Equal Emp't Opportunity Comm'n v. Darden Rests., Inc.

• Decision Date: 09 November 2015
• Docket Number: CASE NO. 15-20561-CIV-LENARD/GOODMAN
• Parties: Equal Employment Opportunity Commission, Plaintiff, v. Darden Restaurants, Inc, et al., Defendants.
• Court: U.S. District Court — Southern District of Florida

143 F.Supp.3d 1274

Equal Employment Opportunity Commission, Plaintiff,

v.Darden Restaurants, Inc, et al., Defendants.

CASE NO. 15-20561-CIV-LENARD/GOODMAN

United States District Court, S.D. Florida.

Signed November 9, 2015

Ana Consuelo Martinez, Daniel Seltzer, Kimberly Anne McCoy, Robert Elliot Weisberg, Kristen M. Foslid, U.S. Equal Employment Opportunity Commission, Miami, FL, P. David Lopez, United States Department of Justice, Washington, DC, for Plaintiff.

Alexis P. Robertson, Andrew L. Scroggins, Gerarld L. Maatman, Jr., Jennifer A. Riley, Matthew J. Gagnon, Seyfarth Shaw LLP, Chicago, IL, Michael Constantine Marsh, Jennifer T. Williams, Akerman Senterfitt, Miami, FL, Alexandre S. Drummond, Seyfarth Shaw LLP, Atlanta, GA, for Defendants.

ORDER DENYING DEFENDANTS' MOTION TO DISMISS (D.E. 7)

JOAN A. LENARD

, UNITED STATES DISTRICT JUDGE

THIS CAUSE is before the Court on Defendants Darden Restaurant Inc., GMRI Inc., N and D Restaurants Inc., Darden SW LLC, and Florida SE Inc.'s Motion to Dismiss Plaintiff Equal Employment Opportunity Commission's ("EEOC") Complaint, filed on March 19, 2015. (D.E. 7). On June 5, 2015, the Honorable James Lawrence King recused and this case was reassigned to the undersigned United States District Judge. (D.E. 28). In consideration of the Motion, the Response and Reply thereto, the entire case file, and the applicable law, the Court hereby finds as follows.

I. Background

The EEOC filed this suit under the Age Discrimination in Employment Act of 1967 ("ADEA") to correct unlawful employment practices on the basis of age and to provide appropriate relief to Anthony Scornavacca, Hugo Alfaro, and a class of individuals who were denied employment because of their age. (D.E. 1 at 1). The EEOC asserts its claims specifically pursuant to § 7(b) of the ADEA, as amended, 29 U.S.C. § 626(b)

, which incorporates by reference §§ 16(c) and 17 of the Fair Labor Standards Act of 1938 ("FLSA"), as amended, 29 U.S.C. §§ 216(c) and 217. (D.E. 1 ¶ 1).

The EEOC states that it is the agency of the United States of America charged with the administration, interpretation, and enforcement of Title VII, and claims that it is expressly authorized to bring this action by § 7(d) of the ADEA, 29 U.S.C. § 626(b)

. (D.E. 1 ¶ 3).

The following facts alleged in the EEOC's Complaint, filed on February 12, 2015, are taken as true for purposes of this Motion to Dismiss. See Brooks v. Blue Cross & Blue Shield of Fla., Inc. , 116 F.3d 1364, 1369 (11th Cir.1997)

. Defendant GMRI is a wholly-owned subsidiary of Defendant Darden. Defendants N and D Restaurants and Florida SE are wholly owned subsidiaries of GMRI. Defendant GMRI is the sole member and manager of Defendant Darden SW. N and D Restaurants, Florida SE, and Darden SW operate or do business under the trade name of Seasons 52. (D.E. 1 ¶¶ 4–16). The Complaint alleges that "Defendants operate as an integrated enterprise or single employer by virtue of their common management, the interrelations of their operations, the centralized control over their labor relations, and their common ownership." (D.E. 1 ¶ 18).

Seasons 52 describes itself as a fresh grill and wine bar that features a seasonally inspired menu in a casually sophisticated atmosphere. (D.E. 1 ¶ 23). From February 2010, to the date the Complaint was filed, February 12, 2015, Defendants have opened, or will be opening, thirty-five (35) Seasons 52 restaurants nationwide. (D.E. 1 ¶ 24). Each restaurant maintains the same casually sophisticated atmosphere. (D.E. 1 ¶ 24). Defendants have a centralized and highly structured hiring process whereby training teams, including a group of managing partners or directors of operations, are deployed prior to new restaurant openings across the country to conduct and train other managers in hiring procedures. (D.E. 1 ¶ 26). The training teams assist to-be-opened and newly-opened Season 52 restaurants by conducting interviews and making hiring decisions. (D.E. 1 ¶ 26). The training teams also train the restaurants' managers to hire in a consistent manner. (D.E. 1 ¶ 26).

The EEOC alleges that Defendants have maintained a standard operating procedure of denying employment to applicants in the protected age group (individuals 40 years of age and older) through their centralized hiring process. The EEOC asserts, for instance, that Defendants' hiring officials have told unsuccessful applicants in the protected age group that "you are too experienced"; "we are looking for people with less experience"; "we are not looking for old white guys"; "we are looking for ‘fresh’ employees"; and that Seasons 52 wanted a "youthful" image. (D.E. 1 ¶ 27).

The EEOC alleges that a sampling of Defendants' hiring data across restaurant locations nationwide shows that Defendants' hiring of applicants for both front-of-house ("FOH") and/or back-of-house ("BOH") positions in the protected age group is significantly below the expected hiring of applicants in the protected age group based on applications submitted and/or local Census data. (D.E. 1 ¶ 28).

In specific support of their claim, the EEOC asserts facts from two instances where a Seasons 52 restaurant did not hire Anthony Scornavacca and Hugo Alfaro. (D.E. 1 ¶¶ 29–42). The EEOC alleges that on October 13, 2010, Scornavacca, then 52 years old, applied for a FOH position at a soon-to-be-opened Seasons 52 in Coral Gables, Florida. (D.E. 1 ¶ 29). Scornavacca was advised that he would not be hired because Season 52 wanted applicants with greater shift availability. (D.E. 1 ¶ 31). Defendants ultimately did not hire Scornavacca and hired a number of young applicants with similar or less shift availability than Scornavacca. (D.E. 1 ¶ 33).

As to Alfaro, the EEOC alleges that on October 11, 2010, Alfaro, then 49 years old, applied for a FOH position at the same Coral Gables Seasons 52. (D.E. 1 ¶ 35). At his initial interview, Alfaro told management that he was going to be leaving his current job in the next few weeks and would be able to attend training, but that he could then work full time and during any shift. (D.E. 1 ¶ 37). Alfaro was not contacted about training, and he went to the restaurant to inquire. (D.E. 1 ¶ 38). When Alvaro returned to Seasons 52, management asked him how old he was. Alfaro was advised thereafter that there was no need for him to check back about the position, and Seasons 52 ultimately did not hire Alvaro. (D.E. 1 ¶¶ 39–40). The EEOC alleges that Defendants hired many less experienced applicants outside the protected age group. (D.E. 1 ¶ 41).

In reliance on the aforementioned allegations, the EEOC states the following claims: (1) "Defendants have subjected Anthony Scornavacca, Hugo Alfaro, and a class of aggrieved applicants for FOH and BOH positions to an ongoing pattern or practice of discriminatory failure to hire such persons because of their age in violation of Section 4 of the ADEA, 29 U.S.C. § 623(a)

"; (2) "Defendants have intentionally discriminated against Anthony Scornavacca, who was denied employment because of his age in violation of Section 4 of the ADEA, 29 U.S.C. § 623(a)"; (3) "Defendants have intentionally discriminated against Hugo Alvaro, who was denied employment because of his age in violation of Section 4 of the ADEA, 29 U.S.C. § 623(a)"; and (4) "The unlawful employment practices complained of...were willful within the meaning of Section 7(b) of the ADEA, 29 U.S.C. § 626(b)." (D.E. 1 ¶¶ 43–46). The EEOC seeks injunctive relief and damages. (D.E. 1 at 7–8).

On March 19, 2015, Defendants filed the instant Motion to Dismiss arguing that the EEOC does not have authority to pursue disparate-impact or pattern-or-practice claims. (D.E. 7 at 1). Alternatively, Defendants argue that the EEOC has not pleaded sufficient facts to sustain its claims. (D.E. 7 at 1).

On April 20, 2015, the EEOC filed its response stating that it is not pursuing a disparate-impact claim; rather, it is pursuing a disparate-treatment claim under § 4(a) of the ADEA. (D.E. 21 at 1). The EEOC also argues that similar to Title VII's grant of authority to the EEOC to enforce its provisions for pattern-or-practice claims, the ADEA must be read to permit the same. (D.E. 21 at 4–8).

II. Standard

Federal Rule of Civil Procedure 12(b)(6)

allows a defendant to move to dismiss a complaint that fails to state a cause of action for which relief may be granted. In reviewing a motion to dismiss, the Court must accept the factual allegations as true and construe them in the light most favorable to the plaintiff. See

Watts v. Fla. Int'l Univ. , 495 F.3d 1289, 1295 (11th Cir.2007). When conducting this analysis, the Court may examine only the four corners of the complaint. St. George v. Pinellas Cnty. , 285 F.3d 1334, 1337 (11th Cir.2002).

"To survive a motion to dismiss, a Complaint must contain sufficient factual matter, accepted as true, to ‘state a claim of relief that is plausible on its face.’ " Ashcroft v. Iqbal , 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009)

(quoting Bell Atl. Corp. v. Twombly , 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) ). Generally, "[a] pleading that states a claim for relief must contain...a short and plain statement of the claim showing that the pleader is entitled to relief." Fed. R. Civ. P. 8(a)(2). Detailed factual allegations are not required, but a "pleading that offers ‘labels and conclusions' or ‘a formulaic recitation of the elements of a cause of action will not do.’ " Ashcroft , 556 U.S. at 678, 129 S.Ct. 1937 (quoting Twombly , 550 U.S. at 555, 127 S.Ct. 1955 ).

III. Analysis

Defendants argue that the EEOC cannot pursue a disparate-impact claim under the ADEA because only § 4(a)(2) authorizes such a claim and it does not do so for applicants . The EEOC concedes that it is not attempting to assert a disparate-impact claim, and its Complaint is consistent with this position. Instead, the EEOC asserts a disparate-treatment, pattern-or-practice claim of discrimination.

A. Whether the ADEA Authorizes...