In June 1992 Hobby applied for positions as Executive
Administrative Assistant, Office of the President, Hayes Microcomputer
Products; Director of Operations, John Sutton Associates Consultants,
Inc.; CEO, Montgomery Ventures; vice-president and general manager for a
medical device group; general manager for a manufacturer of technical
products; and administrator for an international law firm in central
Europe. T. 303, 333; CX-72 at 175,176,178,182-4,187, 192. He forwarded his
resume to a number of placement firms. CX-72 at 189-191. He also sent
letters seeking an executive assistant position to American Group
Practice, Inc.; Chanko-Ward, Ltd.; Hyman, Mackenzie & Partners, Inc.;
Richard Kove Associates, Inc.; The Mercer Group; PROSource, Inc.; Shaffer
Consulting Group; Kimball Shaw Associates; Egon Zehnder International;
Spencer Stuart & Associates; and Russell Reynolds Associates. CX-72 at
180-1.
[Page 27]
Hobby continued to work on his contacts within the
power industry. James O'Conner, the Chief Executive Officer of
Commonwealth Edison in Chicago, informed Hobby that there were no
positions available at his company, but that Hobby could rely upon him as
a reference. T. 273-4. Hobby also contacted Lee Sillin, the former Chief
Executive Officer of Northeast Utilities, who had worked with Hobby at
INPO and was then chairman of a utility coordinating committee. Although
Sillin had previously offered Hobby a position working for the committee,
he expressed reluctance in allowing Hobby to use him as a reference. T.
275-279.
In July 1992 Hobby applied for positions at Alpha
Enterprises, the USO, and the Tennessee Valley Authority's Edison Project.
T. 308-9, 334, 340; CX-72 at 194, 198, 276. In September 1992 he sought
positions as General Manager, Active Parenting Publishers; General
Manager, CI Music; and Director of National Field Service and Operations,
Ionpure Technologies. CX-72 at 201-2, 205, 207. He also forwarded his
resume to Fox-Morris Executive Search and responded to an aviation
executive advertisement in The Wall Street Journal. CX-72 at 203, 211. In
September or October of 1992, Hobby went to work for a temporary agency,
which placed him in a position at Monumental Insurance Company. T. 318. He
requested a permanent position but was told he was over-qualified. T.
321-22.
In October and November 1992 Hobby applied for
positions as Contracts Administrator and Manager of Purchasing for Fannie
Mae; Vice-President, Division Director of Administrative Services, Oak
Ridge Associated Universities; Regional Director, Dyncorp; and Project
Manager for CEXEC, Inc. T. 336-337; CX-72, 215, 219, 222, 226, 228. In
January 1993, Hobby was contacted by a management recruiter who told him
that a small utility in Michigan was looking for a new general manager.
Hobby expressed interest in the position and supplied the recruiter with
additional information. T. 301-302.
Between January and March of 1993, Hobby applied for
positions as Manager of Contracts, MARTA Recruiting; President and CEO,
Combined Health Appeal of America; Director of Communications, CARE; and a
position at Compuware. (T. 337-38; CX-72 at 233, 236, 241. It was around
this time that he was informed that he was not selected for the position
at the utility in Michigan. T. 303.
Hobby moved to a different temporary agency which
placed him in a temporary position at United Parcel Service (UPS) in March
1993. This was followed by a temporary position at MCI Corp. T. 323-4. At
both companies Hobby sought a permanent position; MCI informed him that he
was over-qualified for their available openings. T. 325. Hobby was
ultimately reassigned back to a temporary position at UPS. T. 327. While
working in these temporary positions Hobby applied for positions as
Vice-President of Human Resources, Lowerman-Haney, Inc; Human Resources
Director, Boreham International; Vice-President of Operations, Checkmate
Electronics, Inc; and Executive Director, Plastics Pipe Institute. T. 339,
CX-72, 244, 246, 248, 249. He also responded to an advertisement in the
Atlanta Journal/Constitution for a position as director of investor
relations and corporate communications. CX-72, 252.
[Page 28]
In September 1993 Hobby secured a permanent position
at UPS. T. 330, 332. Although Hobby had found full-time employment, he
continued to search for a position more comparable to the one he held at
Georgia Power. He also applied for positions as a regulatory assurance and
policy director; Executive Vice-President, American Institute of
Architects; Manager, Lawrence Livermore National Laboratory; and Manager
of Customer Service and Contract Administration, Siemens Power Corp. T.
306-7, 311, 314; CX-72 at 255-61, 263, 272-4.
We note also that Hobby sought to return to his
former position at Georgia Power. After the Secretary issued his initial
decision on the merits of this case in August 1995 (finding that Georgia
Power had discriminated against Hobby and ordering Hobby's reinstatement),
Hobby sought enforcement of the Secretary's reinstatement order in federal
court. The U.S. District Court for the Northern District of Georgia ruled
that the Secretary's order did not constitute a final order and was
therefore unenforceable. This decision was affirmed by the U.S. Court of
Appeals for the Eleventh Circuit. Hobby v. Georgia Power Co., No.
1:96-cv-0180-ODE (N.D. Ga. Apr. 18, 1996), aff'd, No. 96-8549 (11th
Cir. May 6, 1997).
In sum, this is not a case where the complainant
abandoned his connection to the job market. Hobby engaged in a meaningful
job search, which no doubt was complicated by his abrupt termination from
a senior position at Georgia Power. This view was shared by Griswold of
the R.L. Stevens agency, whose testimony specifically was credited by the
ALJ. See RD&O at 60-61. Therefore, even if we were to conclude
that the Weaver standard applied under the ERA, we would conclude
that Georgia Power failed to demonstrate that Hobby did not make
"reasonable efforts to obtain work."
3. Whether Hobby otherwise
engaged in behaviors that amount to a failure to mitigate.
Georgia Power raises several other arguments in
connection with mitigation, criticizing Hobby for: (1) devoting
significant time to litigating various claims against the company; (2)
declining to use the services of an executive placement firm that were
offered by Georgia Power; and (3) not "lowering his sights" and seeking
positions outside the nuclear power industry when it became clear that he
was unlikely to land a job similar to his former position at Georgia
Power. We do not find these arguments persuasive, noting again that the
key question when considering the mitigation issue is not whether Hobby
conducted the ideal job search, but whether Georgia Power proved that
there were substantially equivalent jobs available that Hobby would have
discovered if he engaged in a diligent job search.
[Page 29]
Hobby acknowledges that he devoted considerable time
pursuing his ERA complaint and other complaints against Georgia Power
during the period immediately following his termination. However, soon
after he left Georgia Power, Hobby also reached out to Oglethorpe Power
seeking a new job, a nearby electric utility where his talents already
were known and where he had recently been offered the position of Vice
President of Power Generation. RD&O at 61. Given the limited number of
truly equivalent positions that might have been available to Hobby in the
Southeast region, Hobby's contacts with Oglethorpe Power plainly
represented one of his best opportunities to find equivalent work. We
share the ALJ's view that "[i]t was reasonable for Complainant to
cultivate his contacts with Oglethorpe Power for some time because a
position with that organization would have provided him with similar
compensation and status." Id. at 63. We reject Georgia Power's
implicit argument that Hobby made himself unavailable for work during the
period immediately following his unlawful termination, and therefore
should be denied back pay.
We also are not persuaded that Hobby's decision not
to use the outplacement services offered by Georgia Power reflects a
failure to mitigate, as the company alleges. GP Initial Brief at 28.
Viewing the totality of the events surrounding Georgia Power's decision to
end Hobby's employment, it is not surprising that Hobby might have viewed
the company's offer of assistance with suspicion. Hobby believed that the
outplacement services were contingent upon waiving his right to sue the
company, although Georgia Power witnesses denied that such a restriction
existed. RD&O at 12 n.11. Moreover, Hobby apparently believed that he
would have little trouble finding new employment, id., an
expectation that we find reasonable in light of the prior job offer from
Oglethorpe Power and Hobby's long track record of success at Georgia Power
and other power industry organizations. With the benefit of hindsight,
perhaps it would have been wise for Hobby to take advantage of the
outplacement services, but we find that Hobby's decision to pursue a
different job strategy does not mean per se that he did not conduct
a reasonable job search.
Finally, we are perplexed by Georgia Power's claim
that the back pay award should be reduced because Hobby waited too long to
"lower his sights" and seek positions outside the nuclear power industry.
GP Initial Brief at 35. While it is true that a complainant who is
unsuccessful in his search for an equivalent job must eventually seek
employment in another field, Walters v. City of Atlanta, 803 F.2d
1135, 1145 (11th Cir. 1986), it was perfectly reasonable for Hobby to keep
searching for an equivalent for quite a while. He had spent many years
working his way "up the ladder" into senior corporate management
positions, and could not have been expected precipitously to "go into
another line of work, accept a demotion, or take a demeaning position."
Ford Motor Co., supra, 102 S. Ct. at 3065. And when Hobby
did lower his sights, he repeatedly was rejected by prospective
employers as being was over-qualified for available positions. RD&O at
20, 62.
In our view, Georgia Power attempts to place Hobby in
a "lose- lose" situation regarding his efforts to find new work, arguing
on the one hand that Hobby waited too long to lower his sights, while
simultaneously claiming that his back pay award should be reduced because
he failed to find equivalent employment. GP Initial Brief at 35, 47. Based
on the record in this case, we conclude that Hobby's job search decisions
were not manifestly unreasonable, and therefore do not reflect a failure
to mitigate damages.
[Page 30]
D. Whether Hobby should be awarded $250,000 in
compensatory damages.
The ALJ awarded $250,000 for emotional distress,
humiliation, and loss of reputation:
- In light of Complainant's high level position, his unemployment and
underemployment for over eight years, his inability to find any work
within the nuclear community, and the detrimental effect his protected
activity has had on any chances of future promotion and future salary
increases, and in light of the emotional stress Complainant endured due
to his termination and inability to find comparable employment, I find
that an order of compensatory damages in the amount of $250,00.00 is
reasonable. I recognize that this amount is higher than those awarded in
other cases, but I find that the situation here merits such a high
award.
RD&O at 67. Georgia Power argues that the ALJ's award of
compensatory damages is excessive in light of the fact that Hobby
presented no expert medical or psychiatric testimony. We disagree.
Compensatory damages are designed to compensate discriminatees not only
for direct pecuniary loss, but also for such harms as impairment of
reputation, personal humiliation, and mental anguish and suffering.
Martin v. Dep't of the Army, ARB No. 96-131, ALJ No. 93-SDW-1, slip
op. at 17 (ARB July 30, 1999), citing Memphis Community Sch. Dist. v.
Stachura, 477 U.S. 299, 305-307 (1986); Creekmore, supra, slip
op. at 24-25 (compensatory damages based solely upon the testimony of the
complainant concerning his embarrassment about seeking a new job, his
emotional turmoil, and his panicked response to being unable to pay his
debts); Crow v. Noble Roman's, Inc., No. 95-CAA-08, slip op. at 4
(Sec'y Feb. 26, 1996) (complainant's testimony sufficient to establish
entitlement to compensatory damages); Jones v. EG&G Defense
Materials, Inc., ARB No. 97-129, ALJ No. 1995-CAA-3 (ARB Sept. 29,
1998) (injury to complainant's credit rating, the loss of his job, loss of
medical coverage, and the embarrassment of having his car and truck
repossessed deemed sufficient bases for awarding the compensatory
damages).
Georgia Power argues that the ALJ's $250,000
recommended compensatory damages award exceeds amounts awarded by the
Secretary and ARB in previous whistleblower cases and should therefore be
denied. Although the award is relatively high when compared with other
[Page 31]
environmental whistleblower cases, there is no arbitrary upper limit on
the amount of compensatory damages that may be awarded under these
employee protections, as we observed in Leveille v. New York Air Nat'l
Guard, ARB No. 98-079, ALJ Nos. 94-TSC-3, 4 (ARB Oct. 25, 1999):
- . . . [A] key step in determining the amount of compensatory damages
is a comparison with awards made in similar cases. Smith v. Esicorp
[ARB No. 97-065, ALJ No. 93-ERA-16 (ARB Aug. 27, 1998)]. However . .
. damage awards under other discrimination or discrimination-related
statutes can be instructive in setting damage awards in environmental
whistleblower statutes before the Department of Labor, even though the
levels of compensatory damages awarded under these other statutes are
not controlling . . . . [T]here is no arbitrary upper limit on the
amount of compensatory damages that may be awarded under the
whistleblower protection provisions enforced by the Department; indeed,
as a practical matter, exclusive reliance on damage awards in prior
whistleblower cases easily could result in the level of compensatory
damages becoming frozen in time, ignoring even such basic factors as
inflation a result that would be inconsistent with the statutory mandate
that the victims of unlawful discrimination be compensated for the fair
value of their loss.
Leveille at 6. We also noted in Leveille that damage
awards under other discrimination or discrimination-related statutes can
be instructive in setting damage awards in environmental whistleblower
statutes. For example, compensatory damage awards up to $300,000 for
non-pecuniary losses are allowed for certain Title VII actions. 42
U.S.C.A. §1981a(b)(3)(D) (West 1994).
During his final days at Georgia Power, Hobby was
subjected to a series of slights by the company being moved to a much
smaller office, having his building access restricted, and being ordered
to turn in his employee badge and his gate opener to the executive parking
garage. By themselves, these incidents probably would merit only a small
award of compensatory damages. But these small events were the precursor
of more serious problems to come as Hobby experienced continuing
difficulty finding work in his chosen profession, and experienced
emotional distress tied to his depleted finances, repeated requests of
friends and family for money, and the obligation to inform those
responsible for his professional development that he had been fired from
his job with Georgia Power.22
In terminating Hobby's employment because of his internal
complaints, Georgia Power severely damaged Hobby's reputation. It is clear
from the record that Hobby's career had been very promising up until his
termination; afterward, that career was largely gone. In this context, we
find the ALJ's recommended award of $250,000 compensatory damages to be
reasonable, and therefore adopt it.
[Page 32]
E. Whether Hobby should be awarded
compensation for vacation time.
Hobby requested restoration of lost vacation time
instead of the cash value of such time. T. 360, RD&O at 64. The ALJ,
noting that "such action is not compatible with Complainant's goals of
reintegrating into Respondent's organization," awarded Hobby the cash
value of 19 weeks of vacation time, plus interest.
Hobby raised the vacation issue in his pre-trial
brief, at the hearing and in his post-hearing brief, and Georgia Power did
not contest the issue until the ARB appeal. In its Petition for Review to
the ARB, Georgia Power argues that Hobby should not be awarded any
damages for lost vacation time "because the back pay award already
includes compensation for vacation time that would have been accrued and
taken." The company does not provide any citations or support for this
contention.
The ERA employee protection provision states that
when a violation has occurred, the employer shall "reinstate the
complainant to his former position together with the compensation
(including back pay), terms, conditions, and privileges of his employment,
and the Secretary may order such person to provide compensatory damages to
the complainant." 42 U.S.C. §5851(b)(2)(B). Does this language require the
Board to include payment for lost vacation time in Hobby's damage award?
The Secretary provided guidance for deciding when a
complainant is entitled to reimbursement for lost vacation time in
Palmer v. Western Truck Manpower, Inc., No. 85-STA-16 (Sec'y June
26, 1990), vac'd on other grounds, Western Truck Manpower, Inc.
v. United States Dep't of Labor, 943 F.2d 56 (9th Cir. 1991) (table),
available at 1991 U.S. App. LEXIS 21675:
- [F]ringe benefits such as vacation . . . pay are among the items
which should be included in back pay." Pathway, 494 F.2d at 263
[Fifth Circuit case]. Thus, in order to be made "whole", a complainant
is entitled to be paid for accrued vacation time he has lost as a result
of the employer's discrimination. That does not mean, however, that a
complainant is automatically entitled to receive both straight wages and
vacation time for the same period. Where it is the practice of the
employer to pay an employee for vacation time not taken, it is equitable
that a complainant receive both straight wages and vacation pay for the
same period. Where, however, an employee must take his vacation or lose
it, the addition of vacation pay to a back pay award of straight salary
for the same period would compensate the complainant for more than he
lost as a result of the employer's illegal discrimination.
Id., slip op at 4-5.
[Page 33]
The rationale in Palmer is consistent with the
case precedent under Title VII. See, e.g., Cox v. American Cast Iron
Pipe Co., 784 F.2d 1546, 1562 (11th Cir. 1986), cert. denied
479 U.S. 883 (Under Title VII, back pay should include not only "straight
salary" but also "interest, overtime, shift differentials, and fringe
benefits such as vacation and sick pay"). See also Gutzwiller v.
Fenik, 860 F.2d 1317, 1333 (6th Cir. 1988) (in case under §1983 and
Title VII, "The back pay award . . . should include the salary, including
any raises, which plaintiff would have received but for the
discrimination, as well as sick leave, vacation pay, pension benefits and
other fringe benefits she would have received but for
discrimination."); Ross v. Buckeye Cellulose Corp., 764 F. Supp.
1543 (M.D. Ga. 1991), judgment rev'd as time barred, 980 F.2d 648
(11th Cir. 1993); Pathway v. American Cast Iron Pipe Co., 494 F.2d
211 (5th Cir. 1974).
In the Joint Stipulations of Respondent Georgia Power
Company and Complainant Marvin Hobby, the parties state that "Had Mr.
Hobby remained with GPC beyond April 2, 1990, Mr. Hobby would have accrued
vacation time at the rate of three weeks per year until October 25, 1993,
and after that time he would have accrued vacation time at the rate of
four weeks per year." Although the record does not inform us explicitly
whether Georgia Power had a policy of allowing employees to "carry-over"
unused leave from year to year, we infer that this was the company's
practice because it appears that Georgia Power paid its departing
employees the cash value of unused vacation time. See T. 359 (Hobby
stating that "when I was terminated from Georgia Power in 1990, they paid
me for all of my unused vacation"). We therefore agree with the ALJ's
ruling that Georgia Power shall pay Hobby the cash value of lost vacation
until the time he is reinstated, plus interest (described infra).
F. Whether the ordered remedies should be
assessed only against Georgia Power, or against both Georgia Power and its
parent, the Southern Company.
Georgia Power is a wholly owned subsidiary of
Southern Company, a utility holding company which is also the parent
company of Alabama Power Company; Mississippi Power Company; Gulf Power
Company; Energia De Nuevo Leon, S.A. de C.V.; Savanah Electric & Power
Company; Southern Company Services, Inc.; Mobile Energy Services Holdings,
Inc.; Southern Communications Services, Inc.; Southern Energy, Inc.;
Southern Electric Railroad Company; Southern Nuclear Operating Company;
and The Southern Development and Investment Group, Inc. RD&O at 10
n.7; Georgia Power's Proposed Findings of Fact at 11. In his
Cross-Petition to the Board, Hobby argues that the ALJ erred by not
holding Southern Company liable for his reinstatement and monetary relief.
[Page 34]
The ALJ held that the evidence did not support a
finding of joint or single employer status. RD&O at 51-54. Before the
Board, Hobby does not to address the ALJ's specific holding but instead
asks the Board to review more generally the "interrelated operations and
management" argument raised in his Post-Hearing Brief. Hobby asserts that
"the Southern System constitutes a single employer or joint employer with
respect to damages," and that:
- In order for complainant to achieve a 'complete remedy' as ordered
by the Secretary of Labor, he is entitled to relief against both the
Georgia Power Company and the Southern Company, which controls virtually
every aspect of GPC's operations and management, and , which acts as a
joint or single employer with GPC . . . If complainant is to obtain a
complete remedy affirmative relief must be implemented and apply
throughout the Southern Company system.
Hobby's Initial Brief at 32.
The regulations implementing relief pursuant to the
ERA require the "party charged" to offer reinstatement. 29 C.F.R.
§24.6(a)(2). Georgia Power is the party that was charged by Hobby, and
found by the Secretary to have violated the ERA. Neither the parent
company nor its other subsidiaries have been joined as parties in this
action. See RD&O at 54 ("The Secretary's order does not grant
jurisdiction over parties who were not joined in the lawsuit"). We decline
to expand the scope of this proceeding at this late date. As the named
respondent, Georgia Power has the obligation to offer reinstatement to
Hobby and to provide the other remedies ordered in this decision.
Although we do not include Southern Company as a
party responsible for implementing this decision, it bears noting that the
record amply indicates that various management employees moved frequently
between and among Southern Company and its subsidiaries as they advanced
through the ranks. We specifically note our approval of the ALJ's
observation that Hobby is entitled to the same favorable consideration:
- I do caution Southern Company and its subsidiaries against any
future discrimination against Complainant based on his protected
activity. Much testimony was offered indicating that individuals in one
subsidiary may move to another subsidiary to achieve a promotion.
Complainant should be offered these opportunities equivalent to others
at his level of reinstatement. My ruling here does not provide the other
Southern System companies with a loophole through which to discriminate
against Complainant in the future.
RD&O at 54 n.103.
[Page 35]
V. REMEDY AND DAMAGES23
A. The ALJ's recommended damage awards that were
not challenged before the ARB.
Several elements of the ALJ's recommended damage
award were not challenged by either party in their appeals to the ARB, and
we adopt them with slight modifications. The parties have entered into
stipulations that address the manner of calculating some of these awards.
See RD&O at 4-6 and attachments.
1. Productivity Improvement
Plan (PIP) and Performance Pay Plan (PPP).
Georgia Power's Productivity Improvement Plan (PIP)
is an incentive plan for Georgia Power executives. The plan pays out
bonuses annually and the amount received depends upon not only the
executive's grade level but also the overall financial performance of the
company. T. 2126; RD&O at 5, 65. The Pay Performance Plan (PPP)
provides a bonus to employees based on a standard PPP Funding Percentage
Value, and is calculated using either the salary range mid- points of each
of Georgia Power's organizations' employees (for the years 1989 to 1996)
or the employee's actual salary (from 1996 to the present). RD&O at 65
and Appendix E.
We adopt the ALJ's ruling that Hobby shall receive
PIP and PPP bonuses equal to the awards made to an employee at the Level
20 (10) mid-point for the period beginning with his termination until he
is reinstated. RD&O at 70.24
Because the retroactive award of these bonuses is comparable
to back pay, Georgia Power also shall pay interest on the bonuses
according to the formula described below at Section E.
2. Medical and Life Insurance
Benefits.
The Board adopts the ALJ's recommendation that Hobby
shall be compensated for the actual cost of health insurance since his
unlawful termination. RD&O at 64-65, 70, citing Creekmore,
supra, slip op. at 12. We also adopt the ALJ's recommendation
that Ho