JOHN W. BROOMES, UNITED STATES DISTRICT JUDGE.
This matter is before the court on Spirit's
Plaintiffs are former Spirit employees in Wichita whose employment was terminated in a July 2013 reduction-in-force (RIF). Plaintiff's fifth claim for relief, based on the Age Discrimination in Employment Act (ADEA), alleges that after July 2013, "Spirit implemented a policy, procedure, and/or practice of rejecting applications for open positions from individuals terminated in the July 2013 RIF." (Doc. 1 at 80.) Plaintiffs allege this "failure and refusal to hire former employees terminated in the July 2013 RIF had a significant adverse impact on the work opportunities of former Spirit employees age 40 or above," including the Applicant Plaintiffs and the Deterred Applicant Plaintiffs,
Plaintiffs' fifth claim for relief is based on 29 U.S.C. § 623(a)(2), which is part of the ADEA's prohibition on age discrimination. It states as follows:
29 U.S.C.A. § 623(a) (West).
In Smith v. City of Jackson, Miss., the Supreme Court held that subsection (a)(2) permits claims of disparate impact. Smith, 544 U.S. 228, 232, 125 S.Ct. 1536, 161 L.Ed.2d 410 (2005). At the same time, the Court indicated that subsection (a)(1) only permits claims of disparate treatment.
Spirit moves to dismiss Plaintiff's fifth claim for relief pursuant to Fed. R. Civ. P. 12(c), arguing the ADEA does not authorize failure-to-hire claims under a disparate impact theory. (Doc. 410 at 1.) Claims of discriminatory failure-to-hire must be brought under § 623(a)(1), Spirit argues, which does not permit a disparate impact theory. Plaintiffs' fifth claim for relief is based on § 623(a)(2), which allows disparate impact claims, but Spirit argues this subsection only applies to current employees, not to outside job applicants. (Id. at 3.)
In response, Plaintiffs raise three basic arguments in support of their position that they have stated a claim under § 623(a)(2). Fundamentally, Plaintiffs argue that subsection (a)(2) always applies to failure-to-hire claims by outside job applicants. (Doc. 417 at 6-25.) Alternatively, Plaintiffs argue that their status as former employees brings them within the purview of subsection (a)(2) because that provision speaks in terms of "employee" and "employees," and because prior Supreme Court precedent in the Title VII context teaches that the term "employee" can encompass both current employees and former employees. (Id. at 4-6.) Finally, relying on similar logic, Plaintiffs argue they fall within the scope of subsection (a)(2) because they "suffer from the disparate impact of policies Spirit developed and set into motion while Plaintiffs were still employees." (Id. at 2) (italics in original.) As to this particular theory, Plaintiffs contend Spirit violated subsection (a)(2) by designating older workers for the RIF and developing a policy of excluding such workers from consideration for rehire. (Id. at 3.) Plaintiffs argue this fact distinguishes their claims from the cases cited by Spirit, which interpreted § 623(a)(2) to exclude claims by outside job applicants.
Rule 12(c) permits a motion to dismiss on the pleadings after the pleadings are closed. The standards applicable to such a motion are the same as those governing Rule 12(b)(6) motions. See Morris v. City of Colorado Springs, 666 F.3d 654, 660 (10th Cir. 2012). In order to withstand a motion to dismiss for failure to state a claim under Rule 12(b)(6), a complaint must contain enough allegations of fact to state a claim to relief that is plausible
A.
The arguments concerning construction of § 623(a)(2) were exhaustively discussed in the Kleber and Villarreal en banc opinions. After reviewing those decisions, and the parties' arguments in this case, the court agrees with the majorities' conclusions that § 623(a)(2) does not apply to an employer's failure to hire outside job applicants such as Plaintiffs. Resolution of this issue turns on whether the term "individual" as used in subsection (a)(2) includes outside job applicants.
In resolving a similar question regarding the meaning of the term "employee" in § 704(a) of Title VII, the Supreme Court began its analysis by evaluating whether the meaning of that term was plain or ambiguous. Robinson v. Shell Oil Co., 519 U.S. 337, 340, 117 S.Ct. 843, 136 L.Ed.2d 808 (1997). "The plainness or ambiguity of statutory language is determined by reference to the language itself, the specific context in which that language is used, and the broader context of the statute as a whole." Id. at 341, 117 S.Ct. 843. Finding no clear answer in the specific language at issue or in Title VII's definition of "employee,"
In both Kleber and Villarreal, the circuit courts concluded that the meaning of the term "individual" in § 623(a)(2) was circumscribed by that subsection's reference to the individual's "status as an employee." Kleber, 914 F.3d at 482; Villarreal, 839 F.3d at 963. Finding that language precluded reading the term "individual" so broadly as to encompass outside applicants for employment, both courts determined that the plain language of § 623(a)(2) precluded its use by outside applicants. Kleber, 914 F.3d at 487; Villarreal, 839 F.3d at 970.
Both Kleber and Villarreal included vigorous dissents arguing that the meaning of "individual" was ambiguous. However, even assuming for the moment that it was ambiguous, the court would nevertheless reach the same conclusion as the majority in those two cases by following the roadmap provided by the Supreme Court for resolving such ambiguities in Robinson.
The ADEA does not expressly define the term "individual." See 29 U.S.C. § 630. Nevertheless, the ADEA uses the term "individual" in a number of different sections. For example, § 623(a)(1) proscribes failure or refusal to hire an individual, as well as discharge of an individual, based on the individual's age. In that context, the term "individual" clearly contemplates employees and applicants. On the other hand, section 623(c)(1) uses the term "individual" without any reference to employment or application for employment, speaking instead in terms of labor organization membership. Providing yet another twist, section 623(c)(2) speaks of an individual in terms of "his status as an employee or as an applicant for employment." Obviously, if the term "employee" contemplated applicants for employment in this subsection, there would have been no need to separately address the individual's status as "an applicant for employment." Thus, while subsection (c)(2) comprehends the meaning of "individual" to include both employees and applicants, it does so because that subsection expressly addresses an individual in those terms. By contrast with all the foregoing, subsection (a)(2) refers to an individual in terms of "his status as an employee," without any mention of his status as an applicant for employment. Taken collectively, the court concludes that the term "individual" has different meanings in different sections and subsections of the ADEA; therefore, continuing with the assumption that the plain language of § 623(a)(2) does not resolve the issue, "the term standing alone is necessarily ambiguous and each section must be analyzed to determine whether the context gives the term a further meaning that would resolve the issue in dispute." Robinson, 519 U.S. at 343-44, 117 S.Ct. 843.
A major factor supporting the conclusion that § 623(a)(2) does not apply to outside applicants is that other subsections within § 623 contain similar language but
A similar — and equally strong — inference arises from Congress's 1972 amendment of a nearly identical provision in Title VII. The sequence of events was recounted by Judge Rosenbaum in his concurrence in Villarreal. He noted that when the ADEA was adopted in 1967, the operative language of § 623(a)(2) was taken from § 703(a)(2) of the Civil Rights Act of 1964. Villarreal, 839 F.3d at 979. But in 1972, Congress amended the Title VII provision to specifically include "applicants," making it unlawful for an employer "to limit, segregate, or classify his employees or applicants for employment" where doing so would have an adverse effect because of race or some other prohibited reason. See Equal Employment Opportunity Act of 1972, Pub. L. 92-261, 86 Stat. 103, 109; 42 U.S.C. § 2000e-2(a)(2). Despite the identical language in § 623(a)(2), Congress did not amend that provision. Furthermore, in 1974 Congress amended the ADEA to apply it to federal employment and made that provision applicable to decisions affecting "employees or applicants for employment." 29 U.S.C. § 633a. Although caution is warranted against inferring too much from congressional inaction, in this instance the disparate treatment of two identical statutory provisions makes it reasonable to infer that Congress intended the provisions to carry different meanings according to their differing terms. Moreover, Congress's amendment of the ADEA (§ 633a) shortly after it added "applicants" to Title VII makes the absence of "applicants" from § 623(a)(2) appear all the more purposeful. The absence of "applicants" from § 623(a)(2) thus indicates this provision applies only to employees and not to outside job applicants.
Yet another inference supporting the same conclusion arises from the contrast between subsections (a)(1) and (a)(2) of § 623. Subsection (a)(1) necessarily applies to job applicants by virtue of its reference to an employer's "fail[ure] . . . to hire . . . any individual. . . ." But subsection (a)(2) includes no similar reference. It prohibits improper classifications of "employees" and elsewhere talks about affecting an individual's "status as an employee." The most reasonable inference from this structure is that Congress intended to exclude
The dissents in Kleber and Villarreal raised a number of contrary arguments, as do Plaintiffs, but they ultimately fail to overcome the force of these inferences. For example, they argue Griggs applied the same language found in subsection (a)(2) to job applicants, and therefore the same construction must apply here. But as Kleber pointed out, "[n]owhere in Griggs did the Court state that its holding extended to job applicants," and the case itself was brought "by employees of Duke Power and not outside applicants." Kleber, 914 F.3d at 485. Thus, although some language in Griggs refers to hiring and could be construed to support Plaintiffs' argument, the case itself did not involve outside applicants and Griggs did not hold that the statute applied to such applicants. See Griggs v. Duke Power Co., 401 U.S. 424, 426, 91 S.Ct. 849, 28 L.Ed2d 158 (1971) ("All the petitioners are employed at the Company's Dan River Steam Station. . . .")
Plaintiffs also argue, with justification, that one purpose of the ADEA was to address the disadvantage older workers face when seeking to regain employment after being displaced. See 29 U.S.C. § 621(a)(1). But § 623(a)(1) furthers that purpose by prohibiting discriminatory refusals to hire because of age, and the court cannot invoke statutory purpose to rewrite a different provision (§ 623(a)(2)) adopted by Congress. See Ali v. Fed. Bureau of Prisons, 552 U.S. 214, 228, 128 S.Ct. 831, 169 L.Ed.2d 680 (2008) ("We are not at liberty to rewrite the statute to reflect a meaning we deem more desirable. Instead, we must give effect to the text Congress enacted. . . .") Nor can the court ignore the numerous contextual indications that Congress purposely left "applicants" beyond the scope of § 623(a)(2). Finally, Plaintiffs argue that deference to agency discretion warrants a conclusion that § 623(a)(2) applies to outside applicants, because the Department of Labor and the Equal Employment Opportunity Commission have both interpreted the ADEA to permit disparate impact claims by job applicants. (Doc. 417 at 23-26.) But Plaintiffs cite no current regulation clearly stating that subsection (a)(2) applies to such applicants. They cite only 29 C.F.R. 1625.7(c) and argue its use of "individual" "encompasses the `employees or applicants' language of former section 1625.7(d). . . ." (Doc. 417 at 25.) The regulation Plaintiffs cite, however, addresses the RFOA — reasonable factors other than age — defense; it does not purport to determine whether subsection (a)(2) applies to outside applicants. Agency deference thus makes no difference to the outcome of this case. In sum, the court concludes that § 623(a)(2) does not authorize outside applicants to recover under a disparate impact theory for an employer's refusal to hire them.
In Robinson, the Supreme Court examined section 704(a) of Title VII, 42 U.S.C. § 2000e-3(a), an anti-retaliation provision that makes it unlawful for an employer to discriminate against "any of his employees or applicants for employment . . . because he has opposed any practice made an unlawful employment practice . . . or because he has made a charge . . . under this subchapter." The plaintiff in Robinson was fired by Shell; he then filed an EEOC charge. Robinson, 519 U.S. at 339-40, 117 S.Ct. 843. While the EEOC charge was pending, the plaintiff sought a job with another company. He subsequently sued under § 704(a), claiming Shell gave him a negative job reference in retaliation for having filed the EEOC charge. Id. at 339, 117 S.Ct. 843. In examining whether the "employees" entitled to protection under § 704(a) include a former employee such as the plaintiff, the Supreme Court first concluded the term "employees" was ambiguous. Although at first blush it "would seem to refer to those having an existing employment relationship," this impression "does not withstand scrutiny in the context of § 704(a)." Id. at 341, 117 S.Ct. 843. The court noted there was no temporal qualifier in the statute or in Title VII's statutory definition of "employee." Id. at 341-42, 117 S.Ct. 843. The statutory definition — "an individual employed by an employer" —
Robinson found the broader context provided by other sections of the statute helped to resolve the ambiguity in § 704(a). Inasmuch as several Title VII remedial provisions contemplate use by former employees, and discriminatory discharge is one of the unlawful practices against which Title VII is directed [42 U.S.C. § 2000e-2(a)], and given that a person filing a charge for a discriminatory discharge will necessarily be a former employee, "it is far more consistent" to include former employees among the "employees" entitled to protection in § 704(a). Id. at 345, 117 S.Ct. 843. The Supreme Court was further persuaded by an EEOC argument that reading § 704(a) to exclude former employees would undermine the effectiveness of Title VII by allowing postemployment retaliation, and it would also be inconsistent with the primary purpose of anti-retaliation provisions generally — i.e., to maintain unfettered access to statutory remedial mechanisms. Id. at 346, 117 S.Ct. 843.
Having previously assumed, for sake of argument and analysis, that the term "individual" in § 623(a)(2) is ambiguous, the court nevertheless concludes that the context of subsection (a)(2) does not support the sort of broad understanding of "employee" reached in Robinson. It is true that the ADEA permits some remedies that necessarily apply to former employees, such as "reinstatement." 29 U.S.C. § 626(b). But that remedy could apply to an individual who was unlawfully discharged in violation of § 623(a)(1); it does not necessarily imply that "employee" in subsection (a)(2) includes both current and former employees. Each of the three subsections in § 623(a) appears to have a different scope. Subsection (a)(1) does not mention the term "employee," but the provision necessarily protects persons who were employees at the time they were unlawfully discharged, as well as outside individuals who apply for employment. See 29 U.S.C. § 623(a)(1) (making it unlawful to "refuse to hire or to discharge any individual" because of age). Subsection (a)(3) includes the term "employee" and makes sense only as applied to current employees. See 29 U.S.C. § 623(a)(3) (making it unlawful in certain circumstances to "reduce the wage rate of any employee.") As for subsection (a)(2), that provision makes it unlawful for an employer "to limit, segregate, or classify his employees" in ways that deprive an "individual" of employment opportunities or adversely affect his "status as an employee." 29 U.S.C. § 623(a)(2). The context suggests that "employee" refers to someone employed at the time that a challenged limitation, segregation, or classification has the prohibited effect of depriving that person of employment opportunities or affecting his status as an employee. If that were not the intended point of reference, ordinary usage
IT IS THEREFORE ORDERED this 14th day of August 2019, that Defendants' motion for partial judgment on the pleadings (Doc. 409) is GRANTED. Plaintiffs' fifth claim for relief, alleging a disparate impact claim under 29 U.S.C. § 623(a)(2) based on Spirit's failure to hire Plaintiffs, is DISMISSED. Plaintiffs' motion for hearing (Doc. 424) is DENIED.