¶¶ 281, 284.) A male coworker, allegedly .less qualified, received the promotion instead. (Id ¶ 285.)
In addition to these five Plaintiffs who allege that they applied for or expressed interest in a specific promotion, four other Plaintiffs allege that they were prohibited generally from applying for promotions. (SAC ¶¶ 53 (Barrett), 121 (Jones), 296, 305 (Harley), 359, 375(Le).) For the reasons described above, the Court construes Second Circuit law as requiring a plaintiff to allege a specific opening in order to state a plausible individual failure-to-promote claim, and therefore concludes that these individuals have not stated individual claims.
These four Plaintiffsâ allegations are nonetheless relevant to assessing whether Defendants engaged in a pattern or practice of promotion discrimination. As the Second Circuit explained in City of New York, 717 F.3d at 84, the focus in pattern- or-practice cases is on whether there existed âa pervasive policy of intentional discriminationâânot on whether an individual
3. Disparate Impact
The SAC also alleges that Defendants have a policy of limiting job-sharing to âthe lowest sales representative positionâTerritory Sales Representativeââ and that this policy has a disparate impact on women because it requires âwomen in higher level positions to abandonâ those positions âand be demoted to that lower position as a precondition to participateâ in the job-sharing program. (Id. ¶ 389.)
Plaintiff Smyth and Seard allege that they voluntarily agreed to be demoted to the Territory Representative position in order to be eligible for job-shares.
Finally, Plaintiffs have plausibly alleged the third element of a disparate impact claim: that a âcausal connectionâ exists between the employerâs policy and the disparity, see id. Drawing on âjudicial reasoning and common sense,â Iqbal, 556 U.S. at 679, 129 S.Ct. 1937, it is plausibleâ indeed, much more than just plausibleâ that women are more likely to assume childcare duties, and thus that they will be disproportionately less likely to obtain management positions as a result of this policy, which requires them to take a demotion to be eligible for job-sharing.
To survive later stages of the litigation, Plaintiffs will of course be required to provide more compelling proof that (1) a disparity exists and (2) this job-sharing policy is the cause. If Plaintiffs are able to make out this prima facie case, Defendants will have the opportunity to show that this policy is âjob related for the position in question and consistent with business necessity.â 42 U.S.C. § 2000e-2(k)(l)(A)(i); see also Andrews v. State of Ohio, 104 F.3d 803, 807 (6th Cir.1997) (concluding that a district court erred by assessing, on a motion to dismiss, whether certain requirements were job-related or
To summarize: Plaintiffs Harley, Jones, Le, and Barrett have failed to state individual promotion discrimination claims, because they have not identified a job opening or alleged that they were even interested in a promotion. Plaintiffs Ecken-rode, Smith, Avila, Lowder, and Clinton plausibly allege failure-to-promote claims, and Plaintiff Houserâs claim is construed as one for pregnancy-based promotion discrimination and is considered in the following section.
Additionally, Plaintiffs have plausibly alleged that â Defendants engaged in a pattern or practice or promotion discrimination, and that Defendantsâ policy of limiting job-sharing to the âlowestâ sales representative position has a disparate impact on women with respect to promotions.
C. Count III: Pregnancy Discrimination
Title VII makes clear that âdiscrimination based on a womanâs pregnancy is, on its face, discrimination because of her sex.â Newport News Shipbuilding & Dry Dock Co. v. E.E.O.C., 462 U.S. 669, 684, 103 S.Ct. 2622, 77 L.Ed.2d 89 (1983). Specifically, the Pregnancy Discrimination Act clarified that discrimination âon the basis of sexâ includes discrimination âbecause of or oh the basis of pregnancy, childbirth, or related medical conditions; and women affected by pregnancy, childbirth, or related medical conditions shall be treated the same for all employment-related purposes ... as other persons not so affected but similar in their ability or inability to work.â 42 U.S.C. § 2000e(k).
The SAC asserts five individual claims of pregnancy discrimination, as well as a pattern-or-practice claim and disparate impact claim based on pregnancy.
1. Individual Claims
Plaintiffs Barrett and Houser allege that after they returned from maternity leave, their managers began to give them low FTE scores, resulting in a reduction in their bonus compensation and annual salary increase, (SAC ¶¶41 (Barrett), 94-95 (Houser).) Additionally, Houser alleges that when she was eight months pregnant, she was passed over for a promotion, in favor of a less-qualified female employee (who also happened to be pregnant, but who âdid not appear to be pregnant at the time of the interviewâ). (Id. ¶¶ 73-78.) Houser further alleges that her manager remarked âthat he was not going to hire women anymore because they all get pregnant and go on maternity leaveâ (id. ¶ 83), and Barrett alleges that she was treated differently from similarly-situated male employees with respect to disciplinary actions (id. ¶ 53). By identifying an adverse action taken in relationship to their pregnancy, these Plaintiffs have provided âa short and plain statement of the claim showing that the pleader is entitled to reliefâ and given Defendants âfair noticeâ of their claim âand the grounds upon which it rests.â Swierkiewicz v. Sorema N.A., 534 U.S. 506, 512, 122 S.Ct. 992, 152 L.Ed.2d 1 (2002). Their managersâ reasons for taking these actionsâlegitimate or otherwiseâare appropriately addressed after discovery. Both Plaintiffs state plausible pregnancy discrimination claims.
Similarly, Plaintiff Eckenrode alleges that, while pregnant, she applied and was passed over for a promotion in favor of a less-qualified female employee who was not pregnant. (Id. ¶¶ 205-06.) She also
The two remaining Plaintiffs, Smyth and Harley, do not state plausible pregnancy discrimination claims. Smyth alleges that, shortly after returning from a two-to-three-month maternity leave, she accepted a voluntary demotion to a Territory Sales Representative position, based on her managerâs representation that doing so would permit her to participate in the Companyâs job-sharing program. (Id. ¶¶247-48.) This move, she asserts,'resulted in decreased quarterly bonuses and annual raises. (Id. ¶¶248, 252-53.) Although, as explained in the following sections, Plaintiffs have stated a disparate impact claim based on this job-sharing policy, nothing in Smythâs allegations supports a disparate treatment claimâthat is, that she was treated differently because of her pregnancy.
Plaintiff Harley alleges that she began receiving low FTE scores after she disclosed he pregnancy to her manager, and that she was ultimately placed on probation as a result, rendering her ineligible for a promotion. (SAC ¶¶ 296-99, 305.) Because she does not identify any opening or allege that she expressed interest in a promotion, however, she fails to state a plausible failure-to-promote claim.
2. Pattern or Practice Claim
Plaintiffs allege that Defendants have âa practice of discriminating against women who become pregnant and have children in the administration and scoring of performance reviews and, as a result, in annual merit increases and decisions to place employees on probation.â, (SĂC ¶ 379.) This âpractice,â the SAC continues, âdisproportionately disqualifies or disadvantages women interested in promotions.â (Id. ¶ 386.)
As discussed with respect to the pattern-or-practice claim of discrimination with respect to bonuses and annual raises, see supra Section B.2, standing alone these instances of discrimination would likely be insufficient to state a plausible pregnancy discrimination claim These allegations must be considered, however, in connection with the SACâs broader claims of gender-based pay and promotion discriminationâeach of which the Court has concluded is plausible. Construed in this fashion, discrimination against pregnant women may plausibly be one more way in which Defendants carried out the broader practice of gender-based discrimination.
3. Disparate Impact Claim
The SAC also alleges that âForest uses Presidentâs Club rankingsâa quarterly, nationwide classification system that ranks sales representatives according to the percentage of sales quotes they meetâto determine a sales representativeâs eligibility for payouts, bonuses, salary increases, promotions, and transfers.â (SAC ¶ 86.) The Presidentâs Club rankings are also used âto justify disciplinary action leading to termination.â (Id.)
Plaintiffs Barrett and Houser allege that, consistent with Forest policy, their Presidentâs Club rankings were not adjusted for the time they spent on maternity leave, which resulted in decreased bonus compensation and annual raises. (Id. ¶¶ 36-38 (Barrett), 87-88 (Houser).)
Defendants respond by asserting that Plaintiffsâ disparate impact claim fails because they have not alleged that pregnant women were treated differently from non-pregnant employees who took comparable time off.
The partiesâ competing arguments highlight a tension between the language of the Pregnancy Discrimination Act (âPDAâ) and well-established Title VII principlesâ a tension that, in the words of one commentator, has created âunrest, and even some outright conflict, in the case law.â Christine Jolls, Antidiscrimination and Accommodation, 115 Harv. L.Rev. 642, 663 (2001).
On the one hand, the PDA requires only that âwomen affected by pregnancyâ be treated the same âas other persons not so affected but similar in their ability or inability to work.â 42 U.S.C. § 2000e(k). Consistent with this language, a number of courts have concluded that, to show a violation of the PDA, a plaintiff must show âthat she was treated differently from others who took leave or were otherwise unable or unwilling to perform their duties for reasons unrelated to pregnancy or that she simply was treated differently because of her pregnancy.â E.E.O.C. v. Bloomberg L.P., 778 F.Supp.2d 458, 468 (S.D.N.Y.2011); see Dormeyer v. Comerica Bank-Illinois, 223 F.3d 579, 584 (7th Cir.2000) (â[T]he Pregnancy Discrimination Act does not protect a pregnant employee from being discharged for being absent from work even if her absence is due to pregnancy or to complications of pregnancy, unless the absences of nonpregnant employees are overlooked.â); Urbano v. Contâl Airlines, Inc., 138 F.3d 204, 206 (5th Cir.1998) (âContinental treated Urbano in exactly the same manner as it would have treated any other worker who was injured off the job.â); Velez v. Novartis Pharm. Corp., 244 F.R.D. 243, 264 (S.D.N.Y.2007) (Lynch, J.) (âIt has been repeatedly affirmed that the PDA does not require the creation of special programs for pregnant women; nor does it mandate any special treatment, To the contrary, the statute specifically requires that pregnant women be treated the same as all other employees with similar disabilities.â); Gratton v. JetBlue Airways, 04-cv-7561(DLC), 2006 WL 2037912 (S.D.N.Y. July 21, 2006) (â[T]he issue presented by Grattonâs claims is whether JetBlue failed to give Gratton the same opportunity to remain at work that it gave to other employees who temporarily could not perform all of their job functions.â); Minott v. Port Auth. of N.Y. & N.J., 116 F.Supp.2d 513, 521 (S.D.N.Y.2000) (âTitle VII and the Pregnancy Discrimination Act do not protect a pregnant employee from being discharged for absenteeism even if her absence was due to pregnancy or complications of pregnancy, unless other employees are not held to the same attendance standards.â); see also Fisher v. Vassar Coll., 70 F.3d 1420, 1448 (2d Cir.1995), aff'd on other grounds on rehâg in banc, 114 F.3d 1332 (2d Cir.1997), abrogated on other grounds by Reeves v. Sanderson Plumbing Products, Inc., 530 U.S. 133, 120 S.Ct. 2097, 147 L.Ed.2d 105 (2000) (citing with approval Troupe v. May Department Stores, 20 F.3d 734, 738 (7th Cir.1994), and parenthetically describing the case as holding that âan employer is required to ignore an employeeâs pregnancy, but not her absence from work, unless the employer overlooks the comparable absences of non-pregnant employeesâ).
Consistent with this reasoning, courts have affirmed disparate impact claims under the PDAâeven though those claims (by definition) necessarily involve a policy that is applied equally to pregnant women and men who take comparable leave or have similar physical restrictions. In Abraham v. Graphic Arts Intâl Union, 660 F.2d 811 (D.C.Cir.1981), for example, the defendant-employer limited employeesâ disability leave to ten days. In reversing the district courtâs grant of summary judgment to defendant, the Circuit concluded: âthe ten-day absolute ceiling on disability leave portended a drastic effect on women employees of childbearing age[,] an impact no male would ever encounterâ; because the policy âaffected women employed in [Defendantâs] program much more severely than any male engaged therein,â plaintiff had made out a prima facie case under Title VII. Id. at 819.
Similarly, in United States E.E.O.C. v. Warshawsky & Co., 768 F.Supp. 647 (N.D.Ill.1991), the Court confronted a policy in which first-year employees who required sick leave were discharged. The Court explained that âpregnant first-year employees are discharged at a significantly higher rate than non-pregnant first-year employees. This occurs because pregnant employees need more time off from work than non-pregnant employees. Because only women can get pregnant, if an employer denies adequate disability leave across the board, women will be disproportionately affected.â Id. at 650. Concluding that the employer had not shown that the policy âserve[d], in a significant way, any legitimate employment goal,â the Court granted plaintiff summary judgment on her disparate impact claim. Id. at 655.
And in Germain v. County of Suffolk, 07-CV-2523, 2009 WL 1514513, at *4 (E.D.N.Y. May 29, 2009), the municipal employer offered law enforcement officers light duty assignments only for injuries occurred while on the job; because pregnancy was not considered an injury or disability incurred on the job, pregnant women were not entitled to light-duty assignments. The defendant contended âthat the policy does not offend the PDA because [defendant] has applied the policy consistently to all officers, whether pregnant or not, who have sought light-duty assignments because of non-occupational injuries.â Id. at *4. The Court rejected this argument, concluding that plaintiff had established a prima facie case of disparate impact. Id.
The Seventh Circuit confronted this tension in Dormeyer v. Comerica Bank-Illinois, 223 F.3d 579 (7th Cir.2000), in which the plaintiff was terminated from her job because her pregnancy caused her to be absent. Judge Posner, writing for the Court, affirmed the dismissal of the claim,
Judge Posnerâs reasoning in Dormeyer, which is echoed in other decisions, see, e.g., Troupe v. May Depât Stores Co., 20 F.3d 734, 738 (7th Cir.1994), appears to resort to the second stage of the disparate impact inquiry, in which the employer may âdemonstrate[e] that the challenged practice is job related for the position in question and consistent with business necessity.â Gulino v. New York State Educ. Depât, 460 F.3d 361, 382 (2d Cir.2006). Indeed, Dormeyer addressed a grant of summary judgment, as do virtually all of the cases Defendants cite in support of their position in the instant motionâincluding Judge Preskaâs decision in E.E.O.C. v. Bloomberg L.P., 778 F.Supp.2d 458 (S.D.N.Y.2011), on which Defendants rely heavily.
Absent further guidance from the Second Circuit, the Court treats this disparate impact claim the way it would any other: it will determine whether Plaintiff has identified a facially-neutral policy and plausibly alleged that it causes a significant disparity and, if so, give Defendants the opportunity to demonstrate business necessity. See, e.g., Gulino, 460 F.3d at 382. Here, the SAC plausibly alleges that this policy has a disparate impact on women, because women are more likely to take extended periods of leave.
Accordingly, the Court concludes that Barrett, Houser, Eckenrode, and Smyth have stated pregnancy discrimination claims. It also concludes that the SAC plausibly alleges a pattern or practice of pregnancy discrimination, and a disparate impact claim based on Defendantsâ alleged policy of not adjusting Presidentâs Club rankings for time employees spend on leave.
D. Count IV: Equal Pay Act Claims
The Equal Pay Act prohibits an employer from âpaying wages to employees' in such establishment at a rate less than the rate at which he pays wages to employees of the opposite sex in such establishment for equal work on jobs the performance of which requires equal skill, effort, and responsibility, and which are performed under similar working conditions.â 29 U.S.C. § 206(d)(1).
âThe Equal Pay Act and Title VII must be construed in harmony, particularly where claims made under the two statutes arise out of the same discriminatory pay policies.â Lavin-McEleney v. Marist Coll., 239 F.3d 476, 483 (2d Cir.2001). One âkey difference between them, of course, is
Here, ten of the eleven Plaintiffs have alleged that male employees who performed similar work were paid higher base salaries. (SAC ¶¶ 30 (Barrett), 63 (Houser), 106 (Jones), 156 (Clinton), 198 (Ecke'n-rode), 228 (Smyth), 263 (Avila), 293 (Harley), 315 (Lowder), 349(Le).) Defendants argue that their allegations are insufficient because they merely plead âupon information and beliefâ that they received lower salaries and because they do not allege facts supporting the inference that the jobs were equal. (Defs.â Mem. of Law at 9-11.) For the reasons described above, the Court rejects these arguments and concludes that these ten Plaintiffs have plausibly stated Equal Pay Act claims.
The remaining Plaintiff, Seard, does not allege that she was paid a lower base salary than a male comparator. Instead, she alleges that her manager gave her intentionally low performance assessment scores after she asked about job sharing, which resulted in her receiving âa reduced annual salary increase as compared to her male colleagues who worked the same territory, including her territory partner Doug McLean.â (SAC ¶ 141.)
Although these allegations state a plausible Title VII claim, the Court agrees with Defendants that they are insufficient to state an Equal Pay Act claim. Seard simply references her âterritory partner,â without attempting to allege that she and McLean performed âequal work on jobs the performance of which requires equal skill, effort, and responsibility, and which are performed under similar working conditions.â 29 U.S.C. § 206(d)(1). Even assuming this passing reference is sufficient to plead âequal work,â Seard does not allege any facts showing that she was paid âat a rate less than the rate at which [Defendants] pa[id] wages to employees of the opposite sex.â 29 U.S.C. § 206(d)(1). Her allegations are consistent with a scenario in which she was paid more than McLean both before and after the salary increasesâbut that she simply received a lower raise. Because she does not allege that she received lower âwagesââwhich âinclude all payments made to or on behalf of an employee as remuneration for employment,â 29 C.F.R. § 1620.10âthan McLean, Seard has failed to state an Equal Pay Act claim. See Mitchell v. Developers Diversified Reality Corp., No. 4:09-CV-224, 2010 WL 3855547, at *5 (E.D.Tex. Sept. 8, 2010), report and recommendation adopted, 2010 WL 3860500 (E.D.Tex. Sept. 30, 2010) (explaining that the Equal Pay Act âdoes not regulate raises or bonuses directly. The statute merely requires that Plaintiff receive total compensation at least equal to male employees with equal performance.â).
The Second Circuit has explained that âdistrict courts have discretion, in appropriate casesâ to implement Section 216(b) of the Fair Labor Standards Act (which includes the Equal Pay Act), âby facilitating notice to potential plaintiffs of the pen-dency of the action and of their opportunity to opt-in as represented plaintiffs.â Myers v. Hertz Corp., 624 F.3d 537, 554 (2d Cir.2010). This process proceeds in two steps. âThe first step involves the court making an initial determination to send notice to potential opt-in plaintiffs who may be âsimilarly situatedââ to the named plaintiffs with respect to whether a FLSA violation has occurred.â Id. at 555. To be entitled to court-facilitated notice, Plaintiffs must make a âmodest factual showing that they and potential opt-in plaintiffs together were victims of a common policy or plan that violated the law.â Id. This â âmodest factual showingâ cannot be satisfied simply by âunsupported assertions.ââ Id. At the second stage, âthe district court will, on a fuller record, determine whether a so-called âcollective actionâ may go forward by determining whether the plaintiffs who have opted in are in fact âsimilarly situatedâ to the named plaintiffs.â Id.
In the Courtâs view, Defendantsâ motion is premature. Plaintiffs have not yet moved for conditional collective certification, and the Second Circuitâs decision in Myersâwhich requires at the âfirst stageâ a âmodest factual showing â that cannot be satisfied by âunsupported assertions,â id. (emphasis added)âappears to contemplate that courts will not address collective certification until after Plaintiffs have had the opportunity to present materials outside the pleadings. See also Lang v. DirecTV, Inc., 735 F.Supp.2d 421, 435 (E.D.La.2010) (âThis case has not yet reached the first, conditional certification stage of the process .... Plaintiffs have not moved for certification, and they have not proposed that specific notices be distributed. The Court finds that defendantsâ motion to dismiss is premature because plaintiffs have not moved for certification and have had no opportunity to develop a record.â). Defendants are, of course, free to make these arguments once Plaintiffs move for certification.
E. Count Y: Violation of the Family Medical Leave Act
Plaintiffs Barrett, Houser, and Smyth allege that Defendants violated the Family Medical Leave Act by interfering with their âtaking of protected maternity leave, and discriminated against them for the taking of such leave.â (SAC ¶ 475.) Defendants do not challenge Count V in their motion.
F. Count VI: Retaliation
Plaintiffs Jones, Seard, Eckenrode, Lowder, and Le allege that Defendants retaliated against them for complaining about gender discrimination. (SAC ¶ 481.) Defendants argue that the claims of Eck-enrode, Lowder, and Le should be dismissed because they have not exhausted their administrative remedies. In any event, they continue, Eckenrodeâs claim should be dismissed for failure to state a claim.
Administrative Exhaustion: An employment discrimination plaintiff may bring a claim only after filing a
This âloose pleadingâ standard does not apply only to claims brought by a single plaintiff. The Second Circuit has adopted the âsingle filing ruleââalso known as âpiggybackingâââwhich provides that where one plaintiff has filed a timely EEOC complaint, other non-filing plaintiffs may join in the action if their individual claims arise out of similar discriminatory treatment in the same time frame.â Snell v. Suffolk Cnty., 782 F.2d 1094, 1100 (2d Cir.1986) (alteration omitted). When applying this rule to a large group of employees, the Second Circuit has explained, the initial EEOC charge need not âspecify that the claimant purports to represent a class or others similarly situated,â but âthere must be some indication that the grievance affects a group of individuals defined broadly enough to include those who seek to piggyback on the claim.â Tolliver v. Xerox Corp., 918 F.2d 1052, 1058 (2d Cir.1990). Providing such an indication âalerts the EEOC that more is alleged than an isolated act of discrimination and affords sufficient notice to the employer to explore conciliation with the affected group.â Id.
Here, Defendants do not dispute that Plaintiff Seard filed a timely EEOC charge alleging retaliation. (Defs.â Mem. of Law at 47.) They argue, however, that because Seard complained about retaliation âwith respect to a specific manager in Texas in 2010,â the claims of Eckenrode, Lowder, and Leâwhich, respectively, allege retaliation by individuals in Pennsylvania in 2011, Illinois in 2012, and California in 2012 (see SAC ¶¶ 193, 213 (Eckenrode), 312, 336 (Lowder), 347, 358(Le))âare not sufficiently similar to permit âpiggybacking.â
Courts in this District have adopted a relaxed view of the requirements that the events occurred within the same time period: âExact duplication of a time frame is unnecessary to satisfy the single-filing rule; instead, mere similarity of grievances within the same general time frame suffices to permit operation of the single filing rule.â Cronas v. Willis Grp. Holdings Ltd., No. 06 CIV. 15295(GEL), 2007 WL 2739769, *8 (S.D.N.Y. Sept. 17, 2007) (Lynch, J.); accord E.E.O.C. v. Mavis Disc. Tire, No. 12 CIV 0741 KPF, 2013 WL 5434155, at *4 (S.D.N.Y. Sept. 30, 2013). Permitting âpiggybackingâ where claims are filed within a several-year period makes sense, because discrimination typically âis not a discrete, isolated event,â and because the very nature of âpiggybackingâ implies that one plaintiff is bringing suit at a later date. Cronas, 2007 WL 2739769, at *8.
The closer question is whether an allegation of retaliation in Texas is sufficiently similar to allegations in other office locations across the country. Although allegations of discrimination against a large employer necessarily involve a fact-intensive inquiry, the Second Circuit has set a âloose pleadingâ standard. Holtz, 258 F.3d at 83. When applied to the facts of
In particular, the Circuit in Tolliver explained that âthere must be some indication that the grievance affects a group of individuals defined broadly enough to include those who seek to piggyback on the claim.â 918 F.2d at 1058 (emphasis added). Here, Seardâs EEOC complaint states âI believe that Forestâs actions are part of a continuing pattern and practice of discrimination against similar employees generally, and the ways in which Forest has discriminated against me are similar to the ways it discriminates against similarly-situated employeesâ; âIt is widely understood at Forest that once someone files a formal complaint, HR will begin interrogating the person about his or her performanceâ; and âI believe that Forest has engaged and continues to engage in a pattern and practice of discrimination against its female employees and denies them equal employment opportunities in ways including, but not limited to ... retaliation .... I believe that these discriminatory patterns and practices occur throughout Forest. I make this charge on behalf of all similarly situated female employees and myself.â (Declaration of Gary D. Friedman, Apr. 29, 2013 (âFriedman Deckâ) Ex. H at 1-4.)
This complaint gives at least âsome indicationâ that its allegations affect a group of individuals that would include Plaintiffs Eckenrode, Lowder, and Le. All four of these Plaintiffs allege that they faced retaliation after they complained about gender-based discrimination (not racial or age discrimination). That this conduct occurred at different offices does not make the claims so dissimilar as to preclude âpiggybacking.â See Mavis Disc. Tire, 2013 WLâ 5434155, at *4 (âEEOC actions may be maintained against multiple business locations, even though the charge of discrimination was limited to a single location.â); Bethea v. Equinox Fitness Club, No. 07 CIV 2018(JSR), 2007 WL 1821103, at *4 (S.D.N.Y. June 21, 2007) (permitting piggybacking where plaintiffs complained of similar treatment at different locations).
Sufficiency of Eckenrodeâs Claim: Although Eckenrodeâs claim is not procedurally barred, the Court agrees with Defendants that she has failed to state plausible retaliation claim.
To establish a retaliation claim, a plaintiff must show â(1) [s]he was engaged in protected activity; (2) the employer was aware of that activity; (3) the employee suffered a materially adverse action; and (4) there was a causal connection between the protected activity and that adverse action.â Rivera v. Rochester Genesee Regâl Transp. Auth., 743 F.3d 11, 24 (2d Cir.2014). Although Swierkiewicz does not require a plaintiff to plead a prima facie case, the complaint must provide defendant with notice of the adverse action. See, e.g., Cruz v. New York State Depât of Corr. & Cmty. Supervision, No. 13 CIV. 1335(AJN), 2014 WL 2547541, at *6 (S.D.N.Y. June 4, 2014) (dismissing retaliation complaint on 12(b)(6) motion for failure to allege an adverse action). In this context, a materially adverse action is one that âwell might have dissuaded a reasonable worker from making or supporting a charge of discrimination.â Burlington N. & Santa Fe Ry. Co. v. White, 548 U.S. 53, 68, 126 S.Ct. 2405, 165 L.Ed.2d 345 (2006).
Here, Eckenrode alleges that she complained to human resources about her
Defendants have not otherwise challenged the retaliation claims of Jones, Seard, Lowder, and Le. The Court thus concludes they have stated plausible retaliation claims, but dismisses Eckenrodeâs retaliation claim.
G. Count VII: Sexual Harassment
Plaintiffs Jones and Lowder assert claims of sexual harassment. In response, Defendants argue that Jonesâs claim is time-barred and Lowderâs claim must be dismissed for failure to exhaust administrative remedies. (Defs.â Mem. of Law at 44-46.)
Jones: Jonesâs sexual harassment complaint was timely filed with the EEOC only if it was filed within 300 days of the alleged harassment. See 42 U.S.C. § 2000e-5(e)(l). Because it âis defendantâs burden to prove that plaintiff did not exhaust [her] administrative remedies in a timely manner,â Simmons v. Heyman, No. 97 CIV. 0434(NRB), 2000 WL 520664, at *3 (S.D.N.Y. May 1, 2000), district courts typically dismiss a Title VII complaint on timeliness grounds only if it is apparently from the face of the complaint that the EEOC charge was not timely filed, see Brundage v. U.S. Depât of Veterans Affairs, No. 06 CIV 6613 RJH, 2010 WL 3632705, at *3 (S.D.N.Y. Sept. 16, 2010); Jones v. City of New York Depât of Hous., Pres. & Dev., No. 01 CIV. 10619(AKH), 2002 .WL 1339099, at *1 (S.D.N.Y. June 18, 2002). Under the doctrine of equitable estoppel, the limitations period is tolled if âthe victim of harassment is reasonably induced by the defendant or others to believe that the situation has been or is in reasonable course of being resolved.â Frazier v. Delco Electronics Corp., 263 F.3d 663, 666 (7th Cir.2001); see Currier v. Radio Free Europe/Radio Liberty, Inc., 159 F.3d 1363, 1368 (D.C.Cir.1998).
Jones alleges that on one night âshortly afterâ she began working at Forest in January 2008 (SAC ¶¶ 104, 108), her manager, Austin Wighaman, made a string of sexually explicit comments to other employees about her and (unsuccessfully) propositioned her at her condominium after a work function (id. ¶¶ 108-110). The following morning, Jones alleges, Wigha-
The Court cannot say from the face of the SAC that Jonesâs sexual harassment complaint was untimely. Jones has a plausible argument that some, or all, of the time between her initial report to Forestâs HR on June 16, 2010 and her resignation on September 27, 2010 should be tolled under the doctrine of equitable estoppel.
Lowder: Defendants assert that Plaintiff Lowderâwho did not file an EEOC complaintâshould not be permitted to âpiggybackâ on Plaintiff Jonesâs EEOC complaint because the two Plaintiffs are not âsimilarly situated.â (Defs.â Mem. of Law at 46.)
Jonesâs EEOC complaint, however, provided âsome indicationâ that her grievance âaffect[ed] a group of individuals defined broadly enough to include those who seek to piggyback on the claim.â Tolliver, 918 F.2d at 1058. In particular, Jones stated that âForest has engaged and continues to engage in a pattern and practice of discrimination against its female employees,â denying them âequal employment opportunities in ways including ... a hostile work environment.â (Friedman Decl. Ex. G at 4.) She continued by asserting that she âbelieve[d] that these discriminatory patters and practices occur throughout Forestâ and that she was making âthis charge
Lowder alleges that she was also subjected to a hostile work environment, including âlewdâ text messages from coworkers and sexual harassment by clients that went' unheeded. (See, e.g., SAC ¶¶ 323, 330.) Although these events occurred in Illinois in 2010-2011-âwhereas Jonesâs harassment occurred in Texas in 2008-2009âand although Jonesâs EEOC complaint is somewhat conclusory, the Court concludes that Lowder may take advantage of the âsingle filing ruleâ in light of Jonesâs allegations that other female employees were facing similar harassment and in light of the Second Circuitâs instruction that such claims be held to a standard of âloose pleading.â Holtz v. Rockefeller & Co., Inc., 258 F.3d 62, 83 (2d Cir.2001).
H. Scope of the Putative Class
Finally, Defendants ask the Court to strike Plaintiffsâ Title VII class definitions âbecause they are clearly overbroad in temporal scope.â (Defs.â Mem. of Law at 40.) The Court largely agrees with Defendants.
Under Fed.R.Civ.P. 23(d)(1)(D), the Court may ârequire that the pleadings be amended to eliminate allegations about representation of absent persons.â This rule permits courts to âorder deletion of portions [of] a complaintâs class claims once it becomes clear that the plaintiffs cannot possibly prove the deleted portion of those claims,â 5 Mooreâs Federal Practice § 23.145 (3d ed.2007), at least where âthe basis for the motion to strike is distinctâ from the factors the Court would consider on a motion for class certification, see Rahman v. Smith & Wollensky Rest. Grp., Inc., No. 06cv6198(LAK)(JCF), 2008 WL 161230, at *3 (S.D.N.Y. Jan. 16, 2008). In Rahman, for instance, this Court on defendantâs motion to dismiss narrowed the scope of a Title VII plaintiffs class claims. See id.
As described above, as a prerequisite to filing a lawsuit, Title VII requires plaintiffs to file a charge with the EEOC or appropriate state agency within a certain time period. In âdeferral statesââ those with their own anti-discrimination laws and enforcement agenciesâplaintiffs must file within 300 days, whereas plaintiffs not in âdeferral statesâ have 180 days. See 42 U.S.C. § 2000e-5(e). Although similarly-situated plaintiffs may âpiggybackâ off other plaintiffsâ EEOC charges, individuals may only âpiggybackâ if they could have filed a timely charge at the time of the earliest class representativeâs charge. See Velez v. Novartis Pharm. Corp., 244 F.R.D. 243, 255 (S.D.N.Y.2007) (Lynch, J.); Avagliano v. Sumitomo Shoji Am., Inc., 103 F.R.D. 562, 578 (S.D.N.Y. 1984). Stated differently, the putative class should be restricted to those individuals employed by Defendants within 300 days (for those in deferral states) or 180 days (for non-deferral states) of the earliest-filed representative claim. If a Forest employee in a deferral state left the Company over 300 days before the earliest-filed class EEOC charge, then that employee could not be part of the class because any claims would be time-barred.
Here, Plaintiffs argue that Jonesâs EEOC charge was the first-filed (Pis.â Opp. at 42); Defendantsâ claim to the contrary (see Defs.â Reply at 15-16) is unavailing. The Court thus concludes that Jonesâs charge, which was filed on December 3, 2010 (Friedman Deck Ex. G at 2), is the first-filed charge. Individuals who left Defendantsâ employment before June 6, 2010, in non-deferral states (180 days before Jonesâs EEOC charge) or February 6, 2010, in deferral states (300 days before Jonesâs charge) could not have experienced
Plaintiffs argue, however, that instead of beginning in 2010, the putative class period should begin in 2008. (See SAC ¶ 402, Pis.â Mem. of Law at 47.) They rest their argument on the âcontinuing violationâ doctrine, which provides that âif a Title VII plaintiff files an EEOC charge that is timely as to any incident of discrimination in furtherance of an ongoing policy of discrimination, all claims of acts of discrimination under that policy will be timely even if they would be untimely standing alone.â Chin v. Port Auth. of New York & New Jersey, 685 F.3d 135, 155-56 (2d Cir.2012). Plaintiffs thus argue that the discrimination in pay and promotion that Jones allegedly suffered was maintained pursuant to a policy or practice reaching back to at least 2008.
Under controlling Supreme Court and Second Circuit law, however, the continuing violation doctrine is inapplicable to this case. In National Railroad Passenger Corp. v. Morgan, 536 U.S. 101, 113, 122 S.Ct. 2061, 153 L.Ed.2d 106 (2002), the Supreme Court explained that âdiscrete discriminatory acts are not actionable if time barred, even when they are related to acts alleged in timely filed charges.â The Court noted specifically that a âdiscrete discriminatory actâ would include a âfailure to promote,â id. at 114, 122 S.Ct. 2061; although discriminatory pay was not directly at issue in the case, the Court suggested that discrimination in salary would also constitute a âdiscrete discriminatory act,â because â[e]ach weekâs paycheck that deliver[s] lessâ to a member of a protected class âis a wrong actionable under Title VII.â Id. at 112, 122 S.Ct. 2061 (quoting Bazemore v. Friday, 478 U.S. 385, 395, 106 S.Ct. 3000, 92 L.Ed.2d 315 (1986)); see also 42 U.S.C. § 2000e-5(e)(3)(A) (providing that discrimination in compensation occurs âwhen an individual is affected by application of a discriminatory compensation decision or other practice, including each time wages, benefits, or other compensation is paidâ). The Court in Morgan drew a distinction between related âdiscrete discriminatory acts,â such as failure-to-promote claimsâwhich are not subject to the continuing violation doctrineâand hostile work environment claims, which are subject to the doctrine. Morgan, 536 U.S. at 115, 122 S.Ct. 2061.
Although the Supreme Court in Morgan explicitly reserved the question of whether its conclusion would apply to pattern-or-practice cases, see id. at n. 9, the Second Circuitâs reasoning in Chin v. Port Authority of New York & New Jersey, 685 F.3d 135, 157 (2d Cir.2012), appears to resolve the question. Plaintiffs in Chin alleged that the defendantâs hiring practices created a disparate impact with respect to promotions. Addressing the defendantâs assertion that certain claims were untimely, the Circuit explained:, âDiscrete acts of this sort [i.e., an employerâs failure to promote], which fall outside the limitations period, cannot be brought within it, even when undertaken pursuant to a general policy that results in other discrete acts occurring within the limitations period .... [A]n allegation of an ongoing discriminatory policy does not extend the statute of limitations where the individual effects of the policy that give rise to the claim are merely discrete acts.â Id. at 157.
Here, there is no class claim of a hostile work environment; rather, the class claims assert discrete discriminatory acts. Under Chin, a plaintiff may recover for such a discrete harmââregardless whether it was caused by an ongoing discriminatory policyâonly if [s]he files an EEOC charge within 180 or 300 days of that decision.â Id.; see also E.E.O.C. v. Bloomberg L.P., 751 F.Supp.2d 628, 649 (S.D.N.Y.2010)
Therefore, the putative class shall include only those individuals .employed by Defendants after June 6, 2010 (180 days before Jonesâs EEOC charge) in non-deferral states or February 6, 2010 (300 days before Jonesâs charge) in deferral states.
CONCLUSION
Defendantsâ motion is granted in part and denied in part. The Court concludes as follows:
âą With respect to Count One, Title VII pay discrimination, all eleven Plaintiffs have stated individual claims. Plaintiffs have also alleged a plausible pattern-or-practice claim (based on discrimination in base salaries and in bonuses and annual raises), as well as a disparate impact claim, based on the method by which Defendants set base salaries and the alleged policy of denying earned bonuses to employees on leave for greater than six weeks.
âą With respect to Count Two, Title VII promotion discrimination, the individual claims of Plaintiffs Harley, Jones, Le, and Barrett are dismissed, as is the claim of Plaintiff Houser (because her claim is one of pregnancy-based discrimination, considered in Count Three). Plaintiffs Eckenrode, Smith, Avila, Lowder, and Clinton plausibly allege failure-to-promote claims. Additionally, Plaintiffs have plausibly alleged that Defendants engaged in a pattern or practice or promotion discrimination, and that Defendantsâ policy of limiting job-sharing to the âlowestâ sales representative position has a disparate impact on women with respect to promotions.
âą With respect to Count Three, pregnancy discrimination, Plaintiffs Barrett, Houser, and Eckenrode have stated plausible claims. The SAC also states a plausible pattern-or-practice claim, and a disparate impact claim based on Defendantsâ alleged policy of not adjusting employeesâ Presidentâs Club rankings for time spent on leave. Plaintiff Smythâs and Harleyâs individual pregnancy discrimination claims are dismissed.'
âą With respect to Count Four, violation of the Equal Pay Act, Plaintiff Seardâs claim is dismissed, but the other ten Plaintiffs have stated plausible claims. The Court declines to dismiss Plaintiffsâ collective certification claim at this stage of the litigation.
âą With respect to Count Five, violation of the Family Medical Leave Act, Defendants have not challenged the sufficiency of the allegations of Plaintiffs Barrett, Houser, and Smyth.
*461 âą With respect to Count Six, retaliation, Plaintiff Eckenrodeâs claim is dismissed. Plaintiffs Jones, Seard, Lowder, and Le have stated plausible claims.
âą With respect to Count Seven, sexual harassment, Plaintiffs Jones and Lowder have stated plausible claims.
âą The Court grants Defendantsâ request to narrow the putative class definition to individuals employed by Defendants on or after February 6, 2010 (for putative plaintiffs in âdeferralâ states) or June 6, 2010 (for those in ânon-deferralâ states).
The parties shall confer and submit a joint status letter within thirty days of this Order, outlining how they propose to proceed.
The Clerk of Court is respectfully requested to terminate the motion pending at docket number 37.
SO ORDERED.
. The SĂC uses the terms "Territory Sales Representative" and "Territory Representativeâ interchangeably. (See, e.g., ¶ 248.) For consistency, the Court uses the latter term.
. The SAC alleges that Houser took maternity leave from "approximately July 2009 to November 2009.â (SAC ¶ 80.) Elsewhere, the SAC notes that Ms. Houser was "eight months pregnantâ in "March 2009,â and also that she was "eight months pregnantâ in "early July 2009â when she applied for and was denied the promotion. (Id. ¶¶ 73-74.) The Court assumes that the March 2009 date is incorrect.
. The EPA Collective Action Class is defined in full as:
[A]ll current, former, and future female Sales Representatives of Forest Laboratories and Forest Pharmaceuticals during the applicable liability period, including until the date of judgment, who (a) were not compensated equally to male employees who had substantially similar job classifications, functions, titles, and/or duties; and/or (b) were not compensated equally to male
employees who performed substantially similar work; and/or (c) were denied equal compensation to similar situated male employees by being hired into positions at lesser grades than male employees who performed substantially similar work; and/or (d) were denied promotion and advancement opportunities that would result in greater compensation in favor of lesser qualified males.
(SAC ¶ 432.)
. As discussed infra, although Plaintiffs purport to bring Count Three on behalf of the "Class,â presumably they intend to bring this claim on behalf of the Pregnancy Sub-Class. (See also Defs.â Mem. of Law at 26 n. 43 (noting this discrepancy).)
. See McDonnell Douglas Corp. v. Green, 411 U.S. 792, 802, 93 S.Ct. 1817, 36 L.Ed.2d 668 (1973). Of course, a plaintiff need not resort to the McDonnell Douglas framework if she possesses "direct evidence of discriminationâa smoking gun attesting to a discriminatory intent.â Holtz v. Rockefeller & Co., Inc., 258 F.3d 62, 76 (2d Cir.2001) (alteration omitted).
. The Equal Employment Opportunity Commission and the Attorney General may also bring âpattern or practiceâ suits. See 42 U.S.C. § 2000e-5(f); id. § 2000e-6(a); Gen. Tel. Co. of the Nw., Inc. v. Equal Employment Opportunity Commân, 446 U.S. 318, 329, 100 S.Ct. 1698, 64 L.Ed.2d 319 (1980). The "pattern-or-practice method of proof is not available to nonclass, private plaintiffs.â Chin v. Port Auth. of New York & New Jersey, 685 F.3d 135, 150 (2d Cir.2012).
. It also bears mention that the mere inclusion of the phrase "upon information and beliefâ does not absolve a plaintiff's attorney of her Rule 11 obligations. See 5 C. Wright & A. Miller, Fed. Prac. & Proc. Civ. § 1224 (3d ed.) ("[S]ince Rule 11 requires that allega
. The Second Circuit has also explained that "[e]mployees may be similarly situatedâ if they "are subject to the same standards governing performance evaluation and discipline.â Brown v. Daikin Am. Inc., 756 F.3d 219, 230 (2d Cir.2014). Plaintiffsâ allegations are also sufficient to satisfy this standard.
. As is discussed further in connection with Plaintiffsâ Equal Pay Act claims (Count Four), the standards for Title VII wage discrimination and Equal Pay Act claims are "similar,â See Gibson v. Jacob K. Javits Convention Ctr. of New York, No. 95 Civ. 9728(LAP), 1998 WL 132796, at *4 (S.D.N.Y. Mar. 23, 1998). Accordingly, a number of the cases the Court cites in this section address Equal Pay Act claims. It is worth noting, however, one way in which Title VII wage discrimination claims are less rigorous than Equal Pay Act (EPA) claims: whereas a Title VII claim requires a showing of intentional discrimination and EPA claims do not, an EPA claim requires a showing that a male employee performed equal workâwhereas a Title VII plaintiff could succeed simply by showing that an employer intentionally depressed the wages of female employees, even if the employer did not employ any male employees. See id.; 58 Causes of Action 2d 335 § 3; see also Washington Cnty. v. Gunther, 452 U.S. 161, 178, 101 S.Ct. 2242, 68 L.Ed.2d 751 (1981) (explaining that, if "only those sex-based wage discrimination claims that satisfy the 'equal workâ standard of the Equal Pay Act could be brought under Title VIIâ then "a woman who is discriminatorily underpaid could obtain no reliefâno matter how egregious the discrimination might beâunless her employer also employed a man in an equal job in the same establishment, at a higher rate of payâ), This distinction is irrelevant for purposes of the SAC, because it alleges that there were similarly-situated male employees who received a higher base salaryâallegations that plausibly state both a Title VII and an Equal Pay Act claim. See Gibson, 1998 WL 132796, at *4 (âIf the jobs in question are substantially similar, a plaintiff may of course advance a Title VII wage discrimination claim based on allegations that she was paid lower wages than a male counterpart who performed substantially similar work. In such a case, the requirements for a prima facie case under Title VII are identical to those under the Equal Pay Act, so long as intentional discrimination is pleaded in the Title VII claim.â).
. Defendants cite only two cases in which the Court dismissed at the pleading stage a complaint that identified male comparators. The first, Rose v. Goldman, Sachs & Co., Inc., 163 F.Supp.2d 238, 242-43 (S.D.N.Y.2001), predated the Supreme Courtâs decision in Swierkiewicz. In the second, E.E.O.C. v. Port Auth. of New York & New Jersey, 10 Civ. 7462(NRB), 2012 WL 1758128, at *2-*4 (S.D.N.Y. May 17, 2012), the Court found it implausible that all ânon-supervisory attorneysâ in the Port Authority's legal department performed "substantially equal work.â The EEOCâs appeal of that decision is currently pending before the Second Circuit. (See dkt. no. 13-2705.)
. See Jenkins v. New York City Transit Auth., 646 F.Supp.2d 464, 469 (S.D.N.Y.2009) (âTo the extent the defendants' argument is that a plaintiff must provide statistical support for a disparate impact claim in order to survive a motion to dismiss, that argument is incorrect. It would be inappropriate to require a plaintiff to produce statistics to support her disparate impact claim before the plaintiff has had the benefit of discovery.ââ).
. The Court also considers this latter "practiceâ with respect to Count Three, which alleges pregnancy discrimination.
.Plaintiffsâ opposition brief also assertsâin its discussion of pay discriminationâthat âthe SAC makes clear that Plaintiffs' efforts to remedy discriminatory evaluations were stymied by Forest 'HR' policies and practices that serve to perpetuate discrimination, rather tha[n] prevent or remedy itâ and cites four examples from the SAC in which the Company's HR department ignored complaints of discrimination or did not take them seriously. (Pis.' Opp. 8; see also SAC ¶ 390.) These allegations, if proven true, may be relevant to whether Defendants intentionally discriminated. Cf. United States v. City of New York, 717 F.3d at 86 (noting that a defendantâs corrective measures may be "probative of the absence of an employer's intent to discriminateâ).
. Barrett alleges that the loW ratings began after her second maternity leave. (Id. ¶ 40.)
. See, e.g., E.E.O.C. v. Bass Pro Outdoor World, LLC, 884 F.Supp.2d 499, 517 (S.D.Tex. 2012) (dismissing pattern-or-practice claim, where complaint alleged only four instances of discrimination); Rubinow v. Ingelheim, No. CIVA 3:08-CV-1 697VLB, 2010 WL 1882320, at *4 (D.Conn. May 10, 2010) (concluding that an allegation that defendant fired six older workers, âout of a workforce of several thousand,â did not state a plausible pattern- or-practice claim); Krish v. Connecticut Ear, Nose & Throat, Sinus & Allergy Specialists, P.C., 607 F.Supp.2d 324, 332 (D.Conn.2009) (concluding that three instances of discrimi
. (SAC ¶¶ 30 (Barrett), 63 (Houser), 106 (Jones), 156 (Clinton), 198 (Eckenrode), 228 (Smyth), 263 (Avila), 293 (Harley), 315 (Low-der), 349(Le).)
. Plaintiff Harley alleges that she received low scores, which rendered her ineligible for a promotion (SAC ¶¶ 295-305), and Avila similarly alleges that her manager's discriminatory decision to extend her probation ultimately precluded her from applying for a promotion (id. ¶¶ 267-85). Clinton alleges that her low scores placed her "at risk for further disciplinary actionâ (id. ¶¶ 188-89), while Smyth alleges that on one instance she received a low score but does not specify any consequences resulting from that rating (id. ¶ 238).
. (See SAC ¶¶ 53, 192, 245.)
. (See SAC ¶¶ 50-51, 214, 309.)
. Seard alleges that after inquiring into job share opportunities with her manager, he began giving her low ratings, culminating in the lowest rating she had received since her first year at the Company (at the time, she had been an employee for over six years). (SAC ¶¶ 135-40.) Seard further alleges that she received these low rankings despite placing first in sales on her team and in the top twenty-five percent of sales representatives nationwide, and that the low rankings caused her to received âa reduced annual salary increase as compared to her male colleagues who worked the same territory.â (Id. ¶ 141.)
. Plaintiff Seard does not allege any way in which gender-based discrimination interfered with an attempt at promotion; in fact, the SAC stales that she was promoted from Territory Representative to Specialty Sales Representative. (SAC ¶ 124.)
. For example, the majority in Brown explained that it âreadâ McDonnell Douglas as "requir[ing] a plaintiff to allege that she or he applied for a specific position or positions and was rejected therefrom,â and elsewhere in its discussion refers to the "the general rule of McDonnell Douglas." 163 F.3d at 710. The Brown case thus seems to assume that plaintiffs must plead the elements of a prima facie case under McDonnell Douglas to survive a motion to dismiss, which the Supreme Court in Swierkiewicz held was incorrect.
. The Circuit in Quarless v. Bronx Lebanon Hosp. Ctr., 75 Fed.Appx. 846 (2d Cir.2003), affirmed the dismissal of a failure-to-promote claim as time-barred and suggested, in a single sentence, that plaintiffs are required to plead certain elements of a prima facie case. See id. at 848 (âWe also agree with the district courtâs dismissal of plaintiffs state failure to promote claim based on its determination ... that plaintiff had failed to allege that the position plaintiff sought was one that remained open and for which the [defendant] continued to seek applicants.â).
.Nor do any of these Plaintiffs allege that the Company failed to advertise open positions.
. Clintonâs failure to apply for the job is not fatal to her claim. "[T]he rule is that a plaintiffs failure to apply for a position is not a bar to relief when an employerâs discriminatory practices deter application or make application a futile endeavor.â Malarkey v. Texaco, Inc., 983 F.2d 1204, 1213 (2d Cir.1993). Here, Clintonâs allegations raise a plausible inference that an application would have been futile.
. The SAC also asserts that âthe inclusion or weight given by Forest policy to manager-supplied performance assessment in comparison to objective sales performance, coupled with the minimum required scores, has a disparate impact on women being disqualified from eligibility for promotions.â {Id. ¶ 384.) Similarly, the SAC alleges that Defendantsâ policy of âprohibit[ing] sales representatives who are on probation from applying for promotions or lateral moves ha[s] a disparate impact on women.â {Id. ¶ 385.) Although these claims are styled as disparate impact claims, for the reasons described with respect
. The Court notes that this policy could also be considered with respect to Plaintiffsâ pay discrimination claim.
. Although Plaintiff Seard does not specifically allege that she stepped down from her position to pursue a job-sharing opportunity, she alleges that she accepted a voluntary demotion and, the same month, asked her manager about job-sharing. (Id. ¶¶ 132-33.) Drawing all inferences in her favor, the Court infers that these statements amount to an allegation that Seard stepped down because of the Company's policy.
. Smyth also alleges that the Company ultimately denied her the opportunity to participate in the job-sharing program, notwithstanding her voluntary demotion. (SAC ¶ 257.) Even assuming that the denial of a job-sharing position is actionable under the Pregnancy Discrimination Act, Smyth has not alleged any facts from which the Court can plausibly infer that the denial was related to her pregnancy (or her gender).
. Indeed, in the only case Defendants cite in the relevant section of their brief (pages 26-28) that addressed a 12(b)(6) motion, the Court denied the motion to dismiss. (See Defs.â Mem. of Law at 27 (citing Briggs v. Women in Need, Inc., 819 F.Supp.2d 119, 127 (E.D.N.Y.2011)).)
. One might argue that this claim is more - properly considered as one of pay discrimination on the basis of gender more generally, and not discrimination on the basis of pregnancy. At this juncture, such a distinction is immaterial.
. Neither party has raised an objection to the Court considering EEOC complaints filed by various Plaintiffs, which Defendants have submitted in support of their motion to dismiss.
. Eckenrode also alleges that she was paid less than similarly-situated male employees. (SAC ¶221.) She has not, however, alleged any facts from which the Court could infer that this disparity was related to her complaint; indeed, she alleges that she received lower base pay than similarly-situated males from the time she began working at the Company (id. ¶ 198), as do nine other Plaintiffs. Without additional facts supporting a causal connection between Eckenrode's EEOC complaint and this pay disparity, the Court concludes that she must rely on her Title VII disparate pay claim.
. The DC Circuit has explained that a promise of a "fair and impartial investigationâ is insufficient to invoke equitable toiling, but that "an employerâs affirmatively misleading statements that a grievance will be resolved in the employeeâs favor can establish an equitable estoppel.â Currier v. Radio Free Europe/Radio Liberty, Inc., 159 F.3d 1363, 1368 (D.C.Cir.1998). Whether some, or any, of the statements to Jones from Forest's HR department fell into the former or latter category is a question not well-suited for disposition on a 12(b)(6) motion.