SUSAN RICHARD NELSON, District Judge.
This case arises out of a dispute concerning Plaintiff Ellen S. Ewald's employment with Defendant Royal Norwegian Embassy (the "Embassy"). Plaintiff alleges pay discrimination, claiming that the Embassy violated the Equal Pay Act (the "EPA"), 29 U.S.C. § 206(d)(1), and the Minnesota Human Rights Act ("MHRA"), Minn. Stat. § 363A.08, Subd. 2. (Am. Compl. Counts III and VI [Doc. No. 104].) She also alleges that the Embassy violated Minn. Stat. § 181.64 by fraudulently inducing her to enter employment. (Am. Compl. Count II [Doc. No. 104].)
As an initial matter, the Court notes that the EPA is a strict liability statute, under which an employer's discriminatory intent, or lack of such intent, is irrelevant.
This matter was tried before the undersigned Judge of the District Court on April 21-24, 2014; April 28-May 2, 2014; May 13, 2014; and May 16, 2014. Subsequently, on July 31, 2014, the parties submitted Proposed Findings of Fact and Conclusions of Law [Doc. Nos. 327 & 328]. Based on the evidence presented at trial and all of the files, records, and proceedings in this matter, the Court makes the following Findings of Fact and Conclusions of Law, and enters the following Order for Judgment.
1. Plaintiff Ellen S. Ewald is a female United States citizen who resided in Norway for more than twenty years. (Ewald 57-83, 141.)
2. At all times relevant to this matter, the Embassy had a presence in the State of Minnesota at the Honorary Norwegian Consulate, 901 Marquette Avenue South, Suite 2750, Minneapolis, MN 55402. The Embassy has consented to the jurisdiction of this Court pursuant to Plaintiff's Employment Agreement (the "Agreement") (J-12-0001) and Defendant's representations to this Court. (Tr. of 11/26/12 Hearing at 16-18 [Doc. No. 330].) According to the Agreement, Plaintiff's employment relationship is "governed by the laws [where] the Employee is employed." (J-12-0001.)
3. In 2007, Norway announced that it was closing its Career Consulate in Minneapolis, Minnesota, largely for budgetary reasons. (Strømmen 829; Vibe Dep. 37.) Norway's career consulates are staffed with diplomatic personnel from the country's diplomatic corps. (Strømmen 827.) In contrast, Norway's honorary consulates in the United States are led by American citizens. (
4. Announcement of the closing was met with substantial disappointment and opposition — in the Midwest and Norway. (Mondale 604-05; Strømmen 830.) Those opposed to the closing believed that closing the Career Consulate would diminish the longstanding ties between Norway and the Midwest. (Strømmen 829-31.)
5. Several people within the Norwegian Ministry of Foreign Affairs ("MFA") began crafting an alternative solution that would allow for Norway to maintain a strong, sustainable foothold in the Midwest. (Mykletun 1575-83; Hansen 1079.) Dr. Jostein Mykletun, then serving in the MFA as Deputy Director General in the areas of trade, innovation, business promotion, and research, was particularly involved in this process. (Mykletun 1563-64.)
6. Mykletun, along with persons in the Norwegian Ministry of Education and Research, had been previously involved in developing a 2005 document entitled "Strategy for Norway's Scientific and Technological Cooperation with North America" (the "Strategy"). (Mykletun 1581; P161.)
7. The purpose of the Strategy was to strengthen Norway's scientific and technological cooperation with the United States and Canada. (P161-0005.) In so doing, the Norwegian government hoped to raise Norway's aggregate spending on research and development ("R&D") and to improve the quality of Norwegian research. (
(
8. Because of Mykletun's previous involvement in developing the Strategy, he was invited to participate in the effort to chart an alternative course for Norway's Consulate in Minnesota. (Mykletun 1576.) Mykletun, who had attended Macalester College in St. Paul many years earlier, had close connections with Minnesota as well as with his employer, the MFA. (Mueller 1124.) Jeffrey Mueller, then the President of the Norwegian-American Chamber of Commerce ("NACC") in Minneapolis, credited Mykletun with shepherding the Norwegian-American community in the Midwest through the process of understanding and supporting an alternative Consulate. (Mueller 1126-27.)
9. Mykletun met with members of the Norwegian-American community who were opposed to the closing of the Career Consulate and discussed an alternative approach to the Consulate that would maintain Norway's significant presence in the Midwest. (Mueller 1127.) In terms of funding, Mykletun suggested that collaborative funding among different Norwegian government ministries would demonstrate widespread "buy-in," and would show that the Norwegian government remained committed to the Midwest, even though it had decided to close the Career Consulate. (Mueller 1127-28.)
10. As a result of this effort, a "new model" for an honorary consulate was developed for Minneapolis (the "Honorary Consulate" or the "New Model Consulate"). (Mondale 606-07; Strømmen 831-35; Gandrud 969-70.) The New Model Consulate was designed to build upon and strengthen the relationship between the Midwest and Norway through focused efforts to increase collaboration in two key strategic areas: (1) business and innovation; and (2) education and research. (Gandrud 503, 1006; Mondale 605-06; Mykletun 1576-79, 1581-83.) The New Model Consulate was an outgrowth of the Strategy, as well as an outgrowth of a bilateral agreement on research and technology between Norway and the United States. (Ewald at 86, 90; P-161;
11. Two expert positions in the New Model Consulate were developed to drive collaboration in these two strategic areas: (1) an Innovation and Business Development Officer (the "Innovation and Business Position"); and (2) a Higher Education and Research Officer (the "Higher Education and Research Position"). (Mykletun 1590-91.)
12. Mykletun discussed his vision of the New Model Consulate with members of the Norwegian-American business community in Minnesota, including Lois Quam and Marius Hansen. (Hansen 1078, 1102.) Quam and Hansen were colleagues who were actively involved in the Norwegian-American community. (Hansen 1076.) Hansen also had served as a board member of the NACC. (Hansen 1077.) In the course of their meetings and conversations about the New Model Consulate, Mykletun indicated that the two expert positions would collaborate in certain areas. (Hansen 1081.) Hansen explained that the two positions represented "intersecting circles" of education and business, which both included the commercialization of research. (
13. Norway's then-Minister of Foreign Affairs, Jonas Gahr Støre, announced the concept of the New Model Consulate in a March 2008 speech at the Humphrey Institute in Minneapolis. (Mykletun 1576; Nash 533.) During Støre's speech, he addressed many of the concerns of those opposed to the decision to close the Career Consulate. (Nash 534.) The Foreign Minister emphasized that the New Model Consulate would provide potential collaborations between business and education, in Norway and Minnesota. (Nash 534.) Based on Støre's remarks and the remarks of other high-level Norwegian government ministers who visited Minnesota in the spring of 2008, it was understood among members of the Norwegian-American community that encouraging research-based innovation would be one of the most important tasks of the New Model Consulate. (Mueller 1114-15.)
14. Because of budget constraints, the MFA sought the funds needed to finance the two expert positions from other institutions in Norway. (Strømmen 834-35; Mykletun 1576-77, 1583, 1590-91.) The MFA solicited various Norwegian institutions and government agencies with existing or potential interests in the Midwest to make an investment in funding the positions. (Mykletun 1583-84.) The MFA explained that the positions could support the goals of the respective institutions with little financial risk. (
15. Ultimately, six Norwegian institutions (the "Stakeholders") participated in the funding of the expert positions at the New Model Consulate, each agreeing to provide 250,000 Norwegian Kroner ("NOK") per year (a total of 1.5 Million NOK per year). (Berg 1239; Mykletun 1586-87, 1599; Johne Dep. 53-54.) The Stakeholders were: (1) the Ministry of Education and Research; (2) the Research Council of Norway; (3) the Norwegian Association of Higher Education Institutions; (4) the Ministry of Agriculture;
(5) SINTEF, an independent, commercial research and development institute; and (6) Innovation Norway, an institution that provides consulting, market analysis, and risk-mitigation services to small- and medium-sized businesses in Norway. (J-6-0001; Mykletun 1586-87; Finborud Dep. 18-20; Johne Dep. 53-54; Ewald 88; Berg 1234-37.) Innovation Norway, which has offices throughout the world, evolved out of the combined efforts of several Norwegian government ministries to create private-public partnerships aimed at, among other things, assisting Norwegian-based businesses to expand abroad. (Nash 532.)
16. The Stakeholders also were charged with (1) guiding the two experts by way of an advisory committee, or "Steering Committee" (Berg 1245, 1304-1305; P-11-0001); and (2) "inform[ing] [the two expert officers] about their priorities." (Finborud Dep. 26-27.) Each Stakeholder appointed a representative to serve on the Steering Committee. (Berg 1306-07; P-11-0001; Finborud Dep. 16-20, 26-27.) Liv Mørch Finborud, a senior MFA advisor, was appointed Chair of the Steering Committee. (Berg 1251-52; Finborud Dep. 15-16.)
17. The New Model Consulate project required Stakeholders to deposit their financial contributions with the Embassy in Washington, D.C. (Strømmen 836.) The Embassy was tasked with administering the Stakeholders' financial contributions because the persons hired for the two expert positions would be the Embassy's employees. (
18. Because the New Model Consulate presented a novel and untested structure and concept, the Stakeholders' financial commitment was limited to an initial three-year trial term, with the possibility of either ending or extending the terms of the expert positions after three years. (Strømmen 841; Berg 1245-46; P-11-0001; Finborud Dep. 20-21; Ewald 313, 485.) Funding beyond the trial term depended upon whether the Stakeholders believed that the benefits from the work of the expert officers justified further investment. (Berg 1366-67.)
19. In addition to the two expert positions, the New Model consulate required the appointment of an Honorary Consul General, the selection of whom was critically important. (Strømmen 831.) Following the announcement of the selection of Vice President Walter Mondale as the Honorary Consul General, opposition surrounding the decision to convert the Career Consulate to an Honorary Consulate subsided. (
20. In addition to Honorary Consul General Mondale, Gary Gandrud was appointed to serve as Honorary Consul for the Consulate beginning in August 2008. (Gandrud 495, 500.) In his role as Honorary Consul General, Vice President Mondale functioned as the Consulate's public face, while Gandrud handled the operational details. (Mondale 603.) When Vice President Mondale later resigned as Honorary Consul General, effective January 2010, Gandrud became Honorary Consul General. (Gandrud 964-65.) Both Vice President Mondale and Gandrud were volunteers who were not paid for their work at the Honorary Consulate. (Gandrud 780, 965-66.)
21. Ambassador Strømmen testified that his role in the New Model Consulate involved: (1) raising money for the New Model Consulate's budget; (2) supporting the Honorary Consul General; and (3) keeping the Stakeholders happy. (Strømmen 835, 841, 843.) The Embassy's Chief Deputy at the time, Aud Kolberg, asked Embassy staff Elin Rognlie, then the Minister Counselor for Economic Affairs, and Dr. Berit Johne, Counselor for Science at the Embassy, to assist with launching the New Model Consulate. (Rognlie 1398.)
22. In consultation with the Stakeholders, the MFA developed job descriptions, which described the goals and expectations for the two expert positions. (J-2-0002-03; Gandrud 970; Mykletun 1583-88; Johne Dep. 33-36.) Mykletun's involvement in developing the New Model Consulate had also included working on "pitch documents" and "keywords" for the job postings, as well as funding for the positions. (Mykletun 1576-77; D-2-0017-30; D-4-0003.) On July 3, 2008, Mykletun posted the final announcement for the Minneapolis New Model Consulate's expert positions. (J-2-0001-04; Mykletun 1638.) The postings described both the Higher Education and Research Position and the Innovation and Business Position as full-time, officer-level positions. (J-2-0002-4.) Mykletun did not consider one expert position more important than the other. (Mykletun 1588-89.)
23. Each expert position required similar professional experience and qualifications, and required either the ability to speak Norwegian, or a willingness to acquire a basic understanding of the language. (J-2-0002-03.) The Higher Education and Research Position required an advanced university-level degree, and the Innovation and Business Position required a university-level degree. (
24. Kermit Nash, a corporate attorney in Minneapolis with strong ties to the Norwegian-American business community and a member of the NACC, testified that the role of both positions was to serve the interests of Norwegians coming to the United States, and in order to best accomplish that, the two positions were "inextricably linked." (Nash 552.) During his testimony, Nash further discussed the inextricable link between business and education in Norway, in the context of innovation and collaboration. (Nash 551.) Nash was familiar with the Norwegian government's objectives concerning expansion into the United States business market through his attendance at NACC-sponsored events in the Midwest and Norway, and through his professional experience in assisting Norwegian research-based innovation companies to enter the United States market. (Nash 529-31.) Nash's Norwegian corporate clients include academically well-credentialed business people who develop various technologies for commercial use. (Nash 535.) Nash explained that unlike American entrepreneurs, Norwegian entrepreneurs are largely drawn from university settings. (Nash 534.) The Norwegian government supports the commercialization efforts of research-based innovation by funding early-stage companies either with equity, or through research grants. (Nash 535-36.) Nash testified that not surprisingly, research and innovation business facilities in Norway house state-funded research projects. (Nash 534.)
25. With the exception of the specific focus area, Defendant's postings for the two expert positions outlined almost identical responsibilities, including but not limited to:
(J-2-0002-03.)
26. The job postings did not include information regarding salary. (J-1-0001-02, 14-15.) Rather, the postings stated that the expert positions were limited to a three-year term, with the possibility of renewal. (J-2-0002-03; Ewald 383.) The postings included the names of contacts for each position. (J-2-0002-03.) The Innovation and Business Position contacts were Rognlie and Gandrud. (J-2-0002.) The Higher Education and Research Position contacts were Johne and Gandrud. (J-2-0003.)
27. Hiring the right person for each expert position was believed to be critical to the success of the New Model Consulate. (Mondale 689, 693; Rognlie 1424.) The experts needed to have knowledge and expertise of their respective subject areas, be able to work full-time, and have enthusiasm for achieving the goals of the Stakeholders. (Mondale 617-18; Mykletun 1590-91.) The experts would also need to be able to work effectively without close supervision. (Gandrud 1003; Berg 1304.) Neither the Honorary Consul General nor the Honorary Consul were physically present at the Consulate full-time, nor were they experts in the fields of business and research-based innovation or higher education and research. (Gandrud 780, 965-66, 1003; Carleton 1052.)
28. A committee (the "Hiring Committee") was established to review applications, select finalists who would be interviewed, and make a hiring recommendation. (Rognlie 1400-01.) The members of the Hiring Committee were: (1) Johne, (2) Rognlie, (3) Vice President Mondale, and (4) Gandrud. (Mondale 609-10; Strømmen 837-38; J-17-004.) Consistent with the job descriptions, Rognlie took the lead in screening the Innovation and Business Position applicants, and Johne took the lead in screening the Higher Education and Research Position applicants. (Rognlie 1399; Johne Dep. 56.)
29. In the process of planning the New Model Consulate, Gandrud contacted business people in Minnesota who were connected to the Norwegian-American community, including Marius Hansen and Lois Quam. (Hansen 1081-82.) Gandrud solicited input on the attributes and skills that the Hiring Committee should look for among the applicants, as well as the type of questions to ask the interviewees. (
30. NACC Member Kermit Nash also testified to his understanding that the two expert positions were equal — an understanding that stemmed, in part, from his conversations with Gandrud, and, in part, from his conversations with applicants for the positions. (Nash 553-54.) Over coffee, Gandrud had described to Nash the similarities between the general roles of the two expert positions. (Nash 554.) And, applicants had informed Nash that they had applied for both expert positions because they understood that the jobs commanded equal pay and work in the Consulate. (
31. In connection with advertising any local employment positions at Norwegian foreign service stations, selecting employees, and setting the salaries, the MFA provided guidance in a document entitled "Guidance for Model Employment Contracts for Local Employees" (the "Guidance"). (P-148.) "Local employees" are employees hired by the Norwegian Embassy within a host country, as distinguished from Norwegian employees and diplomatic staff who are sent from Norway to work abroad. (Strømmen 827.) Persons charged with the responsibility of hiring local employees, such as at the Minneapolis Consulate, were to follow the procedures set forth in the Guidance. (P-148-00022; Strømmen 860-63.) Accordingly, the Hiring Committee was expected to follow the Guidance. (Strømmen 861.) Moreover, the Guidance explicitly provides that the top leaders in the MFA, including ambassadors, have the responsibility to ensure compliance with the Guidance. (P-148-0043.) Ambassador Strømmen and Rognlie, as leaders in the MFA, agreed that they were obliged to ensure compliance with the Guidance. (Strømmen 887; Rognlie 1490,1492.)
32. The Guidance provides that when hiring new staff, every foreign service station is to conduct an evaluation that includes a comprehensive consideration of each applicant's education, work experience, and personal attributes in order to find the single applicant who is best qualified for the particular position. (P-148-0023.) The Guidance also requires that the selected individual be well qualified for the announced position, not just generally well qualified. (
33. The Guidance also provides that foreign service stations, like the Honorary Consulate, are expected to be mindful of the Norwegian anti-discrimination laws during the application and hiring process. (P-148-0024-28; Strømmen 864.)
34. As to the determination of salary, the Guidance provides as follows:
(P-148-0033.) In addition, the Guidance provides that "local public salary regulations" are also a factor for determining an employee's salary. (P-148-0034.) Ambassador Strømmen expected the Hiring Committee to follow these salary establishment guidelines. (Strømmen 867-68.)
35. Ambassador Strømmen also testified that he expected that members of the Hiring Committee were aware of and had considered Minnesota's pay equity law in the New Model Consulate hiring process. (Strømmen 878.) However, no evidence was presented demonstrating that the Hiring Committee had in fact considered Minnesota's pay equity law in setting the salaries for the expert positions.
36. As noted, the job postings did not include information regarding salary. (J-1-0001-02, 14-15.) Gandrud testified that prior to the interviews, he had received inquiries from several persons about the Innovation and Business Position. (Gandrud 575, 972-73.) Gandrud further stated that when these persons were told the salary range for the Innovation and Business Position, they indicated that it was too low. (
37. Before the jobs were posted, the Embassy's Counselor for Administrative and Consular Services, Jan Aage Larsen, asked, in a July 3, 2008 email, whether a proposed salary range of $60,000 to $70,000 would be acceptable for both expert positions. (P-6-0001-03; Gandrud 523, 971; Mondale 610; Rognlie 1449.) In a July 7, 2008 response email, Gandrud replied that that salary range would "be attractive" and would garner a "good representative response" for both positions because of the difficult state of the economy. (P-6-0001; Gandrud 523, 971-72.)
38. On July 9, 2008, Gandrud asked the Human Resources Manager at his law firm, Patricia Manalo, to briefly research the salary market for both expert positions. (Gandrud 576-77, 973; Manalo 252.) Gandrud told Manalo that he wanted an idea of the salary requirements for the two positions. (Manalo 255.) Gandrud gave Manalo copies of the job postings for the Higher Education and Research Position and the Innovation and Business Position. (Manalo at 255-56; Gandrud 582.) Manalo does not recall whether she reviewed any of the underlying information regarding the positions, including the Strategy or a bilateral agreement on research and technology between Norway and the United States. (Manalo 258-59.)
39. Gandrud did not provide Manalo with any information about the candidates or their then-current salaries, but Manalo concedes that if she were conducting this research as the official HR person in charge of hiring the two expert officers, she would have necessarily considered the candidates' (1) prior experience; (2) prior education; (3) and prior salaries and/or the salary requirements, which she did not do. (Manalo 270-271, 274.)
40. Manalo used a website called salary.com to conduct her research. (J-3-0004-15; Manalo 276-77.) This website provides information regarding salaries for a large number of professions. (
41. Manalo provided Gandrud the results of her nominal research on July 10, 2008. (J-3-0001; Manalo 259.) Manalo gave Gandrud salary range information from a general query on the salary.com website for business and education positions entitled "Business Development Manager Jobs," "Business Development Director Jobs by U.S. Region," "Institutional Research Director Jobs by U.S. Region" and a "Researcher III-Academic" job. (J-3-0001-15; Manalo 276, 262-63.) This research incorrectly assumed that the two expert positions were for business people and academic researchers, respectively. Gandrud did not ask Manalo to search for salaries of similar employees in other embassies or consulates. (Gandrud 584.) Manalo believes that she printed out for Gandrud all of the documents that she reviewed in her search. (Manalo 259, 263.) Manalo conceded that the positions she pulled from salary.com were quite different from the job descriptions given to her by Gandrud. (Manalo 262, 267.) She also admitted that none of the search results were positions in the Midwest. (
42. Manalo concluded that the salary market range was from $70,000 to $79,000 for the Higher Education and Research Position and from $93,000 to $118,000 for the Innovation and Business Position. (J-3-0001; Gandrud 577-78.) Manalo testified that her research was objective and not influenced by the gender of the applicants. (Manalo 270, 276.) In fact, she testified that when she conducted her research, she did not know who had applied for the positions. (
43. In Manalo's trial testimony, after comparing the actual job postings for the expert positions against the salary.com positions, Manalo conceded that they were quite different. (Manalo 260-67.) The Higher Education and Research Position did not actually perform research; it brought research institutions and businesses together. (Manalo 264-266; 273; J-2.) Likewise, the Innovation and Business Position was not designed to generate business for a corporate entity; instead, it also brought businesses together. (Manalo 259-62; Davidson 2015-17.) Manalo admitted that if she were involved in hiring the two individuals, she would have conducted more research before settling on a salary. (Manalo 269-270.)
44. Gandrud also admitted that the Consular expert positions were quite different from the positions that Manalo had found on salary.com. (Gandrud 578.) Nonetheless, Gandrud believed that the information gleaned from Manalo's one-hour search "was as close as he needed." (
45. Gandrud did not share the information that he received from Manalo with the Stakeholders, the Hiring Committee, or anyone else at the Embassy. (Gandrud 584; Strømmen 902; Mondale 618; Rognlie 1481.) Thus, while Vice President Mondale was aware that some type of market survey or analysis had been performed, he did not see it at any point during the hiring process, or during his tenure as the Honorary Consul General. (Mondale 618, 649-50.) Similarly, Ambassador Strømmen had no knowledge of what was done to find comparable market salaries and had no knowledge of the standards or statistics that were relied upon to set the salaries for the two Consular experts. (Strømmen 868-69.)
46. On July 3, 2008, Mykletun forwarded the job descriptions for both expert positions to his colleagues, including Ellen Ewald, for distribution to their professional networks. (J-2-0001; Ewald 76, 78, 83-84.) Ewald and Mykletun had been friends since 2002. (Mykletun 1566-67.) Mykletun was not soliciting Ewald to apply and was not otherwise involved in recruiting, screening, or hiring for the positions. (Mykletun 1566-67, 1593-95.)
47. Ellen Ewald is a Minnesota native who holds a Masters Degree in Political Science from the Massachusetts Institute of Technology, and a degree in Comparative Politics ("Hovedfag") from the University of Bergen in Norway, as well as a Bachelor's Degree in International Relations & Scandinavian Studies and Foreign Studies from the University of Minnesota (graduating summa cum laude). (J-4-0003.) Ewald is fluent in the Norwegian language, both spoken and written. (J-4-0004.) She has extensive professional experience in both education and business, and has held board positions in the United States and in Norway. (J-4-0003-04; Ewald 62-83.)
48. Ewald has received awards for her achievements, including recognition as one of "Norway's Top 10 Most Successful International Women" in 2004. (J-4-0003; Ewald 79-80.)
49. Ewald was the founder and former president of the MIT Club of Norway, a business networking club comprised of business leaders and alumni of MIT with a specific interest in the area of government and industry collaboration. (Ewald 70-72.) She was also a co-founder, along with Mykletun and Finn Kristian Aamodt, of the University of Minnesota Alumni Club of Norway. (Ewald 81-83.) Her involvement with the MIT Club and the University of Minnesota Alumni Club expanded Ewald's network in Norway and in the United States. (Ewald 83-84.)
50. Ewald had a successful private business career in Norway spanning more than a decade. (J-4-0004; Ewald 67, 73.) She worked as an executive for various corporations, and much of that experience was in the area of business evaluation and marketing, including network development. (
51. At the time that Ewald applied for the Higher Education and Research Position, she was the Chairperson and Marketing and Research Director of UnoPhone AS/UnoPhone Uganda, Ltd., where she had worked for five years. (J-4-0004; Ewald 74.) UnoPhone AS was part of TM Holding AS/Venturos AD. (Ewald 74.) At the time that Ewald was contemplating whether to come to the United States and take the expert position with the Embassy, there were approximately four or five companies held by TM Holding, to which Ewald could have transitioned, in roles similar to that which she held at UnoPhone, and at the same compensation. (Ewald 77-79; 476; Mikalsen 1195-96.)
52. Prior to UnoPhone, Ewald worked as the Manager of Business Network Development for TM Holding, as the International Project Coordinator and Manager for Norwegian Investor Forum/IT Fornebu, and as the Account Manager of Business Alliances and Project Management for Oracle. (J-4-0004; Ewald 73-79.)
53. Except for IT Fornebu, all of Ewald's former employers were private, non-government companies. (Ewald 68-69, 79.) In contrast, IT Fornebu was a 50/50 government/private industry business endeavor aimed at stimulating growth in Norwegian businesses and the economy, including initiatives in research-based innovation. (
54. Ewald's total compensation at TM Holding/Venturos — where she worked from 2000, through her acceptance of the Higher Education and Research Position with the Embassy — was approximately 950,000 Norwegian Kroner ("NOK"). (Ewald 76-77, 475; Mikalsen 1197.) Depending on the exchange rate, 950,000 NOK is the equivalent of approximately $170,000 to $190,000. (Ewald 76; D-60-0010;
55. Ewald reviewed Mykletun's July 3, 2008 email about the two positions at the New Model Consulate in Minneapolis. (Ewald 89-90; J-2-0001.) She considered both expert positions "exciting" and "two sides of the same coin." (Ewald 89.) Although she believed that she was qualified for both expert positions, she was particularly interested in the Higher Education and Research Position, because it represented a change from her work in business development for the preceding 15 years. (Ewald 105.) She also believed that the focus on research-based innovation was exciting and would put her at the cutting edge of technology, potentially spawning additional business opportunities for Norway. (Ewald 105.)
56. Prior to receiving the job descriptions for the two expert positions from Mykletun, Ewald was not looking for a new job because she was happy with her position as Chairperson for UnoPhone. (Ewald 77-78.) Neither Ewald, nor her then-domestic partner, now-husband, Terje Mikalsen, had any intention of leaving Norway to move to the United States. (Ewald 77-78; Mikalsen 1200.) They were well-established in Norway. Not only had they recently purchased and remodeled a home in Norway, but their family members also lived there, including Mikalsen's eight grandchildren. (Ewald 77-78, 80, 83; Mikalsen 1200.)
57. Intrigued by the postings, however, Ewald showed them to Mikalsen. (Ewald 80-81; Mikalsen 1198-1201.) Although Mikalsen was struck by the similarity between the two expert positions, he believed that the Higher Education and Research Position was practically tailored for Ewald. (
58. Ultimately, however, Mikalsen supported Ewald's interest in the position. Mikalsen viewed the expert position as an opportunity for Ewald's career to take priority in their relationship (Mikalsen 1200), even if it meant that the couple would have to uproot themselves from Norway and move to the United States. (Ewald 96.) Mikalsen believed that Ewald could use her connections in Norway and in the United States to help further important research collaboration both in education and business. (Mikalsen 1200.)
59. On July 4, 2008, Ewald expressed her interest in the expert positions to Mykletun and asked to speak with him further. (J-2-0001; Ewald 89-90.) Mykletun invited Ewald to his office at the MFA in Oslo to talk about the expert positions. (Ewald 90.) Mykletun never informed Ewald that he was talking to her as a friend only, and not as a representative of the MFA. (Ewald 95.) During the meeting, Mykletun indicated that the two expert positions were very substantive, focused positions. (Ewald 90-92.) Mykletun advised that the expert positions were for three-to-five-year terms. (Mykletun 1636-37.) The job descriptions, as well as the postings, also indicated a three-year commitment with a possible extension. (J-2-0002-3.) Although Mykletun explained to Ewald that the positions were limited-term appointments, he also expressed his hope that the New Model Consulate would ultimately succeed and that the expert positions would become permanent, as opposed to limited-term. (Mykletun 1636-37.) Accordingly, Ewald was under the impression that the positions involved a long-term commitment. (Ewald 90-92.)
60. Although Mykletun did not discuss the salary range for the positions (Mykletun 1598), he did inform Ewald that the positions would be equal and parallel (Ewald 91) and that the budget of 1.5 million NOK would be divided evenly to cover salary and travel. (
61. During their meeting, Mykletun sensed that Ewald was excited about the prospect of moving back to Minnesota. (Mykletun 1605, 1617). Ewald's parents and other family members live in the Minneapolis area, Ewald's younger daughter was beginning college at the University of Minnesota, and her older daughter was also attending college in the United States. (Ewald 141, 385; Ex. P-23-0006.)
62. After speaking with Mykletun, Ewald spoke by telephone with Gandrud, because he was one of the two contacts for the Higher Education and Research Position. (Ewald 96-97.) Ewald told Gandrud about her business background, as well as her experience with the MIT Club of Norway and the University of Minnesota Alumni Club in Norway. (Ewald 97-98.) Ewald also discussed her background in research-based innovation and her enthusiasm for the Higher Education and Research Position. (Ewald 98.)
63. On July 17, 2008, Ewald applied for the Higher Education and Research Position. (J-4-0001-4.) Ewald received a very positive reference from Mykletun. (Johne Dep. 44.) Although both Ewald and Mykletun considered Ewald qualified for both expert positions, and although Mykletun encouraged her to apply for both, Ewald applied only for the Higher Education and Research Position because she thought it would be more interesting and enjoyable. (Ewald 95 105; Mikalsen 1201.) As Ewald later wrote to Ambassador Strømmen, had she known of the better salary and terms that accompanied the Innovation and Business Position, she would have likely applied for it, as she possessed the necessary experience. (P-100-0001.)
64. On September 2 and 3, 2008, the Hiring Committee interviewed approximately 11 applicants for both positions in Minneapolis. (Mondale 610.) During Ewald's interview, the Hiring Committee and Ewald discussed Ewald's background, as well as the objectives of the expert positions as being "equal" and "parallel," and explained that the experts would function as a team, because both research and commercialization were important to achieve Norway's goals. (Ewald 107-110;
65. During Ewald's interview, the Hiring Committee discussed the fact that capitalizing on the intersection of research, business, and innovation is an important policy objective for Norway; and the Committee discussed the importance of the internationalization of students and business. (Ewald 108.) The Committee members further addressed the commercialization of research, noting that collaboration between the two expert positions would help Norway develop research opportunities. (Ewald 109.) Additionally, the Hiring Committee members explained that the expert officers would engage with Science Week, an annual conference aimed at fostering connections in science and research between Norway and the United States. (
66. At the time of the interviews, the salaries for the two positions had not been determined. (Mondale 673-75.) During Ewald's interview, members of the Hiring Committee discussed a general salary range of $40,000 to $70,000 for both expert positions. (Ewald 110-11; Gandrud 710.) This range was typical for other locally-employed Embassy officer-level employees and other consular officers of Norway in the United States at that time. (Vibe Dep. 56; Berg 1282.) Gandrud had commented on this general $40,000 to $70,000 pay range to others in the Norwegian-American community. (Hanson 1100-01; Nash 553-55; Mueller 1137.)
67. Ewald was not dissuaded by the salary range and remained enthusiastic about the Higher Education and Research Position, feeling "so sure that this was a good job for [her]." (Ewald 390; 108-09.) Gandrud recalled that Ewald "had the highest interest . . . of any of the applicants for either job[ ]. . . .[H]er enthusiasm was infectious and she made the same impression on all" of the Hiring Committee members. (Gandrud 977.)
68. The Hiring Committee members did not ask the interviewees about their salary history. (
69. Eswald was familiar with the salary and compensation system for Norweigian public employees. (Ewald 62-63.) Her understanding was that employees of the Norwegian government are compensated through a ladder system called "Lønnstrinn," in which employees are placed at a specific level of compensation appropriate for their level of employment. (Ewald 111-112; Strømmen 828.) Ewald believed that the Lønnstrinn system would apply to the expert positions. (Ewald 111-12.) That, coupled with the statements by Gandrud regarding the salary range, led her to believe that neither the salary, nor salary range, were negotiable. (Ewald 111-12.) In actuality, while the Lønnstrinn applies to most Norwegian government employees, the Embassy does not follow the Lønnstrinn for locally-employed employees, such as the expert officers. (Strømmen 828.)
70. After Ewald's interview, Gandrud contacted her, telling her that the Hiring Committee was enthusiastic about her and that she was one of the top candidates. (Ewald 113.) Vice President Mondale considered Ewald "a rare find." (Mondale 612.) The Hiring Committee had been particularly impressed with Ewald's passion for the job, along with her connections, knowledge, and experience. (Rognlie 1410.) Gandrud believed that Ewald would readily accept the Higher Education and Research Position, if it was offered to her. (Gandrud 740.)
71. Anders Davidson learned of the Innovation and Business Position through a job posting in his St. Olaf College alumni newsletter. (Davidson 1911.) At the time, Davidson was employed as a Business Development Manager in International Operations at 3M and was not looking for another job. (Davidson 1903.) His position at 3M required a great deal of travel. (Davidson 1905.) Davidson was attracted to the expert position because he believed it would provide a lifestyle change, allowing him to spend more time with his young children and shorten his work commute. (Davidson 1908-09, 1924.) While Davidson possessed Norwegian ancestry and an affinity for Norway (Davidson 1908), Davidson did not speak or write Norwegian; in fact, he had never visited Norway. (Davidson 1987.) Davidson was also unfamiliar with the Strategy and had never seen the document until it was presented to him as an exhibit at trial. (Davidson 2010.)
72. Davidson received an MBA from the University of Minnesota. (Davidson 1884-85; J-5-0002.) Prior to working at 3M, he had also worked at Microsoft. (Davidson 1885-86.) Based on his experience at 3M and in business school, Davidson had experience in analyzing and assessing companies and business plans. (Davidson 1898-1902; 1907.)
73. Davidson applied for the Innovation and Business Position "at the last minute" on July 25, 2008. (Davidson 1910; J-50001.) The Hiring Committee selected Davidson as a candidate to interview based on his business background and experience, particularly his international work at 3M. (Rognlie 1404-06.)
74. Davidson interviewed with the same Hiring Committee members as Ewald: Vice President Mondale, Gandrud, Johne, and Rognlie. (Davidson 1911.) Davidson recalls that the interviewers stated that the salary range was $40,000 to $60,000 or $70,000. (Davidson 1913.) When told of the salary range, Davidson made no negative comment, although he testified that he felt that the salary was "unrealistically low." (Davidson 1913.)
75. During Davidson's interview, he did not volunteer information about his day care concerns for his daughter. (Gandrud 722-23; Davidson 1913.) Nonetheless, Gandrud believes that during the interview there was "a sign" that Davidson was concerned about child care. (Gandrud 722-23.) While Davidson does not believe that he ever specifically referred to "day care" in subsequent conversations with Gandrud, he admitted that after the interview he did discuss working three days per week, in order to personally provide child care for his daughter two days per week. (Davidson 1996-98.) The Hiring Committee made no inquiry of Ewald's prior salary or her family situation. (Vibe Dep. 83-84; Rognlie 1463-64; Mondale 626-27.)
76. Based on the interview, Gandrud gave Davidson positive marks, indicating in his interview notes that Davidson was "fresh," "eager" and "lower $." (D-5-0006.) Vice President Mondale testified that Davidson was "young and strong." (Mondale 612.) Following the interview, Davidson remained interested in the position, but was privately concerned about the suggested salary range. (Davidson 1914.)
77. After the interviews, the Hiring Committee concluded that Davidson was the top candidate for the Innovation and Business Position. (J-6-0002; Mondale 612, 629-30, 687-89; Gandrud 978; Rognlie 1404-06.) Although Gandrud had not discussed compensation directly with Davidson, Gandrud was concerned that the salary range for the Innovation and Business Position might be too low and that it might affect Davidson's willingness to accept the position. (Gandrud 575-76; 972-73; 981-82; D-5-0006, D-5-0008.)
78. On the morning of September 4, 2008 — the day after the interviews were completed — at approximately 9:20 a.m., Gandrud emailed Rognlie and Johne, copying Ambassador Strømmen, regarding Ewald. (D-6-0001.) Referring to the Hiring Committee's "clear and obvious consensus" that Ewald was their choice for the Higher Education and Research Position, Gandrud "urgently request[ed]" that Rognlie and Johne recommend Ewald to the Stakeholders for approval. (
79. Shortly after receiving the email, Ambassador Strømmen telephoned Gandrud to discuss the fortuitous coincidence that Vice President Mondale was in Oslo and might be able to announce the hiring of Ewald during his visit. (
80. In an email sent at 10:07 a.m. that same day, Johne responded to Gandrud and Ambassador Strømmen. (P-7-0001-2.) Johne indicated that she and Rognlie had created a draft document, ranking the candidates, focusing on the number one candidates for both positions. (
81. That same morning, Gandrud telephoned both Ewald and Davidson. (Gandrud 719-20.) In his conversation with Davidson, Gandrud indicated that Davidson was the top candidate for the Innovation and Business Position, and asked him what he thought about a salary of $60,000. (Gandrud 720, 722; Davidson 1915.) Gandrud did not have authority to make an official salary offer at the time and told Davidson as much. (Gandrud 720-21, 984). Davidson did not interpret the $60,000 figure as a formal offer. (Davidson 1992). Rather, Davidson felt that Gandrud was "sort of [a] courier" and that he was expressing an initial level of interest in Davidson and "checking in about the salary." (
82. In response to Gandrud's question about salary, Davidson, who believed that the salary range was limited, did not demand a higher salary. (Davidson 1918.) Rather, Davidson asked whether it would be possible to work on a part-time basis, three days per week, for $60,000. (Davidson 1916.) Davidson told Gandrud that his base salary at 3M was $108,000. (Gandrud 721, 986; Davidson 1916-18; P-7-0001.) Based on his then-current salary at 3M, Davidson believed that if he were able to work three days a week for $60,000, his wife could work while Davidson stayed home two days a week with their youngest child. (Davidson 1917.) Davidson testified, "my response to them was not, I'm not going to work for 60, you have to pay me at least 100, I said, let's work within the 60 budget, can we do something else[?]" (Davidson 1921.) Gandrud responded that he would take Davidson's proposal back to the decision-makers, but that the three-day-a-week arrangement would not work. (Davidson 1917; Gandrud 721.) A part-time arrangement was not considered an option because both expert positions were intended as full-time positions. (Gandrud 721-22; Mondale 627, 689; Davidson 1918-19.)
83. Although Gandrud asked that Davidson's salary reflect the salry market rate for a similar position, Gandrud conceded at trial that Davidson was not applying for employment in the business community. (Gandrud 736.) Gandrud also conceded that Davidson did not request that Gandrud adjust his salary to reflect market rates. (Gandrud 735-736.) And, Davidson could not recall whether Gandrud asked him about his salary at 3M, or whether, unprompted, he shared his then-current salary of $108,000. (Davidson 1918.) Therefore, Gandrud decided to follow-up about child care during his telephone conversation with Davidson. (Gandrud 722-23.)
84. At approximately 11:30 a.m. that same morning, Gandrud emailed Johne, Rognlie, Ambassador Strømmen, and others, raising the issue of salary for Davidson:
(P-7-0001.) The "market research" referenced in the email referred to the one-hour search performed by Manalo. (Gandrud 724.) Although Gandrud testified that he did not refer to young children and day care to suggest that Davidson be paid more, but was merely explaining why Davidson suggested working three days per week for $60,000 (Gandrud 722-25; 728), Gandrud's September 4 email sent at 11:30, quoted above, speaks for itself. (P-7-0001.) The email makes no mention of Davidson's suggestion of working part-time for $60,000. (
85. Beyond the information contained in Gandrud's September 4, 2008 email (above), Defendant's witnesses were surprisingly unclear about the factors that were considered in the ultimate decision to pay Davidson $40,000 more than was originally offered to him:
86. The Embassy did not consider any of these factors in determining the salary offered to Ewald. Rater: offered to Ewald. Rather:
87. When faced with the reality that there was no tangible reason to pay Davidson more than Ewald, and despite the fact that neither expert position was in the business sector nor the education sector, but rather, in the Embassy, all the Embassy could say at trial was that "common sense" dictates that a person "in business" should be paid more than a person "in education." (Rognlie 1480, 1510.)
88. Ambassador Strømmen testified that, while recruiting for the expert positions, he was concerned that too much money would be spent on salaries. (Strømmen 842.) When he initially saw the proposed salaries, which reflected that a woman would be paid less than a man, Ambassador Strømmen asked questions of Gandrud, Vice President Mondale, and others about the salary differential. (Strømmen 839-40.) The feedback that he received left him with the impression that as long as the jobs were different, a salary differential was acceptable. (Strømmen 840.)
89. Ambassador Strømmen concedes that individuals involved in hiring the two experts at the Consulate should have used the Guidance. (Strømmen 861.) Members of the Hiring Committee admit that they did not follow the Guidance in the hiring process for the two expert positions, as Rognlie took no specific steps to protect against discrimination in the selection process, nor did anything to ensure that Ewald received equal pay for equal work. (Rognlie 1495-9896.) Once Rognlie learned of Ewald's concern about discriminating pay, Rognlie did nothing to investigate whether Ewald was receiving equal pay for equal work, even though she was obligated to ensure compliance with the Guidance as a leader in the MFA. (Rognlie 1490, 1492, 1498.)
90. On September 5, 2008, Johne emailed the Stakeholders, Rognlie, Gandrud, Vice President Mondale, and numerous other Norwegian government employees, recommending that Ewald and Davidson be approved for the two expert positions and stating that "both [were] clear first choice candidates, who would constitute an excellent team." (P-17-0011-12.) Johne informed the recipients of the email that, while a salary of $60,000 to $70,000 was appropriate for the Higher Education and Research position,
(
(P-17-0012-13.) Ewald testified that when she subsequently learned of the wide dissemination of this email — with its references to her lower salary — she felt embarrassed that while so many people knew of the significant pay difference between her and Davidson, she did not. (Ewald 314.)
91. Later on September 5, 2008, Gandrud sent Davidson an email notifying him that the Embassy was working on his behalf to increase his salary. (J-7-0001.) Gandrud noted that although Davidson did not request a higher salary, "[the] Embassy, Mondale and I joined in asking [the Stakeholders] that the salary be more reflective of the market." (J-7-0001.) Gandrud would not label the communication between himself, Davidson, and the Embassy, as "negotiations." (Gandrud 725-27; P-7-0001.)
92. Also on September 5, 2008, Johne confidentially notified Ewald that she was "strongly recommended as the no. 1 candidate," but had to pass the "formalities of the stakeholder meeting on Wednesday [September 10, 2008]." (Ewald 113, 391; D-7-0017.) Johne told Ewald of the intent to have Vice President Mondale announce her hiring at the reception following the Steering Committee's meeting on September 10, 2008. (D-7-0017.) The same day, Gandrud sent Ewald materials related to the United States-Norway Forum, at which Ewald was expected to give remarks as part of her work for the Honorary Consulate. (Ewald 115; D-10.)
93. On September 8, 2008, Gandrud forwarded Johne's widely-disseminated email with salary calculations to Davidson — but not to Ewald — stating, "FYI: Deeply confidential . . . you see our process . . . you should note that the salary is `in play.'" (P-8-0001; J-8-0001.) Davidson responded, "Thanks for keeping me abreast of the process. I really appreciate the consideration of the salary." (J-8-0001.) Prior to receiving the September 8 email from Gandrud, Davidson did not know that the Hiring Committee had sought the Steering Committee's approval for a higher salary for the Innovation and Business Position. (Davidson 2001-02; P-8.) Gandrud conceded that while he provided Ewald's private and confidential proposed salary information to Davidson prior to Ewald's hire, he did not provide Davidson's salary information to Ewald. (Gandrud 739-740.) Gandrud testified that he did not know whether Ewald would have taken the job had she known that Davidson's salary was higher than hers. (Gandrud 740-741.) Gandrud also testified that he never considered that it might be humiliating for Ewald to have so many people see that her work was valued less than the work of her male coworker. (Gandrud 741.)
94. On September 10, 2008, Ewald attended the Oslo reception at which Vice President Mondale announced her selection for the Higher Education and Research Position in Minneapolis. (Mondale 680-682; J-9-0004-5.) Former U.S. Ambassador to Norway Benson K. Whitney congratulated Gandrud on Ewald's selection, describing her as "bright, energetic, language-capable and charming." (P-10-0001.) Ambassador Whitney went on to say, "I am very excited about the position and consider it one of the MOST important ways to build 21st century connections with Norway." (P-10-0001.) Although Ewald was announced as the Higher Education and Research hire, she had not been formally offered the expert position and salary had not been discussed. (Ewald 116, 396.) Vice President Mondale was not aware that Ewald had not yet been offered a specific salary at the time of the Oslo reception. (Mondale 622.) Ewald knew prior to attending the reception that Vice President Mondale planned to announce that she had been selected as the Higher Education and Research Officer. (D-7-0017.) However, she testified that she would not have attended the reception in Oslo, nor would she have accepted the expert position, had she known that Davidson would be paid a higher salary. (Ewald 478-479.)
95. Prior to the reception on September 10, 2008, the Stakeholders met for the first time in Oslo (P-11-0001) and created the Steering Committee. (Berg 1245.) Again, the Steering Committee was tasked with ensuring that the topics and projects undertaken by the two expert positions were of interest to the Stakeholders. (Berg 1245.) The Steering Committee members included Chair Finborud of the MFA, Berg of Innovation Norway, Reidar Bye of SINTEF, Sten Anders Berge of the MFA, Ragnhild Skålid of the Norwegian Ministry of Education and Research, Olav Stave of the Norwegian Association of Higher Education Institutions, Gaute Lenvik of the Norwegian Ministry of Agriculture and Food, Morten Aasland of the MFA, and a representative of the Research Council of Norway. (
96. After the Stakeholders' meeting and reception, Gandrud updated Davidson on the budget process and told him, "expect to hear a report tomorrow." (J-8-0001.) The Steering Committee, however, was not actually required to approve the selection of or the compensation for the two candidates. (Finborud Dep. 24; Berg 1288; P-17-0003.)
In the minutes of the September 10 Stakeholders' meeting, it was reported that:
(P-11-0002.) On September 11, 2008, Steering Committee Member Aasland, the Norwegian Minister of North America, updated Gandrud on the Steering Committee meeting, which Aasland had attended. (P-17-0003.) Aasland recounted, "[a]mong the Stakeholders the understanding is that the NOK 1.5 should be divided equally between the two officers/fields (i.e., for salary, travel, etc)." (P-17-0003; P-14-0002; Ewald 313.) In fact, however, the funds were never split equally between Ewald and Davidson. (Vibe Dep. 50.)
97. Also on September 11, 2008, Gandrud was in contact via email with both Davidson and Ewald. (J-8-0001; J-9-0004-5.) He told Davidson that the Stakeholders were finalizing the budget and that "you [Davidson] will be pleased with the salary adjustment." (J-8-0001.) Also that morning, Ewald updated Gandrud on the Oslo reception and her meetings with Vice President Mondale and several Stakeholders. (J-9-0004-5.) Gandrud responded to Ewald's email, noting that he had received a "glowing report from the Foreign Ministry" about the Oslo reception, and the Stakeholders were "very pleased with the process and [Ewald's] selection." (J-9-00004.) Although he did not mention her salary, ironically, Gandrud told Ewald "[t]he candidates made them re-think the economic package (salary, benefits and budget) and you will be pleased with their additional commitment." (J-9-0004.)
98. On September 12, 2008, Gandrud sent Ewald an email stating, "after shaking a few trees, talking to [Honorary Counsel General] Mondale and the Embassy, I have a better focus on some of the administrative details. I want to officially offer you the position of education research officer." (P-12-0002;
99. Also on September 12, 2008, Gandrud called and offered Davidson the Innovation and Business Position, which Davidson accepted. (Gandrud 744; Davidson 1922; P-9-0001.) Although Gandrud had refused to discuss the "economic details" of Ewald's offer via email, during his phone call with Davidson, he offered Davidson a salary of $100,000. (
100. On September 13, 2008, Ewald discussed her salary with Gandrud on the phone. (Ewald 120-21; Gandrud 716.) Despite the fact that Gandrud had already offered Davidson $100,000, Gandrud misrepresented the truth to Ewald. Gandrud told Ewald that he had worked very hard and was able to get the top of the range for both positions — $70,000. (Ewald 120-21.) Gandrud then formally offered Ewald the expert position with a salary of $70,000 and informed her that a pension and parking were included in her employment package as well. (Ewald 121.) When Gandrud told Ewald that both experts were offered salaries at the top of the fixed range, she did not question his statement. (Ewald 120-22; 388-390.) Nor did Ewald attempt to further negotiate her salary because she believed that $70,000 was the highest salary that the Embassy could offer. (
101. The September 13, 2008 conversation was the first time Gandrud provided Ewald with specific salary information. (Gandrud 748.) Before that time, Gandrud did not believe that the economic portion of Ewald's offer was relevant. (Gandrud 752.) Gandrud remarkably believed that Ewald would have taken the expert position regardless of the salary. (
102. On September 13, 2008, Gandrud reported to Johne that he had a "very long conversation today and [Ewald] accepts our offer, $70M+pension+health." (P-12-0001.) Gandrud noted "now we have both on board!" (P-12-0002.) Johne responded, "the embassy would issue contracts" as they "had a meeting the day before on details!" (P-12-0001.) Johne asked, "Did you offer 100 + health + pension to Anderson? [sic] And he accepted?" (P-12-0001.) Gandrud responded affirmatively. (P-12-0001.)
103. Also on September 13, 2008, Gandrud replied to Steering Committee Member Aasland's September 11, 2008 email, in which Aasland had reiterated the Steering Committee's understanding that funding was to be equally split for the two expert positions. (P-17-0002.) Although Gandrud informed Aasland that "both candidates have accepted our offer," he did not mention the candidates' salaries. (P-17-0002.) Moreover, Gandrud did not address the fact that the Steering Committee's belief that both candidates would be offered identical salaries, differed from the actual salaries offered to the candidates. (
104. On September 16, 2008, Gandrud emailed Kathy Tunheim, a public relations consultant in Minnesota and a Norwegian-American, asking her to draft a press release for the Consulate, in order to: (1) explain the New Model Consulate; and (2) introduce the two officers to the community. (Tunheim 202-203, 208-09, 219-221; P-16-0001.) In an effort to understand the nature of the two expert positions, Tunheim asked whether the expert positions were both full-time positions. (Tunheim 214-15; P-16-0001.) Though Tunheim did not request salary information, Gandrud was again untruthful and volunteered that "[b]oth [were] full time [off record $100,000+ positions]," and offered positive descriptions of both Ewald and Davidson. (Tunheim 214-15; Gandrud 768; P-16-0001.) While Tunheim had no intention of using the salary information in the press release, she understood Gandrud's reference to salary to mean that "they were senior positions that were worthy of our putting out a press release to suggest these were going to be go-to people in the community," and to convey the significant commitment made by Norway. (Tunheim 214-15, 217.) Gandrud never expressed to Tunheim that one expert position was better or more important than the other, which led Tunheim to assume that they were comparable positions. (Tunheim 211; P-16-0001.) Tunheim assumed that the information provided by Gandrud was accurate and truthful. (Tunheim 216.)
105. While drafting the press release, Tunheim asked Gandrud for additional information about the experts' duties. (J-10-0010-12.) Gandrud asked Ewald and Davidson to respond to Tunheim's request. (J-10-0009.) In her email response, Ewald pasted a copy of the job posting for her position and noted that although Davidson's position was "different from mine, there are some general comments that might be made which could apply to both of our jobs." (J-10-0004.) She observed that in the New Model Consulate, the two positions were:
(
106. Also on September 16, 2008, Gandrud emailed the Embassy noting that Davidson's offer was for a salary of $100,000, along with pension benefits, and health insurance for a family of four, while Ewald's offer was for a salary of $70,000, pension benefits, and health insurance. (P-17-0001.) Gandrud did not specify the number of persons that Ewald's health insurance was intended to cover. (
107. On September 18, 2008, Gandrud advised Davidson that "The Embassy is finalizing the Contract — I have reviewed it — you will like it." (P-18-0001.) Gandrud asked Davidson for additional information regarding his family for the purpose of finalizing Davidson's benefits package. (Gandrud 769-70; P-18-0001.) However, Gandrud did not ask Ewald for information about her family. (
108. Ewald executed her Employment Agreement on November 4, 2008. (J-12-0001-5.) The Agreement set forth her job description and title, salary of $70,000, pension contribution, holidays, working hours, and various other terms. (
109. Davidson received and executed a similar Employment Agreement on October 14, 2008. (Trial Transcript Stipulation 920-21; J-11-0001-0005.) However, unlike Ewald, Davidson's annual salary was $100,000. (
110. Davidson's and Ewald's Employment Agreements stated, without further elaboration, that "health insurance" was to be provided as part of their compensation packages. (J-11-0002 at ¶ 8; J-12-0002 at ¶ 8.) The Administration Department at the Embassy, under Deputy Kolberg's direction, was responsible for the Employment Agreements. (Rognlie 1493.)
111. In terms of which individual or sub-entity actually set the specific salaries for Davidson and Ewald, Defendant had no clear answer. Although Gandrud told Ewald that the Embassy had set her salary, he later testified that he did not know who set the salaries. (Gandrud 729; Ewald 328-29.) Ambassador Strømmen testified that he had no role in setting the salaries for the two expert positions, although he approved the recommended salaries. (Strømmen 838-39.) Johne, a leader at the Embassy and one of Ewald's bosses, testified that she had nothing to do with setting the two experts' salaries. (Johne Dep. 59-63; Ewald 317, 329.) According to Steering Committee Chair Finborud, the Stakeholders did not set the salaries. (Finborud Dep. 37.) Rognlie also did not set the salaries; she testified that "[she] didn't take part in the discussions about salary. That was taken care of in Minneapolis." (Rognlie 1446, 1448, 1472-73.)
112. Ewald moved from Norway to Minneapolis because she accepted the position at the Honorary Consulate. (Ewald 96, 123; Mikalsen 1200.) Her domestic partner, Terje Mikalsen, required legal assistance concerning his immigration status in order to relocate to Minnesota with Ewald. (Ewald 131-133; Mikalsen 1658-59.) At Gandrud's suggestion, Ewald and Mikalsen hired Elaine Kumpula of the Faegre & Benson law firm to help Mikalsen obtain a green card. (
113. Ewald officially started her work for the Honorary Consulate on October 1, 2008. (Ewald 123.) Ewald and Davidson were told that they reported to Vice President Mondale and Gandrud. (Ewald 194.) Ewald stated, "[w]e were told very clearly that . . . our directives were to come from Vice President Mondale and Consul Gary Gandrud." (Ewald 175.) Ewald and Davidson were also accountable to the Stakeholders. (Finborud Dep. 44-45; Ewald 194.) The Stakeholders expected Ewald and Davidson to complete the work outlined in their job descriptions and to "follow the signals given to them." (Finborud Dep. 43.) The Stakeholders' directives were to come from the Steering Committee, which was charged with steering the two expert positions. (Berg 1245, 1304-1305.) Although the organization's hierarchy and reporting system was outlined in advance, as a practical matter, correspondence between the Honorary Consulate, the Embassy, and the Stakeholders reflected the parties' confusion about who was responsible for decision-making. (
(P-41-0006.) Stakeholder Terje Emblem, representing the Research Council of Norway, stated that the Steering Committee's role was a bit amorphous: "The two employees cannot constructively follow many and eventually dissimilar control signals from the Consulate (Gandrud), the Embassy/MFA and the Steering Committee. The Steering Committee's Mandate is unclear on this point." (P-41-0008.)
114. Ewald's and Davidson's job duties were set forth in the job postings. (Johne Dep. 91-92; J-2-0002-3.) The Steering Committee set priorities and expected Ewald to develop a "strong institution network between Norway and U.S.A. on the education and research side." (Finborud Dep. 43-44.) Similarly, the Stakeholders expected Davidson to "also promote and get Norwegian business into the Midwest and connect the ties." (Finborud Dep. 44.)
115. Finborud testified that the two experts were expected to work as a team. (Finborud Dep. 64.) In fact, Finborud explained that the experts were responsible for some overlapping work with institutions concerning research and technology. (
116. In early 2009, both Ewald and Davidson began working on vision statements containing their respective goals, objectives, and anticipated activities, as well as proposed budgets, for the coming year. (Ewald 359-360; J-22-001.) The Stakeholders wanted to evaluate these vision statements. (
117. On May 15, 2009, Gandrud sent the draft vision statements to Ambassador Strømmen, Vice President Mondale, and others, soliciting feedback. (P-41-0010.) Responding to the two drafts, Stakeholder Emblem, of the Research Council of Norway, found that the two vision statements were "very dissimilar in form and content." (P-41-0009-10.) Emblem found that this contradicted the Steering Committee's understanding "that the two positions would constitute a team, with more related activities and operations, and mutually consistent priorities, etc." (P-41-0007.) Rognlie recommended that the vision statements make clear "that the positions work as a team with somewhat overlapping institutions in relation to research and technology. An example here is renewable energy and environmental technology, as well as medical technology." (P-41-0009-10.)
118. Emblem's organization also found that Davidson's draft vision statement did not sufficiently address research-based innovation. (P-44-0003-4.) The Research Council advised that Davidson have a "clearer goal to develop relationships between Norwegian and American actors in the Midwest within research based activities." (P-44-0003-4.) The Research Council also criticized Davidson's proposed vision statement for its failure to reference any work performed in cooperation with the Research Council, which has "the main responsibility for research based innovation [in Norway]." (P-44-0004.)
119. In a subsequent June 8, 2009 email to Gandrud, Rognlie summarized the Stakeholders' feedback concerning the vision statements:
(J-23-0002-03.)
120. Based on the feedback from the Stakeholders, Gandrud directed Davidson and Ewald to revise their vision statements. (Gandrud 794-797; J-23-0002-3.) Gandrud directed Ewald to use "almost the same verbiage" as Davidson, particularly with respect to their collaborative work. (D-20-0001.)
121. Notably, Davidson stated in his vision statement:
(D-20-0002; D-24-0009.)
122. Ewald's revised vision statement mirrored Davidson's description of how the two expert positions overlapped and worked together. (D-24-0004.) Both Ewald and Davidson also noted that along with Innovation Norway, they worked with the Research Council. (D-24-0005, D-24-0011-13.) In addition, Ewald identified ways in which the two positions would work together:
(D-24-0006).
123. Gandrud met with the Stakeholders to discuss the Honorary Consulate on June 26, 2009. (P-43-0001.) The Steering Committee was enthusiastic about the work that had been performed. (P-43-0001-2.) Although they agreed that some student exchange was important, the Steering Committee stressed that Ewald's priority should be "research cooperation on a higher level," "more formal agreements ... between institutions," and "collaboration between universities." (P-43-0001.)
124. During her interview and immediately afterward, Ewald was initially encouraged to work on student mobility issues and student exchanges. (Gandrud 750; 756-58; 796-97; Mondale 606-607, 674, 681, 696, 702-703; Ewald 93-94, 108-110; P-52-0001, D-24-0016, J-23-0003.) However, in March 2009, the Steering Committee first directed Ewald to re-prioritize her focus on "strategic cooperation between universities, institutions and research groups above student exchanges and student mobility." (P-38-0005.) The Steering Committee expected that undergraduate student exchanges should occupy no more than ten percent of Ewald's time. (J-23-0003.) From then on, Ewald focused more on building relationships between the Norwegian and United States institutions and less on student mobility. (Ewald 175; D-24-0016;
125. Gandrud communicated with Steering Committee Chair Finborud about de-emphasizing student mobility issues. (P-52-0001.) Gandrud explained, "[w]e may have overstated this fact in our discussions" with Ewald "when she was first hired for her present position" (Gandrud: 799-800; P-52-0001), and "you should know that student exchanges were not the major part of Ellen Ewald's duties this past year." (P-52-0001.) Gandrud identified numerous examples of work that Ewald had facilitated in finding partners, establishing relationships and exchanges between institutions, and participating in the Nobel Peace Prize Forum. (P-52-0001-02.)
126. Gandrud reported to the Steering Committee that Ewald worked to develop relationships not only with educational institutions, but with business entities as well. (P-52-0001-2.) In fact, one reason that the positions were considered so similar was that business development was a significant aspect of both positions. (Mueller 1137;
127. Ewald and Davidson often interacted with overlapping entities and audiences. For instance, Ewald and Davidson both facilitated meetings of visiting Norwegian dignitaries and event attendees (Ewald 173; Hansen 1084-85); traveled to Norway (Ewald 189; Davidson 2024); gave presentations and represented the Honorary Consulate at community events (Davidson 2024-25; Ewald 180); planned Science Week 2009 together (Ewald 181-82; Davidson 1945-46); attended Science Week 2010 (Davidson 2034-35); performed work related to Midwest-Norway connections in the areas of environmental technology, renewable energy, and medical technology (Ewald 185); met with Norwegian and Midwestern business representatives (
128. There is no factual evidence in the trial record that Davidson performed duties that required greater skill, effort, or responsibility than Ewald.
129. Ewald's enthusiasm for role at the Honorary Consulate began to diminish when she attempted to register her family in the Embassy's health care policy. (Ewald 135-36; Gandrud 770.) On November 5, 2008, Ewald asked the Embassy how to add her children and partner to the health plan, noting that while she had experienced difficulty in this regard, Davidson had no difficulty at all in obtaining health care coverage for his family. (Ewald 137; P-22-0007-9.) An Embassy benefits employee responded, "I have never received any information that [Ewald's children and partner] should be added to the plan." (P-22-0008.) The benefits employee contrasted Ewald's family situation from Davidson's, by stating that Davidson supported his wife financially and that his children were under eighteen years old. (P-22-0007.) Specifically, the employee explained, "As I understand it, your partner is not dependent on your income, and so he is not covered under your health insurance." (P-23-0005.) In response, Ewald wrote,
(
130. On another occasion, Ewald was told that her partner, Mikalsen, would not be covered by the Embassy's health plan because he was a Norwegian Citizen; and thus, was already covered by Norway's national health care system. (Ewald 141.) Norwegian citizens generally receive coverage through Norway's national health insurance system ("NAV"), and do not have the option of receiving private health insurance at the Embassy's expense. (Carleton 1069; Log 1859.) In order to avoid double coverage, Ewald was told that Mikalsen could not be covered through the Embassy's health care plan.
131. In an attempt to determine her health care entitlements, Ewald spoke with an attorney. (Ewald 145.) Based on this conversation, Ewald understood that under Minnesota law, a parent-employee's health insurance must provide coverage for his or her children, who are full-time students and ages twenty-five or younger. (
132. Ewald notified the Embassy that, under Minnesota law, children who are twenty-five or younger, and are full-time students, must be covered. (P-55-0001-2; Ewald 148.) Instead of responding directly to Ewald's concerns regarding Minnesota's requirements for coverage, the Embassy argued that Ewald's daughters were not full-time students, and thus were not entitled to coverage. (Ewald 148-49.) Ewald corrected the Embassy, informing them that both of her daughters were, in fact, full-time college students. (P-54-0002; Ewald 153-54, 164-65.) However, even after Ewald repeatedly relayed this information to the Embassy, Ewald's children were not provided coverage by the Embassy. (Ewald 153-54; 164-65.)
133. When Ewald asked Davidson how he had obtained health insurance for his family, Davidson responded that it had been arranged for him when he was hired. (Ewald 137.)
134. On November 6, 2008, the Embassy somewhat changed its position with respect to Ewald's insurance coverage, noting that it would provide health care coverage for (1) Ewald's youngest daughter, but only during her first year of college, and (2) Ewald's partner, Mikalsen. (Ewald 142.) However, this change in position did not occur until several months after Ewald's initial start date. (Ewald 156; Mikalsen 1659-61.) Ewald's youngest daughter was eighteen years old when she obtained coverage. (Ewald 144.) Although the Embassy contends that it has never provided coverage for a local employee's dependent over the age of eighteen (Log 1862-63), the facts of this case contradict this position.
135. Although the Embassy agreed to provide coverage for Ewald's younger daughter for one year (J-24-0006), they refused to provide coverage for her older daughter. (
136. On November 19, 2008, Steering Committee Chair Finborud formally advised the Steering Committee that Davidson was receiving higher pay and different benefits than Ewald. (P-28-0008-9.)
137. Although the Steering Committee was informed about the difference in pay and benefits, Ewald continued to experience disparate treatment. In fact, although in November 2008, the Embassy agreed to cover Mikalsen, the Embassy retracted his coverage within a few months. (Ewald 142.) On March 19, 2009, Ewald received an email from Jan Aage Larsen, the Embassy's Counselor for Administrative and Consular Services, informing her that Mikalsen was about to lose his medical coverage in less than two weeks. (Ewald 142; 154-56; P-37-0005, P-51-0010-11.) Larsen stated, "In re: your conversation with Gary concerning the Norwegian rules for medical coverage of your partner, see below wherein his part of the medical insurance agreement is now cancelled with effect as of April 1st, 2009." (P-37-0005.) The process of canceling Mikalsen's coverage began on February 25, 2009, and the late notice gave Ewald very little time to find alternate insurance for her partner. (P-37-0008; P-51-0009.) The basis for denying Mikalsen's coverage was that he had "independent income." (P-37-0008.) In fact, other than his Norwegian pension, Mikalsen did not have independent income at the time. (Ewald 157-58.) Ewald objected to the Embassy's treatment, noting her understanding that Davidson's spouse was covered even though she worked outside the home. (Ewald 158.)
138. On March 20, 2009, in an email between Gandrud and Vice President Mondale, Gandrud stated, "Terje [Mikalsen] apparently cannot be covered under the final health policy since he has Norwegian citizen coverage." (J-20-0001.) This was a different reason than the "independent income" reason provided to Ewald just one day earlier. (P-37-0008; Ewald 161.)
139. Ewald felt distressed and frightened at the prospect of Mikalsen losing medical coverage. (Ewald 163.) At the time that the Embassy canceled Mikalsen's coverage, he was experiencing health issues and had recently visited the Mayo Clinic. (Ewald 155.)
140. Concerned that Mikalsen would be without coverage while experiencing health problems, Ewald issued a plea for Mikalsen to stay on the Embassy's policy at Ewald's expense. (Ewald 159.) The Embassy granted that request. (
141. Although the March 19 email notifying Ewald of the cancellation of coverage referenced a conversation with Gandrud, neither Gandrud nor any other representative of the Embassy had ever spoken to Ewald about cancelling Mikalsen's coverage. (P-37-0001; Ewald 156-57.) Likewise, no one from the Embassy or the Consulate had asked Ewald about Mikalsen's income. (Ewald 158.)
142. Ewald understood that Davidson's spouse had independent income. (Ewald 158.) However, when she sought an explanation from the Embassy for why Davidson's spouse was allowed coverage while having an independent income, but Mikalsen was not afforded coverage, no one from the Embassy ever responded. (Ewald 158; 170.)
143. In early August 2009, having received no response regarding family health insurance coverage, Ewald requested a copy of the policy that the Embassy relied on to deny coverage. (P-50-0006; Ewald 295.) Larsen referred Ewald to "an old book of rules for locally employed personnel," which was subsequently replaced by an electronic version. (P-50-0001.)
144. Ewald paid $15,368 for health insurance premiums for her daughters for the period from September 2009, to September 2011. (Ewald 134; Trial Transcript Stipulation 920; P-101-0001-30.) In contrast, Davidson's children were covered by the Embassy while he was employed at the New Model Consulate. (Davidson 2006.)
145. The lack of clarity surrounding Ewald's health insurance through the Embassy also resulted in Mikalsen not being covered for a period of approximately two months at the beginning of Ewald's employment at the New Model Consulate. (Mikalsen 1659.) After Ewald requested that the Embassy's insurance cover Mikalsen at Ewald's expense, Ewald paid out of pocket for 12 months of insurance premiums amounting to $6,455 for her partner/husband (P-101-0001-30). However, that amount was later reimbursed by Defendant. (Trial Transcript Stipulation 920-21.)
146. On August 5, 2009, over ten months after she commenced employment with the Embassy, Ewald reviewed an email that she had received from Johne, which included a budget document from the Embassy that listed the salary budget for the Consulate and she learned for the first time that she was paid less than Davidson. (Ewald 286-87; P-47-0004; P-48-0002; P-49-0001.) By looking at the budgeted salary, Ewald deducted her own salary to determine the approximate amount of Davidson's salary. (Ewald 286-87.) Ewald was surprised to learn of the salary difference and felt terrible that the Embassy financially valued her significantly less than Davidson. (Ewald 288.) The Embassy budget document also reflected that for a particular three-month period, Davidson received over twice as much of an allocation for travel than Ewald. (P-48-0002.) In Ewald's August 6, 2009 email to Larsen that primarily addressed health insurance issues, Ewald asked Larsen to confirm whether the salary discrepancy she observed between the two positions was accurate. (P-49-0001.) On August 7, 2009, Larsen confirmed that the salary numbers listed in the budget were correct. (P-50-0001.) As a result of this email exchange, Ewald asked Gandrud why Davidson's salary was so much greater than hers. (Ewald 316; Gandrud 801.)
147. Based on the budgeted salary allocations in Johne's email, Ewald applied the then-current exchange rate, calculating her salary to be $70,000, and Davidson's salary to be $110,000 (P-55-0002), amounting to a $40,000 difference in salary. (
148. Until Ewald learned about the salary differential, no one at the Embassy had told her that the two expert positions were materially different or unequal. (Ewald 299.) In fact, they consistently told her just the opposite — that the expert positions were "equal" and "parallel." (
149. On September 23, 2009, Ewald emailed Larsen again to confirm that her calculations of the numbers were correct. (Ewald 293-94; P-55-0001-2.) Larsen responded to the September 23, 2009 correspondence to confirm receipt of the email, but provided no substantive response. (Ewald 294; P-55-0001.) He indicated that "it might take a little while for us to answer your points." (P-55-0001.)
150. A month later, on October 23, 2009, Ewald sent a follow-up email to Larsen asking when she could expect to receive a response to her September 23, 2009 inquiry regarding pay discrimination. (P-62-0001; Ewald 295.) Ewald testified that the one-month delay in receiving any substantive response left her feeling dismissed, disregarded, undervalued, and, generally, bad about herself. (Ewald 295-96.)
151. Receiving no further response from Larsen, Ewald again requested a response on November 4, 2009 (P-63-0001), and again on November 16, 2009, copying Ambassador Strømmen. (Ewald 296; P-65-0001.)
152. Ewald also asked Gandrud about the pay disparity between her and Davidson. (Ewald 316; Gandrud 801.) After Ewald inquired about the pay disparity, Gandrud alerted Vice President Mondale about Ewald's unhappiness with the pay gap. (
153. On September 23, 2009, Gandrud emailed Vice President Mondale the draft letter, noting in Gandrud's transmittal email that the letter was intended to address the following issues: (1) a budget shortfall of approximately $500 per month; (2) a requested increase in the salary of the Honorary Consulate's Consular Officer, Christina Carleton; and (3) a requested increase in Ewald's salary, indicating that "her 70M and Anders 110M is too big a spread. . . ." (P-58-0001; Gandrud 802-03.) Regarding the salary difference, the letter, in final form, states:
(P-56-0002.)
154. By writing the letter, Vice President Mondale hoped to reassure Ewald that she was a valued employee and that her salary would be appropriately adjusted. (Mondale 638.) Vice President Mondale agreed that he `stood behind the letter' and testified that he used charged language — which he described as "dynamite" in his deposition — in order to impress upon the Embassy the importance of rectifying the salary differential. (Mondale 635, 638.) Although, at this point, Vice President Mondale was still unaware that the so-called market research that Gandrud had provided him lacked credibility, the Vice President came to believe that regardless of the justification for the difference in pay, the disparity was so great that it was unjust. (
155. In contrast, when Gandrud was asked about the letter, he testified that the forceful language in the letter was mere "argument," and "[he] did not believe that [the pay differential between Davidson and Ewald constituted gender discrimination]." (Gandrud 492-93.) Although Gandrud conceded his agreement with the statement in the letter that Norway is a leader in gender equity (Gandrud 493-94), he testified that he leveled accusations of gender discrimination against the Embassy in order to win his point, using the letter as "a means to an end" (Gandrud 804):
(Gandrud 803-04.) Gandrud admitted at trial that through the September 23, 2009 letter, he and Vice President Mondale were telling the Embassy that the salary difference between Ewald and Davidson was wrong. (Gandrud 804.)
156. Gandrud personally delivered the letter to Ambassador Strømmen at a meeting in Washington, D.C. (Gandrud 805-06.) Ambassador Strømmen looked at the strongly-worded letter from Gandrud and the former Vice President of the United States, read it, and handed it back to Gandrud at the end of their meeting. (Gandrud 805; Strømmen 846.) Ambassador Strømmen said that he was displeased and a bit surprised about the letter, noting that only a year earlier, the Embassy had "blessed or endorsed" the experts' salaries with the signing of their respective contracts. (Strømmen 844.) As a result, Ambassador Strømmen found the situation "a bit awkward." (
(Stroømmen 845.) Ambassador Strømmen told Gandrud that he would treat the request as a budgetary matter and would try to obtain funding through annual adjustments or from the Stakeholders. (
157. however, on November 6, 2009, Steering Committee Chair Finborud received an October 28, 2009 letter from Ambassador Strømmen, which she forwarded to the Stakeholders via an email entitled "Request for extra funds for HCG Minneapolis." (J-26.) In the attached letter, Ambassador Strømmen requested additional funding for both expert positions in Minneapolis due to additional expenses. (J-26-0016.) The Ambassador explained that the request for additional funds was based on "the high dollar exchange rate for the first months in 2009," and indicated that the extra funds would cover various activities, including travel for 2009. (
158. Eight days later, on November 18, 2009, Ambassador Strømmen responded by letter to Ewald, addressing the salary and insurance coverage issues, and for the first time, without explanation, described the two expert positions as "very different jobs." (J-28-0002-03.) In his letter, Ambassador Strømmen wrote:
(J-28-0002.)
159. In his November 18, 2009 letter, Ambassador Strømmen also advised Ewald that while her children and partner could remain on her health insurance plan, Ewald would have to pay for their supplemental coverage because her partner was not financially dependent on her, and coverage was only for children under eighteen years old. (J-28-0002-3.) Strømmen acknowledged that his letter did not contain the answers that Ewald was hoping for, but "[p]ublic employment is very rigid." (J-28-0003.)
160. Ewald believed that Ambassador Strømmen's November 18, 2009 letter was inaccurate. (Ewald 301.) Ewald testified that her salary was not negotiated, that no one asked her about her prior salary, nor did anyone at the Embassy ever ask her whether she had negotiated her salary. (Ewald 298, 302.) In fact, she had told persons at the Embassy that she had
161. On December 30, 2009, Ewald sent Ambassador Strømmen an email in response to his November 18, 2009 letter, addressing the salary difference and her problems with insurance coverage for her family. (P-68-0001-4.) As to the salary difference, Ewald disputed Strømmen's characterization of the facts:
(P-68-0002.) Ewald requested a valid explanation for the difference in compensation. (
162. With regard to health insurance, Ewald wrote:
(P-68-0002.)
163. Ewald testified that when she wrote the December 30, 2009 email, she was frustrated and feeling sad and dismissed, as well as stressed, to receive no meaningful responses to her questions. (Ewald 305-06.) As Ewald's partner, Mikalsen, succinctly explained that Ewald was:
(Mikalsen 1668-69.)
164. Ewald testified that she eventually believed that the Embassy was simply providing excuses for denying coverage, as opposed to genuinely trying to determine her health benefits. (Ewald 171-72.) Ambassador Strømmen testified that he worked very hard to help Ewald obtain insurance coverage. (Strømmen 852.)
165. On February 9, 2010, Johan Vibe, Deputy Chief of Mission for the Embassy, presented the Ambassador's chief deputy, Larsen, with a list of reasons that purportedly justified denying Ewald's family coverage. (J-36-0003.) Ambassador Strømmen was copied on the email. (
166. Almost as an afterthough at the very end of Vibe's February 9, 2010 email, Vibe addressed the issue of Ewald's salary concerns. (
167. During this time period in early 2010, Ewald continued to feel that the Embassy was creating new excuses for denying Ewald's family health coverage, as opposed to genuinely finding solutions. (Ewald 172.) Ewald felt undervalued, that her family was unimportant compared to her male colleague's family, and that her concerns regarding pay and benefits discrimination were unimportant. (
168. Throughout Ewald's entire employment with the Embassy, the issue of health coverage for Mikalsen and Ewald's children was a constant source of worry for her. (Ewald 163, 234.) Particularly because of Mikalsen's health conditions, she was concerned that the Embassy would "find another excuse" as to why Mikalsen was not covered on the Embassy's plan. (
169. The difference in pay between Ewald and Davidson was so upsetting to Ewald because she "knew that these positions were equal." (Ewald 312.) The Embassy's actions, however, demonstrated to Ewald that she was not considered equal. (
170. The entire situation relating to differential pay and benefits was so upsetting to Ewald that she began obsessing about it — "it was starting to take over in my head, and I would think about — think about it before I went to bed at night, think about it in the morning, and it was painful." (Ewald 306.) Ewald testified that feelings of sadness and disbelief essentially "took over [her] life." (Ewald 337-38.) Mikalsen also testified that over the course of Ewald's employment with the Embassy, her concerns with respect to pay discrimination became "almost like an obsession." (Mikalsen 1677.) Ewald discussed with Mikalsen the situation regarding pay and benefits discrimination at the Embassy hundreds of times. (Mikalsen 1678.) Although Mikalsen attempted to involve Ewald in other activities in an effort to distract her, he was sometimes unsuccessful in doing so. (Mikalsen 1679.)
171. Mikalsen described Ewald before she took the job as a "very open and fun person to be around," who also possessed impressive self-confidence, which Mikalsen had observed at professional seminars and events. (Mikalsen 1674-75.) Mikalsen also addressed the change that he observed in Ewald from when she first took the job with the Consulate:
(Mikalsen 1676-77.)
172. The fact that Ambassador Strømmen was someone with whom Ewald and her family had socialized, made his unresponsiveness to her concerns particularly bothersome to Ewald. (Ewald 307.) Ewald testified to feeling a sense of betrayal and a diminished sense of self-worth. (
173. Ewald also testified that she found Johne's September 5, 2008 email (P-100-0003) extremely embarrassing because Johne highlighted the significant difference in pay between Ewald and Davidson, and sent the email to many people — some of whom Ewald knew — in addition to a number of general agency mailboxes. (Ewald 314.)
174. Ewald felt as though the Embassy was trying to dismiss her or was simply hoping that the situation would go away. (Ewald 307.) The Embassy's nonchalant response to Ewald's concerns was particularly disappointing because of how quickly the Embassy responded to others' concerns. For example, when Carleton and Gandrud raised concerns to the Embassy about the working environment in the Honorary Consulate — specifically, the working relationship between Ewald and Davidson — Embassy personnel, including Elisabeth Wemberg, Lars Petter Henie, and Vibe, promptly investigated. (P-105-0004.)
175. Ewald, not normally a person who cries often, recalls that, to her embarrassment, she cried in the presence of Davidson and Carleton and expressed her feelings regarding the pay discrimination she experienced. (Ewald 325.) Carleton remembered that Ewald was often very upset about the pay difference and her health insurance difficulties. (Carleton 1055.) Davidson similarly recalled Ewald being emotional and upset at work regarding differential treatment for travel reimbursement (including at meetings, and in relation to Science Week 2010). (Davidson 2033.) Ewald testified that she also often cried privately in her office, finding her reactions uncontrollable. (Ewald 325.) Prior to working for the Embassy, Ewald was not a person who had cried at work. (Ewald 326.) Because Mikalsen lived with Ewald, he could tell from Ewald's face that she privately cried at home as well. (Mikalsen 1680.) Ewald not only cried because of the disparate treatment she received, but she also had difficulty making decisions and second-guessed herself. (
176. Shortly after Ewald sent her December 30, 2009 email to Ambassador Strømmen, Ewald also raised her concerns about unequal pay in a telephone call with Johne. (Ewald 317.) In response to Ewald's question about who had made the salary decision, Johne indicated that Gandrud had made the decision. (Ewald 317.) Ewald also asked whether Johne, as a woman, believed that the salary difference was unfair, to which Johne responded, "you just have to realize that this is the way that it is, and the world is unfair." (
177. After Gandrud reviewed Ewald's December 30, 2009 communication to Ambassador Strømmen regarding Ewald's pay and benefits concerns, Gandrud sent an email entitled "CONFIDENTIAL" to Ambassador Strømmen that same day, criticizing Ewald. (J-31-0001.) Gandrud began his email, "First, my apologies that she, now, covers these many issues when some have never been her `business'. . . ." (
178. In January 2010, Gandrud invited Ewald to lunch at the Dakota Bar & Grill restaurant in Minneapolis, at which time he told Ewald that the December 30, 2009 email she had sent to Ambassador Strømmen was like a bomb dropped on the Embassy. (Ewald 326.) When Ewald asked if he had read her email, Gandrud responded that he had not read it in its entirety. (
179. During the meeting, Gandrud attempted to justify Ewald and Davidson's pay differential by comparing the differences in salary between the President of St. Thomas University and that of a business executive at Target. (Ewald 327.) Ewald disagreed that Gandrud's analogy provided a fair or accurate comparison. (
180. At the meeting, Gandrud also stated that Ewald's email to Ambassador Strømmen gave the appearance that Ewald and Davidson were not working as a team, and further emphasized the importance of them working as a team. (Ewald 327-28.) When Ewald clarified that the email was not about Davidson, per se, but about the pay difference, Gandrud told her, "you need to nip this situation in the bud because there could be consequences." (
181. Following the lunch meeting, Gandrud emailed Ambassador Strømmen, stating that Ewald "sees no problem with Anders but says she wants answers. Thinks salary reflects relative value and will not accept that the job market has different compensation levels for education and business. . . . High level of frustration with mixed messages on pension/health insurance." (P-69-0001.)
182. Ewald also discussed the issue of pay discrimination with Steering Committee Chair Finborud. (Ewald 323-24.) Finborud indicated that she and the other Stakeholders did not have any detailed information and that Ewald would need to address the pay discrimination issue with the Embassy. (
183. On January 6, 2010, Finborud advised Ambassador Strømmen, copying several others, that Ewald had complained to her about the salary differential between the two expert positions. (P-70-0003;
184. On January 11, 2010, Vibe emailed the HR section of the Foreign Ministry:
The Embassy and the Consulate General's management have had frequent discussions about the handling of these personnel issues, and Consul Gandrud had a conversation with Ellen Sue Ewald the fifth of this month where she toned down the discontent she expresses in her letter. The current regulations and salary policies do not provide an opportunity to grant her request for health insurance coverage for her family or significant salary increase.
(J-32-0007.)
185. On January 28, 2010, Vibe sent an email to Larsen and administrative staff at the Embassy/MFA asking, "has our little friend received a final answer on her travel expenses (she actually asked for 50% coverage on one of them). It seems to me that Gary considers this not to be totally cleared up (or maybe he just meant that Ellen would appeal)." (P-74-0003.)
186. On February 12, 2010, Ewald emailed Ambassador Strømmen, asking when she could expect a reply to her December 30, 2009 complaint letter. (P-77-0001.) That same day, Ambassador Strømmen forwarded Ewald's email to Vibe, Larsen, Johne, and Rognlie, and, apparently for the first time, directed that the Embassy's substantive response be consistent with the law:
(P-78-0001.)
187. In February 2010, Ewald communicated her concerns to her friend Mykletun, both in person and via email. (Ewald 333-37.) In a February 1, 2010 email to Mykletun, she noted her concerns of pay discrimination (P-152-001-3) — concerns that she also raised again in person at a breakfast meeting on February 5, 2010. (Ewald 334.) Ewald and Mykletun, along with Marius Hansen and Ewald's now-husband Mikalsen, were present for the meeting. (
188. Although Ewald directly communicated her concerns about unequal pay to numerous persons in authority, as noted above, one person in authority with whom she did not raise the subject — and perhaps the only such person — was Vice President Mondale. (Mondale 638, 665.) As noted, shortly after learning of Ewald's unhappiness, and with only a few months remaining in his tenure as Honorary Consul General, Vice President Mondale tried to move rapidly to address Ewald's concerns. (Mondale 643.) He surmised that his September 23, 2009 letter was not a typical letter received by the Embassy; moreover, had he received such a letter, he would have stood up and taken notice of it. (Mondale 637.) The Vice President testified, "I did raise hell when I thought it would make a difference. I deeply regret how this has ended up where it has here." (Mondale 671.) Asked whether he knew Ewald to be a person of strong convictions, Vice President Mondale agreed that she is, adding, "we were friends before this, and I hope to be friends afterwards." (Mondale 643.)
189. On March 9, 2010, Vibe conceded for the first time that he had been mistaken and that the Embassy was in fact obliged to provide health insurance coverage for Mikalsen — approximately 17 months after Ewald started working for the Embassy in October 2008:
(P-84-0001.) Embassy staff indicated that the addition of Mikalsen to Ewald's plan amounted to approximately $576 per month, and estimated that it owed Ewald approximately $12,096 for a nine-month period of premium payments. (P-84-0002.) Vibe responded:
(P-84-0001.)
190. On March 11, 2010, Vibe informed Ewald that the Embassy had reversed its stance on health insurance for Mikalsen and that he would now be covered: "With regard to health insurance for your partner, we have consulted the Ministry again. The regulations do not any longer specify a requirement that a spouse/partner should be financially dependent on the locally-employed staff member to get coverage." (J-38-0002.) Ewald received this communication over 18 months after initially asking how to register her family for health care benefits. (
191. As for Ewald's daughters, the Embassy stated that "[c]hildren over age 18 are, however, not covered." (
192. In the same March 11, 2010 letter, Vibe also responded to Ewald's December 30, 2009 correspondence to Ambassador Strømmen, in which Ewald had complained of the salary disparity. (J-38-0002-03.) Contrary to prior representations, Vibe wrote, "salaries for locally-employed staff" are set "according to the local salary levels for similar positions." (J-38-0002.) He added that individual negotiations played a part in the salaries, and that someone with a "corporate background" should receive a higher salary. (
193. The Embassy's reference to contract negotiations as a reason for the pay disparity, as reflected in Vibe's March 11, 2010 letter (
194. On April 19, 2010, Vibe provided MFA staff with background information about the Honorary Consulate in preparation for a telephone conversation to be held the following day between Norway's Foreign Minister and Gandrud. (P-92-0003.) In Vibe's memorandum, he stated, "[t]he director for Higher education and research however is not functioning satisfactorily, and there have been some personnel problems. There is therefore reason to assume that the Steering Committee will not continue this position after 2011." (P-92-0004.) To Ewald's knowledge, the only "personnel problem" was that she had complained of pay and benefits discrimination. (Ewald 348-49.) No one in leadership in the MFA, the Embassy, or the Consulate, or any of the Stakeholders ever expressed to Ewald any concerns about her work performance. (Ewald 349.) Despite the fact that Vibe requested "limited distribution" of the memorandum due to the sensitive, personal nature of its contents, Vibe himself sent the email to several high-ranking officials in the MFA (including Morten Aasland, Torgeir Larsen, Øyvin Stokke) and copied Ambassador Strømmen, Rognlie, Finborud, Larsen, as well as the general email box for the MFA. (
195. As one of the recipients of Vibe's April 19 "limited distribution" email, Steering Committee Chair Finborud forwarded Vibe's memorandum the next day to three additional email recipients, as well as to three of the original recipients. (P-93-0003-4; P-97-0006-8.) In her April 20, 2010 transmittal email, Finborud also noted that "the general perception is that [Ewald] is a bad hire." (P-93-0003.) In addition, Finborud stated that it was "regrettable that the two employees have serious problems working together." (P-93-0003.) When Ewald later read this communication, she found the description of herself as a "bad hire" to this group of recipients very demeaning, humiliating, and embarrassing. (Ewald 345-46.)
196. Although the Stakeholders intended to perform an evaluation of the expert positions near the expiration of the three-year contract terms, in her April 20 email to officials within the MFA, Finborud alerted them that Ewald's position might or might not be renewed, or could be advertised again upon the expiration of Ewald's contract. (P-93-0003-04.) In another email that Finborud sent that same day to Torgeir Larsen, Oyvind Stokke, and others, Finborud discussed the fact that the Embassy had considered terminating Ewald. (P-97-0008.) Finborud — who again labeled Ewald as a "bad hire" — indicated that the general consensus was to maintain the status quo, allowing Ewald to continue in her position until the expiration of her contract:
By the Steering Committee's assessment Ewald is a bad hire. The Embassy has been in contact with the Legislative Division and privately with American lawyers (Gandrud's law firm) to get legal assessments of the issue. On the Embassy's side there are fears about going towards a termination when this would most likely result in a lawsuit. It is preferred therefore to tread water until the employment period runs out.
(
197. As to Ewald's actual performance on the job, Gandrud testified that Ewald "didn't have issues of performance, she had issues of happiness." (Gandrud 802.) As evidence of Ewald's excellent performance on the job, members of the Norwegian-American business community in Minnesota described Ewald as "very helpful" (Mueller 1136), and described working with her as "fantastic" (Nash 565).
198. As to Davidson's work performance, although Innovation Norway was apparently satisfied (P-110-0008), Davidson's work was otherwise roundly criticized by members of the United States-Norway business community. (Nash 560, 565; Mueller 1132-35; P-81-0001; P-82-0001; P-83-0001; P-85-0001; P-87-0001; P-88-0001; P-95-0001; P-109-0001-3.) For example:
199. While Davidson was merely slapped on the wrist for his involvement in his side business, the Embassy treated Ewald's side business interests very differently. In March 2010, Ewald requested permission to change her employment relationship with the Embassy, so that she would work 90% for CeRTA and 10% for the Embassy. (P-80-0005.) Gandrud recommended "that a solution be considered which makes it possible for Ewald to go over to CeRTA as she herself wants." (
200. Despite numerous negative comments concerning Davidson, Gandrud stated in his January 25, 2011 annual report to Ambassador Strømmen and the Stakeholders that "[o]ur greater community has accepted the New Consulate without a negative comment — to me, at least." (J-40-0003.) In addition, Davidson received extra travel benefits from the Stakeholders, and Vibe even suggested that Davidson's work continue, albeit perhaps with Davidson working directly for Innovation Norway. (Davidson 2028-30; P-110-0008; P-130; P-132; P-135.) Davidson could not recall any work-related travel for which he was not reimbursed. (Davidson 2030.) Discussing Davidson's travel reimbursement with Vibe on May 27, 2011, Elisabeth Wemberg, Head of Administration at the Embassy, asked whether it was "[a] little unfortunate that this is coming at the same time when we are denying Ellen?" (P-130-0004.)
201. The criticism of Davidson underscored the fact that his skills, efforts, and abilities were inferior to Ewald's. In fact, by his own admission, Davidson experienced little success in his position at the Consulate in 2010. For example, in responding to criticism from prominent Norwegian-American Dr. Ivar Sorenson about Davidson's poor communication skills, Davidson conceded that he "never really developed the skills of writing polished communications." (P-85-0002.) In addition, in response to Davidson's 2010 Action Plan, some Steering Committee members suggested that "[h]e might have a stronger eye on research and facilitate contacts/co-operation between American and Norwegian Universities and institutions as mentioned in the Vision Statement. This would benefit all Stakeholders." (D-34-0009). Yet, Davidson admitted that he failed to achieve a primary goal for 2010, which was "to organize an event . . . to showcase the modern Norwegian economy and innovation through a combination `Impressions of Norway' cuisine event with business information and networking." (J-40-0009.) When contemporaneously discussing his work-related activities, Davidson reported that he served in a "reactive" role in responding to inquiries, and needed to expand his resources, as he had limited inquiries. (J-40-0009;
202. On or about June 14, 2010, Ewald spoke with Ambassador Strømmen on the phone about her pay and benefits concerns. (Ewald 309-10.) Ewald recalled that the Ambassador understood her frustration and implied that he would rectify the situation. (
203. On June 24, 2010, Ewald emailed Ambassador Strømmen, following up on their earlier phone conversation, which she described as "fruitful." (P-100-0001.) However, she also noted that since that conversation, she had inadvertently received an email from Larsen, in which Larsen insinuated that Ewald was attempting to cheat the tax authorities. (Ewald 310-11.) Larsen had mistakenly included Ewald as a recipient and unsuccessfully attempted to recall the email message. (
204. In September 2010, high-ranking Embassy staff including Vibe, Wemberg, and Lars Petter Henie came to Minneapolis and met with Ewald, Davidson, and Carleton to discuss the conditions at the Consulate. (Wemberg Dep. 66; Vibe Dep. 196-97; Carleton 1057; P-103-0003.) During their meeting with Ewald, she raised the issues of her pay and insurance coverage. (Ewald 320.)
205. As noted, the purpose of the September 2010 meeting was to investigate the general working environment — not to investigate Ewald's complaints regarding unequal treatment. (Wemberg Dep. 68:-69; Vibe Dep. 197.) The visiting Embassy staff indicated that they could not discuss the salary issue with Ewald, but they noted that various "solutions" were under consideration. (Ewald 321-22; Wemberg Dep. 68-69.) At the meeting, Ewald asked whether they were considering discontinuing her position, and Wemberg informed her that it was one of the options under consideration. (
206. Ewald spoke to a number of individuals in the Embassy, the Consulate, and MFA leadership about the pay discrimination issue. (Ewald 315.) She talked to Gandrud a number of times about her concerns and feelings about pay discrimination. (Ewald 316.) She also spoke with Johne, Ambassador Strømmen, Vibe, Aasland, and Mykletun about the pay disparity. (Ewald 316.) In her conversation with Steering Committee member and Norwegian Minister for North America Aasland, Ewald asked whether she should take her complaints about pay discrimination to the LDO (a Norwegian equivalent of the Equal Employment Opportunity Commission). (Ewald 315-16; 322-23.) Ewald recalled that Aasland advised Ewald not to report her concerns outside of the Ministry. (
207. Ultimately, midway through her employment with Defendant, Ewald raised her concerns of unequal pay with the LDO. (Ewald 315-18.) However, the LDO did not respond to Ewald's concerns until 2014, at which time the organization declined to further investigate Ewald's claim because she had filed this lawsuit by then. (Ewald 318-19.)
208. Throughout the time that Ewald raised concerns regarding compensation, no one ever spoke to Ewald about the prospect of changing her compensation. (Ewald 307.)
209. The Embassy did not permit Ewald to participate in planning and organizing the 2010 Science Week despite her request to do so. (Ewald 238-39.) In addition, although Ewald played an instrumental role in the 2009 Science Week, and even though Wemberg and Henie intimated that the Embassy would provide travel funding for Ewald to attend the 2010 Science Week, the Embassy denied her travel expenses (Ewald 238, 321; P-104-0014-22), finding that there was no "professional basis" for Ewald to attend the event. (P-104-0022.) Yet Ewald's job description, attached to her employment contract, specifically stated that work related to Science Week was part of her job responsibilities. (J-12-0005.) Even Embassy leaders acknowledged that participating in Science Week was an important part of Ewald's job (Johne Dep. 183-84), and that it would be "odd" for Ewald not to attend Science Week. (Wemberg Dep. 89.)
210. Ultimately, Ewald paid out-of-pocket to attend the 2010 Science Week, incurring expenses in the amount of $2,362. (P-149-0001.) She testified that not appearing would negatively impact her professional reputation and that she had prepared and organized several meetings at the event. (Ewald 238; P-104-0004.) One such meeting was between the leadership team from the Mayo Clinic Innovation Scholars program and the Norwegian Universities of Tromsø, Bergen, KD, and Oslo. (P-104-0004; J-40-0011.)
211. Although the Embassy also denied to pay for Davidson to attend 2010 Science Week, Davidson attended the conference because his expenses were covered by Stakeholder Innovation Norway. (P-104-0014.) Ewald protested the denial of her travel expenses in an October 11, 2010 email to Wemberg. (P-104-0018.) After receiving no response, Ewald sent another email on December 12, 2010, expressing her grievances — including claims of retaliatory treatment:
(P-104-0017.)
212. In response, Vibe replied that Ewald had failed to follow travel request procedures. (P-104-0014.) Additionally, Vibe indicated that Ewald's subsequent request for reconsideration and reimbursement amounted to "insubordination." (P-104-0014; Vibe Dep. 216-17.) Vibe also expressly signaled the Embassy's unwillingness to engage in any further communications with Ewald regarding her salary or retaliation concerns, stating, "The Embassy has reviewed the other issues that you have raised and while we respectfully disagree with your position, we do not think that there is any value in discussing them further." (P-104-0014.) Thereafter, Davidson's travel expenses continued to be paid by the Embassy and Innovation Norway, while Ewald's expenses were denied. (Vibe Dep. 51; P-130-0004-6; P-132-0001; P-135-001.)
213. Ewald's job security was further called into question when certain tasks, which she initially completed herself, were taken on by others. For instance, in early 2011, without Ewald's knowledge, Gandrud visited colleges to meet with university leadership and students. (Gandrud 962.) Ewald had previously developed relationships with leaders at these institutions, because this was an integral part of her job. (Ewald 190, 366.)
214. Ewald suffered humiliation and mental anguish as a result of the Embassy's treatment of her, both during and after her employment. In particular, Ewald was concerned that Embassy staff discussed her as "a problem," and that her reputation was consequently damaged. (Ewald 324; P-104-0004-5; P-107-0017.) She described her concerns and mental anguish as follows:
(Ewald 350;
215. Nash testified that Ewald's concerns about her reputation are unfortunately well-grounded — her reputation has been damaged from her tenure at the Consulate. (Nash 567-68.) Referring to his business circles in both Minnesota and Norway, Nash indicated that this litigation is discussed, stating, "I think there's those who view the fact that this has turned into a litigation matter, the fact that it's gender discrimination, I think some people, right or wrong, have a negative reaction to [Ewald]." (Nash at 568.)
216. In addition, Nash has observed a general concern on the part of Norwegian-based companies to enter the United States market via Minneapolis because of this case. (Nash 569-70.) Specifically, they are concerned about whether to utilize the services of Tysvar, a company that helps Norwegian businesses enter the United States market, for which Mikalsen serves as CEO. (Nash 570.)
217. Some of the physical symptoms Ewald suffered as a result of the situation at the Consulate were nausea, headaches, anxiousness, tightness in her chest, sore neck, eye twitches, and an inability to concentrate. (Ewald 339; Mikalsen 1680-83.) Ewald observed that while she has experienced headaches or a sore neck in the past, she noticed that these symptoms occurred with much greater frequency during her employment with the Embassy. (Ewald 339-40.) She also complained of an inability to sleep (Mikalsen 1682-83), but on weekends, she would stay in bed all day — behavior that she did not display prior to working for the Embassy. (Mikalsen 1678.)
218. Ewald testified that some of the physical symptoms of emotional distress have gone away, but at times, she has been reminded of her treatment by the Embassy and her sad feelings have returned, negatively impacting her self-esteem and self-confidence. (Ewald 337-38.) Ewald has also had difficulty with decision making and second-guesses herself when making decisions. (Mikalsen 1689-90; Ewald 351.) Her husband testified that Ewald's self-confidence began to decline in mid-2009 and has continued to decline since then. (Mikalsen 1678-79.) Mikalsen confirmed that Ewald questions her memory, even when her recollection is correct. (Mikalsen 1679-80; Ewald 350.) Through the time of trial, Ewald also continued to have a diminished ability to concentrate and focus. (Ewald 350-51.)
219. After her employment with the Embassy ended in 2011, Ewald began working for Tysvar. (Ewald 351.) As noted, Tysvar helps Norwegian companies establish themselves in the Midwest. (
220. Ewald is a partner in Tysvar, along with Mikalsen and Marius Hansen. (Ewald 351.) Tysvar employs approximately six employees in addition to the three partners. (Ewald 352.) As of the time of trial, Ewald, as a partner, had not earned income from Tysvar since commencing her work for the company. (Ewald 352.) Tysvar had credited Ewald with an accumulated unpaid distribution in the amount of $20,184.36 for work that she performed over a three-month period in 2011. (D-64-0002; Mikalsen 1656.) Mikalsen explained that Ewald received this credit due to a liquidity problem in the company that caused Tysvar to pay only its employees, but not its partners. (Mikalsen 1656-57.) However, Tysvar has paid for Ewald's personal health care and a dependent daughter who is in her twenties. (Mikalsen 1670.)
221. Ewald accepted the partnership position because she felt that she was respected and valued at Tysvar and that she could trust her colleagues. (Ewald 352.) Mikalsen credits the safe working environment at Tysvar with Ewald's ability to provide competent expert management advice at Tysvar, despite the concentration and memory difficulties that Ewald experienced during and after her tenure at the Honorary Consulate. (Mikalsen 1723.) And, Nash described Tysvar as a place where Ewald can "exist meaningfully," noting that "whether her ability to go out and get work with someone with her qualifications is available, if it's impacted by this [litigation] or not I think is a general concern she has." (Nash 568.)
222. In an effort to salvage her reputation and to stay connected to Norwegian society since her departure from the Consulate, Ewald has served as a board member on a number of boards, including the Minnesota Peace Initiative, the University of Minnesota Neuroscience Committee, and the Oslo Center for Peace and Human Rights. (Ewald 352-53.) She explained:
(Ewald 353.)
223. The position that Ewald held while working at TM Holding before coming to the United States in 2008 to work for Defendant, and the pay level that she received at TM Holding in Norway, would have continued had she not taken the expert position with the Embassy. (Mikalsen 1197, 1215.) Mikalsen testified that although Ewald could have transitioned into various companies within TM Holding, an entity called MobileAxept would have been the best fit. (Mikalsen 1655-56.) However, after Ewald took the expert position at the Consulate in Minneapolis, TM Holding hired other employees — who are still with the company today — to fill the position with MobileAxept. (Mikalsen 1656.) This fact, combined with liquidity difficulties that TM Holding was experiencing at the time, meant that Ewald could not return to TM Holding at her pre-Embassy salary after her tenure at the Embassy had expired. (Mikalsen 1664.)
224. The evidence presented during trial demonstrates that Davidson's and Ewald's jobs were substantially equal, as a factual matter. The positions required the same levels of skill, effort, and responsibility and entailed similar duties within the Honorary Consulate. The following evidence demonstrates precisely how substantially equal the positions were:
225. The Stakeholders' expectation for both expert officers was also the same: Ewald was to establish a strong network of institutions between Norway and the Midwest in the area of education and research, while Davidson was expected to "also promote and get Norwegian business into the Midwest and connect the ties." (Finborud Dep. 43-44.)
226. The Court finds that Gandrud gave inconsistent testimony, that he made certain material misrepresentations, and that some of his testimony was not credible. For example, Gandrud:
227. The Embassy's labor economics expert, Benjamin Shippen, Ph.D., testified at trial. Shippen is a principal in an accounting business in Florida, has written several articles, and has lectured about wages in the apparel industry. (Shippen 1741-42, 1746-47, 1749.)
228. Shippen received $420/hour for the work on his opinion in this case, charging a total of approximately $80,000 for his services. (Shippen 1748, 1856.)
229. The Embassy directed Shippen to "look at the positions that were being created at the Embassy with respect to higher education and research and innovation, and business development, and determine how those positions' salary [sic] fit with similarly-situated positions in the Minneapolis labor market." (Shippen 1749-50.)
230. Shippen reviewed the original job classifications for the expert positions, and identified the former job responsibilities of those who interviewed for the two expert positions, as opposed to the two experts' present duties. (Shippen 1750, 1754.)
231. The Court finds that the testimony and opinion of Dr. Shippen is not reliable for the following reasons:
232. The defense variously argued that the pay disparity was either justified to "get the right person" for the Innovation and Business Position (focusing on the candidates' prior work experience and salaries), or because the position itself was in "business" (focusing on the content of the expert position at the Embassy). In addition, the Embassy argued that Davidson required a higher salary because the market required it and because he had day care needs. The facts at trial, however, do not provide any support for these arguments, in part, because:
233. The letter to Ambassador Strømmen states:
(P-56-0002.) Vice President Mondale hoped that the letter would be "dynamite," noting that if he had received a letter such as this as Vice President, he would have stood up and taken notice. (Mondale 637-38.)
234. Testimony in this case demonstrates that, by the time this letter was sent to Ambassador Strømmen, the authors had plenty of time to observe the situation about which they wrote. They had been involved in the selection and oversight of the candidates from before the opening of the Consulate through nearly the first year of the two experts' employment, and the Embassy identifies Gandrud as relaying the Embassy's decision regarding the salaries for the two expert positions. Accordingly, all relevant information underlying the salary decision and expert positions (including all of the alleged reasons given as the basis for the salary differential — Davidson's MBA, Davidson's business background, Davidson's prior salary, Davidson's day care situation, and the market) would have been in Vice President Mondale and Gandrud's collective possession at the time they stated that the salary differential was "too large" and "unjust and embarrassing." (Rognlie 1446, 1448; Berg 1253, 1284-85; Finborud Dep. 30, 37.)
235. Ewald commenced this action by serving a Complaint dated July 1, 2011 against the Embassy and Gandrud. (Comp. [Doc. No. 1-1].) The Embassy removed the action to this Court. (Notice of Removal [Doc. No. 1].)
236. All claims against Gandrud were dismissed by the Court on January 26, 2012. (Order of 1/26/12 [Doc. No. 18].)
237. Ewald filed an Amended Complaint asserting eight counts against the Embassy: (1) promissory estoppel; (2) violation of Minn. Stat. § 181.64; (3) sex discrimination under the MHRA; (4) reprisal under the MHRA; (5) retaliatory harassment; (6) violation of the EPA; (7) violation of the Minnesota Whistleblower Act; and (8) violation of Norway's Working Environment Act. (Am. Compl. [Doc. No. 104].)
238. Following the Embassy's motion for summary judgment, the Court issued an order dismissing Ewald's claims for promissory estoppel, reprisal, retaliatory harassment, whistleblowing, and violation of the Norwegian Working Environment Act. (Order of 3/6/14 [Doc No. 201].) The Court further ordered that Ewald's Minn. Stat. § 181.64 claim was limited to alleged representations regarding compensation and that her MHRA sex discrimination claim was limited to her claim of unequal pay for equal work. (
239. As noted, beginning on April 21, 2014, the Court held an eleven-day bench trial on Ewald's remaining claims of unequal pay and violation of Minn. Stat. § 181.64.
240. Any conclusion of law which is deemed a finding of fact is incorporated herein as such.
Based upon the above findings of fact, the Court now makes its:
1. Plaintiff's claims of unequal pay for equal work are brought under both the
EPA and the MHRA. (Am. Compl. Counts III and VI [Doc. No. 104].)
2. The EPA prohibits workplace discrimination based on sex, providing:
29 U.S.C. § 206 (d)(1).
3. Similarly, the MHRA declares it an unfair discriminatory practice for an employer to discharge or otherwise discriminate against a person with respect to hiring, tenure, compensation, terms, upgrading, conditions, facilities, or privileges of employment based on their sex. (Minn. Stat. § 363A.08, Subd. 2.) Defendant Embassy is an employer as defined by the MHRA,
4. The standards and defenses of the EPA also apply to claims alleging unequal pay for equal work brought under the MHRA,
5. Importantly, the EPA is a strict liability statute.
6. To establish a prima facie case under the EPA and/or the MHRA, a female plaintiff must show that she was paid less than a male employee for equal work in jobs that required equal skill, effort, and responsibility and which were performed under similar working conditions.
7. The law is clear that jobs "need not be identical to be considered `equal' under the EPA," but, must be "substantially equal," in order to establish a prima facie case.
8. It is the specific, day-to-day content of the jobs that determines substantial equivalence.
EEOC Compliance Manual § 10-IV(E)(2);
9. There is no dispute that Ewald was paid less than Davidson. (Trial Transcript Stipulation 920-21.) Courts have noted that "the size of the pay differential, though not determinative . . . is highly relevant."
10. From the very outset, the two expert positions at issue here were conceived as equal and parallel positions. In the greater Norwegian-American community, it was understood that the overriding duty of both positions was identical — to build relationships between the Midwest and Norway, with an emphasis on research and innovation. (Hansen 1081, 1101; Mueller 1137.) One reason that the positions were considered so similar was that business development was a significant aspect of both positions. (Mueller 1137;
11. This understanding of equal positions is reflected in the actual work of the two expert positions. The Innovation and Business Position and the Higher Education and Research Position involved a common core of responsibilities. The job postings, which were also used as the experts' job descriptions (Johne Dep. 91-92), reflect almost identical duties, including but not limited to:
(J-2-0002-3.)
12. In Ewald's interview, the Hiring Committee members noted that collaboration between the two expert positions would help Norway develop the commercialization of research. (Ewald 109.) Specifically, the Committee Members indicated that the expert officers would both be involved with Science Week. (
13. The Steering Committee expected Ewald to develop a "strong institution network between Norway and U.S.A. on the education and research side." (Finborud Dep. 43-44.) Similarly, the Stakeholders expected Davidson to "also promote and get Norwegian business into the Midwest and connect the ties." (Finborud Dep. 44.) Steering Committee Chair Finborud agreed that the two expert positions were to work as a team, with some overlapping work with institutions concerning research and technology. (Finborud Dep. 64.) Finborud also testified that research and innovation are "two sides of the same coin." (Finborud Dep. 88; Ewald 30-31.) According to Finborud, Ewald's first priority was to "network, to build . . . up connections, cooperations between the various research institutions and other academic institutions." (Finborud Dep. 54.) Davidson was to similarly network in order to facilitate connections between businesses. (Davidson 2014-2015.)
14. While Ewald was initially encouraged to work on student mobility issues and student exchanges (Gandrud 750; 756-58; 796-97; Mondale 606-607, 674, 681, 696, 702-703; Ewald 93-94, 108-110; P-52-0001; D-24-0016; J-23-0003), in March 2009, the Steering Committee redirected Ewald to prioritize her focus on "strategic cooperation between universities, institutions and research groups above student exchanges and student mobility." (P-38-0005.) The Steering Committee expected that undergraduate student exchanges should occupy no more than 10% of her time. (J-23-0003.) From then on, Ewald focused on building relationships between the Norwegian and United States institutions and less on student mobility. (Ewald 175; D-24-0016;
15. The two experts' 2009 vision statements, in which they described their work, highlight the overlapping nature of the two positions. Gandrud directed Ewald to use "almost the same verbiage" as Davidson, particularly with respect to their collaborative work. (D-20-0001.) Davidson's 2009 vision statement emphasized this collaboration:
(D-20-0002; D-24-0009.) Ewald's vision statement mirrored Davidson's description of how the two expert positions overlapped and worked together (D-24-0004), and also identified future opportunities for collaboration:
(D-24-0006). In addition, both Ewald and Davidson also noted that along with Innovation Norway, they worked with the Research Council. (D-24-0005; D-24-0011-13.)
16. The trial testimony of Ewald and Davidson also demonstrates a common core of duties between the two expert positions: Ewald and Davidson facilitated meetings of visiting Norwegian dignitaries and event attendees (Ewald 173; Hansen 1084-85); traveled to Norway (Ewald 189; Davidson 2024); gave presentations and represented the Honorary Consulate at community events (Davidson 2024-25; Ewald 180); planned Science Week 2009 together (Ewald 181-82; Davidson 1945-46); attended Science Week 2010 (Davidson 2034-35); performed work related to Midwest-Norway connections in the areas of environmental technology, renewable energy, and medical technology (Ewald 185); met with Norwegian and Midwestern business representatives (
17. Moreover, Gandrud communicated with Steering Committee Chair Finborud about Ewald's work on developing relationships not only with educational institutions, but also with business entities. (P-52-0001-02.) The specific business fields with which Ewald worked included environmental technologies, renewable energy, medicine, and medical technology. (Ewald 174.) For example, Ewald helped facilitate connections between Twin Cities-based Cargill and Norwegian businesses (Ewald 188); connected MIT colleagues with representatives of Statoil, a Norwegian oil company (Ewald 192); arranged meetings between the Oslo MedTech Group and local businesses interested in research (Ewald 176); organized a brain science conference involving representatives from research, business, and public policy, including the former Prime Minister of Norway (Ewald 183); and through her work with CeRTA, connected businesses such as Sanford Health with researchers and universities interested in using data in Norway's biobanks to promote collaborative research and business opportunities. (Ewald 174, 176; Hansen 1085-86.) Moreover, Nash testified that he and his business clients ultimately turned to Ewald for assistance, instead of Davidson, because "[Ewald] understood how business and academics would work together." (Nash 550-01.)
18. Based on the foregoing, it is evident that the two expert positions were meant to be — and were understood to be — equal and parallel. However, superficial similarities or a broad comparison of jobs from a "bird's eye view" are not determinative of equal jobs.
19. Skill — the first factor in determining whether two jobs are substantially equal — includes the experience, training, education and ability necessary to perform the jobs.
20. Defendant contends that the Innovation and Business Position required skills unique to business — skills that Davidson gained through his MBA and business background — while the Higher Education and Research Position required skills unique to education. (
21. First, the same interviewers for both positions looked for identical skills when evaluating candidates: "how [the candidates] would approach the job," "Norwegian network and language skills, network experience in both regions, as well as personal skills," and "teamwork abilities." (J-6-0009.) As the Embassy itself observes, finalists for the Innovation and Business Position had MBA degrees, and the finalists for the Higher Education and Research Position similarly had advanced degrees. (Def.'s Proposed Findings of Fact & Concl. of Law at ¶ 215 [Doc. No. 327]) (citing J-1-0013-21; D-56; J-1-0004-12).)
22. Second, Ewald's expert position involved skills in developing relationships between Norwegian and Midwestern educational and research institutions and research-based businesses equal to the skills required of Davidson's expert position, which involved skills in developing relationships between Norwegian and Midwestern businesses — particularly businesses involved in technology and research. Both Davidson and Ewald utilized communication and networking skills when communicating with, and facilitating exchanges between, their respective Norwegian and Midwest constituents in business and education. (Davidson 2026-27; J-1-0001; J-1-0016; Mueller 1137.)
23. Third, the record reflects a significant overlap in duties — for instance, Davidson attended events at the University of Minnesota and St. Olaf and worked with Ewald on Science Week 2009 (Davidson 1977, 1948-49, 2024-25; Ewald 180-82), while Ewald worked with numerous businesses to create business and research connections between Norway and the Midwest. (Ewald 174, 176, 183, 188, 192.) The fact that on a given day, Ewald attended a particular meeting and Davidson did not, and vice versa, is insignificant. There was little difference in the skills required for each employee to attend such functions and to network with the Norwegian and Midwest communities — to the extent that any different skills were required, they were minor.
24. Fourth, in performing their duties, both Davidson and Ewald also used their skills in obtaining financing and funding for their projects — for instance, Davidson identified potential financing sources for Norwegian firms while attending an oil and gas conference, while Ewald worked on obtaining financing for the CeRTA research alliance. (Davidson 1938; D-42-0004-05; Ewald 171-75, 360-61.) That the funding or financing might be for different projects is again a minor distinction — the skills required to raise the funds were substantially equivalent.
25. Finally, the "[p]ossession of a skill not needed to meet the requirements of the job cannot be considered in making a determination regarding equality of skill." 29 C.F.R. § 1620.15(a) (2013). Because the possession of an MBA was not a requirement for the Innovation and Business Position (
26. The Court thus finds that the two jobs required substantially equal skills.
27. As to the second factor, "[e]ffort refers to the physical or mental exertion necessary to the performance of a job."
28. Moreover, while the expert positions themselves required equal effort, the record reflects that Ewald actually expended greater effort than Davidson. For example, Nash testified that he eventually ceased making business referrals to Davidson, noting that none of his efforts at putting together events with Davidson came to fruition. (Nash 549.) Likewise, Nash ceased inviting Davidson to participate in projects or events, observing that Davidson was either unlikely to attend, or that his presence was not helpful. (Nash 550.) Instead, Nash turned to Ewald when he sought the Consulate's assistance, finding her to be particularly helpful "because she understood how business and academics could work together" (Nash 551), whereas Davidson essentially "ignor[ed] how the innovation side work[ed]." (
29. Regarding the third factor, "[r]esponsibility concerns the degree of accountability required in performing a job."
30. Here, the Higher Education and Research Position and the Innovation and Business Position were both considered expert positions. (J-6-00013.) Both Ewald and Davidson were employed at the same "officer" level (
31. The Court finds that the two jobs at issue here required equal responsibility. Having found that the two jobs required equal skill, effort, and responsibility, the Court finds that Ewald has established a prima facie case of unequal pay.
32. Having found that Ewald has established a prima facie case, the burden of persuasion shifts to the Embassy to justify the pay disparity based on one of the EPA's four defenses: "(1) a seniority system; (2) a merit system; (3) a pay system based on quantity or quality of output; or (4) a disparity based on any other factor other than sex."
58 Causes of Action 2d § 17 (2013);
33. Although the Embassy's primary argument at trial was that Ewald could not establish a prima facie case of unequal pay, the Embassy also presented evidence in support of its position that even if Ewald could make out a prima facie case, the Embassy's decision to pay Davidson a higher salary was based on a "factor other than sex." The "factor other than sex" category is a broad catch-all, created "due to the impossibility of predicting and listing each and every exception."
34. It is not a defense under the EPA that a woman may be paid less than a man in the same position simply because the woman is willing to accept less pay. Courts have consistently rejected this type of "market forces" defense.
35. The Embassy often referred to the different marketplace value of the two expert positions in order to justify the pay differential, whether in Gandrud's September 4, 2008 email to the Stakeholders, suggesting a higher salary for Davidson (P-7-0001), or the September 23, 2009 letter from Vice President Mondale and Gandrud to Ambassador Strømmen (P-56-0002). Also, Rognlie and Finborud recalled that Davidson was offered a higher salary than Ewald because of the different job market (Rognlie 1478), and because they "would have to pay more to a more experienced person from a private business life." (Finborud Dep. 30, 37.) Incredibly, the basis for this marketplace justification consisted of one hour's worth of research performed by Manalo. (Gandrud 576-77, 973; Manalo 252.) Importantly, this deeply-flawed research involved absolutely no consideration of the relative skills of either Davidson or Ewald. Manalo conducted the research in early July 2010 (Manalo 259) — nearly two months prior to the September interviews for the expert positions — and Manalo had no knowledge of who had applied for the positions. (Manalo 270, 276.) Manalo could not find exact matches for the expert positions, and instead provided Gandrud with salary range information for non-relevant jobs such as "Business Development Manager Jobs," "Business Development Director Jobs by U.S. Region," "Institutional Research Director Jobs by U.S. Region" and "Researcher III-Academic." (J-3-0001-15; Manalo 276, 262-63.) This so-called research incorrectly assumed that these positions were for business people and academic researchers, respectively. Gandrud did not ask Manalo to search for salaries of similar employees in other embassies or consulates. (Gandrud 584.) Manalo testified that if she had been asked to conduct this search as the Human Resources person in charge of the two expert positions, she would have necessarily considered the candidates' (1) prior experience; (2) prior education; and (3) prior salaries or salary requirements, which she did not do. (Manalo 270-71, 274.)
36. Notably, there is no evidence that anyone involved in the hiring of the two expert officers followed the Guidance — the MFA's guidance for hiring local employees at Norwegian foreign service stations (P-148) — which they were required to do. (P-148-00022; Strømmen 860-63.) The one-hour's worth of market research that the Embassy relied upon failed to consider the numerous relevant sources listed in the Guidance for determining local employees' salaries, including international companies, recruitment companies, public salary standards, public statistics, industry statistics, and job announcements. (P-148-0033.) The Guidance also strictly forbade any consideration of a candidate's marital or family status in determining salary. (
37. Ironically, had the Embassy truly considered Ewald's and Davidson's skills to justify a difference in pay, such a consideration should have favored Ewald.
38. Moreover, the Embassy's broad statement that "common sense" dictated that a person "in business" should be paid more than a person "in education" (Rognlie 1480, 1510), not only overlooks that the positions were neither for a business person nor an educator, but also that both jobs were in the public sector. In addition, the Embassy's "common sense" runs afoul of the law. Such a sweeping generalization bears striking similarity to "market forces" salary justifications, which are rejected under the law,
39. The Court finds that the Embassy failed to meet its burden of persuasion in establishing that the disparity between Ewald's and Davidson's pay was based on marketplace value and experience.
40. The Eighth Circuit has found that negotiations leading to a comparator's higher salary, or a demand for a specific salary, may establish a valid "factor other than sex" defense to an unequal pay claim.
41. The evidence in this case demonstrates that, at various times, Defendant attempted to justify Davidson's higher pay with reference to the parties' respective salary "negotiations," stating that the $100,000 offer to Davidson was what it took to get the Embassy's top candidate to accept the job. For example, in response to Ewald's multiple inquiries to the Embassy about the pay disparity, Ambassador Strømmen wrote to Ewald on November 18, 2009, explaining:
(J-28-0002.) On March 11, 2010, the Embassy provided further explanation to Ewald regarding the salary issue:
(J-38-0002.)
42. Despite these explanations, the facts here overwhelmingly demonstrate that neither Ewald nor Davidson "negotiated" their salaries, as both thought that the salary range was rigid, and therefore believed that negotiations for a higher salary would not be fruitful. (Ewald 120-22, 388-390; Davidson 1918.) In response to Strømmen's November 18, 2009 communication explaining that the salary differential was partly a result of separate salary negotiations, Ewald replied,
(P-68-0002.) Ewald's understanding is supported by the facts. Gandrud took pains to disclaim that his initial $60,000 salary suggestion to Davidson, and Davidson's response, constituted a negotiation. (Davidson 1917-18; Gandrud 725-27.) In fact, Gandrud informed Davidson that he was not authorized to make an offer at that time. (Gandrud 720-21, 984.) Davidson did not interpret the $60,000 figure as a formal offer, either. (Davidson 1992.) In later relaying the details of their conversation to Johne, Rognlie, Ambassador Strømmen, and others, Gandrud commented, "I told him that I do not intend to negotiate with him." (P-7-0001.)
43. In addition to Gandrud not negotiating the salary, Davidson did not demand a particular salary. (
44. Accordingly, the Court finds that the Embassy failed to meet its burden of persuasion that either Davidson's salary negotiations or a salary demand justified the pay differential.
45. Prior salary is often seen as an indicator of marketplace value. When prior salary is asserted as a defense to a claim of unequal pay, however, the Eighth Circuit has cautioned that courts must "carefully examine[ ] the record to ensure that an employer does not rely on the prohibited `market force theory' to justify lower wages for female employees simply because the market might bear such wages."
46. Here, as discussed earlier, the Embassy failed to determine Davidson's marketplace value. Even more importantly, it failed to determine Ewald's marketplace value. Rather, Rognlie and Berg testified that one reason that Davidson was offered more money was that he had a higher salary from his previous job. (Rognlie 1478; Berg 1253,1284-85.) However, the evidence is undisputed that while the Hiring Committee was aware of Davidson's prior salary of $108,000 (P-7-0001), it did not determine Ewald's prior salary, which was approximately $190,000. (Rognlie 1463-64; Ewald 76, D-60-0010; P-167-0001.) The Embassy has failed to explain the differential, as required by
47. In general, some courts have found that a pay disparity based on "head of household" or breadwinner status does not violate the EPA if it is equally applicable to men and women and was not implemented for the purpose of discriminating based on gender.
48. After Gandrud's initial overture to Davidson, in which he suggested a $60,000 salary, Gandrud communicated with Johne, Ambassador Strømmen, and others. (P-7-0001.) Gandrud relayed Davidson's "discomfort" with a $60,000 salary, and indicated that "market research" and Davidson's then-current salary of $108,000 might require a higher salary, commenting that "[w]ith young children, day care, etc., he has a legitimate concern." (P-7-0001.) Johne testified that she was unaware of any reason other than the issues that Gandrud identified in his email (P-7-0001) for Davidson to receive a higher salary than Ewald. (Johne Dep. 73.)
49. As noted, the Embassy's Guidance document that governed the hiring of local employees stated, "In establishing salary . . ., marital status and number of dependents shall not be taken into account." (P-148-0033.) Ambassador Strømmen expected the Hiring Committee to follow the Guidance (Strømmen 861), and found any consideration of how an employee might expend his or her salary — whether for day care, to pay a tax debit, or to buy a big boat — to be irrelevant to the determination of salary. (Strømmen 877.) He testified that Davidson's need for day care was not a legitimate basis for a higher salary, explaining that, for all the Embassy knew, Ewald might have had day care expenses as well. (
50. The Court finds that Defendant's "head of household" defense fails as a matter of fact and law. Not only was consideration of family status either prohibited by the Guidelines or irrelevant, even if it were a permissible or relevant factor, there is no evidence in the record showing that the Embassy considered Ewald's family status in determining her salary. Since courts require a gender-neutral application of any such consideration,
51. For all of these reasons, and based on all of the evidence before the Court, the Court finds that Plaintiff has proven by a preponderance of the evidence that Defendant violated the EPA, 29 U.S.C. § 206(d)(1). Likewise, Plaintiff has proven by a preponderance of the evidence that Defendant violated the MHRA, Minn. Stat. 363A.08, Subd. 2, for which the same liability standard applies.
52. Plaintiff asserts a claim for violation of Minnesota Statutes § 181.64. (Am. Compl. Count II.) Under that provision:
Minn. Stat. § 181.64. "[T]he phrase `kind or character' covers the work to be performed. . . ."
53. Here, the statements at issue are Gandrud's statement to PR Consultant Tunheim that the two positions were being paid the same range of compensation: "$100,000+" (P-16-0001), and Gandrud's statement to Ewald that he was able to get the top of the range for both positions, in other words, $70,000. (Ewald 120-21.) Neither statement is sufficient to create liability under Minn. Stat. § 181.64.
54. First, Gandrud's statement to Tunheim that the two positions commanded a salary of "$100,000+" fails to satisfy the requirements of Minn. Stat. § 181.64, as the statement was not made to Ewald, with the intent to induce her to change her employment.
55. Second, as to Gandrud's "top of the range" statement to Ewald — Ewald, Davidson, and Gandrud all testified that the pay range mentioned by the interviewers was $40,000 to 70,000. (Ewald 110-11; Davidson 1913; Gandrud 710.) On September 10, 2008, Vice President Mondale announced Ewald's hiring at a reception in Oslo (Mondale 680-82; J-9-0004-05), before the Embassy had made a formal offer with a salary figure. (Ewald 116, 396.) On September 12, 2008, Gandrud offered Davidson the Innovation and Business Position with a salary of $100,000. (Gandrud 744; Davidson 1922; P-9-0001.) The following day, when Gandrud phoned to formally offer Ewald the Higher Education and Research Position with a $70,000 salary, Gandrud told her that he was able to get the top of the range for both positions — in other words, $70,000. (Ewald 120-21.) While Gandrud's statement to Ewald was false as it concerned Davidson's salary, it was not a "knowingly false statement" about Ewald's salary.
56. No court has expanded the reach of Minn. Stat. § 181.64 to statements concerning compensation for a position that was not the plaintiff's position.
57. Moreover, the evidence does not show that the Embassy intended to induce Ewald to change her employment and accept the job at the Honorary Consulate by commenting that the salary for both positions was "the top of the range."
58. For all of these reasons, the Court finds that the Embassy is not liable for a violation of Minn. Stat. § 181.64.
59. "[T]he plaintiff has the burden of proving damages caused by the defendant by a fair preponderance of the evidence."
60. Based on the Court's finding that Ewald has proven by a preponderance of the evidence Defendant's liability for discrimination based on unequal pay under the EPA and MHRA, Plaintiff is entitled to damages. Under the EPA, a plaintiff may recover lost wages, liquidated damages, and attorney's fees and costs. 29 U.S.C. § 216(b). Pursuant to the MHRA, Minn. Stat. § 363A.33, Subd. 6, if a court or jury finds that an employer has engaged in an unlawful discriminatory practice, relief shall be determined as provided by Minn. Stat. § 363A.29, Subd. 3-6. Under Minn. Stat. 363A.29, Subd. 4, courts are required to impose a civil penalty, payable to the State of Minnesota, and the aggrieved plaintiff may recover compensatory damages in an amount up to three times the actual damages sustained, damages for mental anguish or suffering, reasonable attorney's fees, and punitive damages in an amount not more than $25,000.
61. Because this Court finds that Ewald was paid less than her male comparator for equal work, she is entitled to recover the additional amount that she would have received had they been paid equally. 29 U.S.C. § 216(b);
62. In addition, this Court previously determined that Ewald's non-reimbursed travel expenses for attending Science Week 2010 constituted "wages" under the EPA, and therefore permitted Ewald to present evidence of such expenses in support of her damages claim under the EPA. (Mot. in Limine Order at 7 [Doc. No. 276].) However, Defendant now argues that it did not pay for Davidson to attend Science Week 2010 — rather, Innovation Norway paid those expenses. (Davidson 2033-35.)
63. As the Court previously explained, under the EPA, the term "wages" includes
29 C.F.R. § 1620.10. Not only does the language of the statute envision a broad reading (using phrases such as "whether called," "or some other name," and "fringe benefits"), the EEOC expressly defines the term "wages" to include "reimbursement for travel expenses." EEOC Compliance Manual, No. 915.003 § 10-IV(C) (Dec. 5, 2000);
64. Since Ewald's involvement in Science Week was a required part of her job duties (J-2-0003), the Embassy should have covered her expenses to attend the event in 2010. Although Innovation Norway may have paid for Davidson to attend, the Stakeholders understood that the two expert positions were to be funded equally (P-17-0003; P-14-0002), and the Embassy facilitated Davidson's reimbursement of travel expenses on a number of occasions. (P-132-0001; P-135-001.) Wemberg, the Embassy's Head of Administration, even acknowledged the Embassy's different treatment of Ewald and Davidson in the reimbursement of travel expenses. (P-130-0004.) When presented with a reimbursement request from Davidson in May 2011 (P-132-0002; P-130-0003), which the Embassy approved (P-132-0001), Wemberg stated, "A little unfortunate that this is coming at the same time when we are denying Ellen?" (P-130-0004.) Ewald submitted a travel claim form in the amount of $2,362 in connection with her attendance at Science Week 2010. (P-149-001-02.) Therefore, Ewald is entitled to an additional $2,362 (P-149-001-2) as part of her lost wages calculation, resulting in a lost wages total of $85,297.
65. As for Ewald's claims for reimbursement of certain health insurance claims, the evidence in this case does not establish a link between the non-reimbursed health insurance benefits at issue and Plaintiff's claims based on unequal pay. The evidence concerning the Embassy's handling of Ewald's health insurance shows that while the Embassy was ultimately incorrect in its denial of coverage for Mikalsen, it demonstrated that factors other than sex were behind the denial of coverage for Ewald's adult children and for the denial of coverage for Mikalsen for the first few months of Ewald's employment. Specifically, the Embassy identified Norway's policy of not extending health care benefits to children over age 18, Norway's former policy that only financially-dependent spouses or partners could obtain coverage, and the belief that Mikalsen, a Norwegian citizen, was covered under the Norwegian health care system. Nor were the Embassy's decisions with respect to health insurance benefits necessarily made by the same decision makers as those who determined the salaries for the expert positions. While Plaintiff may have had a claim for reimbursement for her out-of-pocket expenses for her adult daughters' insurance under the Minnesota statute through which she claimed entitlement to coverage, Minn. Stat. § 62A.048 (2008), she did not bring such a claim. Accordingly, Plaintiff is not entitled to lost wages damages related to reimbursement for health insurance for the first few months of her employment as to Mikalsen or for her adult daughters.
66. While Plaintiff seeks back pay for the three-year term of her employment with the Embassy (Pl.'s Proposed Concl. of Law ¶ 39B [Doc. No. 328]) — which the Court awards — she also seeks a back pay award from the end of her employment with the Embassy through the date of trial. (
67. As to the scope of Plaintiff's back pay award, the EPA contemplates liability for such "legal or equitable relief as may be appropriate to effectuate the purposes of [the EPA], including without limitation employment, reinstatement, promotion, and the payment of wages lost and an additional equal amount as liquidated damages." 29 U.S.C. § 216(b). In the employment discrimination context, where reinstatement is impractical due to the frayed relationship between employer and employee, courts may instead award employees front pay, under certain circumstances.
68. Plaintiff has previously represented to the Court that she does not seek future damages under the EPA. (Pl.'s Mem. in Opp'n to Def.'s Mot. in Limine to Exclude Evidence of Future Damages at 2 [Doc. No. 251].) As the Court has previously ruled, front pay is compensable under the MHRA. Minn. Stat. § 363A.29, subd. 5(1);
69. The Court declines to award Plaintiff back pay beyond the three-year term of employment, and likewise declines to award future damages or front pay. The wage disparity here occurred over a defined period of employment. Ewald and Davidson accepted employment for a three-year term understanding that there was no guarantee of renewal. Both Ewald and Davidson were employed for the entire term of their employment contracts; neither Ewald's nor Davidson's term of employment was renewed or extended. The wage disparity does not extend beyond the period of employment.
70. The Court's decision, however, is based merely on the fact of the three-year term of Ewald's employment. It is not based on any failure to mitigate damages. To the contrary, the Court finds that Plaintiff has met her duty to mitigate damages. This duty requires a successful plaintiff to use reasonable diligence in finding suitable employment and not refuse a position substantially equivalent to the one that was lost.
71. Ewald used reasonable efforts to mitigate her damages by finding full-time employment with Tysvar. Ewald was concerned about her reputation, and needed to work with people whom she trusted. Defendant has not shown that there were other suitable expert positions available to Ewald. There is no evidence that Ewald could have obtained a substantially equivalent expert position within or outside the Norwegian government. The widespread distribution of communications criticizing Ewald and referring to her as a "bad hire" within various Norwegian agencies would have substantially hindered her efforts to find employment with such agencies. Although Ewald's income with Tysvar has not been fully realized, it appears from the evidence at trial that this is due to some specific pressures that were faced by the company over a certain period of time, and that Ewald has been credited to receive future payments. (Ewald 352, D-64-0002, Mikalsen 1656-57.)
72. An employer who violates the EPA may also be liable for liquidated damages. 29 U.S.C. § 216(b). Liquidated damages are "a means of compensating employees for losses they might suffer by reason of not receiving their lawful wage at the time it was due."
73. The Embassy showed that it had good faith, reasonable grounds for believing that it was not in violation of the EPA. The evidence shows that Ambassador Strømmen consulted with attorneys about the salary difference between Ewald and Davidson at the time the salaries were recommended, and was told that the salary differential was not in violation of the law because the two jobs were different. (Strømmen 839-40.) While the Embassy's subsequent actions with respect to the handling of Ewald's inquiries were bungled, those actions do not undercut the essential fact that, at the time the salary decisions were made, the Embassy held a good faith belief, albeit legally incorrect, that it had reasonable grounds for awarding Davidson a higher salary than Ewald. On these facts, the Court declines to award liquidated damages.
74. The EPA also provides that where an employer is found to have violated the Act, the Court shall allow reasonable attorney's fees and costs to be paid by the employer. 29 U.S.C. § 216(b). The Court directs Plaintiff to submit within 20 days of this Order an affidavit and memorandum in support of reasonable attorney's fees and costs related to the claims on which Plaintiff has established liability. Defendant will then have 20 days from the date of Plaintiff's filing in which to submit a response.
75. Plaintiff seeks "garden variety" emotional distress damages. (
76. As an initial matter, it is not clear that emotional distress damages are unavailable under the EPA in the Eighth Circuit. While Defendant cites to our sister court, the Western District of Missouri, in
77. In any event, regardless of the availability of such damages under the EPA, such damages are expressly available under the MHRA. Under Minn. Stat. § 363A.29, Subd. 4, a court may order the employer to pay damages for mental anguish, in addition to compensatory damages and other relief. Damages for mental anguish may also include compensation for personal humiliation and impairment of reputation.
78. Plaintiff testified that she suffered substantial emotional distress and humiliation related to her unequal pay (Ewald 172, 306, 312, 337-39, 350), and the evidence adduced at trial overwhelmingly establishes the existence of such distress. She testified that the pay differential "took over [her] life" (Ewald 338), causing her to feel sad, embarrassed (
79. Through the time of trial, Ewald also continued to have a diminished ability to concentrate and focus. (Ewald 350-51.) During her testimony as a trial witness, the Court observed that Ewald sometimes displayed difficulty following questions, appeared defeated, distraught, and unsure of herself, and was occasionally tearful.
80. Ewald also experienced physical symptoms related to her emotional distress. In addition to her difficulties with concentration and memory, she experienced headaches, a stiff neck, trouble sleeping, tightness in her chest, nausea, and eye twitches. (Ewald 339; Mikalsen 1680-83.)
81. Moreover, Plaintiff testified that she has continuing concerns about the damage to her reputation — a valid concern, as at least one member of the Norwegian-American community testified at trial that Ewald's reputation has been harmed. (Nash 567-70.) Other evidence at trial revealed harm to Ewald's reputation: widely-circulated email messages from Steering Committee Chair Finborud disparaged Ewald as a "bad hire" (P-93-0003; P-97-0008); Johne revealed Ewald's private and confidential salary information as compared to Davidson's to a wide audience of recipients (P-17-0012-13); Vibe patronizingly referred to Ewald as "our little friend" (P-74-0003); and suggested that Ewald receive a 0.0% raise. (J-36-0003.) Understandably, Ewald testified that she found these personal attacks and the divulging of salary information humiliating. (Ewald 314, 345-46.)
82. Defendant argues that because Ewald sought to retain employment with the Embassy, this undercuts her claim of mental anguish and emotional distress. The Court disagrees. Ewald's attempt to work out a 90% work arrangement with CeRTA and a 10% arrangement with the Embassy was not an indication of her emotional happiness, but, rather, a survival strategy. Gandrud described it as a "way out for everyone." (P-79-0002; Gandrud 958-59.)
83. Based on this evidence, the Court finds that Ewald has demonstrated emotional distress, for which an award of $100,000 for mental anguish and emotional distress under the MHRA is appropriate.
84. Plaintiff also seeks punitive damages under the MHRA. Under the MHRA, punitive damages of not more than $25,000 may be awarded. Minn. Stat. § 363A.29, Subd. 4. In order to recover such damages, Plaintiff must establish "upon clear and convincing evidence that the acts of the defendant show deliberate disregard for the rights or safety of others." Minn. Stat. § 549.20, Subd. 1(a)(b); Minn. Stat. § 363A.29, Subd. 4 (stating that punitive damages under the MHRA "shall be awarded pursuant to section 549.20").
85. The Embassy's decision to award Davidson a higher salary than Ewald does not rise to the level of deliberate disregard for Ewald's rights warranting punitive damages. Accordingly, for many of the same reasons set forth in the Court's denial of liquidated damages, the Court declines to award punitive damages.
86. The MHRA also provides that compensatory damages may be enhanced by up to three times the amount of actual damages sustained when the defendant has engaged in an unfair discriminatory practice. Minn. Stat. § 363A.29, Subd. 4. Application of the MHRA multiplier is entirely within the trial court's discretion and there are "no guidelines as to when or under what circumstances a trial court may multiply damages."
87. Although an enhanced award is entirely within the Court's discretion,
88. Here, the Court finds that an enhancement of Plaintiff's compensatory damages is warranted, and orders that such damages be doubled. As in
89. Ewald herself fared no better than Gandrud and the former Vice President of the United States in obtaining a response from the Embassy. On September 23, 2009, Ewald emailed Jan Age Larson with questions about her family's insurance coverage and the salary differential between her and Davidson. (P-55-0001-2.) While Larsen confirmed receipt of her email, he provided no substantive response. (P-55-0001.) One month later, on October 23, 2009, Ewald sent a follow-up email, requesting a response. (P-62-0001.) And she sent another such request on November 4, 2009 (P-63-0001), and another on November 16, 2009. (P-65-0001.)
90. Behind the scenes, when the Embassy discussed Ewald's concerns, it referred to Ewald both internally, and to a wide audience, in damaging, derogatory terms, labeling her a "bad hire" (P-93-0003; P-97-0008), revealing the private and confidential salary differential to a large group of recipients (P-17-0012-13), calling her "our little friend" (P-74-0003), and characterizing her inquiries as "nagging." (J-36-0003.) In response to Vibe's email in which he suggested that Ewald receive a 0.0% raise, Ambassador Strømmen replied, "Brilliant." (
91. Accordingly, the Court finds that an award doubling Plaintiff's compensatory damages for lost wages is appropriate.
92. Plaintiff also seeks the imposition of a civil penalty against Defendant. (
93. "Prejudgment interest serves at least two purposes: (1) it helps compensate plaintiffs for the true cost of money damages they have incurred, [and] (2) where liability and the amount of damages are fairly certain, it promotes settlement and deters an attempt to benefit unfairly from an inherent delay of litigation."
94. The Court directs Plaintiff to calculate prejudgment interest and to submit that calculation, along with any supporting authority, in her attorney's fees petition within 20 days from the date of the filing of this Order. Defendant will have an opportunity to respond within 20 days of Plaintiff's filing.
The New Model Norwegian Consulate in Minneapolis promised to be both an exciting and economically workable model consulate precisely because the Stakeholders who invested in the concept expected, long term, to realize a meaningful return on their investment — increasing opportunities to collaborate on research-based innovation and the commercialization of research in technologies shared by both countries, including green technology, renewable energy, health care and other business development opportunities.
To further that end, it was clearly their expectation that these expert positions would be "two sides of the same coin" (Finborud Dep. 88), each side of which was to be of equal value — that is, expert networkers, with the capacity to bring together such collaborations in two strategic areas — higher education and research, on the one hand, and business and innovation, on the other. The false premise that the jobs were somehow comparable to a private business person, on the one hand, and an educator, on the other, and should be paid accordingly is completely belied by the facts. Although there were differences in the expert officers' daily activities, those differences were not material to the ultimate question presented to this Court — were the jobs substantially equal? That analysis depends not on whether there were differences in the jobs but rather on whether the jobs required equal skill, effort, and responsibility. There was no competent evidence presented at trial that one job required greater skill, effort, and responsibility than the other. Rather, the evidence demonstrated that the jobs were substantially equal.
The EPA is a strict liability statute. The plaintiff is not obligated to demonstrate that the employer acted with discriminatory intent. Rather, the plaintiff need only show that she was paid unequally for substantially equal work. There is no evidence in the record of real discriminatory intent. There is, however, ample evidence of unequal pay for equal work.
To his great credit, Vice President Mondale, along with Honorary Consul Gandrud, attempted to bring this issue to the attention of the Embassy in their letter of September 23, 2009 to the Ambassador describing the pay differential as "unjust and embarrassing." It was also unlawful. Unfortunately, the pay differential was never corrected and this lawsuit followed.
Based upon the above findings of fact and conclusions of law, the Court makes the following:
Ewald has successfully demonstrated a violation of the EPA and MHRA as to her unequal pay claim. She has not demonstrated a violation of Minn. Stat. § 181.64, however. Accordingly, based on all the files, records, and proceedings herein,
MHRA as to unequal pay, and Count VI for violation of the EPA, be entered in favor of Plaintiff;
2. Judgment on Count II, for violation of Minn. Stat. § 181.64, be entered in favor of Defendant.
3. Defendant shall pay Plaintiff $170,594 for lost wages, an amount which contains an enhancement of doubled compensatory damages pursuant to Minn. Stat. § 363A.29, Subd. 4;
4. Defendant shall pay Plaintiff $100,000 for emotional distress damages;
5. Defendant shall pay the sum of $1,000 to the general fund of the State of Minnesota for its violation of the MHRA pursuant to Minn. Stat. § 363A.29, Subd.4; and
6. Plaintiff shall submit a detailed affidavit and memorandum to the Court itemizing attorney's fees and costs, as well as a calculation for prejudgment interest, as detailed herein, within 20 days, to which Defendant shall respond within 20 days of Plaintiff's filing.