Ask the Scholar

Document scope · 1 page
doc
Scholar
Ask about this object, its catalog metadata, its source description, or the page inventory. For page-specific OCR and visual context, open one of the page chats.

Scholar Source Context

Document identity
localId
702315
label
Civil Rights (2 of 2) 1991 [2]
core
doc
dtoType
document
pageCount
1
Source metadata
Source extras
naId
702315
levelOfDescription
fileUnit
recordType
description
ocrSource
nara-archive
Single page context
seq
1
pageIndex
0
type
document
mediaId
4ad9fe1f3ba63ce0
ocrText
Originally Processed With FOIA(s): FOIA Number: 1998-0004-F[2]; 1999-0285-F S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: George H.W. Bush Presidential Records Collection/Office of Origin: Chief of Staff, White House Office of Series: Sununu, John, Files Subseries: Issues Files OA/ID Number: 29146 Folder ID Number: 29146-008 Folder Title: Civil Rights (2 of 2) 1991 [2] Stack: Row: Section: Shelf: Position: G 15 24 7 5 HE PRESIDENT OWES DANFORTH A PRIVATE MEETING. HE WILL NEED A PRE-BRIEF WITH BOYDEN/JOHN SUNUNU/ FRED MCCLURE. A LISTENING SESSION. Document Originally Attached to Following Page WHITE HOUSE COMCEN FRI 12 JUL 91 16:46 PG.03 UNITED STATES SENATE WASHINGTON, D.C. Disans John, JOHN C. DANFORTH MISSOURI July 10, 1991 The President The White House Washington, D. C. 20500 Dear Mr. President: Many thanks for your phone call and for your willingness to visit with me about the civil rights legislation when you return from Europe. I think we are now at the point where the resolution of one policy question is the key to concluding the civil rights debate. Here is the question: Should it be lawful for an employer to use job qualifications which are unrelated to ability to perform the job and which have the effect of screening women or minorities from employment? Examples of such job qualifications might include the possession of a high school diploma as a condition of employment as a janitor, or a rule that an employer will not hire single parents. In both cases, the qualifications would be unrelated to ability to perform the job, and would have the practical effect of screening out minorities or women. Exactly this question was decided by the Supreme Court in the case of Griggs V. Duke Power Co. In Griggs, the Court held that an employer could not require a high school diploma as a qualification for a job where the diploma had no relationship to ability to perform the job and where the practical effect was to screen out blacks. This remained the law from 1971 until the Supreme Court decided the Wards Cove case in 1989. Throughout the lengthy discussions of the civil rights legislation, the Administration has taken the position that we should restore the Griggs decision. In fact, the Administration has said that the exact WHITE HOUSE COMCEN FRI 12 JUL 91 16:55 PG.01 - 2 - wording of Griggs should be included in the statutory language. Both Republican and Democratic Senators who have been working on the legislation have accepted the Griggs language insisted on by the Administration. EEOC Chairman, Evan Kemp, has stated that an employer's requirement of academic credentials might further the Administration's education program. However, such a policy, even if justified on the basis of education, would contradict Griggs unless the academic credentials are related to ability to perform the job. To endorse such a policy would be viewed as a negative statement on civil rights and a reversal of the Administration's support of the Griggs case. Mr. President, if you agree that the Griggs case was decided correctly, and that qualifications unrelated to ability to perform the job should not be lawful where they are used to screen women or minorities from employment, I believe we are a short step from reaching a successful conclusion to the civil rights debate. Sincerely, Dave Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 01a. Memo From C. Boyden Gray to POTUS 7/19/91 P-5 Re: Civil Rights - Senator Danforth (2 pp.) Collection: Record Group: Bush Presidential Records Office: Chief of Staff, White House Office of Open on Expiration of PRA Series: Sununu, John, Files (Document Follows) Subseries: Issues Files By If (NLGB) on 4/21/08 WHORM Cat.: File Location: Civil Rights (2 of 2) 1991 [2] Date Closed: 1/3/2005 OA/ID Number: 29146-008 FOIA/SYS Case #: 1998-0004-F[2] Appeal Case #: Re-review Case #: 2005-0426-S Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA] (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRA] agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile. THE WHITE HOUSE WASHINGTON 91 JUL 19 Fil 4: 35 July 19, 1991 MEMORANDUM FOR THE PRESIDENT FROM: C. BOYDEN GRAY GRAYCHIN SUBJECT: Civil Rights - Senator Danforth Although Senator Danforth's July 10 letter to you is incorrect in many respects, it does focus attention on the real issue: whether Federal law should permit measures of educational achievement to have any role in employment decisions. Under Danforth's proposal, employers will not be able safely to use tests, diploma requirements, or other measures of educational achievement unless they conduct a scientific validation study that proves a direct link between the criteria adopted and performance of the exact job at issue. Such studies are so costly that only the largest corporations can afford them. And they only prove what everyone already knows. Experience with the Armed Forces test, practices in other countries, and many studies by industrial psychologists, all show that educational achievement is highly correlated with worker productivity. It makes no sense to require each employer to reinvent the wheel, especially when it is prohibitively expensive to do so. Danforth believes that Federal law should forbid employers from requiring diplomas for janitorial jobs. His proposal will certainly do that, and more. But he does not explain why employers should be stopped from requiring that a janitor finish high school. One study found that high school diplomas predict very little besides low absenteeism and low job turnover, the very qualities that are probably most important for janitors. Bill Coleman has repeatedly said that he wants to stop employers from requiring high school diplomas for any entry-level job because blacks have a much higher dropout rate than whites. Danforth's bill, like its Democrat predecessors, is designed to ? produce a complete disconnect between performance in school and opportunities in the entry-level job market. But the job market is the only mechanism that can reliably provide kids with the incentive to work hard in school. If we eliminate that link, all our efforts to revitalize American education will be fruitless. The Coleman/Danforth approach undermines the central premise of Brown V. Board of Education, that basic education is "the very foundation of good citizenship." And that is on top of the damage their approach will do to the economy. Fortunately, there is one bright spot: the Armed Forces are exempted from Title VII, so at least the military will still be able to select high quality personnel. Finally, a quick review of the major errors in Danforth's letter: As the Attorney General explained to him in a five-page letter a month ago, Danforth's interpretation of the 1971 Griggs decision is untenable. Danforth also misinterprets current law and the relevant provisions of your bill. He suggests, for example, that current law would allow employers to "screen out" women by refusing to hire single parents. Under well-settled law (and your bill), it would be virtually impossible to defend such a practice. It is interesting and revealing that Danforth does not cite a single case in which the courts have ever upheld a silly or unconscionable employment practice under the well-established legal test incorporated into your bill. Strangest of all, Danforth says that he and the Democrats have accepted the language insisted on by the Administration. This is flatly wrong. The single most important issue raised by Danforth's letter is the relation between this civil rights legislation and America 2000. For that reason, I recommend that any meeting you have with Danforth include Evan Kemp and David Kearns (and perhaps Secretary Alexander). Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 01b. Note From Phillip D. Brady to POTUS 7/11/91 P-5 Re: Attached memo (1 pp.) Collection: Record Group: Bush Presidential Records Office: Chief of Staff, White House Office of Series: Sununu, John, Files Open on Expiration of PRA Subseries: Issues Files (Document Follows) WHORM Cat.: By Ip (NLGB) on 10/28/05 File Location: Civil Rights (2 of 2) 1991 [2] Date Closed: 1/3/2005 OA/ID Number: 29146-008 FOIA/SYS Case #: 1998-0004-F[2] Appeal Case #: Re-review Case #: 2005-0426-S Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA] (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRA] agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile THE WHITE HOUSE WASHINGTON July 11, 1991 MR. PRESIDENT: Fred McClure advises that you asked this be sent directly to you. Copies have been provided to the Chief of Staff and Boyden Gray, and they understand this is a personal, private communication. Thank you. Phil Phillip D. Brady UNITED STATES SENATE WASHINGTON, D.C. JOHN C. DANFORTH MISSOURI July 10, 1991 The President The White House Washington, D. C. 20500 Dear Mr. President: Many thanks for your phone call and for your willingness to visit with me about the civil rights legislation when you return from Europe. I think we are now at the point where the resolution of one policy question is the key to concluding the civil rights debate. Here is the question: Should it be lawful for an employer to use job qualifications which are unrelated to ability to perform the job and which have the effect of screening women or minorities from employment? Examples of such job qualifications might include the possession of a high school diploma as a condition of employment as a janitor, or a rule that an employer will not hire single parents. In both cases, the qualifications would be unrelated to ability to perform the job, and would have the practical effect of screening out minorities or women. Exactly this question was decided by the Supreme Court in the case of Griggs V. Duke Power Co. In Griggs, the Court held that an employer could not require a high school diploma as a qualification for a job where the diploma had no relationship to ability to perform the job and where the practical effect was to screen out blacks. This remained the law from 1971 until the Supreme Court decided the Wards Cove case in 1989. Throughout the lengthy discussions of the civil rights legislation, the Administration has taken the position that we should restore the Griggs decision. In fact, the Administration has said that the exact SAT 20 JUL 91 00:02 PG.06 WHITE HOUSE COMCEN - 2 - wording of Griggs should be included in the statutory language. Both Republican and Democratic Senators who have been working on the legislation have accepted the Griggs language insisted on by the Administration. EEOC Chairman, Evan Kemp, has stated that an employer's requirement of academic credentials might further the Administration's education program. However, such a policy, even if justified on the basis of education, would contradict Griggs unless the academic credentials are related to ability to perform the job. To endorse such a policy would be viewed as a negative statement on civil rights and a reversal of the Administration's support of the Griggs case. Mr. President, if you agree that the Griggs case was decided correctly, and that qualifications unrelated to ability to perform the job should not be lawful where they are used to screen women or minorities from employment, I believe we are a short step from reaching a successful conclusion to the civil rights debate. Sincerely, Jack Senator Danforth and his Republican co-sponsors have accepted a reasonable compromise definition of "business necessity." There are many other important issues to be resolved. Once that happens, Democrat support will be needed to pass a bill. While there has been definite progress, we have a long way to go. SENT. BY:HERITAGE FOUNDATION-1 ; 6-28-91 6:16PM ; 2025460904-> 2024562397:# 2 Heritage Foundation A tax-exempt public policy research institute June 28, 1991 John H. Sununu Chief of Staff The White House Dear Governor Sununu: When I sent you my other letter earlier today, I had not yet read today's newspapers, so I had not seen the stories about the negotiations with Senator Danforth breaking down. I spoke with Nelson Lund just a few minutes ago. He said that there may not be any need to put out a paper analyzing the revised bills that Senator Danforth introduced yesterday because no one else seems to be joining the Senator's cause. Nelson and I will speak again on Monday. Sincerely yours, Bill William G. Laffer III McKenna Fellow in Regulatory and Business Affairs Edwin J. Faulner, Jr., President Phillip N. Truluck, Executive Vice President Herbert B. Barkowits, Vice President Burton Yale Pines, Senior Vice President Charles L. Heatherly, Vice President Peter E.S. Pover, Vice President Kate Walsh O'Betrne, Vice President Terrence Scanlon, Vice President and Treasurer Bernard Lomas, Counselor Board of Trustees David R. Brown, M.D. Hon. Shelby Cullom Davis, Chairman Joseph Coors Thomas A. Roe Robert H. Krieble, Fh.D., Vice Chairman Midge Decter Richard M. Scatfe J. Frederic Rench, Secretary Edwin J. Feulner, Jr. Hon. Frank Shakespeare Lewis E. Lehrman Joseph R. Kays Hon. William E. Simon J. William Middendorf, II Jay Van Andel 214 Massachusetts Avenue, N.E. Washington, D.C. 20002-4999 (202) 546-4400 SENT BY:HERITAGE FOUNDATION-1 ; 6-28-91 4:01PM ; 2025460904-> 2024562397; 2 Copy to Boyden Heritage Foundation A tax-exempt public policy research institure June 28, 1991 John H. Sununu Chief of Staff The White House Dear Governor Sununu: I just wanted to give you a quick update on things, so you don't think I abandoned you. After examining Senator Danforth's three bills more closely, I concluded: (1) that under any interpretation of their language, the bills still had substantial quota-promoting tendencies; (2) that in several critical respects, however, the bills were highly ambiguous; and therefore (3) that the extent and degree of the remaining quota prob- lems depended heavily on what certain provisions meant. Based both on the ambiguity (which I attributed to sloppy drafts- manship) and on the lingering quota problems, I was convinced that Senator Danforth would have to make substantial changes in the bills in order to make them acceptable to the President and the American people. Therefore, my supervisors and I felt that it made more sense, under the circumstances, for us to conserve our ammunition and wait to see what Danforth comes up with next. In the mean time, I have kept in regular contact with Nelson Lund in the White House Counsel's Office. when we spoke Tuesday evening a couple of days ago, he told me that there had been a fairly favorable meeting with Danforth in which the Senator had been fairly receptive to at least one change suggested by the Administration and had indicated that he would be making other changes in the bills as well. I don't know any of the details of Edwin J. Feulner, Jr., President Phillip N. Truluck, Executive Vice President Burton Yale Pines, Senior Vice President Herbert B. Berkowitz, Vice President Charles L. Heacherly, Vice President Kate Walsh O'Beirne, Vice President Peter E.S. Pover, Vice President Terrence Scanion, Vice President and Treasurer Bernard Lomas, Counselor Board of Trustees David R. Brown, M.D. Hon. Shelby Cullom Davis, Chairman Thomas A. Roe Joseph Coors Robert H. Krieble, Ph.D., Vice Chairman Richard M. Scaife Midge Decter J. Frederic Rench, Secretary Hon. Frank Shakespeare Edwin J. Feulner, Jr. Lewis E. Lehrman Hon. William E. Simon Joseph R. Keys J. William Middendorf, II Jay Vun Andel 214 Massachusetts Avenue, N.E. Washington, D.C. 20002-4999 (202) 546-4400 SENT BY:HERITAGE FOUNDATION-1 ; 6-28-91 4:02PM ; 2025460904-> 2024562397:# 3 what was discussed, and I don't know what changes the Senator has in mind or whether they would be changes suggested by you or by Senator Kennedy, but it would appear that our decision to hold our fire has been vindicated, at least for now. Nelson and, I believe, Boyden both agree that it would be better at this stage for me not to attack Danforth's initial versions for being the quota bills that they are, but instead to wait and see what he comes up with next, and whether he moves more in Ted Kennedy's direction or in yours. I will continue to stay in contact with Nelson, and I will be prepared to turn out a short paper on Sena- tor Danforth's revised versions (depending of course on what they say) as soon as they become available. In the mean time, I will be writing on another matter which also merits your personal attention -- Senator Glenn's attack on OIRA. I assume you are already familiar with this subject. This attack threatens one of the most important protections of indivi- dual liberty built into the Constitution by our founding fathers -- the separation of powers. At issue is nothing less than the President's right to control the Executive Branch of government and to direct the actions of his subordinates. Under the first sentence of Article II, subordinate officers have no independent standing or authority; they are merely agents of the President, and they enjoy only such authority as the Pres- ident chooses to delegate to them. Senator Glenn's bill would severely compromise (at least indirectly) the President's ability to control his subordinate officers by requiring them to submit the regulations they promulgate to review by OMB prior to promul- gation. Moreover, by holding nominees hostage unless the Presi- dent agrees to support his bill, Senator Glenn commits a form of constitutional extortion which represents a further threat to the principle of separation of powers. Therefore, I hope that when the time comes for the Administration to take a position on this matter, you will advise the President not to give in to this attempted extortion but instead to defend the legitimate consti- tutional prerogatives of his office and to oppose Senator Glenn's evil bill. (I guess you can tell I have strong views on this subject.) sincerely yours, Bill William G. Laffer III McKenna Fellow in Regulatory and Business Affairs P.S. Illegitimi non carborundum, of course. Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 02. Letter From Evan J. Kemp to John Sununu 6/24/91 Re: "Business Necessity" Language Proposed by Danforth (5 pp.) Collection: Record Group: Bush Presidential Records Open on Expiration of PRA Office: Chief of Staff, White House Office of (Document Follows) Series: Sununu, John, Files Subseries: Issues Files BVOR (NLGB) on 10/28/05 WHORM Cat.: File Location: Civil Rights (2 of 2) 1991 [2] Date Closed: 1/3/2005 OA/ID Number: 29146-008 FOIA/SYS Case #: 1998-0004-F[2] Appeal Case #: Re-review Case #: 2005-0426-S Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA] (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRA] agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information PRM. Removed as a personal record misfile EQUAL EMPLOYMENT EQUAL EMPLOYMENT OPPORTUNITY COMMISSION WASHINGTON, D.C. 20507 COMMISSION JUN 24 1991 OFFICE OF THE CHAIRMAN The Honorable John H. Sununu Chief of the Staff to the President First Floor, West Wing The White House Washington, D.C. 20500 Dear Governor: As Chairman of the principal Federal agency charged with implementing civil rights laws as they apply to employment discrimination, I am urging that the Administration not accept the "business necessity" language proposed by Senator Danforth in his letters to you of June 19 & 20, 1991. The focus of the Danforth "business necessity" language will, if adopted, undermine the President's America 2000: An Education Strategy by making it extremely difficult for employers to show that use of educational credentials and objective measures of academic achievement are legally defensible. The tragedy of the Danforth proposal is that it would actually cause disproportionate harm to minorities, while claiming the flag of civil rights. In proposing his latest definition of "business necessity," Senator Danforth quoted the following language from the 1971 Supreme Court Griggs V. Duke Power Co. decision: The Commission accordingly interprets 'professionally developed ability test' to mean a test which fairly measures the knowledge or skills required by the particular job or class of jobs which the applicant seeks, or which fairly affords the employer a chance to measure the applicant's ability to perform a particular job or class of jobs. (401 U.S. 433 n.9, emphasis in Senator Danforth's letter). My concern is that the Commission and the courts have so broadly construed the meaning of Griggs that all selection procedures, not just employment tests, must be shown to be a "business necessity" if they adversely affect members of a class covered by Title VII. The 1978 Uniform Guidelines on Employee Selection Procedures, for example, define the universe of affected practices as follows: Section 2B: Employment decisions. These guidelines apply to tests and other selection procedures which are used as the basis for any employment decision. Employment 2 decisions include but are not limited to hiring, promotion, demotion, membership (for example, in a labor organization), referral, retention, and licensing and certification, to the extent that licensing and certification may be covered by Federal equal employment opportunity law. Other selection decisions, such as selection for training or transfer, may also be considered employment decisions if they lead to any of the decisions listed above (emphasis added). The most serious shortcoming of Senator Danforth's proposal is its focus on job performance in the "business necessity" definition. While seemingly reasonable at first blush, Senator Danforth's focus on job performance will make it extremely difficult, if not impossible, for employers to show that use of educational credentials and objective measures of academic achievement are legally defensible. The Danforth proposal may constrain an employer in unexpected ways. Imagine the virtual impossibility of defending, for example, an employer's use of a high school diploma or a liberal arts degree in English or history in terms of how that knowledge directly relates to job performance for most entry-level positions. It simply can't be done. Furthermore, are undergraduate education majors the only teaching candidates qualified to teach? The Danforth proposal's focus means a school district in many cases would not be able to prefer candidates with advanced degrees because the undergraduate education degree is the only "correct" curriculum directly related to job performance. The Administration's bill, by contrast, would permit that same school district to insist on candidates with advanced degrees and non- education majors with degrees, for example, in English or history. An additional unintended consequence of the Danforth's bill's focus on job performance is that it will undermine the President's America 2000: An Education Strategy. One of the strategic national goals established by President Bush is that by the year 2000: " (E) very school in America will ensure that all students learn to use their minds well, so they may be prepared for responsible citizenship, further learning, and productive employment in our modern economy." Yet as Chester Finn recently wrote in a New York Times op-ed piece (5/18/91) entitled "Educational Reform vs. Civil Rights Agendas," realizing the President's educational strategy will mean challenging the status quo: How many personnel directors will be able to convince a Federal enforcer or judge that a young person's command of science and geography is germane to the work of a forklift operator or receptionist? Yet so long as 3 employers are inhibited from examining a candidate's test scores, 'rational' students will see no payoff for buckling down to learn such subjects. High marks won't matter. Challenging the status quo means reexamining Griggs in light of an economy that is significantly more complex and demanding than is suggested by the facts at issue in that power plant. The fact situation in Griggs revealed that Duke Power waived their high school diploma requirement for initial assignment to manual labor positions but required the diploma for those wishing to transfer to better paying indoor jobs. Duke Power used an alternative requirement that instead of having a high school diploma, in order to qualify for positions requiring more than a strong back, it was necessary to attain the average score for high school graduates nationwide on two professionally developed ability tests. As I am sure by now you are aware, both the high school diploma and test requirements adversely affected minorities and the rest, as they say, is history. The Supreme Court has held that an employer has the burden to defend the "business necessity" of any employment standard that adversely affects members of a class covered by Title VII. Unreasonably narrow interpretations of "business necessity" by the EEOC, the Labor Department, and some lower courts created terrible legal risks for firms that required educational achievement of their applicants. As a consequence of Griggs, given the expense and uncertainty of Title VII litigation, many employers simply abandoned requiring high school diplomas and checking transcripts for any job. Furthermore, the Supreme Court in Griggs stated that: "(I)t is unnecessary to reach the question whether testing requirements that take into account capability for the next succeeding position or related future promotion might be utilized upon a showing that such long range requirements fulfill a genuine business need." We think that improving this nation's competitiveness warrants addressing the promotability issue of "capability for the next succeeding position" and the Administration's bill does SO. The unintended consequence of Griggs has been to eliminate employers' ability to reward learning. The resulting lack of signals to students from employers that academic achievement counts has meant that for the past two decades since the 1971 Griggs decision, the most basic incentive for many students to take school seriously has been missing. Now, more than a quarter of a century after the Civil Rights Act of 1964 was passed and in an increasingly competitive multi-national marketplace, we find that our economy is less dependent on strong backs and is more dependent on jobs requiring developed cognitive skills and abilities and the capability to benefit from training for the next succeeding 4 position. According to the Hudson Institute's 1988 report Opportunity 2000, more than half of all new jobs created over the next 20 years will require some education beyond high school and almost a third will be filled by college graduates (compared with only 22% of all occupations today). Notwithstanding employers' ever increasing dependence on individual competence in order to remain competitive, students, parents and teachers will not be able to point to a reward for learning if employers are for all practical purposes precluded from even inquiring about degree status much less rewarding academic achievement. As the Secretary of Labor's Commission on Workforce Quality and Labor market Efficiency has recently urged: The business community should show through their hiring and promotion decisions that academic achievements will be rewarded. The need to encourage academic achievement by encouraging employers to reward students who achieve academically will be met by the Administration's definition of "business necessity" which is the same as the definition adopted by the Supreme Court. The Danforth bill's definition of "business necessity," focusing on job performance, will in effect make use of educational credentials and objective measures of academic achievement indefensible unless quotas are also employed. For fifteen months, I've maintained that we would not have an acceptable civil rights bill until we aired the philosophical differences between the Administration (back to merit hiring) and the civil rights community (proportional representation in the workplace). Lawyers could not write a satisfactory bill until these very real philosophical differences were openly confronted. As you know, Governor, I was deeply involved in the early negotiations on the Americans With Disabilities Act (ADA). The White House and disability community had few differences on sections concerning employment, transportation, relay communications for the deaf, or coverage of state and local governments. The area of contention was public accommodations. At that time, I told you the disability community wanted total access: a "flat world" tomorrow. Because it was a question of civil rights, the disability community did not believe there could be a cost defense. You replied that it wasn't fair to place a financial burden on small businesses that had no government contracts or received no federal money. You stated that the disability community's demand was not reasonable and clearly against Republican Party philosophy. Eventually both sides agreed to the "readily achievable" standard for existing public facilities to ensure mainstream opportunities 5 for disabled people. The ADA negotiations were exemplary in that both sides thoroughly discussed areas of philosophical disagreement. Had we not done so, the ADA would never have become law. Hopefully the information I have provided will encourage additional candor about these differing philosophies between the parties. Unless the latest Danforth definition of "business necessity" is rejected, when employers realize that they will be unable to defend use of educational credentials and objective measures of academic achievement under the Danforth bill, they will have little choice but to revert to hiring by the numbers. For these reasons I urge the Administration not agree to the Danforth compromise "business necessity" language. Best regards, Evan Evan J. Kemp, Jr. Chairman 06/17/1991 15:19 FROM OFFICE of the CHAIRMAN TO 94562397 P.02 ON SOCIETY BY JOHN LEO California's racial arithmetic A good many Washington commentators are con- racial groups in direct proportion to their share of the vinced that the quota debate is "Willie Horton state's high-school graduates. This astonishing plan, 11," i.e., a basically irrelevant nonstarter that is pushed by Assembly Speaker Willie Brown and ex-Fonda nevertheless useful for distracting and inflaming impres- husband Tom Hayden, is an explicit rejection of what sionable voters. This seems to be yet another curious case used to be called civil rights and affirmative action (open- of that familiar Washington eye ailment known as inside- ness, giving everyone an equal chance, removing obstacles the-beitway myopia. In America, the large country just to individual freedom and advancement). We are way be- outside the Capital Beltway, quotas are a live issue in- yond that. Now we are in the arena of group entitlements, deed. Even if the Republicans should somehow manage bringing the colleges under political control and dividing to exorcise the spirit of Lee Atwater and shed all cynicism up university degrees and jobs as part of a spoils system and manipulation by noon tomorrow, quotas would still run from Sacramento. Since the Democrats vote as a bloc be a major issue in the 1992 elections. on this, only the good fortune of a last-minute veto by a On my desk is a minor example of the growing quota retiring Republican governor saved California from this mentality, a report to the U.S. Forest Service from its quota plan last year, just as the likelihood of another veto Task Force on Work Force Di- by the current Republican gov- versity. Twenty years ago a - FOR USNEW ernor, Pete Wilson, will save report like this would sim- the state this year or next. ply have said, in effect, To its great credit, Cali- it isn't right for the fornia has been deeply service to be almost all concerned for two de- white and male; let's cades with the low rate open it up. But this re- of college graduation port, infected by cur- among some minorities. rent notions of multi- The disheartening news culturalism (there are is that graduation rates many cultures or tribes for Hispanics and blacks that have to be appeased are still very low. With as groups), says that by frustration over this ris- 1995, the service "must ing, the ideal of getting have percentages in recog- as many blacks and His- nized groups equal to the percentages in the Civilian La- panics as possible ready for college changed to the ideal of bor Force in 1990." Quota time. Though momentarily proportional representation in freshman admissions, then stumped on what would be a proper quota for the dis- to the ideal of graduating roughly equal numbers of each abled, the report says, "We think the appropriate number group and finally to Willie Brown's favorite kind of ideal, will be about 5.9 percent." Yeah, that's about right. one with legislative teeth. The Forest Service says that this report, a wellspring of The quota provision is in Willie Brown's bill. No. 2150, odd but doctrinally correct multiculturalism, has been ac- which has been temporarily shelved because of the bud- cepted "in spirit." This probably means that the leader- get crisis. Perhaps wisely, the bill is presented in a fog of ship, being basically sane, will try to bury it if it can and euphemisms. Proportional representation in admissions just try to hire people from both sexes and all races. But and graduation is "educational equity," described as a here is the problem: To buy some peace, administrators central priority that California universities "shall strive to often tell the multiculture believers to go off and make a approximate, by 2000." If that sounds like the soothing report. When the report arrives, all thunder and light- language of goals, not quotas, don't be fulled: The "shall ning, it sometimes takes on a scary life of its own, raising strive" is backed by tough provisions of reports, impact so much fuss that administrators are tempted to buy statements and the reminder that "governing boards shall peace once again by adopting it, even if it involves quotas, hold faculty and administrators accountable" for all this or as in the case of schools, ceding control of the curricu- legislated equity (i.e., their jobs are on the line). Since the lum to various pressure groups. In the worst-case scenar- bill neglects to provide funding for remedial help that io. this report enters and then polarizes partisan politics, unprepared minority students really need, I assume that if with the Democrats trapped by angry constituents into the bill passes, the universities would quickly capitulate defending assorted zaniness and quotas, thus putting the and grant as many worthless political degrees as the legis- future of the party at risk. lature wants. Even now, voices are being raised around Diplomas of color. This is roughly the dynamic at work the system that every student has a "right" to graduate in California, where the most serious quota drama is cur- and that a "privileged elite" (administrators and faculty) rently being played out. In brief (and I am not making is arbitrarily withholding a desirable good (automatic di- this up), the Democratic majority in the state legislature plomas) from "underrepresented minorities." This is the is attempting to establish. by law, that California state language of pork-barrel politics, not education. and that universities and colleges will grant degrees to ethnic and is what the Brown bill is all about. U.S.NEWS & WORLD REPORT, 1991 21 , 1. From: EDWARD I. Koch I thought you would be interested in the enclosed. All the best. ROBINSON SILVERMAN PEARCE ARONSOHN & BERMAN 1290 AVENUE OF THE AMERICAS NEW YORK, NEW YORK 10104 VINCENT ALFIERI MICHAEL B. LEVY (212) 541-2000 SCOTT L. BACH JEFFREY H. KAPLAN JAMES M. ALTMAN HAROLD A. LUBELL DAVID M. BARSE DAVID S. KASDAN ALAN J. B. ARONSOHN JACK MANDEL SUZANNE M. BERGER DEBRA M. KENYON STANLEY BERMAN JONATHAN S. MARGOLIS DAVID G. BLAIVAS STEVEN D. BLOOM THOMAS MOERS. MAYER FACSIMILE: (212) 541-4630 STEVEN M. KORNBLAU LISA BLOOM JOHN C. MABIE MICHAEL D. BUTTERMAN STEVEN MONTEFORTE RAND G. BOYERS CHRISTINE C. MARSHALL WALTER H. CURCHACK ANDREW L. ODELL DAVID A. CAHILL MARGOT J. METZGER JAY M. DORMAN GRACE S. ONAGA DAVID CALABRESE SUSAN A. MOLDOVAN BARTLEY F. FISHER ALAN S. PEARCE LESLIE W. CHERVOKAS JUDY 1. PADOW ERICA R. FORMAN SAUL PEARCE PATTI CIARAMELLA LOWELL PETERSON JAMES F. GILL MICHAEL N. ROSEN KAREN AU CLARO JUDITH L. POLLER STUART A. GORDON BARRY C. ROSS ERIC I COHEN CRAIG L. REICHER KENNETH L. HENDERSON DAVID SCHULDER LYNDA S. CORWIN MARK D. RISK MIRIAM O. HYMAN ROBERT J. SORIN ANNETTE FISCH LEE J. ROSEN ANDREW IRVING LAURENCE A. SPELMAN PETER J. FITZPATRICK BRUCE M. RUBENSTEIN SUSAN POWER JOHNSTON JACQUELINE F. STEIN KENNETH D. FREUNDLICH ELLEN R. SABIN EDWARD 1. KOCH JULIUS B. SUCHER 1 STEPHANIE G. FRIED STEVEN G. SCHEINFELD CHARLES M. KOTICK MARK JON SUGARMAN AARON FRIEDMAN KEITH E. SCHUTZMAN MATTHEW J. LEEDS ROBERT A. WOLF RENEE E. FROST KENNETH P. SINGLETON JOEL A. LEVIN * GEORGE B. YANKWITT MARK V. GIORDANO ALAN H. SOLARZ SANDOR A. GREEN STEVEN M. STIMELL FLORIDA OFFICE: SUSAN E. HART SUSAN B. TEITELBAUM DOUGLAS HELLER MILDRED TROUILLOT 520 BRICKELL KEY DRIVE VILIS R. INDE CAREY WAGNER MIAMI, FLORIDA 33131 NICHOLAS P. JACOWLEFF SHERRY WAKSBAUM (305) 374-3800 THOMAS T. JANOVER SUSAN STOLL ZEDECK FACSIMILE: (305) 374-1156 BEATRICE R. KAHN MICHAEL R. ZIENTS "ALSO ADMITTED IN FLORIDA WRITER'S DIRECT NUMBER: June 25, 1991 The Honorable Joe Biden United States Senate Washington, DC 20510-6275 Dear Joe: You were really nice to continue our correspondence on H.R.1 even though we are on different tracks. You still believe that the legislation does not encourage quotas and apparently will co-sponsor it in the Senate. I am a firm believer in securing the civil rights of all of our citizens, but not through the use of reverse discrimination. I believe H.R.1 is a bill which encourages racial, ethnic, religious and gender quotas and, therefore, should be defeated. There are legislative changes that are necessary as a result of recent Supreme Court decisions, but H.R.1 does not solve most of those problems. What it does do is pressure employers to fill jobs on the basis of racial, ethnic, religious and gender proportionality in order to avoid massive backpay and attorneys' fees awards. The proponents never admit that they support quotas and always refer to affirmative action in a way that would place them on record as opposing quotas, even when they acknowledge support of "goals, timetables and sanctions." Those words are simply euphemisms for quotas. What H.R.1 does, and regrettably the President's bill in the spirit of compromise does the same, is to presume an employer guilty of racial, ethnic, religious or gender discrimination when his workforce statistically does not mirror the applicant ROBINSON SILVERMAN PEARCE ARONSOHN & BERMAN 2 workpool or the regional population in the particular job category when plaintiffs allege discrimination based not on intentional discrimination but on the "disparate outcome" of testing or of the hiring practice. The burden of proof is then shifted to the employer who must defend his hiring practices. H.R.1 also effectively eliminates the plaintiff's requirement to identify the practice causing the disparity and has a brand new onerous definition of business necessity which exceeds the definition in Griggs V. Duke Power (1971) and subsequent Supreme Court cases. Faced with costly lawsuits, monetary damages and negative publicity, employers will simply throw in the towel and make certain their workforce reflects the "correct" racial, ethnic, religious and gender profile, rather than hiring the best person for the job. I don't believe that President Bush, in introducing his bill through Robert Michel (R-I1.), should have compromised on this issue by including as he did the same presumption of guilt as H.R.1, but at least his bill retains the two other safeguards against quotas requiring the plaintiff to identify the practice causing the discrimination and the Supreme Court's 20-year-old concept of business necessity. Some suggest there should be compromise on both sides. I suggest that fundamental positions of morality which we all have, sometimes on different sides of the same issue, whether it be with respect to abortion, the death penalty, gay rights, civil liberties and civil rights, should not be compromised. Are there many supporters of Roe V. Wade, who would agree to a compromise, which opponents sometimes offer, to eliminate the right of abortion on demand up to the second trimester except to save the life of the mother, and in cases of rape, incest or gross fetal defects? I doubt that you would vote for such a bill. And certainly supporters of N.O.W. and many others would not. Would you suggest that those who are opposed to the death penalty, as for example New York Governor Mario Cuomo, give up their deeply held position against it be agreeing to it but only in the case of someone convicted of killing a police officer in the line of duty? I doubt it. There are those in the Congress and on the editorial pages who have used the fact that both the Anti-Defamation League and the American Jewish Congress supported H.R.1 as a shield to criticism. However, subsequent to the bill's passage, both groups have stated that H.R.1 does indeed have quota implications, placing their ultimate support of H.R.1 in question. One reason they take this position is that in an effort by its sponsors to put themselves on record as opposed to quotas, H.R.1 now contains language defining "quota" in such a way as to inferentially protect quotas. How? By defining a quota as requiring employers to take those who are not qualified ROBINSON SILVERMAN PEARCE ARONSOHN & BERMAN 3 for the job, and making that action illegal. That means that the minimally qualified applicant of the "correct" race, ethnicity, religion or gender needed to avoid lawsuits based on the presumption of guilt and H.R.1's rewriting of the other elements of disparate impact lawsuits would be hired rather than the best applicant and that would be legal and a quota. You should also know that after the House passed H.R.1, AJC executive director Phil Baum issued a statement saying that "in an effort to define quotas, the bill in its current form in fact legalizes and institutionalizes quotas and other forms of race- and sex-conscious employment practices which AJ Congress cannot endorse. ADL took a similar position. I believe H.R.1 is supported by some because they feel nothing else has worked to end racial discrimination. In fact, much has been accomplished in breaking down discrimination against minorities and women, but much more can and should be done to reduce and eliminate remaining discrimination. We can point with pride to the fact that of the top ten cities in our country half have been or currently are governed by a black mayor. But I do not believe in engaging in reverse discrimination to cure past or present discrimination except when a specific individual can show that he or she was the subject of discrimination in which case that individual should be given preferential treatment to correct the prior discrimination. "Race norming" which has been used by the federal government for nearly 15 years allows testing applicants for jobs solely within their own race or ethnicity and eliminates scoring the entire applicant group with the same criteria. This practice elevates minority applicants over white and Asian applicants taking the same test and scoring higher. There is a bitterness amongst many whites, who are 80% of the country's population, which results from a feeling that their sons and daughters will suffer reverse discrimination to atone for the earlier and current discrimination practiced against blacks and Hispanics. Many believe as I do that David Duke received 60% of the white vote in Louisiana for U.S. Senate not because those voting for him support the Ku Klux Klan, but rather because of their anger against the Democratic party and its support of preferential treatment and racial and ethnic quotas. There are many who applaud Senator Kennedy for his leadership in the fight for H.R.1. These same people attack President Bush for his continued opposition to the legislation which he believes encourages quotas and is antithetical to our historical opposition to the use of such quotas. Shouldn't President Bush be applauded for standing up for what he perceives to be a matter of conscience? ROBINSON SILVERMAN PEARCE ARONSOHN & BERMAN 4 The children of those who are wealthy, in political office or have access to "networking" will always get jobs and will not suffer the consequences of the reverse discrimination created by the passage of H.R.1. The children of our working poor and middle classes of every ethnic extraction including, but not limited to, Irish, Italian and Jewish will see their sons and daughters restricted in their opportunities. Ultimately, they will have to accept that they will not rise in an occupation or profession of their choosing based on their ability but rather will be judged by the demographics of race, ethnicity, religion and gender in employment in the private sector, in government and at our universities. That is not the America that most of us, including blacks, Hispanics and women who are the intended beneficiaries of preferential treatment under H.R.1, have dreamed of or been made cognizant of during our academic careers. Enclosed is some additional material on the subject including a statement I made before the American Jewish Committee and various op-ed articles. I have gone on at great length knowing that I will not convince you, but I do believe that I have reasonably, responsibly and accurately described what H.R.1 will do and have staked out my position in opposition as a matter of conscience which I will not compromise. All the best. Sincerely Edward $ 1. Koch EIK/mgl enclosures JOSEPH R. BIDEN, JR., DELAWARE, CHAIRMAN EDWARD M. KENNEDY, MASSACHUSETTS STROM THURMOND, SOUTH CAROLINA HOWARD M. METZENBAUM, OHIO ORRIN G. HATCH, UTAH DENNIS DECONCINI, ARIZONA ALAN K. SIMPSON, WYOMING PATRICK J. LEAHY, VERMONT CHARLES E. GRASSLEY, IOWA HOWELL HEFLIN, ALABAMA ARLEN SPECTER, PENNSYLVANIA PAUL SIMON, ILLINOIS HANK BROWN, COLORADO United States Senate HERBERT KOHL, WISCONSIN RONALD A. KLAIN, CHIEF COUNSEL JEFFREY J. PECK, STAFF DIRECTOR COMMITTEE ON THE JUDICIARY TERRY L. WOOTEN, MINORITY CHIEF COUNSEL AND STAFF DIRECTOR WASHINGTON, DC 20510-6275 June 11, 1991 The Honorable Edward I. Koch 1290 Avenue of the Americas New York, New York 10104 Dear Ed: Thank you for contacting me again about the Civil Rights Act. H.R.1 is very similar to the civil rights legislation passed during the 101st Congress. You may remember that I was a cosponsor of that legislation, which would have restored important civil rights protections. As I mentioned in my previous letter, I carefully reviewed the Civil Rights Act of 1990 and concluded that it would not cause employers to adopt quotas. In addition, the House-passed bill explicitly states that quotas are illegal. Again, thank you for your letter. When H.R.1 is considered by the Senate, I will closely examine it and certainly keep your views in mind. Sincerely, Joseph R. Biden, Jr. Chairman SENT BY:HERITAGE FOUNDATION-1 ; 6-28-91 4:01PM ; 2025460904 2024562397;# 2 Heritage Foundation A tax-exempt public policy research institute June 28, 1991 John H. Sununu Chief of Staff The White House Dear Governor Sununu: I just wanted to give you a quick update on things, so you don't think I abandoned you. After examining Senator Danforth's three bills more closely, I concluded: (1) that under any interpretation of their language, the bills still had substantial quota-promoting tendencies; (2) that in several critical respects, however, the bills were highly ambiguous; and therefore (3) that the extent and degree of the remaining quota prob- lems depended heavily on what certain provisions meant. Based both on the ambiguity (which I attributed to sloppy drafts- manship) and on the lingering quota problems, I was convinced that Senator Danforth would have to make substantial changes in the bills in order to make them accaptable to the President and the American people. Therefore, my supervisors and I felt that it made more sense, under the circumstances, for us to conserve our ammunition and wait to see what Danforth comes up with next. In the mean time, I have kept in regular contact with Nelson Lund in the White House Counsel's Office. When we spoke Tuesday evening a couple of days ago, he told me that there had been a fairly favorable meeting with Danforth in which the Senator had been fairly receptive to at least one change suggested by the Administration and had indicated that he would be making other changes in the bills 18 well. I don't know any of the details of Edwis J. Foulner, Jr., President Phillip N, Truluck, Executive Vice Prevident Burton Yale Pines, Senior Vice President Herber: B. Barkowin, Vice President Charles L. Heacherly, Via Prevident Kate Walsh O'Betrne, Vice President Pater & 3. Pover, Via President Terrence Scanlon, Vice President and Transurer Bernard Lomes, Commoler Board of Trustees David R. Brown, M.D. Hon. Shelby Cullom Davis, Chairman Thomas A. Roe Joseph Coan Rebert H. Krisble, Ph.D., Via Chairman Richard M. Scaife Midge Dector J. Prederic Reach, Summary Hon. Prank Shakespoure Edwis J. Foulner, Jr. Lewis E. Lahrman Hon. William E. Stroon Joseph R. Keys J. William Middenderf, II Juy Van Andal 214 Massachusetts Avenue, N.E. Washington, D.C. 20002-4999 0 (202) 546-4400 SENT 1.Xerox lelecopier 7020 18-07-0 SENT BY:HERITAGE FOUNDATION-1 ; 6-28-91 4:02PM 1 2025460904-> 20245523971# 3 what was discussed, and I don't know what changes the Senator has in mind or whether they would be changes suggested by you or by Senator Kennedy, but it would appear that our decision to hold our fire has been vindicated, at least for now. Nelson and, I believe, Boyden both agree that it would be better at this stage for me not to attack Danforth's initial versions for being the quota bills that they are, but instead to wait and see what he comes up with next, and whether he moves more in Ted Kennedy's direction or in yours. I will continue to stay in contact with Nelson, and I will be prepared to turn out a short paper on Sena- tor Danforth's revised versions (depending of course on what they say) as soon as they become available. In the mean time, I will be writing on another matter which also merits your personal attention -- Senator Glenn's attack on OIRA. I assume you are already familiar with this subject. This attack threatens one of the most important protections of indivi- dual liberty built into the Constitution by our founding fathers -- the separation of powers. At issue is nothing less than the President's right to control the Executive Branch of government and to direct the actions of his subordinates. Under the first sentence of Article II, subordinate officers have no independent standing or authority, they are merely agents of the President, and they enjoy only such authority as the Pres- ident chooses to delegate to them. Senator Glenn's bill would severely compromise (at least indirectly) the President's ability to control his subordinate officers by requiring them to submit the regulations they promulgate to review by OMB prior to promul- gation. Moreover, by holding nominees hostage unless the Presi- dent agrees to support his bill, Senator Glenn commits a form of constitutional extortion which represents a further threat to the principle of separation of powers. Therefore, I hope that when the time comes for the Administration to take a position on this matter, you will advise the President not to give in to this attempted extortion but instead to defend the legitimate consti- tutional prerogatives of his office and to oppose Senator Glenn's evil bill. (I guess you can tell I have strong views on this subject.) sincerely yours, Bill William G. Laffer III McKenna Fellow in Regulatory and Business Affairs P.S. Illegitimi non carborundum, of course. To: BARRARA, 600C TR: SHARLIEN MATWELL MACMILLAN mone-301/816-3696 Chief of Employment Commission Criticizes G.O.P. Bill on Job Bias By STEVEN A. HOLMES (posial no The New York Twom 6.25.91 WASHINGTON, June 24 The tion Inwausts. chairman of the Equal Employment As head of the Equal Employment Opportunity Commission today urged Opportunity Commission, Mr. Kemp is the White House to reject compromise charged with the enforcement of Fed- civil rights bills fashioned by moderate oral employment discrimination laws, Republicans. but to date he has sat on the sidelines In I letter to John H. Sununu, the during the heared debates over the White House chief of staff, Evan 1. Kamp, hand of the commission, said measure, Steve Hilton. a spokesman for Mr. the compromise would make It "ax- Danforth, said the Senstor had not seen TA tremely difficult for employers to use Mr. Kemp's letter and therefore would educational credentials and objective not be able to comment on 16 measures of academic achievement A version of the civil rights bill sup- Ba like tests to determine who to hire or ported by the House Democratic lead. promote 1Mr. Kemp said precluding such ert- БО teris in employment decisions would undermine President Bush's efforts to A White House 198 improve the educational achievements of students and therefore make it more difficult for American businesses to official opposes a compete moderate "Notwithstanding employers' over I increasing dependence on individual competence in order to remain com- Republicans. petitive. students, parents and teachers 30 will not be able to point to a reward for learning If employers are for all practi- cal purposes precluded from even m- ership was approved by the House H quiring about degree status, much loss June 5 by 1 margin that was 17 votes rewarding academic achievement, short of what would be required to Mr. Kemp wrote in the letter, I copy of override a Presidential veta. 9H Democratic leaders in the Benate are which was provided by an Administra. tion official on the promise of anonymi- reluctant to bring that measure to a vote, and are hoping that a compre- Я ty. miss could be worked out that would First Benior Opposition secure White House support. Mr. Kemp's letter marks the first Backers of the civil rights bill are I time any senior official within the Bush seeking to overturn a series of 1980 Su- Administration has voiced outright op- preme Court decisions that made it JI position to the compromise measures harder to sue and collect damages in drafted by Senator John c. Denforth, job discrimination cases. They are also Republican of Missouri. seeking to increase the financial penal- 04 It is not clear whether Mr. Kemp's use employers would pay if they are letter presaged a formal Administra- found to have discriminated Intention- cion announcement upposing Mr. Dan- ally against women. VI forth's measure or If It indicated a split Mr. Kemp's letter underscores the within the Administration over main philosophical difference between M whether to accept to Missouri Republi- supporters of both the Democrate' bill can's compromise. and Mr. Denforth's compromise and When asked about the Denforth pro- their opponents within the Administra- M posals two weeks ago, Mr. Bush was tion, including C. Boyden Gray, the non-committal, saying, "Our people White House counsel. are taking a hard look at them, More According to the letter, Mr. Kemp be 19 recently he said be had reservations laives that Federal employment law as about them. practiced during the last 20 years has The letter was the first time Mr. fallen out of step with the current do. Я Kemp has indicated his views on any mands of the economy. In 1971, the Bu- varaion of the civil rights legislation, preme Court that criteris for hiring and promotions Hks requiring & high # which has become embrolled in a de- bate over whether it would compel em- school diploma or 1 college degree players to adopt hiring and promotion must be directly relevent to the job to W quotes in order to avoid job discrimina. THE WHITE HOUSE WASHINGTON 6/17 TO: John Suncernal FROM: FRED McCLURE 7m Assistant to the President for Legislative Affairs FYI Comment Action attached is the Labor Policy association analysis compaisons. of Danforth with some 7red Special Memorandum MEMORANDUM June 6, 1991 91-121S TO: Key Federal Policy Makers RE: The Danforth Civil Rights Proposals As the House was taking up H.R. 1, the 1991 civil rights amendments, Senator Danforth along with eight other moderate Republicans introduced an alternative divided up into three separate bills. The Danforth bills-S. 1207, S. 1208 and S. 1209-represent the latest in a series of Republican attempts to reach consensus on civil rights. The other measures are the Administration's proposal (S. 611) and ones offered by Senator Simpson (S. 478) and Senator Dole (S. 472). Thus far, no Democratic Senator has introduced a civil rights bill. Enclosed are fact sheets providing our analysis of the three Danforth proposals. Labor Policy Association, Inc. 1015 Fifteenth Street. NW Washington, DC 20005 Telephone 202-789-8670 Fax 202-789-0064 SHEET June 6, 1991 91-121 S. 1207, Senator Danforth's Civil Rights Alternative Reversing Numerous Supreme Court Decisions On June 4, 1991, Senator Danforth introduced three proposed civil rights bills as substitutes for H.R. 1. His S. 1207 reverses several Supreme Court civil rights decisions and toughens Title VII. The controversial issues of disparate impact and damages are addressed separately by the other two bills. Patterson V. McLean Credit (Employment Contracts) Amends 42 USC Sec. 1981 to prohibit race discrimination beyond the formation or enforcement of an employment contract. Section 1981 thus would cover all terms and conditions of employment as well as on-the-job harassment. Both H.R. 1 and the Administration's bill reverse Patterson. Price Waterhouse V. Hopkins (Mixed Motive Cases) Like H.R. 1, S. 1207 establishes a violation if race, sex, etc., was a "motivating" factor in making an employment decision. If the respondent proves it would have taken the same action in the absence of discrimination, the court can grant declaratory and injunctive relief, unlimited attorney fees (the main aim of this provision) and costs. Unlike H.R. 1, the court could not award damages or order hiring or reinstatement. By definition, affirmative action uses race or sex as a "motivating factor" in employment decisions. Employers who use voluntary action or comply with Executive Order 11246 run the risk of having their actions declared illegal, enjoined, and paying attorney fees. S. 1207's language protecting affirmative action may protect only "court- ordered"-not voluntary-efforts. Martin V. Wilks (Finality of Consent Decrees) Establishes ground rules for challenges to consent decrees. No challenge would be allowed if, before entry of the decree, the person knew of the decree and had a reasonable opportunity to object, or was represented by someone else who adequately protected his rights. Lorance V. AT&T (Challenges to Seniority Systems) Allows plaintiffs to attack a seniority system not only when the system is adopted, but also when the individual becomes subject to the system or injured by its application. If the plaintiff alleges that the practice was adopted for an intentionally discriminatory purpose, then an unlawful employment practice occurs. Enactment of this language would mark a new era in American jurisprudence. It would make the plaintiff's allegation, rather than proof of the employer's intent, determinative of whether a violation has occurred. Labor Policy Association. Inc. 1015 F tteenth Street. NW Washington, DC 20005 Telephone 202-789-8670 Fax 202-789-0064 Expert Fees Like H.R.1, this section allows unlimited expert witness fees. The Administration bill limits such fees to $300 per day. Alternative Dispute Resolution Lifted from H.R. 1, this provision encourages alternative dispute resolution techniques to resolve disputes. The House Committee reports indicate that these alternative methods would not stop an individual who receives an unfavorable arbitration award from having a second bite at the apple through a Title VII suit. In place of lawsuits, the Administration's bill encourages alternative procedures, including binding arbitration that is "knowingly and voluntarily agreed to by the parties." Congressional Coverage While purportedly requiring Congress to live with the same rules it imposes on the private sector, in fact Congress will continue to act as judge in its own cases under S. 1207. The Administration bill, in contrast, would allow private suits to be filed in court against Congress. Effective Date The bill is effective on the date of enactment, but contains no language clarifying that it is not retroactive. Indeed, past Senate interpretations indicate that the changes would apply retroactively to any cases pending on the date of enactment. LPA FACT SHEET June 6, 1991 91-122 S. 1208, Senator Danforth's Disparate Impact/Business Necessity Civil Rights Alternative S. 1208 is the second of Sen. Danforth's three substitutes to H.R. 1. The bill addresses the standards used to litigate disparate impact (numbers-based statistical) discrimination cases against companies. At issue in the civil rights debate is whether statistics alone would be sufficient to get a disparate impact case into court, and how the employer's defense of "business necessity" against that statistical case would be defined. Disparate Impact Cases The Administration's bill allows a plaintiff to bring a statistical case by (1) alleging "bad" numbers, (2) requiring the plaintiff to point to the specific practice or practices that caused the bad numbers and (3) allowing the defendant to justify the challenged practice. "Grouping of Practices" Requiring the plaintiff to specify and prove which practices caused disparate impact individually was the majority appellate rule before Wards Cove. The Danforth bill would reverse this requirement. Danforth would not require a plaintiff to prove that each practice caused an impact. All a plaintiff has to do is "identify with particularity each practice that is responsible in whole or significant part for the disparate impact." Thus, all the plaintiff must do is list the employer's various practices (e.g., test, interview, education requirement, experience) and this minimal requirement for getting into court is met. The phrase-"in whole or significant part"-should not be construed to require a showing of causation. This language came out of last year's negotiations between Senator Hatch and the bill's proponents, and was included in the second Conference bill that was vetoed. The second Conference Report stated that a practice was assumed to satisfy this requirement unless the practice made only a "trivial or insubstantial contribution to the disparate impact." Under this definition, any practice with more than a trivial impact on minorities or women would have to go to trial and be justified by business necessity. The practical effect of S. 1208 would be as burdensome on employers as the present language of H.R. 1. Even more, the plaintiff can avoid this "listing" requirement by stating "after discovery" that the "elements of the employer's decisionmaking process are not capable of separation for analysis." This is a clear invitation to plaintiffs to file a lawsuit whenever a numerical imbalance is present in the workforce, and launch a burdensome process to see if a lawsuit should have been filed in the first place. Again, employers will be encouraged to have a balanced workforce to avoid this expense. Thus, the Danforth proposal has the same result as H.R. 1-it allows the plaintiff to attack a group of practices without having to show that any of the practices caused a disparate impact. A plaintiff could now get into court by simply alleging bad numbers and asserting that the listed Labor Policy Association, Inc. 1015 Fifteenth Street, NW, Washington, DC 20005 Telephone: 202 789-8670 practices, lumped together, were responsible for the bad numbers. Merely listing practices is a far cry from having to prove which specific practice caused a disparate impact. Business Necessity Definition At issue in the debate over business necessity is whether employers will be able to continue defending themselves against "bad" numbers by showing the disparity is caused by legitimate business reasons that are not a pretext for discrimination. Business Necessity-Nonselection Practices The Danforth bill has an excellent definition of business necessity for employment decisions not involving employment selection practices-"manifest relationship to a legitimate business objective of the employer." The problem is, can you think of many employment decisions that do not involve the selection of one person over another? Decisions regarding hiring, firing, promotion, demotion, layoff, reassignment, and relocation are all selection practices. Thus, enactment of this excellent language would be of no practical or legal consequence. Business Necessity-Selection Practices With respect to selection practices, the Danforth proposal does not "restore" pre- Wards Cove law and, contains the same problem as H.R. 1. It ties business necessity to "the requirements for effective job performance." This definition is different and stricter than Griggs and, more fundamentally, bars companies from explaining disparities with evidence of legitimate business objectives that are not being used as an excuse to discriminate. Companies are run, not on the basis of whether employees can perform jobs effectively, but on whether there is a job that makes economic sense to be performed. Enactment of this language would seriously undermine the ability that employers have under existing law, and would have under the Administration's bill, to rebut accusations of bad numbers with legitimate business reasons. Alternative Practices If an employer somehow meets the Danforth burden of proving business necessity, the plaintiff still can win by proving that a different practice or group of practices would serve the respondent as well and make more than a "negligible" difference in the impact. Like H.R. 1, the Danforth bill reverses the Supreme Court's Albemarle Paper decision, which treated such a showing as "evidence," rather than final proof, of discrimination. The Danforth bill also leaves out the Administration's requirement that the alternative be "comparable in cost" to the employer. Race Norming Danforth prohibits an employer, a private employment agency, or a state employment agency from using race, sex, etc., as a basis for adjusting, altering, or using different cutoff scores. The bill, however, states that this prohibition does not apply to a respondent seeking to comply with a court order aimed at remedying past discrimination. Thus, race norming could be used in a consent decree, court-approved settlement or in a court- ordered remedy after trial. Effective Date The bill contains no provision specifying an effective date, thus leaving open the question of retroactive application. Conclusion As explained above, S. 1208 may have different language than H.R. 1, but it is virtually indistinguishable in practical effect. Like the myriad "compromises" that preceded it, S. 1208 merely rewords H.R. 1 while leaving intact its underlying intent. FACT SHEET June 6, 1991 91-123 S. 1209, Senator Danforth's Civil Rights Alternative On Damages and Penalties In addition to back pay, the Danforth bill proposes a total of $300,000 per plaintiff for nonpecuniary damages and penalties for companies with 100 or more employees, and $100,000 per plaintiff for those with less. No limit is placed on damages for pecuniary losses which means the sum total of damages and penalties could be substantially higher than $300,000. These provisions would apply to discrimination cases under Title VII of the Civil Rights Act and the Americans with Disabilities Act (ADA). The Administration, in contrast, proposes a single equitable remedy-no more than $150,000 in addition to back pay and limited to Tile VII harassment cases. Compensatory Damages As under H.R. 1, all victims of any intentional ADA or Title VII discrimination would be provided a jury trial to receive compensatory damages. The standard of proof would be clear and convincing evidence. The jury would decide both factual liability issues and the amount of damages. Like H.R. 1, persons eligible for these damages would include class members in purely statistical (pattern or practice) cases alleging intentional discrimination. Compensatory damages could be given not only for pecuniary loses, but also for nonpecuniary losses such as "emotional pain, suffering, inconvenience, mental anguish, loss of enjoyment of life, and other nonpecuniary losses." Limitations on Compensatory Damages Awards Compensatory damages would be in addition to back pay. Up to $150,000 in nonpecuniary losses per plaintiff could be awarded against employers with more than 100 employees, and smaller employers could be made to pay up to $50,000 per plaintiff. The bill contains no limitation for compensatory damages for pecuniary losses. In deciding the amount of damages, the bill bars the court from informing the jury of these limitations. Equitable Penalty S. 1209 also provides a penalty that can be assessed in addition to compensatory damages. Senator Danforth stated that "like punitive damages," this penalty is intended to exact a price for wrong conduct and to discourage such conduct by others. Like H.R. 1, the penalty is awarded if the employer has acted "with malice or reckless indifference to the federally protected rights of an aggrieved individual." Note that this could apply to rights beyond Title VII, such as the ADEA, IRCA, OSHA, or FLSA. The same caps apply as with compensatory damages-$150,000 per plaintiff for companies with 100 employees or more, $50,000 per plaintiff for those with less. The award must be sufficient to deter the employer from similar future acts. A number of equitable factors would be considered including: the nature of the offense; employer EEO training; affirmative action efforts; available internal grievance procedures; employer investigation; and the size of the employer. Labor Policy Association, Inc. 1015 Fifteenth Street, NW Washington, DC 20005 Telephone 202-789-8670 Fax 202-789-0064 Penalty Uses The plaintiff would not receive any of the penalty award. The court could spend it on measures to correct the company's discriminatory practices, such as public awareness and education programs. Or the court can put all or part of the award into a federally-administered trust fund used carry out the purposes of Title VII or the Family Violence Prevention and Services Act (but not apparently the ADA). Effective Date There is no effective date in S. 1209, thus leaving for litigation the question of whether it applies retroactively. DEFINITION OF BUSINESS NECESSITY OPTION A The term "required by business necessity" means-- (1) in the case of employment practices that are used to measure ability to do the job, the challenged practice must bear a manifest relationship to the employment in question. (2) in the case of employment practices not described in (1) above, the challenged practice must bear a manifest relationship to a legitimate business objective of the employer. The term "employment in question" includes, but is not limited to-- (1) the performance of actual work activities required by the employer for a job or class jobs; and (2) any requirement related to work behavior that is important to the performance of the job, but may not comprise actual work activities. OPTION B The term "required by business necessity" means-- the challenged practice must bear a manifest relationship to the employment in question. (1) in the case of employment practices used to measure ability to do the job, the term "employment in question" means job performance. (2) in the case of employment practices not described in paragraph (1), the term "employment in question" means a legitimate business objective of the employer. The term "job performance" includes, but is not limited to-- (1) the performance of actual work activities required by the employer for a job or class of jobs; and (2) any requirement related to work behavior that is important to the performance of the job, but may not comprise actual work activities. 06/25/1991 15:21 FROM OFFICE of the CHAIRMAN TO 94562397 P.01 WASHINGTON, D.C. 20307 OFFICE or THE CHAIRMAN TELECOPIER TRANSMITTAL SHEET DATE: June 25, 1991 TIME: 4:25 D.D. NUMBER OF PAGES + COVER SHEET 3 TO : Governor John H. Sununu OFFICE : Chief of Staff to the President ROOM : REMARKS : See circle for how far we have gone toward preferences (and/or confusion) in our society. FROM : Evan J. Kemp, Jr., Chairman OFFICE : OFFICE OF THE CHAIRMAN PHONE NUMBER : 663-4001 FAX NUMBER : 663-4110 CONFIRMATION REQUESTED? YES XXX NO IMMEDIATE DELIVERY REQUESTED? YES XXX NO IF THERE IS A PROBLEM WITH THIS TRANSMISSION, PLEASE CALL Debra AT 663-4001 . 06/25/1991 15:21 FROM OFFICE of the CHAIRMAN TO 94562397 P.02 cent women in the corps and less than 2 percent at the senior officer grades. According to former female FSOS, most of the women who were employed by the Foreign Service were secretaries or wives of male officers, and the few women FSOS who remained were treated like secretaries and assigned to administrative, clerical, desk, and support duties "appropriate to women's nur- turing instincts," as one woman was told. In FSO par- lance, males were more often rated higher and given "stretch" (above their grade level of experience) as- NEW THE REPUBLIC signments while women were given "downstretch." 0 counter both overt and subtle forms of dis- T crimination, roughly two dozen FSQ women JULY 1, 1991 banded together in 1970 to form the Women's Action Organization. WAO worked through de- partmental task forces and ad hoc committees to lobby for changes. By 1974 State had finally removed the ban on marriage and began to train more women for senior-level positions, to discourage women who were contemplating resignation, and to reinstate many who had been forced to resign because of marriage. This increased the number of women FSO generalists from 149 to 234. But WAO believed the pace of change was too slow to ever bring about its goal of 50 percent rep- resentation of women in the Foreign Service. So in 1976 nine members filed a sex discrimination suit that Quotas in the State Department. challenged virtually all of the hiring, assignment, evalu- ation, and promotion practices of the FSO. The suit took nine years to come to trial. In the meantime the State Department, concerned with bad publicity and the chance that it would lose control of GENDER NORMING its hiring and personnel, launched a systematic drive to recruit women through women's colleges, independent women's groups like the League of Women Voters, and advertising in women's magazines such as Cosmopolitan, Woman's World, and Ms. The female registration rate By James Workman rose to 30 percent within three years of the lawsuit. But inevitably the pool of women applicants so recruited y now you probably never want to read the word was dramatically different from the men and women B quota again. You've heard of race norming. the who applied on their own. According to Educational Labor Department practice of adjusting minor- Testing Service records, before the lawsuit most of the ities' test scores to enhance their chances of successful female applicants held graduate degrees in getting jobs over whites. But you may not have heard of international studies, political science, philosophy, lin- the newest play on this debate: gender norming. Once guistics, or government. More of the women now apply- again, it takes place under the very auspices of those ing have undergraduate degrees in fields like English, who would claim to spurn it: in the Reagan and Bush art history, and literature. administrations' State Department. Women are getting As a result, a lower percentage of female applicants a significant advantage over men in the testing, hiring, were passing the grueling Foreign Service exam than and assignment of Foreign Service Officers. before the recruiting effort began. The State Depart- For decades the State Department engaged in what ment also began exhibiting more concern about its mi- would now be rightly considered outrageous and un- nority applicants, who were passing at a rate of only conscionable discrimination against women. Until the 7 percent, as opposed to the non-minority pass rate of mid-1970s female foreign service officers had to resign 15 percent. So State began to tinker with the exam when they got married. Because the job was considered itself. Since the 1940s there had been five parts to the masculine, few women bothered to apply for it anyway: application process: an English Expression test of read- each year less than 7 percent of the successful appli- ing comprehension, grammar. usage. and communica- cants were women. Because of the marriage policy, tion skills; a three-hour General Background test of among other reasons, many women dropped out dur- broad knowledge of world history, geography, culture. ing the course of their careers, which left only 4.7 per- politics, and physics; and a Functional Field test indi- 16 THE NEW REPUBLIC JULY 1, 1991 06/25/1991 15:22 FROM OFFICE of the CHAIRMAN TO 94562397 P.03 cating which job track, or "cone," best suited the indi- tween the scores of men and women. Although State vidual's strengths: administrative, consular, economic, had passed 498 women who fell into the near-pass cate- or political. These were followed by a foreign language gory after the 1985, 1986, and 1987 exams, women aptitude test. The cut-off score was 70. Applicants who were still not scoring as high as men. This is not unusu- passed went on to an oral assessment stage. The pro- al in standardized testing: from LSATS to MCATs to col- cess winnowed more than 15,000 applicants to an elite lege boards, women statistically score lower than men. group of 250 appointees. Nevertheless, Wald ruled that the State Department Because exam records showed the foreign language had to come up with a process that would advance an test hurt the chances of minority applicants, by the late equal proportion of women through each stage of the 1960s it was eliminated. But that change, in turn, hurt program, from the written exam up through assign- female applicants in general, who typically passed the ments, performance evaluations, and, eventually, pro- foreign language test at a higher rate than men. To motions. compensate, in 1977 the department began to weight The problem for the State Department and the lower the English test (in which women performed better court was how to do this without resorting to legally than men) disproportionately over the Background, questionable quotas. In January 1989 a two-part solu- 60 percent to 40. But that subsequently hurt minority tion was reached by Judge Aubrey Robinson. who or- males, who were weaker than other populations in En- dered that for the 1985-87 exams, the Department glish skills. So in 1979 the department created a "near must disregard the General Background and Function- pass" category for minority applicants. This meant that al Field sections and pass applicants only according to the passing score of 70 no longer applied to minorities English Expression scores. who, according to testing personnel, have been passed with scores in the mid-50s. n addition, the scoring on future exams would be The disproportionate weighting of the English test still wasn't passing the right number of women, so the I dramatically adjusted. Whereas in the past the de- partment administratively decided that women department began to alter test questions. ETS began to with raw exam scores a few points lower than men recycle questions on which women did better than would be passed through to the next stage, now the men, according to a 1981 progress report compiled by department has simply substituted percentile scores- ETS and State. In a partial settlement with WAO in 1983, separately computed for men and women-for raw the pressure to gender norm came to a head. State scores. In the words of the document explaining this agreed to implement the same "near pass" mechanism (which had to be obtained from an unofficial source for selection of women as it had with minorities. Wom- after the court and both parties to the lawsuit balked at en who scored 1 to 4 points below the passing score providing it), the State Department decided to "devise were waved through to the next stage, thereby ensuring scoring procedures which will ensure no disparate im- that equal proportions of male and female applicants pact on women before the initial scoring of the examina- would pass. tion." (Emphasis mine.) The department does this by creating separate rank order lists based on raw examination n 1985. meanwhile, the lawsuit finally came to trial. scores for men and women. An equal percentage of males I The plaintiffs initially argued that female FSOS were and females would be identified from each rank order list individually discriminated against. For example, as test passers. Candidates who have thus passed the written examination will receive a percentile score derived from one of the women who testified failed the written their position on their own rank order list. This will mean examination on eight occasions between 1962 and 1977. that the highest scoring man and the highest scoring wom- She eventually passed the written exam, only to fail the an will each receive the same percentile score, as will any oral stages in 1978, 1980. and 1981. This could mean she pair of men and women who hold the same relative posi- tion on their own rank order list. was discriminated against, but it could also mean that though this woman was admirably determined, she was, The numbers have been made equal, in other words, like roughly 14,750 other applicants each year, just not but what they measure has not. This is classic "norm- as good as the top 250 who made the cut. ing," and the difference between it and a simple quota After months of trial hearings, District Court Judge is a question for semanticists or theologians, not ordi- John Lewis Smith II, on September 13, 1985. found no nary mortals. evidence of personal discrimination, and ruled for the Nobody knows what effect, if any, all this will have on State Department on every major count. The plaintiffs the quality of the Foreign Service. But the new dispen- immediately appealed. brought the case before a U.S. sation means that nowadays a person (male or female) Court of Appeals panel. and shifted their focus from can be appointed to the most prestigious international individual discrimination to the correction of statistical branch of the U.S. government career service regard- imbalances. On March 24, 1987, Judge Patricia Wald, less of his or her ability to answer written questions widely considered the federal court system's leading about foreign policy. as long as he or she knows where liberal, overturned Smith's ruling. Despite all the pro- to place a semicolon. Old prejudices and injustices cedural efforts State had made over the last decade, have indeed been overcome, but women FSOS may now Wald based her decision almost entirely on the final have to face a new prejudice, an assumption that they outcomes, finding that discrepancies still existed be- are less qualified than their male colleagues. 18 THE NEW REPUBLIC JULY 1, 1991 SENT BY:Xerox Telecopier 7020 6-28-91 17:52 2024566221-> LEGISLATIVE AFFAIRS:# 1 Hnited States Senate copy photo June 28, 1991 The White House 1600 Pennsylvania Ave. N.W. Washington D.C. Dear Mr. President: We are writing to express our deep concern about reports in today's media implying that our colleague, senator Jack Denforth, did not Aub in good faith with regard to M recent proposal on civil rights legislation offered by Administration officials. An members of the working group of Senators trying to craft a compromise civil rights measure, we want to clarify the apparent misunderstanding regarding the Administration proposal on the "business necessity" standard, We considered the proposal and as a group agreed to take it to the Democrate for review (and hopefully for their approval), and then reanalyze the situation in light of their comments. At no time during this process did we have an agreement to accept the White House language. There can be no question that Jack Danforth is a man of the highest personal integrity. It distresses us to see what appears to be a miscommunication erroneously cast in terms of Senator Danforth's personal integrity. We would hope that this uncalled for challenge to our colleague's integrity will not affect the prospects for compromise legislation. We want to give you our personal assurances that each of the nine Republicans involved in these discussions has been operating in good faith, and that our common goal is and always has been to find a means to the end we know you desire: the enactment of & fair and aquitable civil rights bill, We stand ready to discuss this matter with you at any time. Sincerely, John 1+Chafee Waryen Rusman Date Demenici Arlen Specier Mark 0. Hatfield Dave Durenberger William Cohen (1) in the capahly? case of employment practices used to measure job qualifications or ability to do the job, the term "employment in question" means job performance. (2) in the case of employment practices not described in paragraph (1), the term "employment in question" means a legitimate business objective of the employer. The term "job performance" includes-- (1) the performance of actual work activities required by the employer for a job or class of jobs; and (2) any requirement related to work behavior that is important to the performance of the job, but may not comprise actual work activities. PROPOSAL SENT TO DOJ 6/24 DANFORTH PROPOSAL The term "required by business necessity" means-- (1) in the case of employment practices primarily measuring qualifications for or ability to do the job, the challenged practice must bear a manifest relationship to the requirements for effective job performance. (2) in the case of employment practices not described in (1) above, the challenged practice must bear a manifest relationship to a legitimate business objective of the employer. DOLE STAFF RECOMMENDATION (comot arcent become of subsective standard The term "required by business necessity" means-- (1) in the case of practices that are used by the employer because they are relevant to job performance, the challenged practice must bear a manifest relationship to the requirements for effective job performance. (2) in the case of employment practices not described in (1) above, the challenged practice must bear a manifest relationship to a legitimate business objective of the employer. DOLE STAFF RECOMMENDATION MODIFIED The term "required by business necessity" means- (1) in the case of practices that are used as conditions of employment in or transfer to jobs, the challenged practice must bear a manifest relationship to the requirements for effective job performance. (2) in the case of employment practices not described in (1) above, the challenged practice must bear a manifest relationship to a legitimate business objective of the employer. DEFINITION OF BUSINESS NECESSITY LANGUAGE OF S. 1208 The term "required by business necessity" means-- (1) in the case of employment practices involving selection, that the practice or group of practices bears a manifest relationship to the requirements for effective job performance; and (2) in the case of other employment decisions not involving employment selection practices as described in paragraph (1), the practice or group of practices bears a manifest relationship to a legitimate business objective of the employer. The term "requirements for effective job performance" includes-- (1) the ability to perform competently the actual work activities lawfully required by the employer for an employment position; and (2) any other lawful requirement, that is important to the performance of the job, including, but not limited to, factors such as punctuality, attendance, a willingness to avoid engaging in misconduct or insubordination, not having a work history demonstrating unreasonable job turnover, and not engaging in conduct or activity that improperly interferes with the performance of work by others. to measure ability todo thejob, perform. OPTION A The term "required by business necessity" means-- (1) in the case of employment practices that are used as conditions of employment in or transfer to jobs, the 6 challenged practice must bear a manifest relationship to the take employment in question. (2) in the case of employment practices not described in (1) above, the challenged practice must bear a manifest relationship to a legitimate business objective of the employer. but mothinited to The term "employment in question" includes--- (1) the performance of actual work activities required by the employer for a job or class of jobs; and (2) any requirement related to work behavior that is important to the performance of the job, but may not comprise actual work activities. OPTION B The term "required by business necessity" means-- the challenged practice must bear a manifest relationship to the employment in question. Withdrawal/Redaction Sheet (George Bush Library) Document No. Subject/Title of Document Date Restriction Class. and Type 03. Memo From Frederick McClure to John Sununu 6/27/91 P-5 Re: Danforth Press Conference (1 pp.) Collection: Record Group: Bush Presidential Records Office: Chief of Staff, White House Office of Series: Sununu, John, Files Subseries: Issues Files Open on Expiration of PRA WHORM Cat.: (Document Follows) By File Location: Civil Rights (2 of 2) 1991 [2] JP (NLGB) on 10/28/0 Date Closed: 1/3/2005 OA/ID Number: 29146-008 FOIA/SYS Case #: 1998-0004-F[2] Appeal Case #: Re-review Case #: 2005-0426-S Appeal Disposition: P-2/P-5 Review Case #: Disposition Date: AR Case #: MR Case #: AR Disposition: MR Disposition: AR Disposition Date: MR Disposition Date: RESTRICTION CODES Presidential Records Act - [44 U.S.C. 2204(a)] Freedom of Information Act - [5 U.S.C. 552(b)] P-1 National Security Classified Information [(a)(1) of the PRA] (b)(1) National security classified information [(b)(1) of the FOIA] P-2 Relating to the appointment to Federal office [(a)(2) of the PRA] (b)(2) Release would disclose internal personnel rules and practices of an P-3 Release would violate a Federal statute [(a)(3) of the PRA] agency [(b)(2) of the FOIA] P-4 Release would disclose trade secrets or confidential commercial or (b)(3) Release would violate a Federal statute [(b)(3) of the FOIA] financial information [(a)(4) of the PRA] (b)(4) Release would disclose trade secrets or confidential or financial P-5 Release would disclose confidential advice between the President information [(b)(4) of the FOIA] and his advisors, or between such advisors [a)(5) of the PRA] (b)(6) Release would constitute a clearly unwarranted invasion of P-6 Release would constitute a clearly unwarranted invasion of personal privacy [(b)(6) of the FOIA] personal privacy [(a)(6) of the PRA] (b)(7) Release would disclose information compiled for law enforcement purposes [(b)(7) of the FOIA] C. Closed in accordance with restrictions contained in donor's deed. of (b)(8) Release would disclose information concerning the regulation of gift. financial institutions [(b)(8) of the FOIA] (b)(9) Release would disclose geological or geophysical information P.RM. Removed as a personal record misfile THE WHITE HOUSEY HAS SEEN WASHINGTON Sand , Bayden June 27, 1991 MEMORANDUM TO GOVERNOR SUNUNU THE CHIEF of STAFF FROM: Shawn Smeallie Alpan Small has seen THROUGH: Fred McClure 1m SUBJECT: Danforth Press Conference At 4:30pm today, Senator Danforth announced that he will introduce legislation that will make 22 changes to his original bills that the Administration requested. It also includes a modification to your language on business necessity. He said that he felt compelled to introduce legislation since the Administration said that there "was no further room for negotiation." Danforth is the only cosponsor thus far. He said that Senators Rudman and Domenici are not expected to cosponsor because they want to continue to negotiate with the Administration. Danforth stressed, however, that he and the original eight cosponsors are still unified in purpose. (Danforth was asked whether you really wanted a civil rights bill, to which he replied he believed you did. He also denied charges that he reneged on agreeing to your language.) Danforth sought me out after the press conference to tell me that if you accepted his changes to your "business necessity" language, he promises to keep the language intact until it reaches the President's desk. CHANGES MADE AT THE REQUEST OF THE ADMINISTRATION June 27, 1991 1. S. 1207, the Civil Rights Restoration Act of 1991. a. The Administration expressed concern that attorney's fees granted by this bill for mixed motive cases (Price Waterhouse cases) would not be limited to the attorney's work performed on the mixed motive case. 4 The concern was that the attorney would always plead a mixed motive claim along with numerous other claims and attempt to recover fees for work done on the other claims as well as the Price Waterhouse claim. RESPONSE: Cosponsors inserted language that ensures that attorneys receive fees "directly attributable only to the pursuit of a claim under this section.' b. The Administration expressed concern about the bifurcation of the rule governing challenges to consent decrees or court-ordered remedies. RESPONSE: Instead of applying different rules, cosponsors agreed to apply the same rules to all consent decrees or court-ordered remedies. C. The Administration was concerned about retroactive application of the Martin V. Wilks section. RESPONSE: Cosponsors made the section in question prospective. d. The Administration wanted technical corrections in the section of the legislation concerning Lorance V. AT&T Technologies. RESPONSE: Cosponsors made the technical corrections. e. The Administration believed that the provision concerning affirmative action was too broad. RESPONSE: Cosponsors narrowed the provision. 2. S. 1208, the Equal Employment Opportunity Act of 1991 a. The Administration believed that the purposes section was unclear and too broad. RESPONSE: Cosponsors clarified it. b. The Administration stronglytmphasized the need to use the term "cause" to describe the plaintiff's burden in a disparate impact case. RESPONSE: Cosponsors adopted the term "cause." C. The Administration was disturbed by the phrase "after discovery" in describing the plaintiff's burden in a disparate impact suit. RESPONSE: Cosponsors removed the term "after discovery." d. The Administration was concerned about a clause they viewed as ambiguous with regard to when a defendant may use the defense of "business necessity." RESPONSE: Cosponsors clarified that the defense was not available in intentional discrimination suits. e. The Administration requested the deletion of a clause concerning statistical imbalances in the racial makeup of an employer's workforce. RESPONSE: Cosponsors deleted the clause. f. The Administration requested the deletion of a "comparable worth" construction clause. RESPONSE: Cosponsors deleted the clause. g. The Administration requested deletion of the subsection concerning court-ordered race-norming. RESPONSE: Cosponsors deleted subsection in question. h. The Administration requested use of the phrase "manifest relationship to the employment in question" in the definition of "business necessity." definition. RESPONSE: Cosponsors incorporated that phrase in the bill's i. The Administration was concerned about the potential breadth of the term "selection" in the definition of "business necessity." RESPONSE: Cosponsors deleted this term and replaced it with a narrower description of employment practices. j. The Administration was concerned that employers would lack discretion in making its own hiring decisions. RESPONSE: Cosponsors attempted to clarify that employers have discretion in choosing their employees. k. The Administration believed that certain sections of the bill would be misconstrued as circular. RESPONSE: Cosponsors deleted terms of concern. 1. The Administration preferred conceptual descriptions (rather than lists of examples) in the definition of "business necessity." RESPONSE: Cosponsors deleted lists and used language designed to describe the concepts. m. The Administration requested deletion of construction misconstruction. clauses that it viewed as superfluous and subject to RESPONSE: Cosponsors deleted the construction clauses in question. n. The Administration requested that liability not be automatically assessed against an employer who did not know about an alternative employment practice which has a less disparate impact upon a protected group than the employer's practice. RESPONSE: Cosponsors adopted the Administration's position on alternative practices. 3. S. 1209, the Civil Rights and Remedies Act of 1991. a. 4 The Administration requested a limit on damages for "reasonable accommodation" cases under the Americans with Disabilities Act. RESPONSE: Cosponsors developed a "good faith" exception for such cases. b. The Administration requested a cap on future pecuniary damages. RESPONSE: Cosponsors adopted such a cap. C. The Administration requested a lowering of caps on compensatory and punitive damages. RESPONSE: Cosponsors accommodated request by lowering caps, and creating three tiers of damages for varying sizes of businesses. DEFINITIONS OF BUSINESS NECESSITY LANGUAGE OF S. 1208 The term "required by business necessity" means-- (1) in the case of employment practices involving selection, that the practice or group of practices bears a manifest relationship to the requirements for effective job performance; and (2) in the case of other employment decisions not involving employment selection practices as described in paragraph (1), the practice or group of practices bears a . manifest relationship to a legitimate business objective of the employer. The term "requirements for effective job performance" includes-- (1) the ability to perform competently the actual work activities lawfully required by the employer for an employment position; and (2) any other lawful requirement, that is important to the performance of the job, including, but not limited to, factors such as punctuality, attendance, a willingness to avoid engaging in misconduct or insubordination, not having a work history demonstrating unreasonable job turnover, and not engaging in conduct or activity that improperly interferes with the performance of work by others. OPTION 1 The term "required by business necessity" means-- (1) in the case of employment practices primarily measuring qualifications for or ability to do the job, the challenged practice must bear a manifest relationship to the requirements for effective job performance. (2) in the case of employment practices not described in (1) above, the challenged practice must bear a manifest relationship to a legitimate business objective of the employer. The term "employment in question" includes-- (1) the performance of actual work activities required by the employer for a job or job family; and (2) any requirement related to work behavior that is important to the performance of the job, but may not comprise actual work activities. OPTION 2 The term "required by business necessity" means-- (1) in the case of practices that are used as conditions of employment in or transfer to jobs, the challenged practice must bear a manifest relationship to the requirements for effective job performance. (2) in the case of employment practices not described in (1) above, the challenged practice must bear a manifest relationship employer. to a legitimate business objective of the OPTION 3 The term "required by business necessity" means- (1) in the case of practices that are used as conditions of employment in or transfer to jobs, the challenged practice must bear a demonstrable relationship to successful performance of the jobs for which it was used. (2) in the case of employment practices not described in (1) above, the challenged practice must bear a manifest employer. relationship to a legitimate business objective of the OPTION 4 The term "required by business necessity" means-- (1) in the case of employment practices that are used as conditions of employment in or transfer to jobs, the challenged practice must bear a manifest relationship to the employment in question. (2) in the case of employment practices not described in (1) above, the challenged practice must bear a manifest employer. relationship to a legitimate business objective of the The term "employment in question" includes-- (1) the performance of actual work activities required by the employer for a job or class of jobs; and (2) any requirement related to work behavior that is important to the performance of the job, but may not comprise actual work activities. OPTION 5 The term "required by business necessity" means the challenged practice must bear a manifest relationship to the employment in question. (1) in the case of employment practices used to measure job qualifications or ability to do the job, the term "employment in question" means job performance. (2) in the case of employment practices not described in paragraph (1), the term "employment in question" means a legitimate business objective of the employer. The term "job performance" includes- (1) the performance of actual work activities required by the employer for a job or class of jobs; and (2) any requirement related to work behavior that is important to the performance of the job, but may not comprise actual work activities. SUNUNU PROPOSAL The term "required by business necessity" means (1) in the case of employment practices that are used to measure the ability to perform the job, the challenged practice must bear a manifest relationship to the employment in question. (2) in the case of employment practices not described in (1) above, the challenged practice must bear a manifest relationship to a legitimate business objective of the employer. The term "employment in question" includes, but is not limited to-- (1) the performance of actual work activities required by the employer for a job or class of jobs; and (2) any requirement related to work behavior that is important to the performance of the job, but may not comprise actual work activities. SUNUNU PROPOSAL WITH SUGGESTED DANFORTH CHANGES The term "required by business necessity" means-- (1) in the case of employment practices that are used as job qualifications or used to measure the ability to perform the job the challenged practice must bear a manifest relationship to the employment in question. (2) in the case of employment practices not described in (1) above, the challenged practice must bear a manifest relationship to a legitimate business objective of the employer. The term "employment in question" means includes, but is not limited to -- (1) the performance of actual work activities required by the employer for a job or class of jobs; or and (2) any requirement related to work behavior that is important to the performance of the job, but may not comprise actual work activities. SEN. DANFORTH 2 1 109 S. Ct. 2115 (1989) has weakened the scope and effec- 2 tiveness of Federal civil rights protections. 3 (b) PURPOSES.-The purposes of this Act are- from tendens the theamings 4 (1) to overrule the treatment of business neces- 5 sity as a defense in Wards Cove Packing Co. V. proof bindens and the 6 Atonio and to codify the meaning of business neces- 7 sity used in Griggs V. Duke Power Co., 401. U.S. 8 424 (1971), and 9 (2) to provide statutory authority and guide- 10 lines for the adjudication of disparate impact suits 11 under title VII of the Civil Rights Act of 1964 (42 12 U.S.C. 2000e et seq.). 13 SEC. 3. BURDEN OF PROOF IN DISPARATE IMPACT CASES. 14 (a) IN GENERAL-Section 703 of the Civil Rights 15 Act of 1964 (42 U.S.C. 2000e-2) is amended by adding 16 at the end the following new subsection: 17 "(k)(1)(A) An unlawful employment practice based wm 18 on disparate impact is established under this title only if- narrow 19 "(i) a complaining party demonstrates that a 20 particular employment practice or group of employ- 21 ment practices results in a disparate impact on the 22 basis of race, color, religion, sex, or national origin; 23 and SEN. DANFORTH 2 1 109 S. Ct. 2115 (1989) has weakened the scope and effec- 2 tiveness of Federal civil rights protections. 3 (b) PURPOSES.-The purposes of this Act are Producture proof 4 (1) to overrule the "treatment of business neces- 5 sity as a defense in Wards Cove Packing Co. V. bindens 6 Atonio and to codify the meaning of business neces- 7 sity used in Griggs V. Duke Power Co., 401. U.S. 8 424 (1971), and 9 (2) to provide statutory authority and guide- 10 lines for the adjudication of disparate impact suits 11 under title VII of the Civil Rights Act of 1964 (42 12 U.S.C. 2000e et seq.). 13 SEC. 3. BURDEN OF PROOF IN DISPARATE IMPACT CASES. 14 (a) IN GENERAL-Section 703 of the Civil Rights 15 Act of 1964 (42 U.S.C. 2000e-2) is amended by adding 16 at the end the following new subsection: "ongit 17 "(k)(1)(A) An unlawful employment practice based Em 18 on disparate impact is established under this title only if- namow 19 "(i) a complaining party demonstrates that a 20 particular employment practice or group of employ- 21 ment practices results in a disparate impact on the 22 basis of race, color, religion, sex, or national origin; 23 and 2 1 109 S. Ct. 2115 (1989) has weakened the scope and effec- 2 tiveness of Federal civil rights protections. 3 (b) PURPOSES.-The purposes of this Act are- - from turreno the hearings 4 (1) to overrule the treatment of business neces- 5 sity as a defense in Wards Cove Packing Co. V. proof bindens and 6 Atonio and to codify the meaning of business neces- 7 sity used in Griggs V. Duke Power Co., 401. U.S. 8 424 (1971), and 9 (2) to provide statutory authority and guide- 10 lines for the adjudication of disparate impact suits 11 under title VII of the Civil Rights Act of 1964 (42 12 U.S.C. 2000e et seq.). 13 SEC. 3. BURDEN OF PROOF IN DISPARATE IMPACT CASES. 14 (a) IN GENERAL-Section 703 of the Civil Rights 15 Act of 1964 (42 U.S.C. 2000e-2) is amended by adding 16 at the end the following new subsection: "ong"t 17 "(k)(1)(A) An unlawful employment practice based WM 18 on disparate impact is established under this title only if- namow 19 "(i) a complaining party demonstrates that a 20 particular employment practice or group of employ- 21 ment practices results in a disparate impact on the 22 basis of race, color, religion, sex, or national origin; 23 and DANFORTH Lairto say 95% will be taken cam of "Measure ability to perform the job" 3 Hypotheticals 1) H.S. Diplane 2) Local residence 3). Single women Kennedy claims that none of those fall within (1) (2) :- business could how any Adreason to justify them 11 Suggest replace 11 "means" In VD. includes but not butd to I alt suggest Instand of all bus. me. To Cong Hyde 226-1240 DEFINITION OF BUSINESS NECESSITY OPTION A The term "required by business necessity" means-- (1) in the case of employment practices that are used to measure ability to perform the job, the challenged practice must bear a manifest relationship to the employment in question. (2) in the case of employment practices not described in (1) above, the challenged practice must bear a manifest relationship to a legitimate business objective of the employer. The term "employment in question" includes, but is not limited to-- (1) the performance of actual work activities required by the employer for a job or class jobs; and (2) any requirement related to work behavior that is important to the performance of the job, but may not comprise actual work activities. 06/25/91 11:05 SENATE TELECOMM DEPT 002 June 24, 1991 MEMORANDUM TO: SENATOR DOLE FROM: DENNIS SHEA SUBJECT: CIVIL RIGHTS -- UPDATE Attached for your review are 1) the Hyde-Goodling letter to Senator Danforth, and 2) a letter from Evan Kemp to John Sununu. Hyde-Goodling Letter The Hyde-Goodling letter criticizes the Danforth bill on the following issues: 1) business necessity, 2) particularity, 3) jury trials, 4) damages, 5) Price Waterhouse, and 6) Martin V. Wilks. All of these concerns remain despite the apparent changes to the original Danforth bill. The Hyde-Goodling letter also criticizes the exception to the ban on race-norming contained in the original Danforth bill. Although Danforth has apparently deleted this exception, staff for Hyde and Goodling wanted to express in writing their objection to the race-norming exception. Hyde and Goodling expect to send their letter to Senator Danforth "first thing" tomorrow morning. Evan Kemp Letter Evan Kemp's letter to John Sununu bluntly states that Danforth's non-Griggs definition of "business necessity" would lead to quotas and would undermine the President's Education Strategy. The Kemp letter is very strongly worded, and in fact, suggests that the Griggs decision should be reversed, not restored. Meetings It is my understanding that there will be a White House meeting tomorrow at 11:00 a.m. with Senator Danforth, John Sununu, and Attorney General Thornburgh. It is also my understanding that Danforth will be meeting with his Republican co-sponsors and with the Democrats (Kennedy, Bumpers, and Boren) at 4:30 tomorrow afternoon. If Danforth runs into a brick-wall during his meeting with Thornburgh and Sununu, he may use the 4:30 meeting to wrap everything up, saying that he tried to negotiate with the Administration but that the Administration was recalcitrant. 06/25/91 11:05 SENATE TELECOMM DEPT 003 Another Business Necessity Compromise I would like to suggest another compromise definition of "business necessity," which deletes the word "designed" from your June 19th proposal to Danforth and inserts the word "used." The revised compromise would read as follows: 1) In the case of employment practices primarily used to measure the ability to do the job, the challenged practice must be related to job performance. 2) In the case of employment decisions not described in (1) above, the challenged practice must bear a manifest relationship to a legitimate business objective of the employer. It appears that Danforth has conceded that the inclusion of the word "used" in the business necessity definition is acceptable. His "DOLE STAFF RECOMMENDATION MODIFIED," which he wanted the White House to review today, reads as follows: 1) in the case of employment practices that are used as conditions of employment in or transfer to jobs, the challenged practice must bear a manifest relationship to the requirements for effective job performance." It appears that Danforth cannot complain about the word "used." He's adopted it himself. I have forwarded the revised compromise definition to the White House. Perhaps Sununu could raise it with Danforth at the 11:00 meeting. DEFINITION OF BUSINESS NECESSITY LANGUAGE OF S. 1208 The term "required by business necessity" means-- (1) in the case of employment practices involving selection, that the practice or group of practices bears a manifest relationship to the requirements for effective job performance; and (2) in the case of other employment decisions not involving employment selection practices as described in paragraph (1), the practice or group of practices bears a manifest relationship to a legitimate business objective of the employer. The term "requirements for effective job performance" includes-- (1) the ability to perform competently the actual work activities lawfully required by the employer for an employment position; and (2) any other lawful requirement, that is important to the performance of the job, including, but not limited to, factors such as punctuality, attendance, a willingness to avoid engaging in misconduct or insubordination, not having a work history demonstrating unreasonable job turnover, and not engaging in conduct or activity that improperly interferes with the performance of work by others. OPTION A The term "required by business necessity" means-- (1) in the case of employment practices that are used as conditions of employment in or transfer to jobs, the challenged practice must bear a manifest relationship to the employment in question. (2) in the case of employment practices not described in (1) above, the challenged practice must bear a manifest relationship to a legitimate business objective of the employer. but not limited to The term "employment in question" includes-- (1) the performance of actual work activities required by the employer for a job or class of jobs; and (2) any requirement related to work behavior that is important to the performance of the job, but may not comprise actual work activities. OPTION B The term "required by business necessity" means-- the challenged practice must bear a manifest relationship to the employment in question. 12:45 SENATOR GRAMM called. "Rudman and Domenici are moving back toward us on the Civil Rights bill" He is also seeking feedback on the Danforth meeting. k Governor Sununu FROM THE WHITE HOUSE WASHINGTON, D.C. The Honorable Vernon A. Walters Ambassador to the Federal Republic of Germany American Embassy Box 215 APO New York, New York 09080 THE PRESIDENT June 24,1991 Dear Rich, Vim game me your personal letter of 6-19. 1. I undertained protectly 2. Thanks for your kind- - genera words on my previday. with your own sense of history, I an very flattred - pleand. All But to you. Your Frund, G B/ EMBASSY OF THE UNITED STATES OF AMERICA Berlin June 19, 1991 Dear Mr. President, I would like to thank you for the marvelous opportunity you have given me to serve as Ambassador in Germany during these extraordinary times. My tenure has extended from the unification of Germany to the victory in the Gulf. My experience here has been unforgettable. As I told you a few months ago, I believe it appropriate to leave the Embassy some time in late summer or early autumn, depending on when my successor can be chosen and confirmed. You may be sure I will do everything to ease his task of settling in. Once again may I say how grateful I am to you for showing confidence in me and allowing me the chance to serve in Germany during its moment of historic change. Your presidency has given a tremendous boost to our Nation not only in Germany but throughout the world. Please accept my wishes for the continuation of your outstanding success. With warmest greetings to Mrs. Bush and to you, Faithfully Waths Vernon A. Walters Danforth Handwriting This proposal New prepared after we received The "line ls line 'revious DANFORTH PROPOSAL by The administration The term "required by business necessity" means-- (1) in the case of employment practices primarily measuring qualifications for or ability to do the job, the challenged practice must bear a manifest relationship to the requirements for effective job performance. (2) in the case of employment practices not described in (1) above, the challenged practice must bear a manifest relationship to a legitimate business objective of the employer. This was suppectable Dole. It is not another leaving of Two DOLE STAFF RECOMMENDATION subjective meaning of "hecome this are relevant, The term "required by business necessity" means-- (1) in the case of practices that are used by the employer because they are relevant to job performance, the challenged practice must bear a manifest relationship to the requirements for effective job performance. (2) in the case of employment practices not described in (1) above, the challenged practice must bear a manifest relationship to a legitimate business objective of the employer. This is on about to line Fowe suggestion. The included DOLE STAFF RECOMMENDATION MODIFIED language - from Sign P 426 The term "required by business necessity" means-- (1) in the case of practices that are used as conditions of employment in or transfer to jobs, the challenged practice must bear a manifest relationship to the requirements for effective job performance. (2) in the case of employment practices not described in (1) above, the challenged practice must bear a manifest relationship to a legitimate business objective of the employer. This is a variation on The modification immediately alone. the underloned language MODIFICATION II is from smoosp 431 The term "required by business necessity" means-- (1) in the case of practices that are used as conditions of employment in or transfer to jobs, the challenged practice must bear a demonstrable relationship to successful performance of the jobs for which it was used. (2) in the case of employment practices not described in (1) above, the challenged practice must bear a manifest relationship to a legitimate business objective of the employer. 200 DOJ:OLA 12:02 19/24/91 OF Office of the Attorney General OM SEQUITUR Washington, D. C. 20530 DOMINA JUSTITIA June 21, 1991 The Honorable John C. Danforth United States Senate Washington, D.C. 20510 Dear Senator Danforth: Governor Sununu has asked me to respond to your letters of June 19 and 20. In your first letter, you set out several phrases used in the course of discussions of "business necessity" in the opinion in Griggs V. Duke Power Co., 401 U.S. 424 (1971), and stated that one of these phrases -- "manifest relationship to the employment in question" -- has been declared unacceptable by the principal proponents of H.R. 1. You suggested in both letters that we should instead accept as the holding of Griggs the phrase "shown to be related to job performance." Finally, you suggest in your second letter that this phrase be codified as the definition of "business necessity." As I will explain in some detail, the one phrase declared "off limits" is the only phrase that has been rationally defended as the definition of business necessity under Griggs. I appreciate your efforts to identify language in Griggs which the proponents of H.R. 1 will accept. I can imagine your frustration that the proponents, notwithstanding their insistence that they are "merely restoring Griggs", are in fact prepared to accept anything but the legal standard established by Griggs. One difficulty, however, with your suggestion is that it rejects two decades of Supreme Court precedent. Indeed, the very language now deemed unacceptable is the only language that the Court has always treated as the operative standard: "manifest relationship to the employment in question." Contrary to your suggested reading of the case, an unbroken line of Supreme Court opinions overwhelmingly confirms this proposition. Nor is this Justices. an issue on which there has ever been disagreement among the Scarcely a year after Griggs was decided, Justice Thurgood Marshall remarked in passing that Griggs "even placed the burden on the employer 'of showing that any given requirement must have a manifest relationship to the employment in question. Jefferson v. Hackney, 406 U.S. 535, 577 (1972) (Marshall, J., dissenting) (quoting Griggs) In 1973, in McDonnell Douglas Corp. V. Green, 411 U.S. 792, 805-806, the Court quoted the "related to job performance" language, but only because it had been specifically quoted and relied on by the court below (463 F.2d 337, 352 (1972) ) The Supreme Court itself rejected its application to the case before the Court. See 411 U.S. at 806-807. In 1975, Justice Stewart, speaking for the Court and joined by Justices Douglas, Brennan, White, Marshall, and Rehnquist, said that the Court in Griggs had "unanimously held" that an employer must "meet[ 'the burden of showing that any given requirement [has] a manifest relationship to the employment in question. Albemarle Paper Co. V. Moody, 422 U.S. 405, 425 (quoting Griggs). In 1976, the Court again quoted this same language when stating the Griggs standard. The opinion was written by Justice Rehnquist, and joined by Chief Justice Burger (the author of Griggs) and by Justices Stewart, White, and Powell. General Electric Co. V. Gilbert, 429 U.S. 125, 137 n. 14. In 1977, Justice Stewart again quoted this same language from Griggs. He was speaking for the Court, and his opinion was joined by Justices Powell, Stevens, Brennan, and Marshall. Dothard V. Rawlinson, 433 U.S. 321, 329. In 1979, Justice Stevens wrote an opinion for the Court quoting the same language: "manifest relationship to the employment in question. He was joined by Chief Justice Burger (the author of Griggs) and by Justices Stewart, Blackmun, and Rehnquist. New York Transit Authority V. Beazer, 440 U.S. 568, 587 n. 31 (quoting Griggs and citing Albemarle). In 1982, Justice Brennan's opinion for the Court, which was joined by Justices White, Marshall, Blackmun, and Stevens, quoted both formulations. The context makes it clear, however, that the phrase "manifest relationship to the employment in question" is the formulation adopted by "Griggs and its progeny" in establishing the analytical framework for disparate impact cases. Connecticut V. Teal, 457 U.S. 440, 446. This reading of Teal was later confirmed in an opinion by Justice Blackmun, in which Justices Brennan and 2 Marshall joined. Justice Blackmun quoted the phrase "manifest relationship to the employment in question," attributing it both to Teal and to Griggs. See Watson V. Fort Worth Bank & Trust, 487 U.S. 977, 1004 (1988) (Blackmun, J., joined by Brennan and Marshall, JJ., concurring in part and concurring in the judgment). Elsewhere in the same opinion, these Justices quoted the same language yet again. See id. at 1001. Justice Powell's dissent in Teal also quoted the phrase "manifest relationship to the employment in question." See 457 U.S. at 461 (quoting Dothard's quotation of Griggs). Also in 1982, Justice Rehnquist mentioned in an opinion for the Court that Griggs had held that the employer must show "a manifest relationship to the employment in question." His opinion was joined by Chief Justice Burger (the author of Griggs) and by Justices White, Blackmun, Powell, and O'Connor. General Building Contractors Ass'n V. Pennsylvania, 458 U.S. 375, 383 n. 8. In 1988, Justice O'Connor quoted the same language in an opinion joined by Chief Justice Rehnquist and by Justices White and Scalia. Watson V. Fort Worth Bank & Trust, 487 U.S. 977, 997. As noted above, Justice Blackmun's concurring opinion, in which Justices Brennan and Marshall joined, used the same quotation no less than three times. Id. at 1001, 1004, 1005; see also id. at 1006. Finally, in the discussion of business necessity in Wards Cove Packing Co. V. Atonio, 490 U.S. 642, 659 (1989), the Court cited the page on which the phrase "manifest relationship to the employment in question" appears in Watson, Beazer, and Griggs. Even the dissenting opinion (Stevens, J., joined by Brennan, Marshall, and Blackmun, JJ.) quotes this same language at least three times. Id. at 666, 668 n. 14. In sum, the phrase "manifest relationship to the employment in question" correctly states the legal standard to which the Supreme Court has unwaveringly held since Griggs was first decided. Apart from the citations in Teal and McDonnell Douglas, which for the reasons discussed above do not undermine my conclusion, the phrase you propose to treat as the holding in Griggs has never even been cited by the Court. In response to the argument in your June 20 letter, I must say that it is not surprising that the opinion in Griggs would contain numerous phrases using the words "job performance" or the 3 like. The facts of that particular case, and the arguments generated by those facts, naturally led the Court to focus on the question of whether the employment practices at issue predicted job performance. It is equally unsurprising, however, that the Court has never thought or said that every disparate impact case should be shoehorned into a narrow analytical framework dictated by the particular facts at issue in Griggs. That is why the Court has always relied on the more general language of Griggs -- "manifest relationship to the employment in question" -- when stating the legal standard established by Griggs. To take but one example, this language reflects the fact that the Griggs Court expressly left open the question "whether testing requirements that take into account capability for the next succeeding position or related future promotion might be utilized upon a showing that such long-range requirements fulfill a genuine business need." Griggs, 401 U.S. at 432 (emphasis added). The Court later held unambiguously, in a manner that would have been difficult or impossible under the definition of business necessity that you propose, that the business necessity standard is satisfied if an employer's "legitimate employment goals are significantly served by -- even if they do not require -- [a challenged practice] Beazer, 440 U.S. at 587, n.31 (Stevens, J., joined by Burger, C.J., and by Stewart, Blackmun, and Rehnquist, JJ.) (emphasis added). This understanding of business necessity has been completely noncontroversial on the Court. Indeed, even the dissenting opinion in Wards Cove firmly stated: "The opinion in Griggs made it clear that a neutral practice that operates to exclude minorities is nevertheless lawful if it serves a valid business purpose. Wards Cove, 490 U.S. at 665 (Stevens, J., joined by Brennan, added) Marshall, and Blackmun, JJ., dissenting) (emphasis Neither does it seem sensible to create a legal rule under which any employment practice not related to job performance could give rise to a finding of liability under Title VII. We know that there are legitimate employment criteria that would not meet this standard. "No smoking" rules provide one kind of example. A rule against hiring those with criminal convictions to work on a police force offers another example. An employer's decision to reject all applicants who lie on their employment applications is yet another example. For over a year, Americans have been told again and again that the goal of this legislative initiative is to "restore Griggs. But we have never been told why the language from Griggs that the Supreme Court has been using for 20 years to define "business necessity" fails to codify Griggs. Nor have we been told why this language, or the language from Justice 4 Stevens' 1979 Beazer opinion, is "unacceptable" as an appropriate legal standard. In your op-ed in the New York Times yesterday you said "[i]f ever the devil was in the details he has been present " in this issue. I could not agree more. This is not a political issue, or one in which new language can be lightly substituted for well understood precedent. As the President's chief legal advisor, I have insisted on a reasoned and substantive review of every proposal offered to deal with these matters. Before this Administration and the Congress accept the departure from precedent and from the stated objective of this legislation which your proposal incorporates, I think it is only prudent that we have a clear understanding as to why the definition of "business necessity" consistently used by the Supreme Court for many years, and without any objection from any member of the Court, is suddenly unacceptable as a matter of policy. Additionally, I must note that any agreement on an acceptable definition of "business necessity" would be inseparable from agreement on the related issues raised by efforts to codify disparate impact analysis and on the other matters addressed in these bills. As you know from the conversations that your staff had with Administration attorneys, S. 1208 -- like H.R. 1 -- suffers in our view from serious shortcomings in several respects. I trust that we can continue to discuss these issues with a view to achieving a constructive outcome. Sincerely, Dick Thornburgh Attorney General 5 OF JUSTI Office of the Attorney General OBA SEQUITUR Washington, D. C. 20530 JUSTITA June 21, 1991 The Honorable John C. Danforth United States Senate Washington, D.C. 20510 Dear Senator Danforth: Governor Sununu has asked me to respond to your letters of June 19 and 20. In your first letter, you set out several phrases used in the course of discussions of "business necessity" in the opinion in Griggs V. Duke Power Co., 401 U.S. 424 (1971) and stated that one of these phrases -- "manifest relationship to the employment in question" -- has been declared unacceptable by the principal proponents of H.R. 1. You suggested in both letters that we should instead accept as the holding of Griggs the phrase "shown to be related to job performance." Finally, you suggest in your second letter that this phrase be codified as the definition of "business necessity." As I will explain in some detail, the one phrase declared "off limits" is the only phrase that has been rationally defended as the definition of business necessity under Griggs. I appreciate your efforts to identify language in Griggs which the proponents of H.R. 1 will accept. I can imagine your frustration that the proponents, notwithstanding their insistence that they are "merely restoring Griggs", are in fact prepared to accept anything but the legal standard established by Griggs. One difficulty, however, with your suggestion is that it rejects two decades of Supreme Court precedent. Indeed, the very language now deemed unacceptable is the only language that the Court has always treated as the operative standard: "manifest relationship to the employment in question." Contrary to your suggested reading of the case, an unbroken line of Supreme Court opinions overwhelmingly confirms this proposition. Nor is this an issue on which there has ever been disagreement among the Justices. Scarcely a year after Griggs was decided, Justice Thurgood Marshall remarked in passing that Griggs "even placed the burden on the employer 'of showing that any given requirement must have a manifest relationship to the employment in question. Jefferson V. Hackney, 406 U.S. 535, 577 (1972) (Marshall, J., dissenting) (quoting Griggs). In 1973, in McDonnell Douglas Corp. V. Green, 411 U.S. 792, 805-806, the Court quoted the "related to job performance" language, but only because it had been specifically quoted and relied on by the court below (463 F.2d 337, 352 (1972)). The Supreme Court itself rejected its application to the case before the Court. See 411 U.S. at 806-807. In 1975, Justice Stewart, speaking for the Court and joined by Justices Douglas, Brennan, White, Marshall, and Rehnquist, said that the Court in Griggs had "unanimously held" that an employer must "meet[] 'the burden of showing that any given requirement [has] a manifest relationship to the employment in question. Albemarle Paper Co. V. Moody, 422 U.S. 405, 425 (quoting Griggs). In 1976, the Court again quoted this same language when stating the Griggs standard. The opinion was written by Justice Rehnquist, and joined by Chief Justice Burger (the author of Griggs) and by Justices Stewart, White, and Powell. General Electric Co. V. Gilbert, 429 U.S. 125, 137 n. 14. In 1977, Justice Stewart again quoted this same language from Griggs. He was speaking for the Court, and his opinion was joined by Justices Powell, Stevens, Brennan, and Marshall. Dothard V. Rawlinson, 433 U.S. 321, 329. In 1979, Justice Stevens wrote an opinion for the Court quoting the same language: "manifest relationship to the employment in question." He was joined by Chief Justice Burger (the author of Griggs) and by Justices Stewart, Blackmun, and Rehnquist. New York Transit Authority V. Beazer, 440 U.S. 568, 587 n. 31 (quoting Griggs and citing Albemarle). In 1982, Justice Brennan's opinion for the Court, which was joined by Justices White, Marshall, Blackmun, and Stevens, quoted both formulations. The context makes it clear, however, that the phrase "manifest relationship to the employment in question" is the formulation adopted by "Griggs and its progeny" in establishing the analytical framework for disparate impact cases. Connecticut V. Teal, 457 U.S. 440, 446. This reading of Teal was later confirmed in an opinion by Justice Blackmun, in which Justices Brennan and 2 Marshall joined. Justice Blackmun quoted the phrase "manifest relationship to the employment in question," attributing it both to Teal and to Griggs. See Watson V. Fort Worth Bank & Trust, 487 U.S. 977, 1004 (1988) (Blackmun, J., joined by Brennan and Marshall, JJ., concurring in part and concurring in the judgment). Elsewhere in the same opinion, these Justices quoted the same language yet again. See id. at 1001. Justice Powell's dissent in Teal also quoted the phrase "manifest relationship to the employment in question." See 457 U.S. at 461 (quoting Dothard's quotation of Griggs). O Also in 1982, Justice Rehnquist mentioned in an opinion for the Court that Griggs had held that the employer must show "a manifest relationship to the employment in question." His opinion was joined by Chief Justice Burger (the author of Griggs) and by Justices White, Blackmun, Powell, and O'Connor. General Building Contractors Ass'n V. Pennsylvania, 458 U.S. 375, 383 n. 8. In 1988, Justice O'Connor quoted the same language in an opinion joined by Chief Justice Rehnquist and by Justices White and Scalia. Watson V. Fort Worth Bank & Trust, 487 U.S. 977, 997. As noted above, Justice Blackmun's concurring opinion, in which Justices Brennan and Marshall joined, used the same quotation no less than three times. Id. at 1001, 1004, 1005; see also id. at 1006. Finally, in the discussion of business necessity in Wards Cove Packing Co. V. Atonio, 490 U.S. 642, 659 (1989), the Court cited the page on which the phrase "manifest relationship to the employment in question" appears in Watson, Beazer, and Griggs. Even the dissenting opinion (Stevens, J., joined by Brennan, Marshall, and Blackmun, JJ.) quotes this same language at least three times. Id. at 666, 668 n. 14. In sum, the phrase "manifest relationship to the employment in question" correctly states the legal standard to which the Supreme Court has unwaveringly held since Griggs was first decided. Apart from the citations in Teal and McDonnell Douglas, which for the reasons discussed above do not undermine my conclusion, the phrase you propose to treat as the holding in Griggs has never even been cited by the Court. In response to the argument in your June 20 letter, I must say that it is not surprising that the opinion in Griggs would contain numerous phrases using the words "job performance" or the 3 like. The facts of that particular case, and the arguments generated by those facts, naturally led the Court to focus on the question of whether the employment practices at issue predicted job performance. It is equally unsurprising, however, that the Court has never thought or said that every disparate impact case should be shoehorned into a narrow analytical framework dictated by the particular facts at issue in Griggs. That is why the Court has always relied on the more general language of Griggs -- "manifest relationship to the employment in question" -- when stating the legal standard established by Griggs. To take but one example, this language reflects the fact that the Griggs Court expressly left open the question "whether testing requirements that take into account capability for the next succeeding position or related future promotion might be utilized upon a showing that such long-range requirements fulfill a genuine business need." Griggs, 401 U.S. at 432 (emphasis added) The Court later held unambiguously, in a manner that would have been difficult or impossible under the definition of business necessity that you propose, that the business necessity standard is satisfied if an employer's "legitimate employment goals are significantly served by -- even if they do not require -- [a challenged practice]. Beazer, 440 U.S. at 587, n.31 (Stevens, J., joined by Burger, C.J., and by Stewart, Blackmun, and Rehnquist, JJ.) (emphasis added). This understanding of business necessity has been completely noncontroversial on the Court. Indeed, even the dissenting opinion in Wards Cove firmly stated: "The opinion in Griggs made it clear that a neutral practice that operates to exclude minorities is nevertheless lawful if it serves a valid business purpose." Wards Cove, 490 U.S. at 665 (Stevens, J., joined by Brennan, added). Marshall, and Blackmun, JJ., dissenting) (emphasis Neither does it seem sensible to create a legal rule under which any employment practice not related to job performance could give rise to a finding of liability under Title VII. We know that there are legitimate employment criteria that would not meet this standard. "No smoking" rules provide one kind of example. A rule against hiring those with criminal convictions to work on a police force offers another example. An employer's decision to reject all applicants who lie on their employment applications is yet another example. For over a year, Americans have been told again and again that the goal of this legislative initiative is to "restore Griggs.' But we have never been told why the language from Griggs that the Supreme Court has been using for 20 years to define "business necessity" fails to codify Griggs. Nor have we been told why this language, or the language from Justice 4 Stevens' 1979 Beazer opinion, is "unacceptable" as an appropriate legal standard. In your op-ed in the New York Times yesterday you said "[i]f ever the devil was in the details he has been present " in this issue. I could not agree more. This is not a political issue, or one in which new language can be lightly substituted for well understood precedent. As the President's chief legal advisor, I have insisted on a reasoned and substantive review of every proposal offered to deal with these matters. Before this Administration and the Congress accept the departure from precedent and from the stated objective of this legislation which your proposal incorporates, I think it is only prudent that we have a clear understanding as to why the definition of "business necessity" consistently used by the Supreme Court for many years, and without any objection from any member of the Court, is suddenly unacceptable as a matter of policy. Additionally, I must note that any agreement on an acceptable definition of "business necessity" would be inseparable from agreement on the related issues raised by efforts to codify disparate impact analysis and on the other matters addressed in these bills. As you know from the conversations that your staff had with Administration attorneys, S. 1208 -- like H.R. 1 -- suffers in our view from serious shortcomings in several respects. I trust that we can continue to discuss these issues with a view to achieving a constructive outcome. Sincerely, Dick Thornburgh Attorney General 5 STATE OF JUST Office of the Attorney General OM SEQUITUR Washington, D. C. 20530 DOMINA JUSTITIA June 21, 1991 The Honorable John C. Danforth United States Senate Washington, D.C. 20510 Dear Senator Danforth: Governor Sununu has asked me to respond to your letters of June 19 and 20. In your first letter, you set out several phrases used in the course of discussions of "business necessity" in the opinion in Griggs V. Duke Power Co., 401 U.S. 424 (1971), and stated that one of these phrases -- "manifest relationship to the employment in question" -- has been declared unacceptable by the principal proponents of H.R. 1. You suggested in both letters that we should instead accept as the holding of Griggs the phrase "shown to be related to job performance." Finally, you suggest in your second letter that this phrase be codified as the definition of "business necessity." As I will explain in some detail, the one phrase declared "off limits" is the only phrase that has been rationally defended as the definition of business necessity under Griggs. I appreciate your efforts to identify language in Griggs which the proponents of H.R. 1 will accept. I can imagine your frustration that the proponents, notwithstanding their insistence that they are "merely restoring Griggs", are in fact prepared to accept anything but the legal standard established by Griggs. One difficulty, however, with your suggestion is that it rejects two decades of Supreme Court precedent. Indeed, the very language now deemed unacceptable is the only language that the Court has always treated as the operative standard: "manifest relationship to the employment in question." Contrary to your suggested reading of the case, an unbroken line of Supreme Court opinions overwhelmingly confirms this proposition. Nor is this Justices. an issue on which there has ever been disagreement among the Scarcely a year after Griggs was decided, Justice Thurgood Marshall remarked in passing that Griggs "even placed the burden on the employer 'of showing that any given requirement must have a manifest relationship to the employment in question. Jefferson V. Hackney, 406 U.S. 535, 577 (1972) (Marshall, J., dissenting) (quoting Griggs). In 1973, in McDonnell Douglas Corp. V. Green, 411 U.S. 792, 805-806, the Court quoted the "related to job performance" language, but only because it had been specifically quoted and relied on by the court below (463 F.2d 337, 352 (1972) ) The Supreme Court itself rejected its application to the case before the Court. See 411 U.S. at 806-807. In 1975, Justice Stewart, speaking for the Court and joined by Justices Douglas, Brennan, White, Marshall, and Rehnquist, said that the Court in Griggs had "unanimously held" that an employer must "meet[] 'the burden of showing that any given requirement [has] a manifest relationship to the employment in question. Albemarle Paper Co. V. Moody, 422 U.S. 405, 425 (quoting Griggs). In 1976, the Court again quoted this same language when stating the Griggs standard. The opinion was written by Justice Rehnquist, and joined by Chief Justice Burger (the author of Griggs) and by Justices Stewart, White, and Powell. General Electric Co. V. Gilbert, 429 U.S. 125, 137 n. 14. O In 1977, Justice Stewart again quoted this same language from Griggs. He was speaking for the Court, and his opinion was joined by Justices Powell, Stevens, Brennan, and Marshall. Dothard V. Rawlinson, 433 U.S. 321, 329. O In 1979, Justice Stevens wrote an opinion for the Court quoting the same language: "manifest relationship to the employment in question." He was joined by Chief Justice Burger (the author of Griggs) and by Justices Stewart, Blackmun, and Rehnquist. New York Transit Authority V. Beazer, 440 U.S. 568, 587 n. 31 (quoting Griggs and citing Albemarle). O In 1982, Justice Brennan's opinion for the Court, which was joined by Justices White, Marshall, Blackmun, and Stevens, quoted both formulations. The context makes it clear, however, that the phrase "manifest relationship to the employment in question" is the formulation adopted by "Griggs and its progeny" in establishing the analytical framework for disparate impact cases. Connecticut V. Teal, 457 U.S. 440, 446. This reading of Teal was later confirmed in an opinion by Justice Blackmun, in which Justices Brennan and 2 Marshall joined. Justice Blackmun quoted the phrase "manifest relationship to the employment in question," attributing it both to Teal and to Griggs. See Watson V. Fort Worth Bank & Trust, 487 U.S. 977, 1004 (1988) (Blackmun, J., joined by Brennan and Marshall, JJ., concurring in part and concurring in the judgment). Elsewhere in the same opinion, these Justices quoted the same language yet again. See id. at 1001. Justice Powell's dissent in Teal also quoted the phrase "manifest relationship to the employment in question." See 457 U.S. at 461 (quoting Dothard's quotation of Griggs) Also in 1982, Justice Rehnquist mentioned in an opinion for the Court that Griggs had held that the employer must show "a manifest relationship to the employment in question." His opinion was joined by Chief Justice Burger (the author of Griggs) and by Justices White, Blackmun, Powell, and O'Connor. General Building Contractors Ass'n V. Pennsylvania, 458 U.S. 375, 383 n. 8. O In 1988, Justice O'Connor quoted the same language in an opinion joined by Chief Justice Rehnquist and by Justices White and Scalia. Watson V. Fort Worth Bank & Trust, 487 U.S. 977, 997. As noted above, Justice Blackmun's concurring opinion, in which Justices Brennan and Marshall joined, used the same quotation no less than three times. Id. at 1001, 1004, 1005; see also id. at 1006. Finally, in the discussion of business necessity in Wards Cove Packing Co. V. Atonio, 490 U.S. 642, 659 (1989), the Court cited the page on which the phrase "manifest relationship to the employment in question" appears in Watson, Beazer, and Griggs. Even the dissenting opinion (Stevens, J., joined by Brennan, Marshall, and Blackmun, JJ.) quotes this same language at least three times. Id. at 666, 668 n. 14. In sum, the phrase "manifest relationship to the employment in question" correctly states the legal standard to which the Supreme Court has unwaveringly held since Griggs was first decided. Apart from the citations in Teal and McDonnell Douglas, which for the reasons discussed above do not undermine my conclusion, the phrase you propose to treat as the holding in Griggs has never even been cited by the Court. In response to the argument in your June 20 letter, I must say that it is not surprising that the opinion in Griggs would contain numerous phrases using the words "job performance" or the 3 like. The facts of that particular case, and the arguments generated by those facts, naturally led the Court to focus on the question of whether the employment practices at issue predicted job performance. It is equally unsurprising, however, that the Court has never thought or said that every disparate impact case should be shoehorned into a narrow analytical framework dictated by the particular facts at issue in Griggs. That is why the Court has always relied on the more general language of Griggs -- "manifest relationship to the employment in question" -- when stating the legal standard established by Griggs. To take but one example, this language reflects the fact that the Griggs Court expressly left open the question "whether testing requirements that take into account capability for the next succeeding position or related future promotion might be utilized upon a showing that such long-range requirements fulfill a genuine business need. Griggs, 401 U.S. at 432 (emphasis added) The Court later held unambiguously, in a manner that would have been difficult or impossible under the definition of business necessity that you propose, that the business necessity standard is satisfied if an employer's "legitimate employment goals are significantly served by -- even if they do not require -- [a challenged practice] Beazer, 440 U.S. at 587, n.31 (Stevens, J., joined by Burger, C.J., and by Stewart, Blackmun, and Rehnquist, JJ.) (emphasis added). This understanding of business necessity has been completely noncontroversial on the Court. Indeed, even the dissenting opinion in Wards Cove firmly stated: "The opinion in Griggs made it clear that a neutral practice that operates to exclude minorities is nevertheless lawful if it serves a valid business purpose. Wards Cove, 490 U.S. at 665 (Stevens, J., joined by added). Brennan, Marshall, and Blackmun, JJ., dissenting) (emphasis Neither does it seem sensible to create a legal rule under which any employment practice not related to job performance could give rise to a finding of liability under Title VII. We know that there are legitimate employment criteria that would not meet this standard. "No smoking" rules provide one kind of example. A rule against hiring those with criminal convictions to work on a police force offers another example. An employer's decision to reject all applicants who lie on their employment applications is yet another example. For over a year, Americans have been told again and again that the goal of this legislative initiative is to "restore Griggs. But we have never been told why the language from Griggs that the Supreme Court has been using for 20 years to define "business necessity" fails to codify Griggs. Nor have we been told why this language, or the language from Justice 4 Stevens' 1979 Beazer opinion, is "unacceptable" as an appropriate legal standard. In your op-ed in the New York Times yesterday you said "[i]f ever the devil was in the details he has been present " in this issue. I could not agree more. This is not a political issue, or one in which new language can be lightly substituted for well understood precedent. As the President's chief legal advisor, I have insisted on a reasoned and substantive review of every proposal offered to deal with these matters. Before this Administration and the Congress accept the departure from precedent and from the stated objective of this legislation which your proposal incorporates, I think it is only prudent that we have a clear understanding as to why the definition of "business necessity" consistently used by the Supreme Court for many years, and without any objection from any member of the Court, is suddenly unacceptable as a matter of policy. Additionally, I must note that any agreement on an acceptable definition of "business necessity" would be inseparable from agreement on the related issues raised by efforts to codify disparate impact analysis and on the other matters addressed in these bills. As you know from the conversations that your staff had with Administration attorneys, S. 1208 -- like H.R. 1 -- suffers in our view from serious shortcomings in several respects. I trust that we can continue to discuss these issues with a view to achieving a constructive outcome. Sincerely, Dick Thornburgh Attorney General 5 06/19/91 12:31 202 224 3324 SEN. RUDMAN D.C. 002 ISSUE #2: DEFINITION OF BUSINESS NECESSITY OPTION 1 The term "required by business necessity" means the challenged practice must bear a manifest relationship to the employment in question. OPTION 2 The term "required by business necessity" means-- used for (1) in the case of employment practices primarily measuring qualifications for or ability to do the job, the challenged practice must bear a manifest realationship to the requirements for effective job performance The amployment question. (2) in the case of employment practices not described in (1) above, the challenged practice must bear a manifest relationship to a legitimate business objective of the employer. The term "requirements for effective job performance" includes- (1) the ability to perform the actual work activities required by the employer for a job or job family; and (2) any requirement related to work behavior that is important to the performance of the job, but may not comprise actual work activities. CURRENT LANGUAGE The term "required by business necessity" means-- (1) in the case of employment practices involving selection, that the practice or group of practices bears a manifest relationship to the requirements for effective job performance; and (2) in the case of other employment decisions not involving employment selection practices as described in paragraph (1), the practice or group of practices bears a manifest relationship to a legitimate business objective of the employer. The term "requirements for effective job performance" includes-- (1) the ability to perform competently the actual work activities lawfully required by the employer for an employment position; and (2) any other lawful requirement, that is important to the performance of the job, including, but not limited to, factors such as punctuality, attendance, a willingness to avoid engaging in misconduct or insubordination, not having a work history demonstrating unreasonable job turnover, and not engaging in conduct or activity that improperly interferes with the performance of work by others. THE WHITE HOUSE EXECUTIVE OFFICE OF THE PRESIDENT FACSIMILE TRANSMITTAL SHEET DATE: June 19, 1991 Senator Rudman TO: FROM: John H. Sununu PHONE: 456-6797 COMMENTS: Per our conversation -- NUMBER OF PAGES, EXCLUDING COVER SHEET 1 OPTION 2 The term "required by business necessity" means -- (1) in the case of employment practices primarily used for measuring qualifications for or ability to do the job, the challenged practice must bear a manifest relationship to the employment in question. (2) in the case of employment practices not described in (1) above, the challenged practice must bear a manifest relationship to a legitimate business objective of the employer 1 OF JUST Office of the Attorney General DEPA OM SEQUITUR Washington, D. C. 20530 DOMINA JUSTITIA June 21, 1991 The Honorable John C. Danforth United States Senate Washington, D.C. 20510 Dear Senator Danforth: Governor Sununu has asked me to respond to your letters of June 19 and 20. In your first letter, you set out several phrases used in the course of discussions of "business necessity" in the opinion in Griggs V. Duke Power Co., 401 U.S. 424 (1971) and stated that one of these phrases -- "manifest relationship to the employment in question" -- has been declared unacceptable by the principal proponents of H.R. 1. You suggested in both letters that we should instead accept as the holding of Griggs the phrase "shown to be related to job performance." Finally, you suggest in your second letter that this phrase be codified as the definition of "business necessity." As I will explain in some detail, the one phrase declared "off limits" is the only phrase that has been rationally defended as the definition of business necessity under Griggs. I appreciate your efforts to identify language in Griggs which the proponents of H.R. 1 will accept. I can imagine your frustration that the proponents, notwithstanding their insistence that they are "merely restoring Griggs", are in fact prepared to accept anything but the legal standard established by Griggs. One difficulty, however, with your suggestion is that it rejects two decades of Supreme Court precedent. Indeed, the very language now deemed unacceptable is the only language that the Court has always treated as the operative standard: "manifest relationship to the employment in question." Contrary to your suggested reading of the case, an unbroken line of Supreme Court opinions overwhelmingly confirms this proposition. Nor is this an issue on which there has ever been disagreement among the Justices. Scarcely a year after Griggs was decided, Justice Thurgood Marshall remarked in passing that Griggs "even placed the burden on the employer 'of showing that any given requirement must have a manifest relationship to the employment in question. Jefferson V. Hackney, 406 U.S. 535, 577 (1972) (Marshall, J., dissenting) (quoting Griggs) In 1973, in McDonnell Douglas Corp. V. Green, 411 U.S. 792, 805-806, the Court quoted the "related to job performance" language, but only because it had been specifically quoted and relied on by the court below (463 F.2d 337, 352 (1972) The Supreme Court itself rejected its application to the case before the Court. See 411 U.S. at 806-807. In 1975, Justice Stewart, speaking for the Court and joined by Justices Douglas, Brennan, White, Marshall, and Rehnquist, said that the Court in Griggs had "unanimously held" that an employer must "meet[] 'the burden of showing that any given requirement [has] a manifest relationship to the employment in question. Albemarle Paper Co. V. Moody, 422 U.S. 405, 425 (quoting Griggs). In 1976, the Court again quoted this same language when stating the Griggs standard. The opinion was written by Justice Rehnquist, and joined by Chief Justice Burger (the author of Griggs) and by Justices Stewart, White, and Powell. General Electric Co. V. Gilbert, 429 U.S. 125, 137 n. 14. In 1977, Justice Stewart again quoted this same language from Griggs. He was speaking for the Court, and his opinion was joined by Justices Powell, Stevens, Brennan, and Marshall. Dothard V. Rawlinson, 433 U.S. 321, 329. In 1979, Justice Stevens wrote an opinion for the Court quoting the same language: "manifest relationship to the employment in question." He was joined by Chief Justice Burger (the author of Griggs) and by Justices Stewart, Blackmun, and Rehnquist. New York Transit Authority V. Beazer, 440 U.S. 568, 587 n. 31 (quoting Griggs and citing Albemarle). In 1982, Justice Brennan's opinion for the Court, which was joined by Justices White, Marshall, Blackmun, and Stevens, quoted both formulations. The context makes it clear, however, that the phrase "manifest relationship to the employment in question" is the formulation adopted by "Griggs and its progeny" in establishing the analytical framework for disparate impact cases. Connecticut V. Teal, 457 U.S. 440, 446. This reading of Teal was later confirmed in an opinion by Justice Blackmun, in which Justices Brennan and 2 Marshall joined. Justice Blackmun quoted the phrase "manifest relationship to the employment in question," attributing it both to Teal and to Griggs. See Watson V. Fort Worth Bank & Trust, 487 U.S. 977, 1004 (1988) (Blackmun, J., joined by Brennan and Marshall, JJ., concurring in part and concurring in the judgment). Elsewhere in the same opinion, these Justices quoted the same language yet again. See id. at 1001. Justice Powell's dissent in Teal also quoted the phrase "manifest relationship to the employment in question." See 457 U.S. at 461 (quoting Dothard's quotation of Griggs) Also in 1982, Justice Rehnquist mentioned in an opinion for the Court that Griggs had held that the employer must show "a manifest relationship to the employment in question.' His opinion was joined by Chief Justice Burger (the author of Griggs) and by Justices White, Blackmun, Powell, and O'Connor. General Building Contractors Ass'n V. Pennsylvania, 458 U.S. 375, 383 n. 8. In 1988, Justice O'Connor quoted the same language in an opinion joined by Chief Justice Rehnquist and by Justices White and Scalia. Watson V. Fort Worth Bank & Trust, 487 U.S. 977, 997. As noted above, Justice Blackmun's concurring opinion, in which Justices Brennan and Marshall joined, used the same quotation no less than three times. Id. at 1001, 1004, 1005; see also id. at 1006. O Finally, in the discussion of business necessity in Wards Cove Packing Co. V. Atonio, 490 U.S. 642, 659 (1989), the Court cited the page on which the phrase "manifest relationship to the employment in question" appears in Watson, Beazer, and Griggs. Even the dissenting opinion (Stevens, J., joined by Brennan, Marshall, and Blackmun, JJ.) quotes this same language at least three times. Id. at 666, 668 n. 14. In sum, the phrase "manifest relationship to the employment in question" correctly states the legal standard to which the Supreme Court has unwaveringly held since Griggs was first decided. Apart from the citations in Teal and McDonnell Douglas, which for the reasons discussed above do not undermine my conclusion, the phrase you propose to treat as the holding in Griggs has never even been cited by the Court. In response to the argument in your June 20 letter, I must say that it is not surprising that the opinion in Griggs would contain numerous phrases using the words "job performance" or the 3 like. The facts of that particular case, and the arguments generated by those facts, naturally led the Court to focus on the question of whether the employment practices at issue predicted job performance. It is equally unsurprising, however, that the Court has never thought or said that every disparate impact case should be shoehorned into a narrow analytical framework dictated by the particular facts at issue in Griggs. That is why the Court has always relied on the more general language of Griggs -- "manifest relationship to the employment in question" -- when stating the legal standard established by Griggs. To take but one example, this language reflects the fact that the Griggs Court expressly left open the question "whether testing requirements that take into account capability for the next succeeding position or related future promotion might be utilized upon a showing that such long-range requirements fulfill a genuine business need." Griggs, 401 U.S. at 432 (emphasis added). The Court later held unambiguously, in a manner that would have been difficult or impossible under the definition of business necessity that you propose, that the business necessity goals standard is satisfied if an employer's "legitimate employment are significantly served by -- even if they do not require -- [a challenged practice] Beazer, 440 U.S. at 587, n.31 (Stevens, J., joined by Burger, C.J., and by Stewart, Blackmun, and Rehnquist, JJ.) (emphasis added). This understanding of business necessity has been completely noncontroversial on the Court. Indeed, even the dissenting opinion in Wards Cove firmly stated: "The opinion in Griggs made it clear that a neutral practice that operates to exclude minorities is nevertheless lawful if it serves a valid business purpose. Wards Cove, 490 U.S. at 665 (Stevens, J., joined by Brennan, added). Marshall, and Blackmun, JJ., dissenting) (emphasis Neither does it seem sensible to create a legal rule under which any employment practice not related to job performance could give rise to a finding of liability under Title VII. We know that there are legitimate employment criteria that would not meet this standard. "No smoking" rules provide one kind of example. A rule against hiring those with criminal convictions to work on a police force offers another example. An employer's decision to reject all applicants who lie on their employment applications is yet another example. For over a year, Americans have been told again and again that the goal of this legislative initiative is to "restore Griggs. But we have never been told why the language from Griggs that the Supreme Court has been using for 20 years to define "business necessity" fails to codify Griggs. Nor have we been told why this language, or the language from Justice 4 Stevens' 1979 Beazer opinion, is "unacceptable" as an appropriate legal standard. In your op-ed in the New York Times yesterday you said "[i]f ever the devil was in the details he has been present " in this issue. I could not agree more. This is not a political issue, or one in which new language can be lightly substituted for well understood precedent. As the President's chief legal advisor, I have insisted on a reasoned and substantive review of every proposal offered to deal with these matters. Before this Administration and the Congress accept the departure from precedent and from the stated objective of this legislation which your proposal incorporates, I think it is only prudent that we have a clear understanding as to why the definition of "business necessity" consistently used by the Supreme Court for many years, and without any objection from any member of the Court, is suddenly unacceptable as a matter of policy. Additionally, I must note that any agreement on an acceptable definition of "business necessity" would be inseparable from agreement on the related issues raised by efforts to codify disparate impact analysis and on the other matters addressed in these bills. As you know from the conversations that your staff had with Administration attorneys, S. 1208 -- like H.R. 1 -- suffers in our view from serious shortcomings in several respects. I trust that we can continue to discuss these issues with a view to achieving a constructive outcome. Sincerely, Dick Thornburgh Attorney General 5 06/24/91 12:46 SENATE TELECOMM DEPT 002 DANFORTH PROPOSAL The term "required by business necessity" means-- (1) in the case of employment practices primarily measuring qualifications for or ability to do the job, the challenged practice must bear a manifest relationship to the requirements for effective job performance. (2) in the case of employment practices not described in (1) above, the challenged practice must bear a manifest relationship to a legitimate business objective of the employer. DOLE STAFF RECOMMENDATION The term "required by business necessity" means-- (1) in the case of practices that are used by the employer because they are relevant to job performance, the challenged practice must bear a manifest relationship to the requirements for effective job performance. (2) in the case of employment practices not described in (1) above, the challenged practice must bear a manifest relationship to a legitimate business objective of the employer. DOLE STAFF RECOMMENDATION MODIFIED byDan The term "required by business necessity" means-- 2 (1) in the case of practices that are used as conditions of employment in or transfer to jobs, the challenged practice must bear almanifest relationship to the requirements for effective job performance (2) in the case of employment practices not described in (1) above, the challenged practice must bear a manifest relationship to a legitimate Business objective of the employer. MODIFICATION II by Dan by The term "required by business necessity" means-- (1) in the case of practices that are used as conditions of employment in or transfer to jobs, the challenged practice must bear a demonstrable relationship to successful performance of the jobs for which it was used. (2) in the case of employment practices not described in (1) above, the challenged practice must bear a manifest relationship to a legitimate business objective of the employer. 424 OCTOBER TERM, 1970 Syllabus 401 U.S. 424 Opinion of the Court carl Regal less they are demonstrably a reasonable measure of job perform- GRIGGS ET AL. v. DUKE POWER CO. ance. Pp. 433-436. 420 F. 2d 1225, reversed in part. CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT BURGER, C. J., delivered the opinion of the Court, in which all members joined except BRENNAN, J., who took no part in the con- No. 124. Argued December 14, 1970-Decided March 8, 1971 sideration or decision of the case. Negro employees at respondent's generating plant brought this action, pursuant to Title VII of the Civil Rights Act of 1964, challenging Jack Greenberg argued the cause for petitioners. With respondent's requirement of a high school diploma or passing of him on the briefs were James M. Nabrit III, Norman C. intelligence tests as a condition of employment in or transfer to Amaker, William L. Robinson, Conrad O. Pearson, Julius jobs at the plant. These requirements were not directed at or LeVonne Chambers, and Albert J. Rosenthal. intended to measure ability to learn to perform a particular job George W. Ferguson, Jr., argued the cause for respond- or category of jobs. While § 703 (a) of the Act makes it an un- lawful employment practice for an employer to limit, segregate, ent. With him on the brief were William I. Ward, Jr., or classify employees to deprive them of employment opportunities and George M. Thorpe. or adversely to affect their status because of race, color, religion, Lawrence M. Cohen argued the cause for the Chamber sex, or national origin, § 703 (h) authorizes the use of any pro- of Commerce of the United States as amicus curiae urging fessionally developed ability test, provided that it is not designed, affirmance. With him on the brief were Francis V. intended. or used to discriminate. The District Court found that Lowden, Jr., Gerard C. Smetana, and Milton A. Smith. respondent's former policy of racial discrimination had ended, and that Title VII, being prospective only, did not reach the prior Briefs of amici curiae urging reversal were filed by inequities. The Court of Appeals reversed in part, rejecting the Solicitor General Griswold, Assistant Attorney General holding that residual discrimination arising from prior practices Leonard, Deputy Solicitor General Wallace, David L. was insulated from remedial action, but agreed with the lower court Rose, Stanley Hebert, and Russell Specter for the United that there was no showing of discriminatory purpose in the adop- States; by Louis J. Lefkowitz, Attorney General, pro se, tion of the diploma and test requirements. It held that, absent such discriminatory purpose, use of the requirements was permit- Samuel A. Hirshowitz, First Assistant Attorney General, ted, and rejected the claim that because a disproportionate number and George D. Zuckerman and Dominick J. Tuminaro, of Negroes was rendered ineligible for promotion, transfer, or Assistant Attorneys General, for the Attorney General employment, the requirements were unlawful unless shown to be of the State of New York; and by Bernard Kleiman, job related. Held: Elliot Bredhoff, Michael H. Gottesman, and George H. 1. The Act requires the elimination of artificial, arbitrary, and Cohen for the United Steelworkers of America, AFL-CIO. unnecessary barriers to employment that operate invidiously to discriminate on the basis of race, and, if, as here, an employment MR. CHIEF JUSTICE BURGER delivered the opinion of practice that operates to exclude Negroes cannot be shown to be the Court. related to job performance, it is prohibited, notwithstanding the employer's lack of discriminatory intent. Pp. 429-433. We granted the writ in this case to resolve the question 2. The Act does not preclude the use of testing or measuring whether an employer is prohibited by the Civil Rights procedures, but it does proscribe giving them controlling force un- Act of 1964, Title VII, from requiring a high school edu- 426 OCTOBER TERM, 1970 GRIGGS v. DUKE POWER CO. 427 Opinion of the Court 401 U.S. 424 Opinion of the Court cation or passing of a standardized general intelligence Company openly discriminated on the basis of race in test as a condition of employment in or transfer to jobs the hiring and assigning of employees at its Dan River when (a) neither standard is shown to be significantly plant. The plant was organized into five operating de- related to successful job performance, (b) both require- partments: (1) Labor, (2) Coal Handling, (3) Opera- ments operate to disqualify Negroes at a substantially tions, (4) Maintenance, and (5) Laboratory and Test. higher rate than white applicants, and (c) the jobs in Negroes were employed only in the Labor Department question formerly had been filled only by white em- where the highest paying jobs paid less than the lowest ployees as part of a longstanding practice of giving paying jobs in the other four "operating" departments in preference to whites.¹ which only whites were employed.² Promotions were Congress provided, in Title VII of the Civil Rights Act normally made within each department on the basis of of 1964, for class actions for enforcement of provisions job seniority. Transferees into a department usually of the Act and this proceeding was brought by a group began in the lowest position. of incumbent Negro employees against Duke Power In 1955 the Company instituted a policy of requiring Company. All the petitioners are employed at the Com- a high school education for initial assignment to any pany's Dan River Steam Station, a power generating department except Labor, and for transfer from the Coal facility located at Draper, North Carolina. At the time Handling to any "inside" department (Operations, Main- this action was instituted, the Company had 95 employees tenance, or Laboratory). When the Company abandoned at the Dan River Station, 14 of whom were Negroes; 13 of its policy of restricting Negroes to the Labor Department these are petitioners here. in 1965, completion of high school also was made a pre- The District Court found that prior to July 2, 1965, requisite to transfer from Labor to any other department. the effective date of the Civil Rights Act of 1964, the From the time the high school requirement was instituted 1 The Act provides: to the time of trial, however, white employees hired be- "Sec. 703. (a) It shall be an unlawful employment practice for fore the time of the high school education requirement an employer- continued to perform satisfactorily and achieve promo- tions in the "operating" departments. Findings on this "(2) to limit, segregate, or classify his employees in any way score are not challenged. which would deprive or tend to deprive any individual of employ- The Company added a further requirement for new ment opportunities or otherwise adversely affect his status as an employees on July 2, 1965, the date on which Title VII employee, because of such individual's race, color, religion, sex, or national origin. became effective. To qualify for placement in any but the Labor Department it became necessary to register "(h) Notwithstanding any other provision of this title, it shall satisfactory scores on two professionally prepared apti- not be an unlawful employment practice for an employer to give and to act upon the results of any professionally developed 2 A Negro was first assigned to a job in an operating department ability test provided that such test, its administration or action in August 1966, five months after charges had been filed with the upon the results is not designed, intended or used to discriminate Equal Employment Opportunity Commission. The employee, a high because of race, color, religion, sex or national origin " 78 Stat. school graduate who had begun in the Labor Department in 1953, 255, 42 U. S. C. § 2000e-2. was promoted to a job in the Coal Handling Department. GRIGGS v. DUKE POWER CO. OCTOBER TERM, 1970 429 424 401 U.S. Opinion of the Court Opinion of the Court tude tests, as well as to have a high school education. The Court of Appeals reversed the District Court in Completion of high school alone continued to render part, rejecting the holding that residual discrimination employees eligible for transfer to the four desirable de- arising from prior employment practices was insulated partments from which Negroes had been excluded if the from remedial action.4 The Court of Appeals noted, incumbent had been employed prior to the time of the however, that the District Court was correct in its con- new requirement. In September 1965 the Company be- clusion that there was no showing of a racial purpose or gan to permit incumbent employees who lacked a high invidious intent in the adoption of the high school di- school education to qualify for transfer from Labor or ploma requirement or general intelligence test and that Coal Handling to an "inside" job by passing two tests— these standards had been applied fairly to whites and the Wonderlic Personnel Test, which purports to measure Negroes alike. It held that, in the absence of a discrim- general intelligence, and the Bennett Mechanical Com- inatory purpose, use of such requirements was permitted prehension Test. Neither was directed or intended to by the Act. In so doing, the Court of Appeals rejected measure the ability to learn to perform a particular job the claim that because these two requirements operated or category of jobs. The requisite scores used for both to render ineligible a markedly disproportionate number initial hiring and transfer approximated the national of Negroes, they were unlawful under Title VII unless median for high school graduates.³ shown to be job related.5 We granted the writ on these The District Court had found that while the Company claims. 399 U. S. 926. previously followed a policy of overt racial discrimination The objective of Congress in the enactment of Title in a period prior to the Act, such conduct had ceased. VII is plain from the language of the statute. It was to The District Court also concluded that Title VII was achieve equality of employment opportunities and re- intended to be prospective only and, consequently, the impact of prior inequities was beyond the reach of cor- The Court of Appeals ruled that Negroes employed in the Labor rective action authorized by the Act. Department at a time when there was no high school or test require- ment for entrance into the higher paying departments could not The Court of Appeals was confronted with a question now be made subject to those requirements, since whites hired con- of first impression, as are we, concerning the meaning of temporaneously into those departments were never subject to them. - Title VII. After careful analysis a majority of that The Court of Appeals also required that the seniority rights of those court concluded that a subjective test of the employer's Negroes be measured on a plantwide, rather than a departmental, intent should govern, particularly in a close case, and basis. However, the Court of Appeals denied relief to the Negro that in this case there was no showing of a discriminatory employees without a high school education or its equivalent who were hired into the Labor Department after institution of the purpose in the adoption of the diploma and test require- educational requirement. ments. On this basis, the Court of Appeals concluded 5 One member of that court disagreed with this aspect of the there was no violation of the Act. decision, maintaining, as do the petitioners in this Court, that Title VII prohibits the use of employment criteria that operate in a 3 The test standards are thus more stringent than the high school racially exclusionary fashion and do not measure skills or abilities requirement, since they would screen out approximately half of necessary to performance of the jobs for which those criteria are used. all high school graduates. 415-649 o 72 33 430 OCTOBER TERM, 1970 GRIGGS v. DUKE POWER CO. 431 Opinion of the Court 401 U.S. 424 Opinion of the Court move barriers that have operated in the past to favor an identifiable group of white employees over other em- person be hired simply because he was formerly the sub- ployees. Under the Act, practices, procedures, or tests ject of discrimination, or because he is a member of a neutral on their face, and even neutral in terms of intent, minority group. Discriminatory preference for any cannot be maintained if they operate to "freeze" the group, minority or majority, is precisely and only what Congress has proscribed. What is required by Congress status quo of prior discriminatory employment practices. is the removal of artificial, arbitrary, and unnecessary The Court of Appeals' opinion, and the partial dissent, barriers to employment when the barriers operate in- agreed that, on the record in the present case, "whites vidiously to discriminate on the basis of racial or other register far better on the Company's alternative require- impermissible classification. ments" than Negroes. 420 F. 2d 1225, 1239 n. 6. This Congress has now provided that tests or criteria for consequence would appear to be directly traceable to employment or promotion may not provide equality of race. Basic intelligence must have the means of articu- opportunity merely in the sense of the fabled offer of milk lation to manifest itself fairly in a testing process. Be- to the stork and the fox. On the contrary, Congress has cause they are Negroes, petitioners have long received now required that the posture and condition of the job- inferior education in segregated schools and this Court seeker be taken into account. It has-to resort again to expressly recognized these differences in Gaston County the fable-provided that the vessel in which the milk is V. United States, 395 U. S. 285 (1969). There, because proffered be one all seekers can use. The Act proscribes of the inferior education received by Negroes in North not only overt discrimination but also practices that are Carolina, this Court barred the institution of a literacy fair in form, but discriminatory in operation. The touch- test for voter registration on the ground that the test stone is business necessity. If an employment practice would abridge the right to vote indirectly on account of 1 which operates to exclude Negroes cannot be shown to be M race. Congress did not intend by Title VII, however, related to job performance, the practice is prohibited. to guarantee a job to every person regardless of qualifi- On the record before us, neither the high school com- cations. In short, the Act does not command that any pletion requirement nor the general intelligence test is shown to bear a demonstrable relationship to successful 6 In North Carolina, 1960 census statistics show that, while 34% performance of the jobs for which it was used. Both of white males had completed high school, only 12% of Negro males were adopted, as the Court of Appeals noted, without had done SO. U.S. Bureau of the Census, U.S. Census of Popula- meaningful study of their relationship to job-performance tion: 1960, Vol. 1, Characteristics of the Population, pt. 35, Table ability. Rather, a vice president of the Company testi- 47. Similarly, with respect to standardized tests, the EEOC in one fied, the requirements were instituted on the Company's case found that use of a battery of tests, including the Wonderlic judgment that they generally would improve the over- and Bennett tests used by the Company in the instant case, resulted all quality of the work force. in 58% of whites passing the tests, as compared with only 6% of The evidence, however, shows that employees who the blacks. Decision of EEOC, CCH Empl. Prac. Guide, T 17,304.53 have not completed high school or taken the tests have (Dec. 2, 1966). See also Decision of EEOC 70-552, CCH Empl. continued to perform satisfactorily and make progress Prac. Guide, T 6139 (Feb. 19, 1970). in departments for which the high school and test cri- 432 OCTOBER TERM, 1970 Opinion of the Court 424 401 U.S. Opinion of the Court teria are now used.' The promotion record of present The facts of this case demonstrate the inadequacy of employees who would not be able to meet the new criteria broad and general testing devices as well as the infirmity thus suggests the possibility that the requirements may of using diplomas or degrees as fixed measures of capa- 15 not be needed even for the limited purpose of preserving bility. History is filled with examples of men and women the avowed policy of advancement within the Company. who rendered highly effective performance without the In the context of this case, it is unnecessary to reach the conventional badges of accomplishment in terms of cer- tificates, diplomas, or degrees. Diplomas and tests are question whether testing requirements that take into ac- 7, useful servants, but Congress has mandated the com- count capability for the next succeeding position or monsense proposition that they are not to become masters related future promotion might be utilized upon a show- 1 of reality. ing that such long-range requirements fulfill a genuine The Company contends that its general intelligence business need. In the present case the Company has tests are specifically permitted by § 703 (h) of the Act.8 made no such showing. That section authorizes the use of "any professionally The Court of Appeals held that the Company had developed ability test" that is not "designed, intended adopted the diploma and test requirements without any or used to discriminate because of race (Empha- "intention to discriminate against Negro employees." sis added.) 420 F. 2d, at 1232. We do not suggest that either the The Equal Employment Opportunity Commission, District Court or the Court of Appeals erred in examining having enforcement responsibility, has issued guidelines the employer's intent; but good intent or absence of dis- interpreting § 703 (h) to permit only the use of job- criminatory intent does not redeem employment proce- related tests. The administrative interpretation of the dures or testing mechanisms that operate as "built-in 3 headwinds" for minority groups and are unrelated to 8 Section 703 (h) applies only to tests. It has no applicability measuring job capability. to the high school diploma requirement. 9 EEOC Guidelines on Employment Testing Procedures, issued The Company's lack of discriminatory intent is sug- August 24, 1966, provide: gested by special efforts to help the undereducated em- "The Commission accordingly interprets 'professionally developed ployees through Company financing of two-thirds the ability test' to mean a test which fairly measures the knowledge cost of tuition for high school training. But Congress or skills required by the particular job or class of jobs which the directed the thrust of the Act to the consequences of applicant seeks, or which fairly affords the employer a chance to employment practices, not simply the motivation. More measure the applicant's ability to perform a particular job or class of jobs. The fact that a test was prepared by an individual or than that, Congress has placed on the employer the organization claiming expertise in test preparation does not, without burden of showing that any given requirement must more, justify its use within the meaning of Title VII." have a manifest relationship to the employment in The EEOC position has been elaborated in the new Guidelines on question. Employee Selection Procedures, 29 CFR § 1607, 35 Fed. Reg. 12333 (Aug. 1, 1970). These guidelines demand that employers using 7 For example, between July 2, 1965, and November 14, 1966, the tests have available "data demonstrating that the test is predictive of percentage of white employees who were promoted but who were or significantly correlated with important elements of work behavior not high school graduates was nearly identical to the percentage of which comprise or are relevant to the job or jobs for which candidates nongraduates in the entire white work force. are being evaluated." Id., at § 1607.4 (c). GRIGGS Opinion of the Court 401 U.S. 424 Opinion of the Court Act by the enforcing agency is entitled to great deference. See, e. g., United States V. City of Chicago, 400 U.S. 8 these assurances, Senator Tower of Texas introduced an (1970); Udall V. Tallman, 380 U. S. 1 (1965); Power amendment authorizing "professionally developed ability Reactor Co. V. Electricians, 367 U. S. 396 (1961). Since tests." Proponents of Title VII opposed the amendment the Act and its legislative history support the Commis- The because, as written, it would permit an employer to give sion's construction, this affords good reason to treat the any test, "whether it was a good test or not, SO long as guidelines as expressing the will of Congress. it was professionally designed. Discrimination could ac- Section 703 (h) was not contained in the House ver- tually exist under the guise of compliance with the stat- sion of the Civil Rights Act but was added in the Senate ute." 110 Cong. Rec. 13504 (remarks of Sen. Case). during extended debate. For a period, debate revolved The amendment was defeated and two days later Sen- around claims that the bill as proposed would prohibit ator Tower offered a substitute amendment which was all testing and force employers to hire unqualified per- adopted verbatim and is now the testing provision of sons simply because they were part of a group formerly § 703 (h). Speaking for the supporters of Title VII, Sen- subject to job discrimination. Proponents of Title VII ator Humphrey, who had vigorously opposed. the first sought throughout the debate to assure the critics that amendment, endorsed the substitute amendment, stating: the Act would have no effect on job-related tests. Sen- "Senators on both sides of the aisle who were deeply ators Case of New Jersey and Clark of Pennsylvania, interested in title VII have examined the text of this comanagers of the bill on the Senate floor, issued a memorandum explaining that the proposed Title VII quotation from an earlier Clark-Case interpretative memorandum "expressly protects the employer's right to insist that addressed to the question of the constitutionality of Title VII. The any prospective applicant, Negro or white, must meet the Senators said in that memorandum: applicable job qualifications. Indeed, the very purpose "There is no requirement in title VII that employers abandon of title VII is to promote hiring on the basis of job bona fide qualification tests where, because of differences in back- qualifications, rather than on the basis of race or color." ground and education, members of some groups are able to perform 110 Cong. Rec. 7247.11 (Emphasis added.) Despite better on these tests than members of other groups. An employer may set his qualifications as high as he likes, he may test to deter- 10 The congressional discussion was prompted by the decision of mine which applicants have these qualifications, and he may hire, a hearing examiner for the Illinois Fair Employment Commission assign, and promote on the basis of test performance." 110 Cong. in Myart V. Motorola Co. (The decision is reprinted at 110 Cong. Rec. 7213. Rec. 5662.) That case suggested that standardized tests on which However, nothing there stated conflicts with the later memorandum whites performed better than Negroes could never be used. The dealing specifically with the debate over employer testing, 110 Cong. decision was taken to mean that such tests could never be justi- Rec. 7247 (quoted from in the text above), in which Senators Clark fied even if the needs of the business required them. A number and Case explained that tests which measure "applicable job of Senators feared that Title VII might produce a similar result. qualifications" are permissible under Title VII. In the earlier mem- See remarks of Senators Ervin, 110 Cong. Rec. 5614-5616; Smathers, orandum Clark and Case assured the Senate that employers were id., at 5999-6000; Holland, id., at 7012-7013; Hill, id., at 8447; not to be prohibited from using tests that determine qualifications. Tower, id., at 9024; Talmadge, id., at 9025-9026; Fulbright, id., at 9599-9600; and Ellender, id., at 9600. Certainly a reasonable interpretation of what the Senators meant, 11 The Court of Appeals majority, in finding no requirement in in light of the subsequent memorandum directed specifically at Title VII that employment tests be job related, relied in part on a employer testing, was that nothing in the Act prevents employers from requiring that applicants be fit for the job. GILLETTE v. UNITED STATES 437 136 OCTOBER TERM, 1970 Syllabus Opinion of the Court 401 U.S. amendment and have found it to be in accord with the GILLETTE v. UNITED STATES intent and purpose of that title." 110 Cong. Rec. 13724. The amendment was then adopted.¹² From the sum of CERTIORARI TO THE UNITED STATES COURT OF APPEALS the legislative history relevant in this case, the conclu- FOR THE SECOND CIRCUIT sion is inescapable that the EEOC's construction of 10 § 703 (h) to require that employment tests be job related No. 85. Argued December 9, 1970-Decided March 8, 1971* comports with congressional intent. Petitioner in No. 85, who was convicted for failure to report for Nothing in the Act precludes the use of testing or induction, and petitioner in No. 325, who sought discharge from measuring procedures; obviously they are useful. What the armed forces upon receipt of orders for Vietnam duty, claim Congress has forbidden is giving these devices and mech- exemption from military service because of their conscientious anisms controlling force unless they are demonstrably a objection to participation in the Vietnam conflict, as an "unjust" war, pursuant to § 6 (j) of the Military Selective Service Act of reasonable measure of job performance. Congress has 1967. That section provides that no person shall be subject to not commanded that the less qualified be preferred over. "service in the armed forces of the United States who, by reason the better qualified simply because of minority origins. of religious training and belief, is conscientiously opposed to par- Far from disparaging job qualifications as such, Congress ticipation in war in any form." Petitioners also challenge the has made such qualifications the controlling factor, so constitutionality of § 6 (j) as construed to cover only objectors that race, religion, nationality, and sex become irrelevant. to all war, as violative of the Free Exercise and Establishment of What Congress has commanded is that any tests used Religion Clauses of the First Amendment. Held: 1. The exemption for those who oppose "participation in war in must measure the person for the job and not the person any form" applies to those who oppose participating in all war in the abstract. and not to those who object to participation in a particular war The judgment of the Court of Appeals is, as to that only, even if the latter objection is religious in character. Pp. portion of the judgment appealed from, reversed. 441-448. 2. Section 6 (j) does not violate the Establishment Clause of MR. JUSTICE BRENNAN took no part in the considera- the First Amendment. Pp. 448-460. tion or decision of this case. (a) The section on its face does not discriminate on the basis of religious affiliation or belief, and petitioners have not shown the 12 Senator Tower's original amendment provided in part that a absence of neutral, secular bases for the exemption. Pp. 450-453. test would be permissible "if in the case of any individual who (b) The exemption provision focuses on individual conscien- is seeking employment with such employer, such test is designed to tious belief and not on sectarian affiliations. P. 454. determine or predict whether such individual is suitable or trainable (c) There are valid neutral reasons, with the central em- with respect to his employment in the particular business or enter- phasis on the maintenance of fairness in the administration of prise involved 110 Cong. Rec. 13492. This language indicates military conscription, for the congressional limitation of the ex- that Senator Tower's aim was simply to make certain that job- emption to "war in any form," and therefore § 6 (j) cannot be related tests would be permitted. The opposition to the amendment said to reflect a religious preference. Pp. 454-460. was based on its loose wording which the proponents of Title VII feared would be susceptible of misinterpretation. The final amend- *Together with No. 325, Negre V. Larsen et al., on certiorari to ment, which was acceptable to all sides, could hardly have required the United States Court of Appeals for the Ninth Circuit. less of a job relation than the first. UNITED STATES SENATE WASHINGTON, D. C. JOHN C. DANFORTH MISSOURI June 20, 1991 Honorable John Sununu Chief of Staff to the President The White House Washington, D. C. 20500 Dear John: Yesterday, you said that everyone agrees that the objective of civil rights legislation should be to return to the Supreme Court's decision in Griggs V. Duke Power Co., and that the definition of "business necessity" should be lifted verbatim from that decision. I think that your suggestion is very important, and that it offers the possibility of a real breakthrough in resolving this problem. The issue dealt with in Griggs is explained by Chief Justice Burger in the first sentence of the Court's opinion: We granted the writ in this case to resolve the question whether an employer is prohibited by the Civil Rights Act of 1964, Title VII, from requiring a high school education or passing of a standardized general intelligence test as a condition of employment in or transfer to jobs when (a) neither standard is shown to be significantly related to successful job performance, (401 U.S. at 425-426, emphasis supplied) The Court then proceeds to analyze the employment standards before it. With respect to two tests administered to employees, the Court finds that: Neither was directed or intended to measure the ability to learn to perform a particular job or category of jobs. (401 U.S. at 428) The Court then analyzes Title VII as follows: - 2 - The touchstone is business necessity. If an employment practice which operates to exclude Negroes cannot be shown to be related to job performance, the practice is prohibited. On the record before us, neither the high school completion requirement nor the general intelligence test is shown to bear a demonstrable relationship to successful performance of the jobs for which it was used. Both were adopted, as the Court of Appeals noted, without meaningful study of their relationship to job-performance ability. Rather, a vice president of the Company testified, the requirements were instituted on the Company's judgment that they generally would improve the overall quality of the work force. The evidence, however, shows that employees who have not completed high school or taken the tests have continued to perform satisfactorily and make progress in departments for which the high school and test criteria are now used. (401 U.S. at 431-432, emphasis supplied) Further interpreting Title VII, the Court quotes the following EEOC guidelines as "expressing the will of Congress:" The Commission accordingly interprets "professionally developed ability test" to mean a test which fairly measures the knowledge or skills required by the particular job or class of jobs which the applicant seeks, or which fairly affords the employer a chance to measure the applicant's ability to perform a particular job or class of jobs. (401 U.S. 433 n. 9, emphasis supplied) Finally, at the end of the opinion, the Court summarizes its holding. What Congress has forbidden is giving these devices and mechanisms controlling force unless they are demonstrably a reasonable measure of job performance. Congress has not commanded that the less qualified be preferred over the - 3 - better qualified simply because of minority origins. Far from disparaging job qualifica- tions as such, Congress has made such qualifications the controlling factor, so that race, religion, nationality, and sex become irrelevant. What Congress has commanded is that any tests used must measure the person for the job and not the person in the abstract. (401 U.S. at 436, emphasis supplied) John, as you can see, a fair reading of Griggs is not a matter of lifting one isolated sentence out of context. From the beginning of the opinion to the end, Griggs is about job performance. Therefore, it is clear to me that the Court best defines business necessity at 401 U.S. 431. Using Griggs language verbatim, the legislation could provide that: The term "required by business necessity" means--shown to be related to job performance. Let me know what you think. Sincerely, Jack CC: Senator Robert Dole