Dayton v. Oakton Cmty. Coll.

907 F.3d 460 (2018) United States Court of Appeals for the Seventh Circuit 2018-10-11

civil; ADEA disparate impact (class of annuitant adjunct faculty); summary judgment for community college affirmed by CA7 (result: claimant-lost)

Facts

  1. 8 Reasonable factors other than age satisfied law
    Despite these efforts, a monitoring error led Oakton to employ affected annuitants inadvertently; the mistake cost Oakton approximately $75,000 in penalties.
  2. 8 Reasonable factors other than age satisfied law
    While evaluating how to respond to this situation, the president's advisory council considered the fact that some annuitants Oakton employed were not at risk of becoming affected annuitants under the second version of the statute (because there were caps on adjunct compensation and on the number of "lecture hour equivalents" adjunct faculty could teach per semester).
  3. 8 Reasonable factors other than age satisfied law
    But, after weighing the risk that another monitoring error could cost the college thousands of dollars, the council came to the view that it would be fiscally irresponsible to employ any annuitant, regardless of whether she was likely to become an affected annuitant.
  4. 8 Reasonable factors other than age satisfied law
    To establish this affirmative defense, a defendant must show that the disparate impact was "reasonably designed to further or achieve a legitimate business purpose" and that it was "administered in a way that reasonably achieves that purpose in light of the particular facts and circumstances that were known, or should have been known, to the employer."
  5. 8 Reasonable factors other than age satisfied law
    The mere fact that the risk of a several-thousand-dollar penalty loomed large is enough, under these circumstances, to require a factfinder to conclude that defendants based the policy on an RFOA.