Green v. County School Board of New Kent County, Virginia Briefs and Appendices
Public Court Documents
January 1, 1967

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Brief Collection, LDF Court Filings. Brown v. A. J. Gerrard Manufacturing Co. Brief of the NAACP Legal Defense and Educational Fund as Amicus Curiae, 1983. f32374c3-b69a-ee11-be36-6045bdeb8873. LDF Archives, Thurgood Marshall Institute. https://ldfrecollection.org/archives/archives-search/archives-item/0c491ad4-8cbf-43d3-b405-f6a363fd2a96/brown-v-a-j-gerrard-manufacturing-co-brief-of-the-naacp-legal-defense-and-educational-fund-as-amicus-curiae. Accessed April 06, 2025.
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IN THE UNITED STATES COURT OF APPEALS FOR THE ELEVENTH CIRCUIT COURT OF APPEALS No. 81-7792 EDDIE CHARLES BROWN, Plaintiff-Appellant, v . A. J. GERRARD MANUFACTURING CO. Defendant-Appellee. On Appeal from the United States District Court for the Northern District of Alabama BRIEF OF THE NAACP LEGAL DEFENSE AND EDUCATIONAL FUND, INC., AS AMICUS CURIAE BARRY L. GOLDSTEIN Suite 940 806 15th Street, N.W. Washington, D.C. 20005 JACK GREENBERG Suite 2030 10 Columbus Circle New York, New York 10019 Attorneys for The NAACP Legal Defense and Educational Fund, Inc., As Amicus Curiae CERTIFICATE REQUIRED BY LOCAL RULE 13(a) The undersigned counsel of record for the plaintiff-appellant certifies that the following listed persons have an inerest in the outcome of this case. These representations are made in order that the judges of this Court may evaluate possible disqualifications or recusal pursuant to local Rule 13(a): 1. Eddie Charles Brown, plaintiff. 2. A. J. Gerrard Manufacturing Company, defendant 3. NAACP Legal Defense and Educational Fund, Inc., amicus curiae. Attorney For AMICUS CURIAE t l Page i i ii 1 4 4 4 6 12 16 INDEX Certificate Required by Local Rule 13(a) Table of Authorities STATEMENT OF INTEREST ARGUMENT As a Victim of the Company's Discriminatory Discharge, Plaintiff Brown Is Entitled to Receive as Back Pay All Wages Which He Lost as a Result of the Company's Discrimination; As a Lawbreaker the Company May Not Have the Government Benefit, Unemployment Compensation, Received by Brown Used to Reduce its Leqal Liability. A. Issue and Factual Statement. B. The Language of Title VII and the the Legislative History Bar the Deduction of Unemployment Compen sation in the Calculation of an Award of Back Pay. C. The Deduction of Unemployment Compensation Benefits from Back Pay Awards Conflicts with the Principles for Application of Title VII Established by the Courts. CONCLUSION Attachment A: "Significant Provisionsof State Laws (July 6, 1980), Appendix 13.4 to National Commission on Unemploy ment Compensation, Unemployment Compen- sation; Final Report (1980) . CERTIFICATE OF SERVICE TABLE OF AUTHORITIES / w« $ Cases : Albemarle Paper Co. v. Moody, 422 U.S. 405 (1975).... Bernard v. Gulf Oil Co., 619 F.2d 459 (5th Cir. 1980) (en banc), aff'd, 452 U.S. 89 (1981 ).............. Bernard v. Gulf Oil Co., 452 U.S. 89 (1981)......... Brown v. A. J. Gerrard Mfg. Co., 643 F .2d 273(5th Cir. 1981)................................. Brown v. A. J. Gerrard Manufacturing Co., 695 F.2d 1290 (11th Cir. 1983) (rehear, en banc granted).... Brown v. Bd. of Education, 347 U.S. 438 (1954)...... EEOC v. Ford Motor Company, 645 F .2d 183 (4th Cir. 1981), rev1d on other grounds, 50 USLW 4937 (1982). Franks v. Bowman Transportation Co., 424 U.S. 747 (1976).................................... Griggs v. Duke Power Co., 401 U.S. 424 (1971)....... James v. Stockham Valves & Fittings, Inc., 559 F .2d 310 (5th Cir. 1977), cert, denied, 434 U.S. 1034 (1978).............. ......7 7 7 :— Johnson v. Goodyear Tire Co., 491 F .2d 1364 (5th Cir. 1974)........................... Kauffman v. Sidereal Corp., 695 F.2d 343 (9th Cir . Marks v. Prattco, Inc., 607 F .2d 1153 (5th Cir. 1979) Marshall Field & Co. v. NLRB, 318 U.S. 253 (1943)___ McDonnell Douglas Corp. v. Green, 411 U.S. 792 (1973) Miller v. Amusement Enterprises, Inc., 426 F.2d 534 (1970)................................... N.A.A.C.P. v. Button, 371 U.S. 415 (1963)........... NAACP Legal Defense and Educational Fund, Inc. v. Campbell, 504 F.Supp. 1365 (D.D.C. 1981).......... Pages : 2-3, 7, 12-13, 16 1 1 4 7 2 7-8, 16 2 2 2, 13 2, 8, 12, 14 8, 16 13 11 7 1 1 i i i 2 TABLE OF AUTHORITIES (Continued) Cases : NLRB v. Gullett Gin Co., 340 U.S. 361 (1951)....... . Northcross v. Board of Ed., 611 F .2d 624 (6th Cir. 1979), cert, denied, 447 U.S. 911 (1980)...... !... Parson v. Kaiser Aluminum & Chemical Corp.,575 F . 2d 1374 (1978).............................. Pettway v. American Cast Iron Pipe Co., 494 F 2d 211 (5th Cir. 1974).................................... Shelley v. Kraemer, 334 U.S. 1 (1948)............... Teamsters v. United States, 431 U.S. 324 (1977)..... United States v. Georgia Power Co., 474 F.2d 906 (5th Cir. 1973).................................. United States v. N. L. Industries, Inc., 479 F.2d 354 (8th Cir. 1973)............................... United States v. United States Steel Corporation, 520 F .2d 1043 (5th Cir. 1975), cert, denied, 429 U.S. 817 (1976)........... 77777 .777777___ Statutes and other authorities: National Labor Relations Act, 29 U.S.C. §§151 et seq. Title VII of the Civil Rights Act of 1964 (as amended 1972), 42 U.S.C. §§2000e et seq................... J * (198^ & P * Nutman' Understanding the Unemployed National Commission on Unemployment Compensation, Unemployment Compensation: Final Report (1980).__ « Note, The Deduction of Unemployment Compensation for Back-Pay Awards Under Title VII, 16 U. Mich.J. L. Ref. ______. (Issue 3, 1983) (To bepublished)............................... United States Unemployment Insurance Service, Depart ment of Labor, Comparison of State Unemployment Insurance Law. §§220.01-04............ ............ 110 Cong. Rec. 7214 (1964).................. iv Pages : 8-11, 15 1-2 13 2 , 6 , 8 , 12 2 7 2 , 8 , 12 13 2 passim passim 14 9-11, 14-15, Attachment A 6 7 11 IN THE UNITED STATES COURT OF APPEALS FOR THE ELEVENTH CIRCUIT COURT OF APPEALS No. 81-7792 EDDIE CHARLES BROWN, Plaintiff-Appellant, v . A. J. GERRARD MANUFACTURING CO. Defendant-Appellee. On Appeal from the United States District Court for the Northern District of Alabama BRIEF OF THE NAACP LEGAL DEFENSE AND EDUCATIONAL FUND, INC., AS AMICUS CURIAE STATEMENT OF INTEREST The NAACP Legal Defense and Educational Fund, Inc., is a nonprofit corporation whose principal purpose is to secure the civil and constitutional rights of black persons through litiga tion and education. The NAACP Legal Defense Fund has been praised for its legal work in support of civil and constitutional rights by the Supreme Court, N.A.A.C.P. v. Button, 371 U.S. 415, 421-22 (1963) ( Defense Fund lawyers [have] a corporate reputation for expertness in presenting and arguing the difficult questions of law that frequently arise in civil rights litigation"), by the Fifth Circuit, Bernard v. Gulf Oil Co., 619 F.2d 459, 470 (1980) (en banc), affM, 452 U.S. 89 (1981), Miller v. Amusement Enter prises, Inc., 426 F .2d 534, 539 n.14 (1970), and by other courts, e • 9 • • Northcross v. Board of Ed., 611 F.2d 624, 637 (6th Cir. 1979), cert, denied, 447 U.S. 911 (1980), NAACP Legal Defense and Educational Fund, Inc, v. Campbell., 504 F.Supp. 1365, 1368 (D.D.C. 1981) . Legal Defense Fund lawyers have been counsel in many landmark cases establishing basic constitutional and statutory rights for black Americans. See, e.g., Brown v. Bd. of Education, 347 U.S. 438 (1954); Shelley v . Kraemer, 334 U.S. 1 (1948). Moreover, Legal Defense Fund lawyers have been counsel in many of the cases establishing the basic principles of fair employment law. See, §■•9-' 21199s v. Duke Power Co., 401 U.S. 424 (1971); Albemarle Co- v - Moody> 422 U.S. 405 (1975), Franks v. Bowman Transpor tation Co., 424 U.S. 747 (1976). In particular, Legal Defense Fund lawyers have been counsel in cases establishing fundamental principles for application of the back pay remedy in the Supreme Court, Albemarle Paper Company v. Moody, supra, and in the Fifth Circuit, see, e.g., United States v. Georgia Power Co., 474 F.2d 906 (1973), Johnson v. Goodyear Tire & Rubber Co., 491 F.2d 1364 (1974) ; Pettway v. American Cast Iron Pipe Co., 494 F.2d 211 (1974), United States v. United States Steel Corporation, 520 F.2d 1043 (1975) , cert, denied, 429 U.S. 817 (1976), James v. Stockham Valves & Fittings, Inc., 559 F.2d 310 (1977), cert. denied, 434 U.S. 1034 (1978) . Amicus believes that the Court's decision in the case at bar may affect its representation of minorities in future cases. Amicus further believes that its experience in employment litiga tion will assist the Court in this case. 2 SUMMARY OF ARGUMENT The district court without stating any reason reduced the back pay liability of the defendant Company by more than one- third by deducting from the back pay award the unemployment compensation benefits received by the victim of the Company's illegal racial discrimination. The plain meaning of Title VII precludes the deduction of unemployment benefits from back pay awards. Moreover, the legis lative history makes clear that the Title VII provision was modeled upon the back pay provision of the National Labor Relations Act and that decisions under that Act are entitled to "great weight." The Supreme Court has stated that unemployment compen sation benefits received by the victims of unfair labor practices should not be deducted from their back pay awards. The same rule should apply to Title VII. The deduction of unemployment compensation benefits from back pay awards conflicts with the law of this Circuit that Title VII should be given a "wide scope ... in order to remedy, as much as possible, the plight of persons who have suffered from discrimination...." Finally, the deduction of unemployment compen sation benefits undercuts the achievement of the purposes of I'itle VII as set forth by the Supreme Court in Albemarle Paper Company v . Moody. 3 ARGUMENT AS A VICTIM OF THE COMPANY'S DISCRIMINATORY DISCHARGE, PLAINTIFF BROWN IS ENTITLED TO RECEIVE AS BACK PAY ALL WAGES WHICH HE LOST AS A RESULT OF THE COMPANY'S DISCRIMINATION; AS A LAWBREAKER THE COMPANY MAY NOT HAVE THE GOVERNMET BENEFIT, UNEMPLOYMENT COMPENSATION, RECEIVED BY BROWN USED TO REDUCE ITS LEGAL LIABILITY. A . Issue and Factual Statement. Seven weeks after he was hired by the Company plaintiff Brown, a black worker, was injured on the job. He was examined by a physician who found evidence of a concussion. The physician excused Brown from work for one week. Brown returned to work a day early but was promptly fired by a Company foreman allegedly because he failed to advise the Company of his status. Brown was not given any warning by the Company; he was peremptorily fired. "Uncontroverted evidence showed numerous instances in which white employees were given extensive warnings for precisely [the conduct for which the Company fired Brown]: failing to show up for work, for extended periods, without prior notice by the employee." Brown v. A. J. Gerrard Mfg. Co., 643 F.2d 273, 276 (5th Cir. 1981). Brown was the victim of racial discrimination; he received different and much harsher treatment because he was black. Having determined that Brown was discharged illegally, the Court remanded the case to the district court for a determination of appropriate attorneys' fees and back pay. ^d. The issue of attorneys' fees is not before the Court. The essential facts concerning back pay are not in dispute. Mr. Brown was unemployed for 34 weeks after he was discriminatorily 4 discharged and before he was hired as a regular employee by another Company. The district court determined that he lost $2,930 in wages during this period. " [l]n its discretion" but without giving any reason, the district court reduced the plaintiff s actual loss for amounts received as unemployment compensation." Opinion, August 26, 1981. Since the plaintiff had received $962 in unemployment compensation, the district court reduced the lost wages, $2,930, to $1,968. The lower court then calculated 7% simple interest—^ and concluded that Mr. Brown was owed $3,074.67. The issue before this Court is whether the district court had discretion to reduce the award by approximately one-third by deducting from the back pay the money paid through an Alabama unemployment compensation program. Alternatively, to state the issue from the perspective of the Company, did the district court properly provide the Company a "windfall" by reducing its back pay liability by one-third because the State of Alabama paid Mr. Brown unemployment compensation _1/ The plaintiff had requested a rate of 8% compounded annually. The plaintiff argued that this rate "is justified because of the sub stantial amount of inflation that has occurred since the plaintiff was denied wages in 1972 and early 1973." Motion for Entry of Judg ment. The plaintiff did not appeal from the district court's application of 7% simple interest. 2/ The bottom-line view of the Company's "windfall" is dramatic Mr. Brown lost $2,930 in 1972 and 1973 dollars because of the Company's invidious discrimination. In 1981 when the district court rendered its decision $1.97 was required to buy consumer goods that cost $1.00 in 1972. Motion for Judgment. Accordingly, Mr. Brown's award of $3,074.67 was worth $1,568.08 in 1972 dollars. Thus the Company had to pay Mr. Brown in constant dollars only slightly more than one-half of the amount which ne lost due to the Company's discrimination. 5 B . A The Language of Title VII and the Leqislative Historv Bar the Deduction of Unemployment CoiiinpnsaHnn in Calculation of an Award of Back Pay .j/' ~ The relevant provision of Title VII of the Civil Rights Act of 1964 (as amended 1972), 42 U.S.C. §2000e-5(g) reads in pertinent part: If the court finds that the respondent has engaged in ... an unlawful employment practice ... the court may ... order such affirmative action as may be appropriate, which may include ... back pay.__ Interim earnings or amounts earnable with reasonable -*-9ence by the person or persons discriminated against shall operate to reduce the back pay otherwise allowable. Back pay" includes not only "straight salary" lost as a result of the unlawful practice but also "[i]nterest, overtime, shift differentials, and fringe benefits---" Pettway v. Ameri can Cast Iron Pipe Co., 494 F.2d, at 263. The statute provides for only two deductions from back pay — "interim earnings" and "amounts earnable with reasonable diligence." Of course, the Congress could have included "unemployment compensation" or other government benefits among those items to be deducted from back pay. However, Congress did not include unemployment compensation as an item to be deducted from back pay. There is no support in the statutory language for the deduction of unemployment compensation from back pay. In enacting Title VII, Congress had a far-reaching public policy: "The language of Title VII makes plain the purpose of Congress to assure equality of employment opportunities and to eliminate those discriminatory „Sef generally, Note, The Deduction of Unemployment Comoensatinn for Back-Pay Awards Under Title VII, 16 uT Mich. J L Rif' pen5atl°n (TO bi-pubTTshedT7~ The Journ ha agreed't^iiSTThe final draft to counsel for all parties. 6 practices and devices which have fostered racially stratified job environments to the disadvantage of minority citizens...." McDonnell Douglas Corp. v. Green, 411 u.S. 792, 800 (1973). in applying a statute with a broad congressional purpose the courts should not unnecessarily create limitations to the application of the statute. The legislative history of Title VII supports the plain meaning of the statute — unemployment compensation may not be deducted from back pay. See e.g., Brown v. A. J. Gerrard Manu facturing Co., 695 F .2d 1290 (11th Cir . 1983) (rehear, en banc granted); EEOC v. Ford Motor Company, 645 F.2d 183 (4th Cir. 1981), rev on other grounds, 50 USLW 4937 (1982). The Title VII back pay provision "was expressly modeled on the backpay provision of the National Labor Relations Act." (Footnote omitted). Albemarle Paper Co. v. Moody, 422 U.S. 405, 4 /419 (1975).- Moreover, as the Fifth Circuit has ruled, since 1 — / t*le Supreme Court stated, "[t]he framers of Title VII stated !rafc Were using the NLRA provision as a model." Albemarle PaperCo_̂ , 422 U.S., at 419 n.ll. The "bipartisan captains," Senators ̂ Clark and Case, responsible for Title VII during the Senate debate placed an interpretative memorandum in the Congressional Record. The Supreme Court has determined that the comments in this document are authoritative indications of [conqressional] purpose." Team sters v United States, 431 U.S. 324, 352 (1977). The interpFetative memorandum states that [t]he relief sought in such suits would be an injunction against future acts or prac tices of discrimination, but the court could order appropriate affirmative relief, such as hiring or reinstatement ... and the payment of back pay. This relief is similar to that available under the National Labor Relations Act in connection with unfair labor practices .... 110 Cong. Rec. 7 214 (1964). 7 " [t]he relief provisions in Title VII were modeled after a similar provision in the National Labor Relations Act ... great weight should be given to interpretations under the latter act." (Emphasis added). Johnson v. Goodyear Tire & Rubber Co., 491 F.2d, at 1377 n.37; see also Pettway v. American Cast Iron Pipe Co., 494 F.2d, at 252; United States v. Georgia Power Co., 474 F . 2d, at 921 n.19. As set forth in the panel opinion, 695 F .2d, at 1292, the leading case interpreting the application of back pay under the National Labor Relations Act is NLRB v. Gullett Gin Co.. 340 U.S. 361 (1951). As the panel decision determined and as two other Circuits agree, the authoritative decision in Gullett Gin and Congress' intent to apply NLRA law to Title VII make clear that "unemployment benefits received by a successful plaintiff in an employment discrimination action are not offsets against a backpay award." (Footnote omitted). Kauffman v. Sidereal Corp.. 695 F.2d 343, 347 (9th Cir. 1982); see EEOC v. Ford Motor Co., supra. The specific issue presented in Gullett Gin was whether the NLRB had abused its discretion in refusing to order that the amounts received as unemployment compensation be deducted from a back pay award. However, the Supreme Court rejects unequivocally the arguments that have been advanced to support the discretionary deduction of unemployment compensation benefits from back pay awards. First, the Court dismisses the argument that the failure to deduct unemployment benefits would overcompensate the victim of the illegal act: 8 To decline to deduct state unemployment compensation benefits in computing back pay is not to make the employees more than whole .... Since no consideration has been given or should be given to collateral losses in framing an order to reimburse employees for their lost earnings, manifestly no consideration need be given to collateral benefits which employees may have received. (Emphasis in original). Gullett Gin Co., 340 U.S., at 364. Under Title VII as under the NLRA the victim of an illegal act may not claim recovery for a "collateral loss" resulting from a discriminatory discharge ~ for example, from the repossession of a car or furniture or from the foreclosure on a mortgage resulting from the loss of regular earnings. Thus, as the Supreme Court states, "manifestly no consideration need be given to collateral benefits...." (Emphasis added), Id. Second, the Court dismisses the theory that unemployment compensation benefits are not collateral but direct benefits. With this theory we are unable to agree. Payments of unemployment compensation were not made to the employees by respondent but by the state out of state funds derived from taxation. True, these taxes were paid by employers, and thus to some extent respondent helped to create the fund. However, the payments to the employees were not made to discharge any liability or obligation of respondent, but to carry out a policy of social betterment for the benefit of the entire state. Gullett Gin Co., 340 U.S., at 364. Moreover, in Alabama, as well as in Alaska and New Jersey, the unemployment insurance taxes are levied on employees as well as on employers. National Commission on 9 Unemployment Compensation, Unemployment Compensation: Final Report (1980), p.18.-^ Third, the Court rejects the argument that the failure to deduct unemployment compensation imposes a "penalty" upon the employer . [The employer] urges that the Board's order imposes ... a penalty which is beyond the remedial powers of the Board because, to the extent that unemployment compensation benefits were paid to its discharged employees, operation of the experience-rating record formula ... will prevent respondent from qualifying for a lower tax rate. We doubt that the validity of a back-pay order ought to hinge on the myriad provisions of state unemployment laws. However, even if the ... law has the conse quence stated ... this consequence does not take the order without the discretion of the Board to enter. We deem the described injury to be merely an incidental effect of an order which in other respects effectuates the policies of the federal Act. It should be empha sized that any failure of respondent to qualify for a lower tax rate would not be primarily the result of federal but of state law, designed to effectuate a public policy with which it is not the Board's function to concern itself. Gullett Gin Co., 340 U.S., at 365. The state unemployment laws are indeed "myriad." Unemployment Compensation; Final Report, supra, 5/ The cost of unemployment insurance taxes represents a labor cost to the employer and an insurance cost to the employees. The employee must forego higher current wages for the benefits afforded by unemployment insurance. In effect, the employees pay indirectly for the unemployment benefits even in states where the employers pay all of the taxes for unemployment insurance by means of a oav- roll tax. ^ 1 10 at Appendix 13.4: "Significant Provisions of State Laws"(July 6, 1980) (Attachment A hereto). The experience-rating methods vary widely among the states. Some states base the rating upon benefit disbursements charged to individual employers, other states measure the experience-rating by declines in the employer's pay roll. United States Unemployment Insurance Service, Department of Labor, Comparison of State Unemployment Insurance Law, §§220.01-.04 . Moreover, if an employer pays the maximum tax rate, which varies among the states, then additional benefit claims will not affect his rating. The implementation of the single national policy of ending employment discrimination should not depend upon the peculiarities of the various state statutory schemes for pro viding unemployment insurance. Fourth, the Court approves its prior opinion, Marshall Field k-Co• v * NLRB, 318 U.S. 253 (1943), which "held that the benefits received by employees under a state unemployment compensation act were plainly not earnings which, under the Board's order in that case, could be deducted from the back pay awarded." Gullett Gin Co., 340 U.S., at 363. The decision in Gullett Gin Co. makes clear that there is no basis for deducting unemployment compensation benefits from Title VII back pay awards. It is contrary to the intent of Congress to leave in place a legal standard that permits the deduction of unemployment benefits from back pay due to Brown because he was the victim of racial discrimination whereas there would be no such deduction if Brown was the victim of an unfair labor practice. 11 C . The Deduction of Unemployment Compensation Benefits from Back Pay Awards Conflicts with the Principles for the Application of Title VII Established by the Courts. This Court has long recognized the critical role that the back pay remedy plays in implementing the fair employment laws: where employment discrimination has been clearly demonstrated ... victims of that discrimination must be compensated if financial loss can be established. .... To implement the purposes behind Title VII, a court should give "a wide scope to the act in order to remedy, as much as possible, the plight of persons who have suffered from discrimination in employment opportunities." Johnson v. Goodyear Tire & Rubber Co., 491 F . 2d at 1375; United States v. Georgia Power Co., 474 F.2d, at 921. Accordingly, the Fifth Circuit provided that " [ojnce a court has determined that a plaintiff or complaining class has sustained economic loss from a discriminatory employment practice, back pay should normally be awarded unless special circumstances are present." Pettway v. American Cast Iron Pipe Co., 494 F.2d, at 252-53. Subsequent to these Fifth Circuit decisions which were criti cal to the development of fair employment law, the Supreme Court addressed the back pay issue. The Supreme Court's approach was similar to the approach taken by the Fifth Circuit. The Court stated the "obvious connection" between back pay and the purpose of Title VII "to achieve equality of employment opportunity." Albemarle Paper Company v. Moody, 422 U.S., at 417. If employers faced only the prospect of an injunctive order, they would have little incentive to shun practices of dubious legality. It is the reasonably certain prospect of a backpay award that "provide [s] 12 the spur or catalyst which causes employers and unions to self-examine and to self- evaluate their employment practices and to endeavor to eliminate, so far as possible, the last vestiges of an unfortunate and ignominious page in this country's history." Id., at 417-18, quoting United States v. N. L. Industries, Inc., 479 F.2d 354, 379 (8th Cir. 1973). The Court also stated that it is "the purpose of Title VII to make persons whole for injuries suffered on account of unlawful employment discrimi nation." Albemarle Paper Company, 422 U.S., at 418. The Court adopted the following standard: ... given a finding of unlawful discrimina tion, backpay should be denied only for reasons which, if applied generally, would not frustrate the central statutory pur poses of eradicating discrimination throughout the economy and making persons whole for injuries suffered through past discrimination. (Footnote omitted). Id. , at 421 . After Albemarle Paper Company, the Fifth Circuit has con tinued to hold that unless special circumstances are present back pay should normally be awarded if a plaintiff has sustained economic loss from a discriminatory practice. See e.g., Marks v. Pr attco, Inc., 607 F.2d 1153, 1155 (1979); Parson v. Kaiser Aluminum & Chemical Corp., 575 F.2d 1374, 1391 (1978); James v. Stockham Valves & Fittings, Inc., 559 F. 2d, at 357. There are no "special circumstances" which would justify the denial of back pay or the partial denial of back pay by means of the deduction of unemployment compensation benefits. A general rule permitting the deduction of unemployment compensation benefits from back pay is inconsistent with the long-established principle of 13 the Fifth Circuit to give "a wide scope" to the remedy of back pay "in order to remedy, as much as possible, the plight of per sons who have suffered from discrimination in employment oppor tunities." Johnson, 491 F.2d, at 1375. A general rule permit ting the deduction of unemployment benefits from back pay is also inconsistent with each of the two purposes of back pay, "make whole" and "prophylactic," described by the Supreme Court. Unemployment compensation does not substitute for lost wages. The $37 per week which Mr. Brown received in unemployment compen sation accounted for approximately 40% of his lost weekly wage. This proportion is consistent with the nation-wide average. Unemployment Compensation - Final Report, supra, p.16. For the unemployed, financial responsibilities — family expenses, rent, car payments — remain constant, but available incoming resources even with unemployment compensation fall sharply. Moreover, unemployment compensation, as was the case for Mr. Brown, may stop weeks or months before new employment is obtained. The drain on the substantially reduced resources may cause default on payments and additional financial loss, and frequently results in severe anxiety and family strain. See generally, J. Hayes & P. Nutman, Understanding the Unemployed, pp.64-82 (1981) (Describ ing evidence of deterioration in mental and physical health as a result of unemployment). Neither Mr. Brown nor any other Title VII plaintiff may recover under Title VII for these losses, pain and suffering. The victim of a tort or a contract violation which causes him to lose his job might recover in an action at law for losses flowing from unemployment. But the victim of racial discrimination is limited 14 to the equitable monetary remedy provided by Title VII and may not so recover. Unemployment compensation does not replace lost wages, it "is an insurance system, created to provide adequate benefits to tide workers over temporary periods of unemploy ment---," Unemployment Compensation - Final Report, supra, p.14. It is, as the Supreme Court stated in Gullett Gin Co., "a policy of social betterment for the benefit of the entire state." 340 U.S., at 364. It is anomalous for courts to deduct unemployment compensation from back pay recovery in order to prevent excess recovery since Title VII does not allow a plaintiff to recover all losses result ing from sudden unemployment. To permit the deduction of unemploy ment compensation would prevent the adequate compensation, "as much as possible," of discrimination victims, and thwart a basic purpose of Title VII. In this case the deduction of unemployment compensation from the back pay remedy reduced the liability of the defendant by more than one-third. See p.5, supra. In fact, this deduction combined with the delay in payment and the low interest rate resulted in the defendant Company paying Mr. Brown in constant dollars approximately one-half of the amount of the earnings which Mr. Brown lost due to the Company's discrimination. See p.5 n.2, supra. The deduction of unemployment compensation from back pay may often, as here, significantly reduce the amount of back pay. Thus, this deduction serves to lessen the effectiveness of the remedy to "provide the spur or catalyst which causes employers" to correct and eliminate discriminatory practices and to frustrate 15 the second fundamental purpose of Title VII.—^ CONCLUSION The deduction of unemployment compensation from back pay awards violates the fundamental "make whole" and "prophylactic" purposes of Title VII. There is no reasoned basis for the exercise of discretion to deduct unemployment compensation. # Important national goals would be frus trated by a regime of discretion that "produce]d] different results for breaches of duty in situations that cannot be differentiated in policy." Albemarle Paper Company, 422 U.S., at 417. This Court should adopt the rule followed by the Fourth (EEOC v. Ford Motor Co.) and the Ninth (Kauffman v. Sidereal) Circuits which precludes :the;deduction — / ^ likely that in many states and in many circumstances the payment of additional unemployment compensation benefits will not even increase a company's payroll tax for unemployment insurance.See p.ll, supra . 7/ Alternatively, the decision of the district court should be revers because the court did not properly exercise its discretion "in light of the large objectives" of Title VII. Albemarle Paper Co., 422 U.S.. at 416. Moreover, the district court gave no reason for p’ar tially ’deny inq the back pay requested. "it is necessary ... that if a district court does decline to award backpay, it carefully articulate its reasons." Id., at 421 n . 1 4 . of unemployment compensation from back pay awards Respectfully submitted, BAI Suite 940 806 15th Street, N.W. Washington, D.C. 20005 (202) 638-3278 JACK GREENBERGSuite 2030 10 Columbus Circle New York, New York 10019 16 ATTACHMENT A Appendix 13.4: Significant Provisions of State Laws (July 6, 1980) U S D E P A R T M E N T O F L A B O R V E M P L O Y M E N T A N D T R A IN IN G A D M IN IS T R A T IO N Unem ploym ent Insurance Service ’.W Signif icant Provisions of State U n e m p lo ym en t Insurance Laws, JULY 6, 1980 PREPARED FOR READY REFERENCE. CONSULT THE STATE LAW AND STATE EMPLOYMENT SECURITY AGENCY FOR AUTHORITATIVE INFORMATION BENEFITS - ------ COVERAGE r TAXES Duration in 52-week period Size of firm (1 worker in specified time and/ or size of payroll6 State Qualifying wage or employment (number x wba or as indicated)* Waiting week2 Computation of wba (fraction of hqw or as indicated) ' Wba for total unem ployment ̂ Earnings disre- garded^ Proportion of base- period wages^ Benefit weeks for total un employment^ 1979 Tax rates (per cent of awages) Min. Max. Min? Max. Min. Max. Ala. 1-1/2 x hqw; not less than $522.01 0 1/24 $15 S90 $6 1/3 11 + 26 20 weeks 91.0 94.0 Alaska $750; $100 outside HQ 1 2.3-1.1% of annual wages. + $10 per dep. up to $30 18-29 90-120 Greater of $10 or 1/2 basic wba 6 34-31» 14 28 Any time 9 2.6 V i Ariz. 1-1/2 x hqw; $725 in HQ 1 1/25 29 95 $15 1/3 12+ 26 20 weeks 0.15 3.50 Ark. 30; wages in 2 quarters 1 1/26 up to 66-2/3% of State aww 15 136 2/5 1/3 10 26 10 days 0.5 4.4 Calif. $900 1 1/25-1/34 30 120 Lesser of S25 and 25% of wages 1/2 ?12+-1! 726 Over $100 in any quarter 9 1.3 4.8 Colo. 30 1 60% of 1/13 of claimant's hqw up to 50% of State aww 25 150 1/4 wba 1/3 7+-10 26 13 weeks or $500 in CQ 0.2 4.0 Conn. 40 0 1/26, up to 60% of State aww ♦ $5 per dep. up to 1/2 wba 15-22 134-184 1/3 wages Uniform ?26 726 20 weeks 1.5 6.0 Del. 36 0 1/26, up to 66-2/3% o f . State aww— / 20 150 Greater of $10 or 30% of wba 1/2 11-18 1/ 26 20 weeks 1.6 4.5 D.C. 1-1/2 x hqw; not less than $450; $300 in 1 quarter 1/23 up to 66-2/3% of State aww ♦ $1 per dep. up to $3* 13-14 4181 1/5 wages 1/2 17+ 34 Any time 1.0 5.4 Fla. 20 weeks employment at average of $20 or more 1 1/2 claim ant's aww 10 95 55 1/2 weeks employment 10 26 20 weeks 0.4 4.5 Ga. 1-1/2 x hqw 21 I/25+$1.00 27 90 58 1/4 4 26 20 weeks 0.07 5.71 Hawaii 30; 14 weeks employment 101 1/25 up to 66-2/3% of State aww 5 144 $2 Uniform ?26 ?26 Any time 91.8 94.5 -'Vv.. 234 i , BEN.:fit s I COVERAGE Duration in Qualifying wage or employment (number x wba or as indicated)^ 52-week period state Waitir week2 Computation g of wba (fraction of hqw or as indicated/'* Wba tota plo for L unen- ^ment4 Earnings disre garded ̂ Proportion of base- period wages ̂ Benefit weeks for total un employment^ 1 Sire of • firm (1 worker in specified time and/ 1979 Tax rates (per cent of wages) 9 Min. Max. Min? Max. | payroll6 Min. Max. Idaho 1-1/4 x hqw; not less them $910.01 in 1 quarter; wages in 2 quarters 1 1/26 up to 60% of State aww. S36 $132 1/2 wba Weighted schedule of bpw in relation to hqw 10 26 20 weeks or $300 in any quarte 90. 9 r 94.0 111. $1,400; $385 outside HQ 10 1 claimant aww up to 50% of 13 State aww 15 135-18 0 57 Uniform 26 26 20 weeks 9 0.1 94.0 Ind. 1-1/4 x hqwj not less 1 4.3% of high 40 84-141 20% of wba 1/4 3+ 26 20 weeks 0.3quarter Z/ than $1,500; wage credit than BP 2 quarters employer i Iowa 3 - l./4xhqw $200 in qtr 0 i/ W 17-18 134-162 1/4 wba 1/3 15 26 20 weeks 90.6 Y o other than * HQ Fans. 30; wages in 2 quarters 1 4.25% of HQW up to 60% of 34 136 $8 1/3 10 26 20 weeks 0 3.5 State aww Ky. 1-3/8 x how; 8 x wba in ‘last 2 cuarters; 0 1/23 up to 55% of 22 120 1/5 wages 1/3 15 26 20 weeks 0.5 5.0 CSG0 in 1 quarter and $500 in other State aww quarters 14/ 1/20-1/25La. .30 101 10 149 1/2 wba 2/5 12 28 20 weeks 1.63 4.53Maine 2 x annual 0 1/22 up to 12-17 104-156 sio 1/3 13+-25 26 20 weeks 2.4aww in each 52% of State of 2 qtrs. aww +$5 per t 7 x annual dep. to 1/2 aww in HP wba Md. 1-1/2 x hqw; $576.01 in 0 1/24 + $3 per dep. up 25-28 *120 $10 Uniform 26 26 Any time 3.1 5.0 1 quarter; wages in 2 quarters to $12 Mass. 30; not less than $1,200 1 1/21-1/26 up to 57.5% 12-16 131-197 40% not less than 36% 9+-30 30 13 weeks 2.6 6.4 of State $10 noraww, + $6 more than per dep. up to 1/2 wba3 $30 Mich. 14 weeks employment at $25.01 0 60% of claimant's aww up to 416-18 97-136 Up to 1/2 wba^ 3/4 weeks employment 11 26 20 weeks or $1,000 in CY 1.0 8.0 or more $97 with variable max. for claimants with dep.3 Minn. L5 weeks employment at $50 or 101 ±3/ 30 162 $25 /10 weeks employment 13 26 20 weeks 91.0 7.5 more Miss. 6; $160 in 1 quarter; 1 1/26 10 90 55 1/3 12 26 20 weeks 2.6 2.7 wages in 2 quarters 1 235 BENEflTS COVERAGE TAXES Duration in 52-week period Qualifying wage or Computation Proportion Benefit firm (1 1979 Tax employment Waiting of wba Wba for Earnings of base- weeks for worker in rates (per- State (number x week5 (fraction of total unco- dlfcre- period wages® total un- specified cent of hqw or as ployroent' garded5 employment time and/ wages) indicated^ *indicated) Min. Max. Min? Max. payrol^6 Min. Max. Mo. 30 x wba; |30C 101 4.5% $15 105 $10 1/3 10-13+ 26 20 weeks 0.5 3.2 in 1 quarteri wages in 2 quarters Mont. 20 weeks 1 1/2 wks. of claimant's employment 30 131 1/2 wages Weighted 8 26 Over $500 in >1.9 94.4 employment at $50 or more in excess of 1/4 wbs schedule of bpw in relation to hqw preceding year Neb. $600; $200 1 1/19-1/23 12 106 Up to 1/2 1/3 17 26 20 weeks 0.1 2.7 in each of 2 quarters wba Nev. 1-1/2 x hqw 0 1/25, up to 16 123 1/4 wages 1/3 11 26 $225 in any 9i.i 93.5 50% of State aww quarter N.H. 51,200; $600 0 1.8-1.2% of 21 114 1/5 wba Uniform 26 26 20 weeks .05 6.5 in each of annual 2 quarters wages N-J. 20 weeks 101 66-2/3% of 20 123 Greater of 3/4 weeks 15 26 $1,000 in 9i . 2 96.2 employment claimant's $5 or 1/5 employment any year 1 »t $30 or aww up to wba more; or 50% of $2,200 State aww ::.Mex. 1-1/4 x hqw 1 1/26; not 22 106 1/5 wba 3/5 18+ 26 20 weeks or 90.9 * 5 less than $450 in an} 10% nor more than 50% of State aww quarter N.Y. 20 weeks 121 67-50% of 25 125 (12) Uniform 26 26 $300 in any 1.8 5.5 employment claimant * s quarter at average of $40 or aww 11 N.C. 1-1/2 x hqwj 1 1/26 up to 15 130 1/2 wba 1/3 bpw 13 26 20 weeks 0.1 5.7 not less 66-2/3% of than $565.50; $150 in 1 quarter State aww N.Dak. 40 x min. wba, 1 1/26 up to 39 143 1/2 wba Weighted schedule 12 26 20 weeks 90.3 94.8 wages in 67% of of bpw in 2 quarters State aww relation to hqw Ohio 20 weeks 1°1 l/2 claimant’s 10 128-202 1/5 wba 20 x wba +• 20 26 20 weeks .9 4.6 employment aww d . a. wba for at $20 or of $1-74 each credit more based on week in claimant's excess of aww and number of 20 dep. 1/17/ Okla. 1-1/2 x hqw; 1 1/25 up to 16 156 $7 1/3 20+ 26 20 weeks 0.6 4.7 not less 66-2/3% of than $1,000 in BP; $6,000 State aww Oreg. 18 weeks 1 1.25% of bpw 38 138 1/3 wba 1/3 6 26 18 weeks or 92.6 94.0 employment up to 55% $225 in at average of $20 or more; not less than $700 of State aww any quarter 236 1 P . R. BENEFITS Qualifying wage or *»rnp logmen t (number x wba or at indicated)1 32 + -36; $120 in HQ and $440 in BP; at loast 20% of bpw outside HQ 21 + -30; not lass than $280; $75 in 1 quarter; wages in 2 quarters 20 weeks employment at $58 or more; or $3,480 1-1/2 x hqw; now less than $300; $180 in 1 quarter $600 in HQ; 20 x wba outside HQ 36; $494.01 .in 1 quarter 1-1/2 x hqw; not less than $500 or 2/3 FICA tax base 19 weeks employment at $20 or more; not less than $700 26+-30; not less than S99 in 1 quarter and wages in 2 quarters 20 weeks employment at $35 or more 36; wages in 2 quarters Waiting week^ Computation of wba (fraction of hqw or as indicated) 1 , 2 10, Wash. 680 hours 1/20-1/25 up to 66-2/3% of State aww + $5 for 1 dep; $3 for 2d 1/11-1/26; up to 50% of State aww 55% of claim ant's aww up to 60% of State aww, + $5 per dep. up to $20 1/26 up to 66-2/3% of State aww 1/22 up to 62% of State aww 1/26-1/31 17 Wba for total unem ployment4* Earnings disre garded5 Min. 1/25 1/26 up to 65% of State aww 1/23-1/25 1/2 claim ant's aww for highest 20 weeks up to 60% of State aww 1/25 1/25 of aver age of 2 highest quarter wages up to 55% of State aww 32-37 28 Max. S162-170 Greater of $6 or 40% wba 130-150 114 119 n o $5 1/4 woa 1/2 wages up to 1/2 wba $20 Greater of $5 or 1/4 wba Duration in 52-week period Proportion of base- periog wages Benefit weeks for total un employment 8 Uniform Uniform 150 I . 90 3/10 wba than regular employer 1/4 wages in excess of $5 3/5 weeks employment 1/3 30 1/3 1/3 12 10 Size of firm (1 worker in specified time and/ or 3ize of payroll)16 1979 Tax rates (per cent ofg wages)* Any time 20 Any time 26 13+ 26 38 122 150 $15 + $3 for each dep. up to $5 Greater of 1/3 wba or $10 $5 + 1/4 wages Weighted schedule of bpw in relation tc hqw 1 0 -2 2 26 1/3 1/3 8+-25+ Any time 20 weeks 20 weeks 20 weeks 20 weeks $140 in CQ in current or preced ing CY Any time 1.0 92.95 $2. 4.0 9 192.2 4.0 1.3 4.10 20 weeks Any time 1.3 1-7 6.0 2 . 8 3.3 237 I 4 BENEFITS COVERAGE TAXES Qualifying waga or employment (number x wba or aa . indicated) Duration in 52-week period State Waiting veek^ Computation of wba (fraction of hqw or at indicated) ' Wba for total unem ployment* Earnings disre-5 garded Proportion of base- period wages^ Benefit weeks for total un- 7 employment firm (1 worker in specified time and/ or size of payroll) 1979 Tax rate* (per cent of^ wages) Min. Max. Min.8 Max. Min. Max. Vf .Va. $1,150 and wages in 2 quarters 2i 1.5-1.0% of annual wages up to 70% of State aww 18 184 $25 Uniform 28 28 20 weeks 0 3.3 Wise. 15 weaks employment; average of $56.01 or more with 1 employer 0 50% of claim ant 's aww up to 66-2/3% of State aww 30 160 Up to 1/2 wba 8/10 weeks employment 1-12+ 34 20 weeks 0.5 6.5 Wyo. 1-6/10 x hqw; not less than $600 in 1 quarter 1 1/25 up to 55% of Stata aww 24 146 Greater of $15 or 25% wba 3/10 12-26 26 $500 in current or preceding_ex___ 0.37 3.07 1 i eekly benefit amount abbreviated In columns and footnotes as vba; base period* BP; base-period wages, bpw; high quarter, HQ; hlgh-quarter wages, hqw; average weekly wage, aww; benefit year, BY; calendar quarter, CQ; calendar year, CY; dependent, dep.; dependents allowances, da.; minimum, min.; maximum, max. ^Unless otherwise noted, waiting period same for total or partial unemployment. W.Va., no waiting period required for partial unemployment. Waiting period may be suspended if Governor declares State of emergency following disaster, N.Y., R. I, In Ca. no waiting week if claimant unemployed not through own fault. ^When States use weighted high-quarter, annual-wage, or average weekly-wage formula, approximate fractions or percentages figured at midpoint of lowest and highest normal wage brackets. When da provided, fraction applies to basic wba. In States noted variable amounts above max. basic benefits limited to claimants with specified number of dep. and earnings in excess of amounts applicable to max. basic wba. In Ind. da. paid only to claimants with earnings in excess of that needed to qualify for basic wba and who have 1-4 deps. In Iowa, Mich, and Ohio claimants ray be eligible for augmented amount at all benefit levels but benefit amounts above basic max. available only to claimants in dependency classes' whose hqw or aww are higher than that required for max. basic benefit. In Mass. for claimant with aww in excess of $66 wba computed at 1/52 of l highest quarters of earnings or 1/26 of highest quarter if claimant had no more than 2 quarters work. *When 2 amounts given, higher includes da. Higher for min. wba includes max. allowance for one dep.; Mich, for 1 dep. child or 2 dep. other than a child. In D.C. and Md., same max. with or without dep. "*In computing wba for partial unemployment, in States noted full wba paid if earnings are less than 1/2 wba; 1/2 wba if earnings ars 1/2 wba but less than wba. a For claimants with min. qualifying wages and min. wba. When two amounts shown, range of duration applies to claimants with min. qualifying wages in BP; longer duration applies with min. wba; shorter duration applies with max. possible concen tration of wages in HQ,; therefore highest wba possible for such BP earnings. Minimum in Del, applies to seasonal employ ment. Vis. determines entitlement separately for each employer. | Lower end of range applies to claimants with only 1 week of work at qualifying wage; upper end to claimants with 15 weeks or more of such wages, q̂Represents min.-max. rates assigned employers in CY 1979. Ala., Alaska, N.J. require employee taxes. Contributions for 1980 required on wages up to $6,000 in all States except 111., $6,500; Ala. , $6,600; JTJ. , $6,900; N.Mex. , and R.I., $7,200TTova, $7,400; Mont., and N.Dak., $7,600; Nev., $7,900; Minn.. $8,000; Wash., 59,600; Alaska and Oreg., $lO,000; Idaho, $10,800; Utah, $11,000: Hawaii, $11,200; P.RT all wages. ^^Waiting period compensable if claimant entitled to 12 con secutive weeks of benefits immediately following, Hawaii; unemployed at least 6 weeks and not disqualified. La.; after 9 consecutive weeks benefits paid. Mo.; when benefits are payable for third week following waiting period, N. J .; after benefits paid 4 weeks, Tex., Va.; after any 4 weeks in BY, Minn.; after 3d week unemployment. 111.; after 3d week of total unemployment, Ohio. **0r 15 weeks in last year and 40 weeks in last 2 years of aww of $40 or more, N.Y. » 12For N.Y., waiting period is 4 effective days accumulated in 1-4 weeks; partial benefits 1/4 wba for each 1 to 3 effective days. Effective days: fourth and each subsequent day of total unemployment in week for which not more than $125 is paid. *^To 602 State aww if claimant has nonworking spouse; 66-2/32 if he had dep. child-, 111.; 1/19-1/23 up to 582 of State aww for claimants with no dep. variable max., up to 702 of State aww for claimants with dep., Iowa.; 602 of first $85,402 of next $85, 502 of balance. Max. set at 66-2/32, Minn. ^States noted have weighted schedule with percent of benefits 14Up to 66-2/3% of State aww. La. 63% until 1981, Del. based on bottom of lowest and highest wage brackets. ^Benefits extended under State program when unemployment in State reaches specified levels: Calif., Hawaii, by 502; Conn, by 13 weeks. In P.R. benefits extended by 32 weeks in certain indus tries, occupations or establishments when special unemployment situation exists. Benefits also may be extended during periods of high unemployment by 502, up to 13 weeks, under Federal-State Extended Compensation Program. ^ $1,500 in any CQ in current or preceding CY unless otherwise specified. ^Max. amount adjusted annually: by same percentage increase as occurs in State aww (Ohio) by $7 for each $10 increase in average weekly wage of manufacturing production workers (Texas). O U 1 ••• 238 y*.: CERTIFICATE OF SERVICE I hereby certify that on the 6th day of May 1983 I served a copy of the Motion of the NAACP Legal Defense and Educational Fund, Inc. to File a Brief As Amicus Curiae and the Brief of the NAACP Legal Defense and Educational Fund, Inc., As Amicus Curiae on all parties by depositing copies of the Brief and Motion in the United States mail, postage prepaid, upon the following counsel: Bryant A. Whitmire, Esquire WHITMIRE, COLEMAN & WHITMIRE 903 City Federal Building Birmingham, Alabama 35203 Robert L. Wiggins, Jr., Esquire Suite 716 Brown-Marx Building 2000 1st Avenue North Birmingham, Alabama 35203 Philip Sklover, Esquire EQUAL EMPLOYMENT OPPORTUNITY COMMISSION Room 2293 2401 E Street, N.W. Washington, D.C. 20506