EEOC v. Astra USA, Inc.
| Citation | 929 F. Supp. 512 |
| Decision Date | 27 June 1996 |
| Docket Number | Civil Action No. 96-40133-NMG. |
| Parties | EQUAL EMPLOYMENT OPPORTUNITY COMMISSION, Plaintiff, v. ASTRA U.S.A., INC., Defendant. |
| Court | U.S. District Court — District of Massachusetts |
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Nancy Dean Edmonds, EEOC, New York District Office, New York City, for Plaintiff.
John A.D. Gilmore, Richard L. Alfred, Hill & Barlow, Boston, MA, for Defendant.
On June 7, 1996, plaintiff, the Equal Employment Opportunity Commission ("EEOC" or "Commission") commenced this action by filing, pursuant to 42 U.S.C. § 2000e-5(f)(2) and Fed.R.Civ.P. 65, an Application for an Order to Show Cause for the Issuance of a Temporary Restraining Order and Preliminary Injunction ("the Application").1 The Application requested that this Court enjoin defendant, Astra U.S.A., Inc. ("Astra") from: 1) entering into and/or enforcing certain provisions of a Settlement Agreement which prohibit employees or former employees from filing charges with the EEOC and/or assisting others who file charges with the Commission, and 2) taking any retaliatory employment action against any individuals who participate in any EEOC proceeding. Application at 1-2. This Court declined to issue a temporary restraining order on that date, but scheduled and conducted a hearing on the Commission's request for a preliminary injunction on June 14, 1996.2
The gravamen of the EEOC's Motion is that certain provisions in written Settlement Agreements between Astra and some of its former employees settling claims of sexual harassment violate §§ 604 and 710 of Title VII, 42 U.S.C. §§ 2000e-3 and 2000e-9, in that the agreements 1) prohibit former employees from communicating with or assisting the EEOC with respect to the Commission's investigation of charges of sexual harassment at Astra, and 2) expressly prohibit the settling employees from filing charges with the EEOC. Maintaining that such provisions not only "impede and interfere with EEOC investigation" but also "violate the anti-retaliation provisions" of Title VII, Application at ¶¶ 7, 8, the Commission seeks to enjoin the enforcement of such provisions with a preliminary injunction and to prevent Astra from entering into future agreements containing such provisions. For the reasons that follow, this Court concludes that injunctive relief is appropriate.
Pursuant to Fed.R.Civ.P. 52(a), the Court makes the following findings of fact:
1. The EEOC is an agency of the United States of America charged with the administration, interpretation and enforcement of Title VII and is expressly authorized to bring this action by section 706(f)(2). 42 U.S.C. § 2000e-5(f)(2).
2. At all relevant times, Astra has been a corporation doing business in the Commonwealth of Massachusetts and continuously has had at least fifteen employees. Astra is an employer engaged in an industry affecting commerce within the meaning of sections 701(b), (g) and (h) of Title VII.
3. EEOC's Boston Area Office is in the process of investigating three separate charges against Astra, at least two of which allege class-wide sexual harassment, Charge Nos. XXX-XX-XXXX, XXX-XX-XXXX and XXX-XX-XXXX. Sanders Aff. ¶¶ 5, 6; Carter Aff. ¶ 2.
4. Beginning in or before January, 1993, Astra entered into certain confidential Settlement Agreements with employees and/or former employees who made claims of sexual harassment and/or witnessed sexual harassment at Astra.
5. Common to all of the Settlement Agreements is a provision waiving the right of the employee (or former employee) to file a charge with the EEOC or to assist others who have filed charges with the Commission. Supp. Carter Aff. ¶ 3, Exhs. 1-6.
6. At least six, but perhaps ten or more, such Settlement Agreements have been signed since January 1, 1993.3 See Tetrault Aff. ¶ 3; Supp. Carter Aff. ¶¶ 3, 6. Astra has not entered into any such Agreements relating to claims of sexual harassment since January 5, 1996, and there currently are no such Agreements under negotiation. Tetrault Aff. ¶ 7.
7. The Settlement Agreements were thoroughly negotiated by Astra's counsel and each settling claimant's counsel. Tetrault Aff. ¶ 4. In exchange for settling and releasing their claims, the claimants received consideration in amounts ranging from $20,000 to $100,000. Id.
8. Redacted versions of several of the Agreements have been submitted by the parties to this Court. See Application Exh. 1; Tetrault Aff., Exh. A; Supp.Carter Aff., Exhs. 1-6. Although the specific wording of the Agreements vary, all contain provisions waiving the right of the employee/former employee to file a charge with the EEOC or to assist others who have filed charges with the Commission. Supp. Carter Aff. ¶ 3, Exhs. 1-6 thereto.4
9. Each of the Agreements also contains a confidentiality provision, providing that the settling claimant:
agrees to keep the provisions and conditions of this Release confidential and that neither she, her agents (including her attorney, ), servants, representatives, nor employees will disclose said provisions and conditions to any third party without the written consent of ASTRA. The settling claimant and her attorney hereby acknowledges and agrees that disclosure of any of the terms and conditions in this Agreement shall constitute a material breach of this Agreement. Violations of this provision shall give ASTRA the right to enjoin such conduct in any court of competent jurisdiction, to discontinue performance of its obligations under the terms of this Agreement, and to seek repayment of any consideration already paid under this Agreement.
Supp.Carter Aff., Exhs. 1-3, 6; Tetrault Aff., Exh. A.
10. During the course of its investigations into the charges of classwide sexual harassment, the EEOC has unsuccessfully attempted to interview witnesses who have signed Astra Settlement Agreements and who have stated that the Agreements prohibited them from cooperating with EEOC investigations. Carter Aff. ¶¶ 4, 7. In one instance, an EEOC investigator spoke with a former Astra employee who advised the official that she had information to provide, "but was unable to talk due to a confidential settlement agreement she had entered into with Astra." Carter Aff. ¶ 4. When the investigator asked whether the Agreement prohibited the settling claimant from assisting in the investigation, the former employee responded affirmatively. Id. Other employees have expressed similar reluctance to talk with EEOC investigators but refuse to divulge whether they have signed similar releases. Carter Aff. ¶ 6.
11. The ability of EEOC investigators to obtain witness cooperation and to complete the investigation into the charges of sexual harassment at Astra has been impaired by the Settlement Agreements and the "resultant fear by employees/former employees" caused by those Agreements. Carter Aff. ¶¶ 4, 6-8. Upon conducting a preliminary investigation into the charges of classwide sexual harassment at Astra, the EEOC has concluded that "prompt judicial action is necessary to carry out the purposes of Title VII." Sanders Aff. ¶ 15.
12. On May 14, 1996, Astra received a Request for Information from the EEOC concerning one of the three pending charges filed against the company. The questionnaire requested a variety of information, including a list of all female sales employees since January 1, 1993 and copies of internal complaints of sexual harassment. An Astra official responded by calling the EEOC's Boston office and agreeing to provide the company's response and accompanying documents in two phases. Tetrault Aff. ¶ 10. Although the EEOC did receive documents on May 21 and June 11, 1996, defendant has failed to provide the Commission with all of the information requested. Supp.Carter Aff. ¶ 4.
13. In a letter from the EEOC to Astra, the Commission asserted that the Settlement Agreements entered into between the company and its employees/former employees prevented those persons from providing information to the EEOC. Astra responded with a letter, dated June 3, 1996, stating that the company:
did not interpret any settlement agreement as preventing any former employee from communicating with the EEOC concerning any of its investigations. Astra fully intends to cooperate with the EEOC with respect to its investigation and will not seek to enforce any settlement agreement or release against any current or former employee on the grounds that the employee communicated with the EEOC regarding an ongoing investigation.
Tetrault Aff. ¶ 12, Exh. D. Astra's letter also authorized the EEOC to share the letter with any employee or former employee with whom it had contact. Id.
14. On June 18, 1996, after the hearing held in connection with the EEOC's motion for a preliminary injunction, Astra sent letters to six employees (or their counsel) who had entered into Agreements settling claims of sexual harassment since January 1, 1993.5 Those letters provided that:
Astra is actively encouraging all current and former employees to cooperate with the EEOC in its investigation. Consistent with that commitment, I am writing to inform you that you should feel free to communicate with the EEOC. To the extent that your agreement with Astra could be interpreted to limit your ability to communicate with the EEOC regarding its investigation, Astra disavows that interpretation.
Supp.Tetrault Aff. ¶¶ 3, 4 & Exhs. A, B.
15. In a supplemental affidavit, an EEOC investigator observes that:
she is continuing to have trouble speaking with Astra's former and present employees. However, she has spoken with a few additional employees, and received an anonymous phone call from a "current Astra employee" seeking to provide her with information.
Supp.Carter. Aff. ¶ 7. Carter concludes that the information available to her leads her to believe that "sexual harassment is ongoing at Astra and that individuals are being subjected to retaliation as a result of their...
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