DITTER, District Judge.
Plaintiff, Melissa Jackson, brings this action against her former employer, United Airlines, Inc., alleging age discrimination in violation of the Age Discrimination in Employment Act ("ADEA") and the Pennsylvania Human Relations Act ("PHRA"). Before me are United's motions to dismiss based on Federal Rule of Civil Procedure 12(b)(1), 12(b)(6), and 12(b)(7). For the reasons set forth below, United's motions are granted in part and denied in part.
Jackson, who is over the age of 40, was employed by defendant United Airlines as a flight attendant from 1992 to 2011. At the time of her termination, on March 11, 2011, Jackson was a "Senior Flight Attendant" or "Purser." Am. Compl. ¶ 12. Jackson alleges that she was qualified for her position and had a satisfactory performance history. See id. ¶ 14. Jackson was based out of the Philadelphia International Airport from 1992 until 2006 when United closed its base there and transferred Jackson, and other flight attendants,
Two policies that applied to all flight attendants during the times relevant to Jackson's complaint are pertinent to Jackson's allegations that United violated the ADEA and PHRA — United's "Sick Leave" policy and "Attendance Point Values" policy. The Sick Leave policy is set forth in Section 19 of the "2005-2010 Agreement between United Airlines, Inc. and the Flight Attendants," which was the collective bargaining agreement in place at the time, (hereinafter referred to as "the CBA"). See Def.'s Mot. Dismiss, Exh. A to Cavanagh Dec. Flight attendants were represented by their union, the Association of Flight Attendants-CWA, in the negotiation and execution of the CBA. Pursuant to the Sick Leave policy, flight attendants were "credited for sick leave purposes with four (4) hours of sick leave credit for each month during their employment and shall be allowed to accrue up to a maximum of nine hundred-fifty (950) hours."
Second, the Attendance Point Values policy is set forth in the Letter of Agreement ("LOA") entered into by the union and United in 2008. See Def.'s Mot. Dismiss, Exh. B to Cavanagh Dec. The LOA was intended to supplement and modify the earlier signed CBA. Under Section II of the LOA, a point system applied to "attendance occurrences" in order to manage unscheduled absences. Id. As explained by United, this system covered "[u]nscheduled absences for any reason that are not Family and Medical Leave-related, personal emergencies, or absences excused by other policies." Cavanagh Dec. ¶ 7. These absences were assigned a point value, for example, one point for a "late check-in," two points for "illness/injury" over six days, and three points for a "DNF," which stands for "Did Not Fly."
According to Defendant, this Attendance Point Values policy is administered separately from the Sick Leave policy, so that sick bank hours "are unrelated and are not considered in this [Attendance Point Values] process." Def.'s Br. at 4. Thus, as a consequence of the CBA and LOA, flight attendants who had sufficient hours in their sick banks would be paid for unexcused absences even though those absences were assessed penalty points.
Additionally, the LOA explains the process of point accumulation, notice to the flight attendant, and the progressive discipline applicable to Attendance Track discipline.
Eventually, if the flight attendant accumulates 30 or more points, he or she will be issued an "Attendance Letter of Charge" and be subject to termination. Id., Section III.A.1. The CBA outlines the grievance procedures that are applicable when a flight attendant is subject to suspension or termination. See CBA, Section 26 (discussing, inter alia, the flight attendant's right to a hearing on the matter, a written decision after the hearing, and a means to appeal the decision if dissatisfied).
Jackson has two types of age discrimination claims. First, a disparate impact claim that United's policies had a disproportionate impact on all flight attendants over age 40. Second, disparate treatment claims that United treated Plaintiff unfairly and acted in a discriminatory manner toward her. Count 1 of Plaintiff's amended complaint sets forth a claim for disparate treatment, or intentional age discrimination, in violation of the ADEA, while Count 2 alleges a disparate impact age discrimination claim in violation of the ADEA. Finally, Count 3 sets forth a claim of age discrimination in violation of the PHRA.
United asserts three alternative grounds for dismissal of all or part of Jackson's claims. First, pursuant to Federal Rule of Civil Procedure 12(b)(1), United claims that this court lacks subject matter jurisdiction over all of Jackson's claims. Under Rule 12(b)(1), the burden of persuasion in proving subject matter jurisdiction is on the plaintiff, evidence outside the pleadings may be considered, and I need not assume the plaintiff's allegations in her complaint are true. See Int'l Ass'n of Machinists and Aerospace Workers Dist. Local Lodge 1776 v. Jackson, Civ. No. 09-150, 2010 WL 597247, at *2 (E.D.Pa. Feb. 19, 2010).
Alternatively, United argues that Jackson's disparate impact claim, as set forth in Count 2, and her PHRA claim for disparate treatment in Count 3 should be dismissed for failure to state a claim. Under Federal Rule of Civil Procedure 12(b)(6), a cause of action shall be dismissed for failure to state a claim upon which relief can be granted only if it is clear that no relief could be granted under any set of facts that could be proved consistent with the allegations. I must accept as true the facts and allegations contained in the complaint and all reasonable inferences drawn therefrom and view the facts in the light most favorable to the non-moving party.
Finally, United argues on the basis of Rule 12(b)(7) that Jackson failed to join a necessary party, the Association of Flight Attendants, CWA. United contends that the union is a necessary party under Rule 19 and it ought to be joined if feasible. See Fed.R.Civ.P. 19(a). In the alternative, if joinder of the union is not feasible, United requests dismissal of the action. See Id. 19(b).
Minor disputes are those that "grow out of grievances or out of the interpretation or application of agreements concerning rates of pay, rules, or working conditions." Id. at 252-53, 114 S.Ct. 2239 (citing 45 U.S.C. § 151a). In other words, minor disputes arise out of the duties and rights created or defined by existing collective bargaining agreements. Under the RLA, minor disputes are within the exclusive jurisdiction of arbitration panels.
United contends that Plaintiff's claims are minor disputes preempted or precluded by the RLA, because they are based on portions of the CBA and LOA and are "inextricably intertwined" with an interpretation of the relevant sections of those contracts. Def.'s Br. at 7. On the other hand, Jackson asserts that her claims exist independent of the CBA, as they are based on a federal anti-discrimination statute, the ADEA, and its correlating state law. Jackson contends that the proper standard is whether the dispute may be "conclusively resolved" by interpreting the CBA. See Pl.'s Br. at 11 (citing Hawaiian Airlines, 512 U.S. at 255, 114 S.Ct. 2239). Jackson posits that the answer to that question in this case is no, therefore Defendant's motion should be denied.
In Hawaiian Airlines, the Supreme Court held that the plaintiff's claims, which were based on state-law wrongful discharge causes of action, were not preempted by the RLA because they were independent of the CBA and liability turned on a "purely factual inquiry" into any retaliatory motive of the employer. 512 U.S. at 266, 114 S.Ct. 2239. The Court engaged in an in-depth discussion as to what defined a minor dispute under the RLA, concluding that minor disputes are those that are "grounded in the CBA," which involve interpretation of the CBA, and that involve "duties and rights created or defined by the CBA." Id. at 256, 259, 114 S.Ct. 2239.
This analysis has since been applied to the issue of whether the RLA precludes federal anti-discrimination statutes. Generally, courts distinguish between disputes grounded in the CBA, which necessarily require interpretation of the contractual provisions, and those that do not require interpretation of the CBA but rather involve rights or obligations that exist independently of the CBA. See Tice v. American Airlines, Civ. No. 95-c-6890, 2001 WL 1002466, at *2 (N.D.Ill. Aug. 30, 2001) (explaining the difference as that where the lawsuit can be dispositively resolved by interpreting the CBA (precluded) and cases where the CBA is relevant, but not dispositive (not precluded)). Moreover, where the determinative question is a "purely factual" one that looks at the employee's conduct, the employer's conduct, or the employer's motive in taking the adverse action, courts will typically find that interpretation of the CBA is not required and the relevant claim is not precluded. See Hawaiian Airlines, 512 U.S. at 261-62, 114 S.Ct. 2239 (citing Lingle v. Norge Div. of Magic Chef, Inc., 486 U.S. 399, 407, 108 S.Ct. 1877, 100 L.Ed.2d 410 (1988)); Ellis v. Nat'l R.R. Passenger Corp., Civ. No. 02-8059, 2004 WL 257392, at *4 (E.D.Pa. Feb. 11, 2004).
Jackson's disparate impact claim, as set forth in Count 2 of her complaint, alleges that United's policies, which allow flight attendants with sick bank hours to be paid for sick days but still be assessed points, has a disparate impact on flight attendants over 40 because those flight attendants typically have longer tenure and therefore more hours accumulated in their sick banks. See Am. Comp. ¶ 23. In other words, when a flight attendant is assessed two points for illness, without regard to whether that individual had any accrued hours in his or her sick bank, the result is to render the accumulated hours "useless." Id. ¶ 24. Jackson alleges that she had over 280 hours in her sick bank at the time she was terminated. Id.
The disparate impact claim clearly involves duties and rights created or defined by the CBA and LOA, and it does not involve rights that exist independently from those contracts. Jackson's disparate impact claim does not involve a "purely factual dispute" or an inquiry into the employer's motive since her claim is that United committed age discrimination simply because it had a policy in place, irrespective of how it was applied to any one employee. In other words, Jackson is, despite her assertion to the contrary, challenging the facially-neutral attendance policies as violative of the ADEA since she contends that United committed age discrimination "because it abided by the CBA [rules]." See Malobabich v. Norfolk Southern Corp., Civ. No. 2:11-cv-112, 2011 WL 1791306, at *3 (W.D.Pa. May 10, 2011) (holding such a challenge involves a dispute inextricably intertwined with the CBA and one requiring interpretation of the CBA);
This type of claim, one challenging the legality of particular provisions of the CBA, is grounded in the CBA, thereby falling squarely within the meaning of a "minor dispute" as defined by the RLA and relevant case law. Thus, Jackson's
Turning now to Jackson's intentional discrimination claims, set forth in Counts 1 (ADEA) and 3 (PHRA), Plaintiff alleges that United discriminated against her on the basis of her age in how they treated her, as compared to younger flight attendants, through unfair application of the attendance policies. Specifically, Jackson enumerates four instances where she alleges United unfairly assessed points against her in contravention of its written policies. Jackson alleges that she received this disparate treatment yet "workers under the age of forty [were] not treated in this fashion."
Jackson alleges that in late December 2010, she was notified by her supervisor, Frank Hester, that she would be suspended because of the accrual of attendance points. Jackson asserts that she had never been made aware of United's attendance policy, nor was she notified about her point accrual prior to this time. Specifically, Jackson claims that she first learned of her point accrual on January 3, 2011, when she met with Hester and he informed her that she had been sent four letters of warning regarding her attendance points, letters that Jackson alleges she never received. Am. Compl. ¶¶ 33-34. Defendant contends that Plaintiff received progressive discipline for her attendance infractions, including the LOW 1 through LOW 4. Cavanagh Dec. ¶ 10.
On March 1, 2011, United held a "Letter of Charge Conference" regarding Jackson's point accrual. The meeting was attended by Jackson, Hester, a union representative, and two United personnel. Jackson contends that she "was not provided with a full and fair opportunity to
The dispositive question underlying Plaintiff's disparate treatment claims is whether United took particular action, i.e. applying its attendance policy to Jackson unfairly by assessing unjustified points and ultimately discharging her, because of her age. The determination as to whether United committed age discrimination will depend upon United's motive in assessing the points it did under the circumstances it did.
Plaintiff will have to show, as part of her prima facie case of intentional age discrimination, that she was treated differently than similarly-situated flight attendants who were younger than 40. See Keller v. Orix Credit Alliance, Inc., 130 F.3d 1101, 1108 (3d Cir.1997). While reference to the CBA and LOA may be necessary for the outline of the point-assessment system or other information relevant to Jackson's claims, an interpretation of the actual terms of the contract will not be required.
If Plaintiff establishes a prima facie case of intentional age discrimination, United will then have the opportunity to set forth a legitimate, non-discriminatory reason for its conduct, which will undoubtedly be that it appropriately applied its written policies to Jackson's attendance infractions under the circumstances. Jackson will then have to point to evidence demonstrating that United's justification was pretext for age discrimination. See Simpson v. Kay Jewelers, Div. of Sterling, Inc., 142 F.3d 639, 643 (3d Cir.1998) (outlining three steps of a pretext claim under the ADEA). This determination will involve questions of whether United was justified in assessing points under the factual circumstances, or whether it was using the attendance points system to ultimately discharge Plaintiff based on her age. In other words, the analysis will focus on how United exercised the discretion it had under the CBA and LOA to assess points with reasonableness and fairness. See Am. Compl. ¶ 26 (alleging policy provided for United to correct or adjust the point assessment if they deemed it necessary and to manage attendance issues with reasonableness and fairness); see also Ellis, 2004 WL 257392, at *4 (finding defendant's discretion to take a particular action "save[d] Plaintiff's claims from RLA preemption" since the issue involved factual disputes related to the employer's conduct and motives, which did not require interpretation or application of the CBA even though the relevant action was discussed in the CBA). To determine whether the points were applied fairly in this case depends not on an interpretation of any terms of the CBA or LOA, but rather on a purely factual inquiry into United's motive and Jackson's conduct.
Because Jackson's intentional age discrimination claims involve rights that exist independently of the CBA and LOA, those claims are not preempted or precluded by the RLA. Thus, Defendant's motion to dismiss Counts 1 and 3 based on Rule 12(b)(1) is denied.
As I have dismissed Count 2, Jackson's disparate impact claim, under Rule 12(b)(1) for lack of subject matter jurisdiction, I cannot review the merits of that claim and therefore will not address United's argument that Count 2 should be dismissed for failure to state a claim under Rule 12(b)(6). Therefore, the only remaining issue raised by United is that Jackson has not sufficiently alleged an intentional discrimination claim under the PHRA because the alleged discriminatory conduct (i.e., the application of the attendance policy and the decisions made to enforce it) took place in Virginia, not Pennsylvania. United argues that because Jackson did not work in Pennsylvania, and the alleged adverse employment action did not take place in Pennsylvania, Plaintiff's PHRA claim must be dismissed. See Def.'s Br. at 14.
Jackson contends that as a resident of Pennsylvania
To begin with, I must look to the actual statutory language. The relevant section of the PHRA states that it shall be unlawful for "any employer" to discriminate against an "individual" or independent contractor. 43 Pa. Stat. § 955(a). The term "individual" is not defined by the statute, and "employer" is defined as "any person employing four or more persons within the Commonwealth...." Id. § 954(b). Moreover, the statute allows "any person" claiming to be a victim of discrimination to file a complaint with the Pennsylvania Human Rights Commission. Id. § 959(a). The term "person" includes "one or more individuals." Id. § 954(a).
Thus, the statutory language does not expressly limit the statute to cover only individuals who work within Pennsylvania or those who live and work in Pennsylvania or those who allege discriminatory acts that took place within the state's borders. The definition of employer also does not foreclose an individual, living in Pennsylvania but working in another state, from bringing a claim under the PHRA. That definition requires only that the employer "employ[ ] four or more persons" in Pennsylvania. There is no contention here that United employs less than four individuals within the state so that Pennsylvania laws would not govern its conduct or Pennsylvania courts would not have jurisdiction over it as a defendant. The statutory language, including the act's stated "findings and declaration of policy," in combination with a fair reading of the statute, mean that Jackson's claim should proceed. See id. § 952.
The few cases addressing the reach of the PHRA are not contrary to this conclusion. Both cases cited by United involve plaintiffs who neither resided nor worked in Pennsylvania.
I read the PHRA to protect residents of Pennsylvania and as Jackson has alleged that she lived in the state during the relevant times, I find that Plaintiff has stated a claim under 43 Pa. Stat. § 955(a).
In sum, the defendant's 12(b)(6) motion to dismiss Count 2 of Plaintiff's complaint is denied as moot, and the motion to dismiss Count 3 is denied for the reasons set forth above.
A person deemed necessary to the action under Rule 19 must be joined as a party if joinder is feasible. See Fed. R.Civ.P. 19(a) (listing factors to consider regarding necessity of the party and requiring joinder as long as the person is subject to service of process and joinder will not deprive the court of subject matter jurisdiction). If joinder of a required party is not feasible, then "the court must determine whether, in equity and good conscience, the action should proceed among the existing parties or should be dismissed." Id. 19(b) (listing four factors for the court to consider to determine if the party is indispensable to a just resolution). Therefore, as an initial matter, I must determine whether the union is "necessary" to the action. See Janney Montgomery Scott, Inc. v. Shepard Niles, Inc., 11 F.3d 399, 404 (3d Cir.1993).
United contends that the union is a necessary party because joinder of the union is essential to effectuate complete relief. United argues that the relief sought by Jackson would, in part, require United to take action with respect to its policies contained in the CBA and LOA, contracts that were negotiated by the union, thereby impairing the interests of the union.
The only remaining claims are for intentional age discrimination, i.e., whether United unlawfully applied the otherwise lawful attendance and sick leave policies to Plaintiff and perhaps other flight attendants older than 40. There is no allegation that the union was involved in the discriminatory acts. Moreover, the relief Jackson seeks with respect to her remaining claims will not require changes be made to the actual CBA and LOA, as her existing complaint challenges only how those contractual provisions were applied in a unlawful manner based on United's discriminatory motive. For the reasons discussed at length above, no interpretation of the contracts is necessary for resolution of Jackson's intentional discrimination claims.
Because complete relief can be accorded to the parties without joinder of the union, and disposing of the action in the absence of the union will not impair or impede the union's ability to protect its interests related to the subject matter of the litigation, nor will it leave United subject to a substantial risk of double, multiple or otherwise inconsistent obligations, the union is not a necessary party to the action under Rule 19(a). See Fed.R.Civ.P. 19(a)(1)(A)-(B). Since "a holding that joinder is compulsory under Rule 19(a) is a necessary predicate to a district court's discretionary determination under Rule 19(b)," there is no need to discuss any of the factors set forth in Rule 19(b) or United's arguments in favor of dismissal because the action cannot proceed without the union. See Janney, 11 F.3d at 405; Def.'s Br. at 9-12. Defendant's motion to dismiss Jackson's complaint pursuant to Rule 12(b)(7) is denied.
For the aforementioned reasons, Count 2 of Jackson's amended complaint, her claim of disparate impact under the ADEA, is dismissed for lack of subject matter jurisdiction. Plaintiff's claims for intentional age discrimination, set forth in Counts 1 and 3, are not preempted or precluded under the RLA and I have jurisdiction over those claims. Jackson has sufficiently stated a claim under the PHRA, therefore Defendant's motion to dismiss Count 3 under Rule 12(b)(6) is denied. Finally, the Association of Flight Attendants, CWA, is not a necessary party to the action and United's motion to dismiss for failure to join the union is denied.
An appropriate order follows.
AND NOW, this 15th day of July, 2014, IT IS HEREBY ORDERED that:
This distinguishing feature illustrates the difference between Jackson's claims. Her disparate impact claim, which does allege that the attendance policies are "fundamentally discriminatory," requires interpretation of the CBA and LOIA and is thus preempted. In contrast, Jackson's disparate treatment claims refer to the CBA and LOA but do not require interpretation of those contracts and they are therefore not precluded or preempted.