PAUL
GREENBERG
Chair
CYNTHIA L.
ATTWOOD
Member
[ENDNOTES]
1
This appeal has been assigned to a panel of two Board members, as
authorized by Secretary's Order 2-96. 61 Fed. Reg. 19,978 §5 (May 3,
1996).
2
The employee protection provisions of the ERA were amended as part of the
Comprehensive National Energy Policy Act of 1992 §2902, Pub.
L. No. 102-486, 106 Stat. 2776 (Oct. 24, 1992). However, the amendments
applied only prospectively, and therefore do not apply to this case which
was filed in 1990. See Yule v. Burns Int'l Security Serv.,
No. 93-ERA-12 (Sec'y May 24, 1995).
3
The Secretary of Labor issued final agency decisions in ERA whistleblower
cases prior to 1996. In April 1996 the Secretary delegated this authority
to the newly-created Administrative Review Board. Secretary's Order 2-96,
61 Fed. Reg. 19978 (May 3, 1996).
4
Decisions and orders of the ARB, Secretary and DOL Administrative Law
Judges opinions are published on the Department of Labor's World Wide Web
site at www.oalj.dol.gov.
5
Questions about the lawfulness of Georgia Power's and Southern Company's
decision to consolidate various nuclear plant operations, and Georgia
Power's reaction to these questions, were implicated in another ERA
whistleblower case brought by Allen Mosbaugh, a Georgia Power manager at
the company's Alvin Vogtle nuclear plant. Mosbaugh v. Georgia Power
Co., Nos. 91-ERA-1, 11 (Sec'y Nov. 20, 1995). The
Mosbaugh case subsequently was settled. Mosbaugh v. Georgia
Power Co., Nos. 91-ERA-1, 11 (ARB Aug. 23, 1996).
6
Hobby remained on the payroll at Georgia Power until February 23, 1990.
7
Contrary to the ALJ, the Secretary also concluded that Hobby did
engage in protected activity at the January 1990 pre-hearing meeting on
Fuchko; however, the Secretary held that this protected activity
did not motivate Georgia Power to terminate Hobby. Id. at 10.
8
In 1995 Georgia Power adopted a new pay grade structure, and position
levels was revised such that a position at the old Level 18 became Level
9, Level 20 became Level 10, and so on. T. 1728, RD&O at 4 n.2.
9
To the extent that other Georgia Power executives testified during the
liability phase of this proceeding that they had formed a low opinion of
Hobby toward the end of his tenure with the company, the Secretary found
this changed view to be further evidence of discriminatory bias by the
company. Id. at 20.
10
The ALJ opined that the elimination of the NOCA operation and Hobby's
General Manager position was "inextricably entwined with the
discriminatory act." RD&O at 55.
11
At the time of the hearing on damages, Evans was the President and CEO of
Mississippi Power Company. Prior to holding this position, he served as a
Vice President at Southern Company Services and at Georgia Power. Tr.
827-8. Evans was Hobby's supervisor at Georgia Power in January 1990.
RD&O at 28.
12
Hobby also disagrees with the ALJ's analysis of his progression rate,
asserting that he ascended the pay grades at an even faster rate than the
ALJ acknowledged.
13
There are, of course, countervailing legal and evidentiary concerns that
may shift the burden of proof to other parties on specific issues.
Id. A good example of this burden shifting is the question whether
a complainant has appropriately mitigated damages (discussed
infra), where the burden of proving a "failure to mitigate" falls
on the defendant.
14
The ALJ rejected the premise that employees automatically are elevated to
the next grade level when they reach the maximum pay, crediting Steve
Wilkinson's testimony that most employees at Georgia Power who reach Level
10 remain at that level because there are few positions available above
that level. RD&O at 57. In testimony that addressed this issue
squarely, Wilkinson stated that employees do not automatically receive
level increases upon reaching the maximum salary level for their current
level, but that such a promotion would require the opening of a position
at the higher level. T. 2137-8, 2144.
15
Because of the result that we reach on this issue, we do not need to
address a second problem in Hobby's argument, i.e., that neither of
the Southern Company comparators were employed by the respondent in this
case, Georgia Power.
16
Georgia Power expended significant energy developing and presenting
evidence concerning downsizing at the company, advancing the theory that
Hobby's entitlement to back pay would have ended relatively early because
he would have been separated from the company as part of a general
reduction in the management ranks. See RD&O at 63-64. However,
the analyses compiled by the company "were seriously flawed." Id.
Perhaps for this reason, the company does not raise this downsizing
argument as part of this appeal.
17
As an aside, we note that a position paying $65,000/yr. (or less)
obviously is not "substantially equivalent" in compensation to Hobby's
former position as NOCA General Manager, where he was paid over
$100,000/yr. with significant benefits.
18
In addition, the ALJ concluded that one of Hobby's witnesses, Dr. Soeken,
lacked credibility because his opinion was "so fraught with bias that it
was implausible." Id. at 62 n.107.
19
One legal scholar has questioned the Weaver-type alternative
approach for proving a failure to mitigate damages:
In line with the common law avoidable consequences rule, the
defendant's liability for backpay is reduced by sums the plaintiff earned
or could have earned in other employment. The reduction is to be made in
the sum of any actual earnings received by the plaintiff in other
employment. The reduction is also to be made for any income the plaintiff
could reasonably have earned in substitute employment, if the plaintiff in
fact earned nothing. The rule requiring a reduction for income the
plaintiff could reasonably have earned but did not, is often expressed in
terms of the usual evidence given on the point by saying that the
plaintiff cannot recover for any period of time in which she was not using
reasonable diligence to find substitute employment. But the plaintiff's
lack of diligence, though perhaps sufficient to put the burden on the
plaintiff to show that no substitute jobs existed, is not itself the
critical issue. The critical point is whether the plaintiff actually
earned money or could reasonably have done so in a comparable job. If no
such job existed, the plaintiff's post-discharge behavior is of no
consequence.
Reduction in the recovery by the amount the plaintiff could have
earned is required only if the plaintiff had an opportunity to earn income
in a job that counts as a substitute for the job in which the plaintiff
was wronged; it must be a job that is a "substantial equivalent" of the
job from which the plaintiff was wrongfully discharged or one that becomes
acceptable as an equivalent when time has demonstrated that the plaintiff
must lower her sights.
II Dan B. Dobbs, Law Of Remedies §6.10(4) at 221-22 (2d ed. 1993)
(emphasis added).
20
Soon after Hobby was terminated by Georgia Power in 1990, Smith told Hobby
that Oglethorpe would be interested in having him as an employee. T. 161.
Hobby also spoke with Frank Wreath at Oglethorpe Power, who informed him
that the company would be "very, very interested" in hiring him after the
hearing phase of his legal claim against Georgia Power. T. 159-60, 163.
In January 1991, Hobby again contacted Oglethorpe and was informed that
they were still interested in him. T. 166. In mid-1991, Tom Kilgore, an
acquaintance of Hobby's, became Oglethorpe's new president. Wreath told
Hobby that Kilgore had been informed of his interest in a position at
Oglethorpe. T. 167. Additionally, one of Oglethorpe's board members
privately informed Hobby that there was no reason why Oglethorpe's board
would oppose his hiring. T. 167-9.
Hobby met with Kilgore soon after Kilgore began serving as Oglethorpe's
president. Kilgore was re-assessing Oglethorpe's organizational structure,
but told Hobby that he would contact him in a few weeks. T. 169-70.
Separate from these discussions, in August 1991, Hobby responded to an
advertisement placed by Oglethorpe seeking a Program Director of Power
Production. T. 172-73, RD&O at 14. The position was ultimately offered
to one of Oglethorpe's then-current employees. T. 174.
By this time, Kilgore, Smith, Wreath, and Dave Self (Oglethorpe's Vice
President of Power Production) all had told Hobby that he might be needed
in a number of departments at the company. T. 215-16. In September 1991
Hobby again met with Wreath, who informed him that Kilgore believed that
Hobby's ERA case needed to be resolved before he could be hired, but that
this was the only impediment. T. 225-26.
In November 1991, Smith contacted Hobby for a job interview for a
position at Oglethorpe. Hobby expected to meet with Kilgore as part of the
interview, but was unable to do so. In December 1991 he contacted Smith
about the interview and was told that a hiring decision would not be made
until after the holidays. T. 236-38.
Hobby contacted Oglethorpe in January and February 1992 and was told
that no action had yet been taken on his hiring. T. 238. Soon after
receiving this news, Hobby contacted an employment recruiter and engaged a
firm to assist in job placement elsewhere.
21
Although Hobby entered into a long-term contract with the R.L. Stevens
employment firm to assist in his job search, this relationship ended in
September 1992 when Hobby was unable to pay the company's fees. RD&O
at 38.
22
We note favorably the ALJ's discussion of Hobby's difficulties after he
was terminated by Georgia Power. See RD&O at 65-68.
23
We note that the parties agreed during the hearing that compensation
manager Steve Wilkinson could be used to calculate compensation and
employee benefit figures pursuant to this Order. T. 2175, RD&O at 33
n.58.
24
Earlier in the Recommended Decision, the ALJ states that George Power
should pay Hobby PPP and PIP benefits at the "average award provided to
level 20 (10) employees." RD&O at 65. The "average award" is not
necessarily the same as the award made to an employee at the mid-point.
Because we order Georgia Power to pay back pay at the mid-point level,
infra, we similarly adopt the mid-point formulation for the bonus
payments.
25
The ALJ determined Hobby's medical and life insurance costs to be
$20,384.21, increasing by $120/mo. after April 15, 1998.
26
Hobby received retirement and pension benefits through Georgia Power's
Employee Stock Ownership Plan (ESOP) and Employee Savings Plan (ESP) T.
576-80, 608-9; CX-132-K; CX- 132-P. If Hobby had worked for Georgia Power
beyond April 20, 1990, he would have received an amount equal to 5.3 % of
his annual salary on March 15th of each year from 1990. RD&O at 5.
Georgia Power's Stock Option Plan allows employees to purchase stock at a
fixed price; the longer employees stay with the company, the more shares
of stock they are allowed to purchase. T. 573-76, 608, 2139-40; CX-132-J;
CX-132-O.
27
Hobby represents that he incurred $6,345.12 in tax penalties in connection
with the stock sales, and $314.11 in penalties in connection with the IRA
distribution. RD&O at 22 nn.29, 30. Combined, these penalties total
penalty $6,659.23, a figure that is at variance with the ALJ's calculation
See RD&O at 70 item 13. We assume that the ALJ's summary figure
is the inadvertent result of a computation error.
The ALJ noted that Hobby's proposed interest calculation regarding the
tax penalty was incorrect, and resulted in a doubling of interest.
RD&O at 68. Hobby does not challenge this ALJ finding on appeal.
28
In his cross-petition, Hobby notes that the ALJ's RD&O contains an
ambiguity with regard to the back pay calculation. On the one hand, the
ALJ states that back pay should be tied simply to the mid-point of the
Level 20 (10) pay scale (RD&O at 70), while elsewhere the ALJ states
that the mid- point salary range should increase by 4% each year. RD&O
at 58 n.104. In this Final Decision, we direct that the back pay
calculation be geared solely to the pay grade mid-point.
29
For example, assume that Hobby was entitled to $30,000 in gross back wages
from Georgia Power during a particular calendar quarter, but received
$10,000 in interim earnings during that quarter from a different employer.
The net back wages owed by Georgia Power for the calendar quarter would be
$20,000. This $20,000 net back wage is the amount that would be added to
the back pay total on which interest would be paid and compounded.
30
As in Doyle, the parties in this case have agreed to round the AFR
to whole percentage points. See RD&O at 5. We therefore order
rounding of the AFR under the same methodology used in Doyle.
31
Board Member E. Cooper Brown did not participate in the consideration of
this case.
32
Because this decision resolves all issues with the exception of the
collateral issue of attorney fees and costs, it is final and appealable.
See Fluor Constructors, Inc. v. Reich, 111 F.3d 979 (11th Cir.
1997) (under the Energy Reorganization Act, a decision that resolves all
issues except attorney fees is final.)