Maldonado-Cordero v. At & T, Civ. 98-2386(JP).

Decision Date01 November 1999
Docket NumberNo. Civ. 98-2386(JP).,Civ. 98-2386(JP).
Citation73 F.Supp.2d 177
PartiesLilliam MALDONADO-CORDERO, et al., Plaintiffs, v. AT & T, et al., Defendants.
CourtU.S. District Court — District of Puerto Rico

Nora Vargas-Acosta, Rio Piedras, P.R., Adalina De Jesus-Morales, Calle Borinquena, Rio Piedras, P.R., for plaintiffs.

Carlos A. Bobonis-Gonzalez, Enrique G. Figueroa-Llinas, Bobonis, Bobonis & Rodriguez, San Juan, P.R., for defendants.

OPINION AND ORDER

PIERAS, Senior District Judge.

I. Introduction and Background

The Court has before it co-Defendants AT & T of Puerto Rico, Inc. ("AT & T — PR"), Richard Luna, and Luis Figueroa's Motion to Dismiss and Memorandum of Law in Support Thereof (docket No. 11), Plaintiffs' Motion in Opposition to Codefendants' Motion to Dismiss (docket No. 26), and Defendants' Reply thereto (docket No. 31).

Plaintiffs Lilliam Maldonado-Cordero ("Maldonado"), María M. Lazo-Macías ("Lazo"), Carmen H. Lázaro-Vicens ("Lázaro"), their respective husbands, Carlos Alberto Mercado-Rivera, Carlos Marce-Fajardo, and José Angel Rodríguez-Montes, and the conjugal partnerships constituted between them, filed a Complaint on December 22, 1998, bringing claims under Title VII of the Civil Rights Act of 1964, 42 U.S.C. §§ 2000e - 2000e-15; the Equal Pay Act ("EPA"), 29 U.S.C. § 206(d); the Fair Labor Standards Act ("FLSA"), 29 U.S.C. §§ 215-217; and Puerto Rico's Law No. 100, P.R.Laws Ann. tit. 29 § 146; Law No. 69, P.R.Laws Ann. tit. 29 § 1321; Law No. 17, P.R.Laws Ann. tit. 29 §§ 155-1551; Law No. 3, P.R.Laws Ann. tit. 29 § 467; Law No. 80, P.R.Laws Ann. tit. 29 § 185(a); and Articles 1802 and 1803 of the Civil Code of Puerto Rico, P.R.Laws Ann. tit. 31 §§ 5141, 5142.

Plaintiffs Maldonado, Lazo, and Lázaro all allege that they were discriminated against by AT & T, AT & T — PR, José Felipe ("Felipe"), former President of AT & T — PR, Richard Luna ("Luna"), AT & T — PR Director of Sales and Marketing (and Maldonado's individual supervisor), and Luis Figueroa ("Figueroa"), Human Resources Director of AT & T — PR, on the basis of gender in violation of Title VII, and that they were compensated less than similarly qualified men in similar positions in violation of the Equal Pay Act and the Fair Labor Standards Act ("FLSA"). Co-plaintiffs Maldonado and Lazo also claim unjustified dismissal in contravention of Law 80 of Puerto Rico. The husbands of Maldonado, Lazo, and Lázaro seek relief under Articles 1802 and 1803 of the Civil Code of Puerto Rico for damages caused to them by Defendants' tortious actions against their wives.

II. DISCUSSION
A. Plaintiffs' Allegations

The Complaint states that Plaintiffs Maldonado, Lazo, and Lázaro, all married women with children, worked for AT & T — PR in the sales and marketing division. Plaintiffs allege that they "have been the victims of continuous discriminatory practices and policies" against women in general, women with children and/or spouses, and pregnant women. (Compl.¶¶ 18, 21). The Complaint avers that:

male co-workers who performed less effectively constantly received unfounded excellent evaluations, preferential treatment in assignment of clients, and territories, and opportunities for career advancement and promotions.... Male employees were given the best territories and were paid commissions which had been previously denied to plaintiffs and other women in the same positions.

(Compl.¶ 19).

Maldonado began her employment with AT & T — PR on August 8, 1988 as a Systems Consultant, at a salary of $28,500.00 per year and a salary grade of SG-04. At some unspecified time after August 1988, Maldonado was promoted to the position of Account Executive without a raise in salary or salary grade, and assigned the work previously performed by two male account executives. The two male account executives whose work was assigned to Maldonado earned annual salaries of $40,000.00 and $56,000.00.

In both 1993 and 1994, Maldonado was promoted and received salary grade increases. Maldonado was promoted twice in 1996, to Strategic Alliances Manager and then to Business Sales Manager for Major Accounts Group, without an increase in annual salary or salary grade. As Business Sales Manager for Major Accounts Group, Maldonado reported to the Director of Sales and Marketing, and supervised ten salespersons and a sales assistant. During her tenure at AT & T — PR, from August 1988 to 1997, Maldonado received good to excellent evaluations.

The Complaint further asserts that Maldonado was subjected to discriminatory treatment based on her sex, her status as a married woman with children, and her pregnancy through the following incidents: (1) during her recruitment in 1988, an AT & T executive asked Maldonado about her plans to have children and raise a family; (2) soon after Maldonado commenced employment, AT & T Sales Manager John Acosta made sexually harassing comments towards her, which were known and tolerated by co-Defendant AT & T; (3) Maldonado was paid at a lower salary and salary grade than men performing the same or similar job with equivalent seniority; (4) AT & T — PR imposed a dress code barring women from wearing pants; (5) Defendants promoted lesser-qualified or less-senior male employees than Maldonado in 1990, 1991, 1995, 1996 and 1997; (6) Maldonado and other women were subjected to frequent derogatory and/or sexist remarks by higher-ranking AT & T officers; (7) Maldonado was passed over for the position of Director of Sales and Marketing while on maternity leave. Maldonado also avers generally that she suffered sexual harassment through a work environment hostile to married women, but not married men, and that she suffered "discriminatory, demeaning and unlawful conduct by AT & T officer Luna" because of her gender, which was tolerated by Figueroa. (Compl.¶ 27).

Lazo was hired as Events Coordinator at AT & T — PR on July 5, 1988, with an annual salary of $27,000.00 and a salary grade of SG-02. Although she was given increasing responsibilities, she received inferior grade increases as compared to her male colleagues. From 1988 to 1996, Lazo received good to excellent evaluations. In 1996 and 1997, Lazo acted as both Area Manager for Business Marketing and Project Manager, supervising ten or more persons, including Luna.

The Complaint indicates that Lazo was subjected to discriminatory treatment on the basis of her gender, marital status, pregnancy, and status as a mother, as demonstrated by the following incidents: (1) in 1994 Lazo took maternity leave, but Defendants required her to continue working notwithstanding; (2) at the time of her second pregnancy, Lazo was questioned by an AT & T executive with respect to her plans to have additional children and raise a family; (3) in 1994, Lazo was passed over for a promotion or the opportunity for a promotion in favor of lesser-qualified or less senior single women; (4) in 1997, Lazo was denied the opportunity to compete for the position of Director of Sales and Marketing when that position was given to Luna; (5) after Luna became Director of Sales and Marketing, Luna subjected Lazo to difficult treatment, such as giving her tasks to be completed in an unreasonable amount of time; (6) Lazo was not given a salary increase on five occasions even though she received good evaluations and had the highest seniority, while all the male supervisors with less seniority were given salary increases; and (7) male employees used disrespectful and offensive language around her because of her gender. The Complaint also alleges generally that an environment hostile to married women, but not married men, existed at AT & T — PR.

Lázaro began working at AT & T — PR on July 5, 1988 as a contract employee in the marketing department. On July 10, 1989, she was promoted to Marketing Consultant and made a permanent employee. In January 1992, Lázaro was denied the opportunity for a promotion when a male colleague less qualified than Lázaro was appointed Supervisor of Special Events. After complaining to Figueroa, Lázaro was transferred to the Sales Department and named Account Executive (Compl.¶ 37). From 1989 to 1996, Lázaro received good to excellent evaluations and received various promotions. In an October 10, 1996 meeting of the AT & T — PR sales, business marketing, and Intra-LATA team staff, attended by Lázaro, Figueroa and Luna, who was then the Area Sales Manager, Lázaro voiced concerns about the management's favoritism, hostility, and other deficiencies. Luna resigned shortly after the meeting. In July 1997, Lázaro was denied the opportunity to apply for the position of Director of Sales and Marketing for AT & T — PR when that position was given to Luna without a prior posting of the vacancy as is the AT & T — PR policy.

The Complaint states that upon information and belief, Felipe and Figueroa knew about and participated in the selection of Luna to occupy the position of Director of Sales and Marketing in July 1997, to the exclusion of Maldonado and Lazo. In late August 1997, the Sales and Marketing Department of AT & T — PR was restructured. Male managers participated in planning the restructuring, while female managers with children, including Maldonado and Lazo, were excluded from planning meetings. After the restructuring, Maldonado was given fewer employees to work with, a less profitable and more difficult sales territory, and a higher sales quota; Lazo's administrative support was taken away from her; and Lázaro's income was substantially reduced.

As a result of the foregoing, at some unspecified date Maldonado, Lazo, and Lázaro filed internal complaints of discrimination against AT & T. AT & T headquarters personnel from human resources department in New Jersey conducted the investigation, finding no discrimination. Maldonado, Lazo, and Lázaro then proceeded to file administrative complaints of discrimination against AT & T before the Equal Employment...

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