Annie Houston, Appellant,v.Togo D. West, Jr., Secretary, Department of Veterans Affairs, Agency.

Equal Employment Opportunity CommissionAug 27, 1999
01976054 (E.E.O.C. Aug. 27, 1999)

01976054

08-27-1999

Annie Houston, Appellant, v. Togo D. West, Jr., Secretary, Department of Veterans Affairs, Agency.


Annie Houston, )

Appellant, )

) Appeal No. 01976054

v. ) Agency No. 97-0380

)

Togo D. West, Jr., )

Secretary, )

Department of Veterans )

Affairs, )

Agency. )

)

DECISION

Appellant timely initiated an appeal from a final agency decision (FAD)

concerning her equal employment opportunity (EEO) complaint of unlawful

retaliation based on prior EEO activity and discrimination based on race

(African-American), in violation of Title VII of the Civil Rights Act of

1964, as amended, 42 U.S.C. �2000e, et seq. Appellant alleges she was

subjected to retaliation and discrimination when: (1) on September 13,

1996, her Section Chief stated in front of co-workers that appellant had

no knowledge regarding certain files; and (2) on September 19, 1996, she

was falsely accused of stealing office carpeting. The appeal is accepted

in accordance with EEOC Order No. 960.001. For the following reasons, the

agency's decision is AFFIRMED IN PART and REVERSED AND REMANDED IN PART.

The record reveals that during the relevant time, appellant was employed

as a Supervisory Loan Specialist at the agency's Los Angeles, California

Regional Office. By letter complaint filed December 19, 1995 and formal

complaint filed April 16, 1996 (agency no. 96-0558), appellant challenged

as retaliatory and discriminatory her non-selection for the position of

Chief of the Loan Processing Section. Appellant subsequently filed a

second EEO complaint (agency no. 96-2198), alleging that a May 7, 1996

e-mail counseling letter from the new Section Chief (SC) was sent to her

in retaliation for her prior EEO activity. Believing she was a victim

of further retaliation and discrimination due to additional incidents

which occurred on September 13 and 19, 1996,<1> appellant sought EEO

counseling and, on November 29, 1996, filed a third EEO complaint

(agency no. 97-0380), which is the subject of the instant appeal.

In the complaint at issue, appellant alleges that on September 13, 1996,

SC said loudly and in a demeaning manner in response to an inquiry by one

of appellant's subordinates, "I don't want you to talk to [appellant]

because she doesn't know anything about what you are talking about."

This was overheard by other employees. The complaint also alleges

that on September 19, 1996, SC falsely accused appellant of stealing

office carpeting, whereupon their superiors (the Loan Guaranty Officer

and Assistant Loan Guaranty Officer) initiated a two-day investigation

which revealed that the accusation was false.

At the conclusion of the agency investigation of this complaint, appellant

was sent a copy of the report of investigation (ROI). The ROI found that

with respect to both the September 13th and September 19th incidents,

appellant had established a prima facie case of retaliation and race

discrimination. The ROI then concluded appellant failed to prove that

either of the incidents at issue was motivated by her race. However,

the ROI further concluded that management had failed to articulate a

legitimate non-discriminatory reason with respect to the September 19th

incident, and recommended a finding that appellant had met her burden

to establish that that incident was retaliatory.

Appellant was advised of her right to request a hearing before an

Administrative Judge (AJ) of the Equal Employment Opportunity Commission

(EEOC), but she failed to do so. Accordingly, the agency proceeded to

issue its FAD.

The FAD concluded that appellant's claim was subject to dismissal for

failure to state a claim, finding the September 13th and 19th incidents

did not constitute adverse employment actions rendering appellant

"aggrieved" within the meaning of EEOC Regulation 29 C.F.R. �1614.103(a).

In reaching this conclusion, the FAD found that appellant did not allege

a harm or loss with respect to a term, condition, or privilege of her

employment.<2> The FAD then proceeded, in the alternative, to reach

the merits of appellant's claims. Although identifying appellant's

allegations as raising claims of retaliatory harassment and race-based

harassment, the FAD analyzed the allegations as raising claims of

disparate treatment. The FAD concluded that appellant failed to establish

a prima facie case of retaliation or race discrimination with respect to

either of the two incidents at issue because she failed to demonstrate

that similarly situated employees not in her protected classes were

treated differently under similar circumstances. The FAD also concluded

that a prima facie case of retaliation was not established because

appellant did not prove that the relevant superiors were aware of her

prior EEO activity. The FAD further concluded that even assuming appellant

had established a prima facie case, she had failed to demonstrate that

management's proffered legitimate non-discriminatory reasons for the

actions at issue were a pretext for retaliation or race discrimination.

On appeal, appellant, by counsel, limited the issue on appeal to whether

SC engaged in reprisal against appellant. Brief dated August 29, 1997, at

3.<3> Accordingly, we will not address appellant's race discrimination

claim, and we will not address, as a separate actionable claim, any

contention that appellant was also retaliated against by the Loan Guaranty

Officer or the Assistant Loan Guaranty Officer, even though appellant

named them as responsible management officials in her complaint.<4>

Appellant contends that by relying on the fact that appellant was

exonerated and SC demoted, the FAD incorrectly required a showing of

"harm," beyond reputational harm arising from the false theft accusation,

as an element of liability. Appellant relies on case law recognizing that

retaliatory provision of a negative employment reference is actionable

under Title VII notwithstanding lack of harm, which relates to what remedy

is available rather than to whether the claim is established. See, e.g.,

Hashimoto v. Dalton, 118 F.3d 671 (9th Cir. 1997). Appellant also

contends that the agency ignored evidence that SC was in fact aware

of appellant's prior EEO activity. The agency requests that we affirm

the FAD.

The Commission interprets the statutory retaliation clauses "to

prohibit any adverse treatment that is based on a retaliatory motive

and is reasonably likely to deter the charging party or others from

engaging in protected activity." EEOC Compliance Manual, Section 8

(Retaliation) at 8-13 - 8-14 (May 20, 1998). Applying this standard, we

agree with the FAD that viewing appellant's claim as one of disparate

treatment, appellant cannot state a claim of retaliation based on the

September 13th remark made by the SC, standing alone. "[P]etty slights

and trivial annoyances are not actionable, as they are not likely to

deter protected activity." Id.; cf. Tuman v. United States Postal

Service, EEOC Request No. 05980903 (February 19, 1999). However,

we find that the false accusation of theft by SC was in and of itself

sufficient to state a claim of retaliatory disparate treatment, and

we therefore proceed to the merits of appellant's claim. Cf. Johnson

v. Department of the Army, EEOC Appeal No. 01933746 (January 27, 1994)

(false accusation of stealing government property accepted by agency for

processing as stating a claim of retaliation); EEOC Compliance Manual,

Section 8 (Retaliation) at 8-15 n.41 (May 20, 1998) (citing Atkinson

v. Oliver T. Carr Co., 40 FEP Cases (BNA) 1041, 1043-44 (D.D.C. 1986)

(threat to press criminal complaint actionable as retaliation)).

Where retaliatory disparate treatment is the basis for a Title VII

claim, an appellant may establish a prima facie case by showing: (1)

that she engaged in prior protected activity; (2) that an official named

in the complaint knew of that activity; (3) that she was disadvantaged

by an action of the employer subsequent to or contemporaneous with such

opposition and participation; and (4) that the protected activity and the

adverse action were sufficiently close in time to permit an inference of

retaliatory motive. Hochstadt v. Worcester Foundation for Experimental

Biology, Inc., 425 F. Supp. 318, 324 (D. Mass.), aff'd, 545 F.2d 222

(1st Cir. 1976).<5>

Based on a careful review of the record, we find that appellant did

establish a prima facie case of retaliation. Although SC denied that she

knew about a particular formal complaint filed by appellant on September

18, 1996, the day before SC lodged the false theft accusation, see ROI

Exhibit B-4b at Q-18 and Q-19, the weight of the evidence establishes

that SC knew about much of appellant's other prior EEO activity.

SC's selection over appellant as the new Section Chief was the subject

of a separate, then-pending EEO complaint by appellant. See n.5, infra.

SC had counseled appellant in May, 1996 for spending excessive time on

her EEO complaint, and appellant had initiated EEO counseling on this

and other matters. See Appellant's Brief at Exhibit 2 (complaint letter

dated May 29, 1996, from agency case no. 96-2198). An EEO counselor had

met with SC and her superiors about appellant's retaliation allegations

against SC in case no. 96-2198 (then at the counseling stage) just a month

before SC made the theft accusation here at issue. See ROI Exhibit A-4b

(EEO Counselor's Final Report dated September 23, 1996, memorializing

August 16, 1996 interview with SC).

Management concedes that SC was demoted for making the false theft

accusation against appellant. In his May 7, 1997 "Referral for Final

Agency Decision" (Referral), the Division Director, stating management's

rebuttal to the ROI conclusions, stated as follows: "Within 24 hours

[of when appellant complained to the Division Director about the instant

reprisal], [SC] was detailed out of supervision. Because of [SC's]

conduct, subsequent adverse action was taken to permanently move her

out of the position of Chief of Loan Processing, where she supervised

appellant." See also ROI Exhibit B-2b at A-8 (Loan Guaranty Officer

affidavit); Exhibit B-5 at 2 (co-worker affidavit); Exhibit B-1b at A-19

(appellant's affidavit).

Management contends that while SC's action was "inappropriate (leading

to adverse action being taken by the agency), there is no evidence that

this conduct was in reprisal for [appellant's] prior EEO activity."

Referral at 2, paragraph 5. However, the agency has proffered no

alternative explanation for SC's misconduct. See Texas Department of

Community Affairs v. Burdine, 450 U.S. 248, 254 (1981). Furthermore, we

conclude that appellant has demonstrated by preponderant evidence that

SC's false theft accusation against her was motivated by retaliation.

SC, as the selectee at issue in appellant's pending EEO non-selection

claim, was accused of being a party to a discriminatory pre-selection

notwithstanding her allegedly inferior qualifications.<6> While

management relies on the fact that SC gave appellant an "outstanding"

performance rating three months before the false theft accusation, we

note that the performance evaluation predated SC being interviewed on

August 16, 1996 by an EEO Counselor regarding appellant's retaliation

allegations against SC, just one month before SC made the otherwise

unexplained false theft accusation. Accordingly, we find that appellant

has met her burden to prove that SC retaliated against her.

Therefore, after a careful review of the record, including appellant's

contentions on appeal, the agency's response, and arguments and evidence

not specifically addressed in this decision, the FAD is AFFIRMED IN

PART AND REVERSED IN PART, and the case is REMANDED to the agency to

take remedial actions in accordance with this decision and order below.

ORDER (D1092)

The agency is ORDERED to take the following remedial action:

1. The agency is directed to conduct training for the Section Chief who

engaged in retaliation, as well as all managers in appellant's division.

The agency shall address these employees' responsibilities with respect

to prohibiting and refraining from retaliation in the workplace, and all

other supervisory and managerial responsibilities under equal employment

opportunity law.

The agency shall take appropriate preventative steps to ensure that no

employee is subjected to retaliation and to ensure that appropriate steps

are taken immediately after management is notified of any retaliation.

The agency shall conduct a supplemental investigation on the issue

of appellant's entitlement to compensatory damages and shall afford

appellant an opportunity to establish a causal relationship between

the retaliation and any pecuniary or non-pecuniary losses.<7> The

appellant shall cooperate in the agency's efforts to compute the amount

of compensatory damages, and shall provide all relevant information

requested by the agency. The agency shall issue a final decision on the

issue of compensatory damages. 29 C.F.R. �1614.110. The supplemental

investigation and issuance of the final decision shall be completed

within one hundred and twenty (120) calendar days of the date this

decision becomes final. A copy of the final decision must be submitted

to the Compliance Officer, as referenced below.

In the event that SC remains an employee of the agency, the agency shall

provide a minimum of sixteen (16) hours of EEO sensitivity training with

respect to Title VII and retaliation.

The agency shall provide a minimum of eight (8) hours of remedial training

for all managers and supervisors located at the Los Angeles Regional

Office to ensure that acts of retaliation are not taken against any

employee who opposes unlawful discrimination, and that persons reporting

instances of alleged discrimination are treated in an appropriate manner.

The agency is further directed to submit a report of compliance, as

provided in the statement entitled "Implementation of the Commission's

Decision." The report shall include supporting documentation of the

agency's calculation of back pay and other benefits due appellant,

including evidence that the corrective action has been implemented.

POSTING ORDER (G1092)

The agency is ORDERED to post at its Los Angeles Regional Office copies

of the attached notice. Copies of the notice, after being signed by the

agency's duly authorized representative, shall be posted by the agency

within thirty (30) calendar days of the date this decision becomes final,

and shall remain posted for sixty (60) consecutive days, in conspicuous

places, including all places where notices to employees are customarily

posted. The agency shall take reasonable steps to ensure that said

notices are not altered, defaced, or covered by any other material.

The original signed notice is to be submitted to the Compliance Officer

at the address cited in the paragraph entitled "Implementation of the

Commission's Decision," within ten (10) calendar days of the expiration

of the posting period.

ATTORNEY'S FEES (H1092)

If appellant has been represented by an attorney (as defined by

29 C.F.R. �1614.501(e)(1)(iii)), he/she is entitled to an award of

reasonable attorney's fees incurred in the processing of the complaint. 29

C.F.R. �1614.501(e). The award of attorney's fees shall be paid by the

agency. The attorney shall submit a verified statement of fees to the

agency - not to the Equal Employment Opportunity Commission, Office of

Federal Operations-within thirty (30) calendar days of this decision

becoming final. The agency shall then process the claim for attorney's

fees in accordance with 29 C.F.R. �1614.501.

IMPLEMENTATION OF THE COMMISSION'S DECISION (K0595)

Compliance with the Commission's corrective action is mandatory.

The agency shall submit its compliance report within thirty (30)

calendar days of the completion of all ordered corrective action. The

report shall be submitted to the Compliance Officer, Office of Federal

Operations, Equal Employment Opportunity Commission, P.O. Box 19848,

Washington, D.C. 20036. The agency's report must contain supporting

documentation, and the agency must send a copy of all submissions to

the appellant. If the agency does not comply with the Commission's

order, the appellant may petition the Commission for enforcement of

the order. 29 C.F.R. �1614.503(a). The appellant also has the right

to file a civil action to enforce compliance with the Commission's

order prior to or following an administrative petition for enforcement.

See 29 C.F.R. ��1614.408, 1614.409, and 1614.503(g). Alternatively,

the appellant has the right to file a civil action on the underlying

complaint in accordance with the paragraph below entitled "Right to File

A Civil Action." 29 C.F.R. ��1614.408 and 1614.409. A civil action for

enforcement or a civil action on the underlying complaint is subject to

the deadline stated in 42 U.S.C. �2000e-16(c)(Supp. V 1993). If the

appellant files a civil action, the administrative processing of the

complaint, including any petition for enforcement, will be terminated.

See 29 C.F.R. �1614.410.

STATEMENT OF RIGHTS - ON APPEAL

RECONSIDERATION (M0795)

The Commission may, in its discretion, reconsider the decision in the

case if the appellant or the agency submits a written request containing

arguments or evidence which tend to establish that:

1. New and material evidence is available that was not readily available

when the previous decision was issued; or

2. The previous decision involved an erroneous interpretation of law,

regulation or material fact, or misapplication of established policy; or

3. The decision is of such exceptional nature as to have substantial

precedential implications.

Requests to reconsider, with supporting arguments or evidence, MUST

BE FILED WITHIN THIRTY (30) CALENDAR DAYS of the date you receive the

decision, or WITHIN TWENTY (20) CALENDAR DAYS of the date you receive

a timely request to reconsider filed by another party. Any argument in

opposition to the request to reconsider or cross request to reconsider

MUST be submitted to the Commission and to the requesting party

WITHIN TWENTY (20) CALENDAR DAYS of the date you receive the request

to reconsider. See 29 C.F.R. �1614.407. All requests and arguments

must bear proof of postmark and be submitted to the Director, Office of

Federal Operations, Equal Employment Opportunity Commission, P.O. Box

19848, Washington, D.C. 20036. In the absence of a legible postmark, the

request to reconsider shall be deemed filed on the date it is received

by the Commission.

Failure to file within the time period will result in dismissal of your

request for reconsideration as untimely. If extenuating circumstances

have prevented the timely filing of a request for reconsideration,

a written statement setting forth the circumstances which caused the

delay and any supporting documentation must be submitted with your

request for reconsideration. The Commission will consider requests

for reconsideration filed after the deadline only in very limited

circumstances. See 29 C.F.R. �1614.604(c).

RIGHT TO FILE A CIVIL ACTION (T0993)

This decision affirms the agency's final decision in part, but it also

requires the agency to continue its administrative processing of a

portion of your complaint. You have the right to file a civil action

in an appropriate United States District Court on both that portion of

your complaint which the Commission has affirmed AND that portion of the

complaint which has been remanded for continued administrative processing.

It is the position of the Commission that you have the right to file

a civil action in an appropriate United States District Court WITHIN

NINETY (90) CALENDAR DAYS from the date that you receive this decision.

You should be aware, however, that courts in some jurisdictions have

interpreted the Civil Rights Act of 1991 in a manner suggesting that

a civil action must be filed WITHIN THIRTY (30) CALENDAR DAYS from the

date that you receive this decision. To ensure that your civil action

is considered timely, you are advised to file it WITHIN THIRTY (30)

CALENDAR DAYS from the date that you receive this decision or to consult

an attorney concerning the applicable time period in the jurisdiction

in which your action would be filed. In the alternative, you may file a

civil action AFTER ONE HUNDRED AND EIGHTY (180) CALENDAR DAYS of the date

you filed your complaint with the agency, or filed your appeal with the

Commission. If you file a civil action, YOU MUST NAME AS THE DEFENDANT

IN THE COMPLAINT THE PERSON WHO IS THE OFFICIAL AGENCY HEAD OR DEPARTMENT

HEAD, IDENTIFYING THAT PERSON BY HIS OR HER FULL NAME AND OFFICIAL TITLE.

Failure to do so may result in the dismissal of your case in court.

"Agency" or "department" means the national organization, and not the

local office, facility or department in which you work. If you file

a request to reconsider and also file a civil action, filing a civil

action will terminate the administrative processing of your complaint.

RIGHT TO REQUEST COUNSEL (Z1092)

If you decide to file a civil action, and if you do not have or cannot

afford the services of an attorney, you may request that the Court appoint

an attorney to represent you and that the Court permit you to file the

action without payment of fees, costs, or other security. See Title VII

of the Civil Rights Act of 1964, as amended, 42 U.S.C. � 2000e, et seq.;

the Rehabilitation Act of 1973, as amended, 29 U.S.C. ��791, 794(c).

The grant or denial of the request is within the sole discretion of

the Court. Filing a request for an attorney does not extend your time

in which to file a civil action. Both the request and the civil

action must be filed within the time limits as stated in the paragraph

above ("Right to File A Civil Action").

FOR THE COMMISSION:

August 27, 1999

DATE Carlton M. Hadden, Acting Director

Office of Federal Operations

NOTICE TO EMPLOYEES

POSTED BY ORDER OF THE

EQUAL EMPLOYMENT OPPORTUNITY COMMISSION

AN AGENCY OF THE UNITED STATES GOVERNMENT

This Notice is posted pursuant to an Order by the United States Equal

Employment Opportunity Commission dated ___________ which found that

retaliation in violation of Title VII of the Civil Rights Act of 1964,

as amended, 42 U.S.C. �2000e, et seq., has occurred at this facility.

Federal law requires that there be no discrimination against any employee

or applicant for employment because of the person's RACE, COLOR, RELIGION,

SEX, NATIONAL ORIGIN, AGE or PHYSICAL or MENTAL DISABILITY with respect

to hiring, firing, promotion, compensation, or other terms, conditions

or privilege of employment.

The Department of Veterans Affairs Regional Office, Los Angeles,

California, supports and will comply with such Federal law and will

not take action against individuals because they have exercised their

rights under the law. The agency shall therefore remedy the retaliation

found by the Commission by conducting a supplemental investigation to

determine if the affected individual is entitled to compensatory damages,

and if so in what amount, providing attorney's fees, if appropriate,

and relevant agency officials with EEO training, and submitting a report

to the Commission regarding its compliance with these requirements. The

Department of Veterans Affairs Regional Office, Los Angeles, California,

will ensure that officials responsible for personnel decisions and terms

and conditions of employment will abide by the requirements of all Federal

equal employment laws and will not subject employees to retaliation.

The Department of Veterans Affairs Regional Office, Los Angeles,

California, will not in any manner restrain, interfere, coerce, or

retaliate against any individual who exercises his or her right to oppose

practices made unlawful by, or who participated in proceedings pursuant

to, Federal equal employment opportunity law.

Date Posted: ____________________

Posting Expires: ________________

29 C.F.R. Part 1614.1Appellant's formal complaint also cited September

16, 1996, as the date of an alleged incident, but her narrative indicates

that the dates of the incidents at issue were September 13 and 19, 1996.

2To the extent the instant complaint also made reference to the May 7,

1996 e-mail, the FAD dismissed this claim because it had been raised in

another pending EEO complaint filed by appellant (agency no. 96-2198).

It is unclear if appellant intended to raise this incident as a

separate claim, or if it was merely mentioned in the instant complaint as

background evidence. In any event, although agency complaint no. 96-2198

is not contained in the record, appellant has filed that complaint as an

appellate exhibit and concedes that she raised this contention in that

separate complaint, Appellant's Brief (dated August 29, 1997) at 4 and

exhibit 2. Accordingly, we affirm the FAD's dismissal as to the May 7,

1996 counseling e-mail.

3To the extent appellant posits a theory of retaliatory harassment,

we need not reach it in light of our finding in appellant's favor on

her claim of retaliatory disparate treatment.

4However, to the extent appellant notes that the Assistant Loan Guaranty

Officer referred to appellant in his investigative affidavit as a

"frequent filer," ROI Exhibit B-3b at 5, the Commission cautions the

agency that derogatory comments by managers regarding protected activity

can have a potentially chilling effect on the administrative EEO process.

5To the extent the FAD concluded that appellant failed to establish a

prima facie case of retaliation because she had not identified comparator

employees without prior EEO activity who were treated more favorably, this

is not required. While comparative evidence is usually used to establish

disparate treatment, appellant need only set forth some evidence of acts

from which, if otherwise unexplained, an inference of discrimination

or retaliation can be drawn. Furnco Construction Corp. v. Waters,

438 U.S. 567, 576 (1978).

6We note that the record in appellant's underlying discriminatory

non-selection complaint, agency no. 96-0558, reveals that the

EEO investigator issued his report recommending a finding of age

discrimination on May 7, 1996. By memorandum dated August 13, 1996,

the Division Director forwarded the report, together with his rebuttal,

for a final agency decision. The investigative report concluded that

SC was less qualified for the Section Chief position, and it contained

an affidavit from a witness asserting that SC had told him before the

selection was made that appellant was not going to receive the position.

7 Federal sector complainants prevailing on discrimination or reprisal

claims under the Age Discrimination and Employment Act cannot recover

compensatory damages or attorney's fees. Falks v. Department of Treasury,

EEOC Request No. 05960250 (September 5, 1996); Taylor v. Department

of the Army, EEOC Request No. 05930633 (January 14, 1994); Patterson

v. Department of Agriculture, EEOC Request No. 05940079 (October 21,

1994). However, appellant's reprisal claim was brought, inter alia,

under Title VII, because the underlying protected activity at issue

was a complaint alleging race discrimination and retaliation as well

as age discrimination. See Houston v. Department of Veterans Affairs,

Agency no. 96-0558. Accordingly, appellant is entitled to compensatory

damages, if proven, see, West v. Gibson, 119 S.Ct.1906 (1999);and to

attorney's fees, if otherwise warranted as provided herein.