on writ of certiorari to the united states court of
appeals for the fourth circuit
[January 15, 2002]
Justice Stevens delivered the opinion of the Court.
The question presented is whether an agreement between an employer and an employee to arbitrate employment-related disputes bars the Equal Employment Opportunity Commission (EEOC) from pursuing victim-specific judicial relief, such as backpay, reinstatement, and damages, in an enforcement action alleging that the employer has violated Title I of the Americans with Disabilities Act of 1990 (ADA), 104 Stat. 328, 42 U. S. C. §12101 et seq. (1994 ed. and Supp. V).
I
In his application for employment with respondent, Eric Baker agreed that "any dispute or claim" concerning his employment would be "settled by binding arbitration."1 As a condition of employment, all prospective Waffle House employees are required to sign an application containing a similar mandatory arbitration agreement. See App. 56. Baker began working as a grill operator at one of respondent's restaurants on August 10, 1994. Sixteen days later he suffered a seizure at work and soon thereafter was discharged. Id., at 43-44. Baker did not initiate arbitration proceedings, nor has he in the seven years since his termination, but he did file a timely charge of discrimination with the EEOC alleging that his discharge violated the ADA.
After an investigation and an unsuccessful attempt to conciliate, the EEOC filed an enforcement action against respondent in the Federal District Court for the District of South Carolina,2 pursuant to §107(a) of the ADA, 42 U. S. C. §12117(a) (1994 ed.), and §102 of the Civil Rights Act of 1991, as added, 105 Stat. 1072, 42 U. S. C. §1981a (1994 ed.). Baker is not a party to the case. The EEOC's complaint alleged that respondent engaged in employment practices that violated the ADA, including its discharge of Baker "because of his disability," and that its violation was intentional, and "done with malice or with reckless indifference to [his] federally protected rights." The complaint requested the court to grant injunctive relief to "eradicate the effects of [respondent's] past and present unlawful employment practices," to order specific relief designed to make Baker whole, including backpay, reinstatement, and compensatory damages, and to award punitivedamages for malicious and reckless conduct. App. 38-40.
Respondent filed a petition under the Federal
Arbitration Act (FAA), 9 U. S. C. §1 et seq., to stay the EEOC's suit
and compel arbitration, or to dismiss the action. Based on a factual determination
that Baker's actual employment contract had not included the arbitration
provision, the District Court denied the motion. The
Court of Appeals granted an interlocutory appeal and held that a valid,
enforceable arbitration agreement between Baker and respondent did exist.
193 F. 3d 805,
808 (CA4 1999). The court then proceeded to consider "what effect,
if any, the binding arbitration agreement between Baker and Waffle House
has on the EEOC,
which filed this action in its own name both in the public interest
and on behalf of Baker." Id., at 809. After reviewing the relevant statutes
and the language of the
contract, the court concluded that the agreement did not foreclose
the enforcement action because the EEOC was not a party to the contract,
and it has independent
statutory authority to bring suit in any federal district court where
venue is proper. Id., at 809-812. Nevertheless, the court held that the
EEOC was precluded from
seeking victim-specific relief in court because the policy goals expressed
in the FAA required giving some effect to Baker's arbitration agreement.
The majority
explained:
"When the EEOC seeks `make-whole' relief for
a charging party, the federal policy favoring enforcement of private arbitration
agreements outweighs the
EEOC's right to proceed in federal court because
in that circumstance, the EEOC's public interest is minimal, as the EEOC
seeks primarily to vindicate
private, rather than public, interests. On
the other hand, when the EEOC is pursuing large-scale injunctive relief,
the balance tips in favor of EEOC
enforcement efforts in federal court because
the public interest dominates the EEOC's action." Id., at 812.3
Therefore, according to the Court of Appeals, when an employee has signed
a mandatory arbitration agreement, the EEOC's remedies in an enforcement
action are
limited to injunctive relief.
Several Courts of Appeals have considered this
issue and reached conflicting conclusions. Compare EEOC v. Frank's Nursery
& Crafts, Inc., 177 F. 3d 448
(CA6 1999) (employee's agreement to arbitrate does not affect the EEOC's
independent statutory authority to pursue an enforcement action for injunctive
relief,
backpay, and damages in federal court), with EEOC v. Kidder, Peabody
& Co., 156 F. 3d 298 (CA2 1998) (allowing the EEOC to pursue injunctive
relief in
federal court, but precluding monetary relief); Merrill, Lynch, Pierce,
Fenner and Smith, Inc. v. Nixon, 210 F. 3d 814 (CA8), cert. denied, 531
U. S. 958 (2000)
(same). We granted the EEOC's petition for certiorari to resolve this
conflict, 532 U. S. 941 (2001), and now reverse.
II
Congress has directed the EEOC to exercise
the same enforcement powers, remedies, and procedures that are set forth
in Title VII of the Civil Rights Act of
1964 when it is enforcing the ADA's prohibitions against employment
discrimination on the basis of disability. 42 U. S. C. §12117(a) (1994
ed.).4 Accordingly, the
provisions of Title VII defining the EEOC's authority provide the starting
point for our analysis.
When Title VII was enacted in 1964, it authorized
private actions by individual employees and public actions by the Attorney
General in cases involving a "pattern
or practice" of discrimination. 42 U. S. C. §2000e-6(a) (1994
ed.). The EEOC, however, merely had the authority to investigate and, if
possible, to conciliate charges
of discrimination. See General Telephone Co. of Northwest v. EEOC,
446 U. S. 318, 325 (1980). In 1972, Congress amended Title VII to authorize
the EEOC
to bring its own enforcement actions; indeed, we have observed that
the 1972 amendments created a system in which the EEOC was intended "to
bear the primary
burden of litigation," id., at 326. Those amendments authorize the
courts to enjoin employers from engaging in unlawful employment practices,
and to order
appropriate affirmative action, which may include reinstatement, with
or without backpay.5 Moreover, the amendments specify the judicial districts
in which such
actions may be brought.6 They do not mention arbitration proceedings.
In 1991, Congress again amended Title VII to
allow the recovery of compensatory and punitive damages by a "complaining
party." 42 U. S. C. §1981a(a)(1)
(1994 ed.). The term includes both private plaintiffs and the EEOC,
§1981a(d)(1)(A), and the amendments apply to ADA claims as well, §§1981a(a)(2),
(d)(1)(B).
As a complaining party, the EEOC may bring suit to enjoin an employer
from engaging in unlawful employment practices, and to pursue reinstatement,
backpay, and
compensatory or punitive damages. Thus, these statutes unambiguously
authorize the EEOC to obtain the relief that it seeks in its complaint
if it can prove its case
against respondent.
Prior to the 1991 amendments, we recognized
the difference between the EEOC's enforcement role and an individual employee's
private cause of action in
Occidental Life Ins. Co. of Cal. v. EEOC, 432 U. S. 355 (1977), and
General Telephone, supra. Occidental presented the question whether EEOC
enforcement
actions are subject to the same statutes of limitations that govern
individuals' claims. After engaging in an unsuccessful conciliation process,
the EEOC filed suit in
Federal District Court, on behalf of a female employee, alleging sex
discrimination. The court granted the defendant's motion for summary judgment
on the ground that
the EEOC's claim was time barred; the EEOC filed suit after California's
1-year statute of limitations had run. We reversed because "under the procedural
structure
created by the 1972 amendments, the EEOC does not function simply as
a vehicle for conducting litigation on behalf of private parties," 432
U. S., at 368. To hold
otherwise would have undermined the agency's independent statutory
responsibility to investigate and conciliate claims by subjecting the EEOC
to inconsistent
limitations periods.
In General Telephone, the EEOC sought to bring
a discrimination claim on behalf of all female employees at General Telephone's
facilities in four States, without
being certified as the class representative under Federal Rule of Civil
Procedure 23. 446 U. S., at 321-322. Relying on the plain language of Title
VII and the
legislative intent behind the 1972 amendments, we held that the EEOC
was not required to comply with Rule 23 because it "need look no further
than §706 for its
authority to bring suit in its own name for the purpose, among others,
of securing relief for a group of aggrieved individuals." Id., at 324.
In light of the provisions
granting the EEOC exclusive jurisdiction over the claim for 180 days
after the employee files a charge, we concluded that "the EEOC is not merely
a proxy for the
victims of discrimination and that [its] enforcement suits should not
be considered representative actions subject to Rule 23." Id., at 326.
Against the backdrop of our decisions in Occidental
and General Telephone, Congress expanded the remedies available in EEOC
enforcement actions in 1991
to include compensatory and punitive damages. There is no language
in the statute or in either of these cases suggesting that the existence
of an arbitration agreement
between private parties materially changes the EEOC's statutory function
or the remedies that are otherwise available.
III
The FAA was enacted in 1925, 43 Stat. 883,
and then reenacted and codified in 1947 as Title 9 of the United States
Code. It has not been amended since the
enactment of Title VII in 1964. As we have explained, its "purpose
was to reverse the longstanding judicial hostility to arbitration agreements
that had existed at
English common law and had been adopted by American courts, and to
place arbitration agreements on the same footing as other contracts." Gilmer
v.
Interstate/Johnson Lane Corp., 500 U. S. 20, 24 (1991). The FAA broadly
provides that a written provision in "a contract evidencing a transaction
involving
commerce to settle by arbitration a controversy thereafter arising
out of such contract ... shall be valid, irrevocable, and enforceable,
save upon such grounds as exist
at law or in equity for the revocation of any contract." 9 U. S. C.
§2. Employment contracts, except for those covering workers engaged
in transportation, are
covered by the Act. Circuit City Stores, Inc. v. Adams, 532 U. S. 105
(2001).
The FAA provides for stays of proceedings in
federal district courts when an issue in the proceeding is referable to
arbitration, and for orders compelling
arbitration when one party has failed or refused to comply with an
arbitration agreement. See 9 U. S. C. §§3 and 4. We have read
these provisions to "manifest a
`liberal federal policy favoring arbitration agreements.' " Gilmer,
500 U. S., at 25 (quoting Moses H. Cone Memorial Hospital v. Mercury Constr.
Corp., 460
U. S. 1, 24 (1983)). Absent some ambiguity in the agreement, however,
it is the language of the contract that defines the scope of disputes subject
to arbitration. See
Mastrobuono v. Shearson Lehman Hutton, Inc., 514 U. S. 52, 57 (1995)
("[T]he FAA's proarbitration policy does not operate without regard to
the wishes of the
contracting parties"). For nothing in the statute authorizes a court
to compel arbitration of any issues, or by any parties, that are not already
covered in the agreement.
The FAA does not mention enforcement by public agencies; it ensures
the enforceability of private agreements to arbitrate, but otherwise does
not purport to place
any restriction on a nonparty's choice of a judicial forum.
IV
The Court of Appeals based its decision on
its evaluation of the "competing policies" implemented by the ADA and the
FAA, rather than on any language in the
text of either the statutes or the arbitration agreement between Baker
and respondent. 193 F. 3d, at 812. It recognized that the EEOC never agreed
to arbitrate its
statutory claim, id., at 811 ("We must also recognize that in this
case the EEOC is not a party to any arbitration agreement"), and that the
EEOC has "independent
statutory authority" to vindicate the public interest, but opined that
permitting the EEOC to prosecute Baker's claim in court "would significantly
trample" the strong
federal policy favoring arbitration because Baker had agreed to submit
his claim to arbitration. Id., at 812. To effectuate this policy, the court
distinguished between
injunctive and victim-specific relief, and held that the EEOC is barred
from obtaining the latter because any public interest served when the EEOC
pursues "make
whole" relief is outweighed by the policy goals favoring arbitration.
Only when the EEOC seeks broad injunctive relief, in the Court of Appeals'
view, does the public
interest overcome the goals underpinning the FAA.7
If it were true that the EEOC could prosecute
its claim only with Baker's consent, or if its prayer for relief could
be dictated by Baker, the court's analysis might be
persuasive. But once a charge is filed, the exact opposite is true
under the statute--the EEOC is in command of the process. The EEOC has
exclusive jurisdiction over
the claim for 180 days. During that time, the employee must obtain
a right-to-sue letter from the agency before prosecuting the claim. If,
however, the EEOC files suit
on its own, the employee has no independent cause of action, although
the employee may intervene in the EEOC's suit. 42 U. S. C. §2000e-5(f)(1)
(1994 ed.). In
fact, the EEOC takes the position that it may pursue a claim on the
employee's behalf even after the employee has disavowed any desire to seek
relief. Brief for
Petitioner 20. The statute clearly makes the EEOC the master of its
own case and confers on the agency the authority to evaluate the strength
of the public interest at
stake. Absent textual support for a contrary view, it is the public
agency's province--not that of the court--to determine whether public resources
should be committed
to the recovery of victim-specific relief. And if the agency makes
that determination, the statutory text unambiguously authorizes it to proceed
in a judicial forum.
Respondent and the dissent contend that Title
VII supports the Court of Appeals' bar against victim-specific relief,
because the statute limits the EEOC's recovery
to "appropriate" relief as determined by a court. See Brief for Respondent
19, and n. 8; post, at 4-6 (Thomas, J., dissenting). They rely on §706(g)(1),
which
provides that, after a finding of liability, "the court may enjoin
the respondent from engaging in such unlawful employment practice, and
order such affirmative action
as may be appropriate, which may include, but is not limited to, reinstatement
or hiring of employees, with or without back pay ... or any other equitable
relief as
the court deems appropriate." 42 U. S. C. §2000e-5(g)(1) (1994
ed.) (emphasis added). They claim this provision limits the remedies available
and directs courts,
not the EEOC, to determine what relief is appropriate.
The proposed reading is flawed for two reasons.
First, under the plain language of the statute the term "appropriate" refers
to only a subcategory of claims for
equitable relief, not damages. The provision authorizing compensatory
and punitive damages is in a separate section of the statute, §1981a(a)(1),
and is not limited by
this language. The dissent responds by pointing to the phrase "may
recover" in §1981a(a)(1), and arguing that this too provides authority
for prohibiting victim-specific
relief. See post, at 6, n. 7. But this contention only highlights the
second error in the proposed reading. If "appropriate" and "may recover"
can be read to support
respondent's position, then any discretionary language would constitute
authorization for judge-made, per se rules. This is not the natural reading
of the text. These
terms obviously refer to the trial judge's discretion in a particular
case to order reinstatement and award damages in an amount warranted by
the facts of that case.
They do not permit a court to announce a categorical rule precluding
an expressly authorized form of relief as inappropriate in all cases in
which the employee has
signed an arbitration agreement.8
The Court of Appeals wisely did not adopt respondent's
reading of §706(g). Instead, it simply sought to balance the policy
goals of the FAA against the clear
language of Title VII and the agreement. While this may be a more coherent
approach, it is inconsistent with our recent arbitration cases. The FAA
directs courts to
place arbitration agreements on equal footing with other contracts,
but it "does not require parties to arbitrate when they have not agreed
to do so." Volt Information
Sciences, Inc. v. Board of Trustees of Leland Stanford Junior Univ.,
489 U. S. 468, 478 (1989).9 See also Prima Paint Corp. v. Flood & Conklin
Mfg. Co.,
388 U. S. 395, 404, n. 12 (1967) ("[T]he purpose of Congress in 1925
was to make arbitration agreements as enforceable as other contracts, but
not more so").
Because the FAA is "at bottom a policy guaranteeing the enforcement
of private contractual arrangements," Mitsubishi Motors Corp. v. Soler
Chrysler-Plymouth,
Inc., 473 U. S. 614, 625 (1985), we look first to whether the parties
agreed to arbitrate a dispute, not to general policy goals, to determine
the scope of the
agreement. Id., at 626. While ambiguities in the language of the agreement
should be resolved in favor of arbitration, Volt, 489 U. S., at 476, we
do not override the
clear intent of the parties, or reach a result inconsistent with the
plain text of the contract, simply because the policy favoring arbitration
is implicated. "Arbitration
under the [FAA] is a matter of consent, not coercion." Id., at 479.
Here there is no ambiguity. No one asserts that the EEOC is a party to
the contract, or that it
agreed to arbitrate its claims. It goes without saying that a contract
cannot bind a nonparty. Accordingly, the proarbitration policy goals of
the FAA do not require the
agency to relinquish its statutory authority if it has not agreed to
do so.
Even if the policy goals underlying the FAA
did necessitate some limit on the EEOC's statutory authority, the line
drawn by the Court of Appeals between
injunctive and victim-specific relief creates an uncomfortable fit
with its avowed purpose of preserving the EEOC's public function while
favoring arbitration. For that
purpose, the category of victim-specific relief is both overinclusive
and underinclusive. For example, it is overinclusive because while punitive
damages benefit the
individual employee, they also serve an obvious public function in
deterring future violations. See Newport v. Fact Concerts, Inc., 453 U.
S. 247, 266-270 (1981)
("Punitive damages by definition are not intended to compensate the
injured party, but rather to punish the tortfeasor . . . , and to deter
him and others from similar
extreme conduct"); Restatement (Second) of Torts §908 (1977).
Punitive damages may often have a greater impact on the behavior of other
employers than the
threat of an injunction, yet the EEOC is precluded from seeking this
form of relief under the Court of Appeals' compromise scheme. And, it is
underinclusive because
injunctive relief, although seemingly not "victim-specific," can be
seen as more closely tied to the employees' injury than to any public interest.
See Occidental, 432
U. S., at 383 (Rehnquist, J., dissenting) ("While injunctive relief
may appear more `broad based,' it nonetheless is redress for individuals").
The compromise solution reached by the Court
of Appeals turns what is effectively a forum selection clause into a waiver
of a nonparty's statutory remedies. But if
the federal policy favoring arbitration trumps the plain language of
Title VII and the contract, the EEOC should be barred from pursuing any
claim outside the arbitral
forum. If not, then the statutory language is clear; the EEOC has the
authority to pursue victim-specific relief regardless of the forum that
the employer and employee
have chosen to resolve their disputes.10 Rather than attempt to split
the difference, we are persuaded that, pursuant to Title VII and the ADA,
whenever the EEOC
chooses from among the many charges filed each year to bring an enforcement
action in a particular case, the agency may be seeking to vindicate a public
interest, not
simply provide make-whole relief for the employee, even when it pursues
entirely victim-specific relief. To hold otherwise would undermine the
detailed enforcement
scheme created by Congress simply to give greater effect to an agreement
between private parties that does not even contemplate the EEOC's statutory
function.11
V
It is true, as respondent and its amici have
argued, that Baker's conduct may have the effect of limiting the relief
that the EEOC may obtain in court. If, for
example, he had failed to mitigate his damages, or had accepted a monetary
settlement, any recovery by the EEOC would be limited accordingly. See,
e.g., Ford
Motor Co. v. EEOC, 458 U. S. 219, 231-232 (1982) (Title VII claimant
"forfeits his right to backpay if he refuses a job substantially equivalent
to the one he was
denied"); EEOC v. Goodyear Aerospace Corp., 813 F. 2d 1539, 1542 (CA9
1987) (employee's settlement "rendered her personal claims moot"); EEOC
v. U. S.
Steel Corp., 921 F. 2d 489, 495 (CA3 1990) (individuals who litigated
their own claims were precluded by res judicata from obtaining individual
relief in a
subsequent EEOC action based on the same claims). As we have noted,
it "goes without saying that the courts can and should preclude double
recovery by an
individual." General Telephone, 446 U. S., at 333.
But no question concerning the validity of
his claim or the character of the relief that could be appropriately awarded
in either a judicial or an arbitral forum is
presented by this record. Baker has not sought arbitration of his claim,
nor is there any indication that he has entered into settlement negotiations
with respondent. It is
an open question whether a settlement or arbitration judgment would
affect the validity of the EEOC's claim or the character of relief the
EEOC may seek. The only
issue before this Court is whether the fact that Baker has signed a
mandatory arbitration agreement limits the remedies available to the EEOC.
The text of the relevant
statutes provides a clear answer to that question. They do not authorize
the courts to balance the competing policies of the ADA and the FAA or
to second-guess the
agency's judgment concerning which of the remedies authorized by law
that it shall seek in any given case.
Moreover, it simply does not follow from the
cases holding that the employee's conduct may affect the EEOC's recovery
that the EEOC's claim is merely
derivative. We have recognized several situations in which the EEOC
does not stand in the employee's shoes. See Occidental, 432 U. S., at 368
(EEOC does not
have to comply with state statutes of limitations); General Telephone,
446 U. S., at 326 (EEOC does not have to satisfy Rule 23 requirements);
Gilmer, 500 U. S.,
at 32 (EEOC is not precluded from seeking classwide and equitable relief
in court on behalf of an employee who signed an arbitration agreement).
And, in this
context, the statute specifically grants the EEOC exclusive authority
over the choice of forum and the prayer for relief once a charge has been
filed. The fact that
ordinary principles of res judicata, mootness, or mitigation may apply
to EEOC claims, does not contradict these decisions, nor does it render
the EEOC a proxy for
the employee.
The judgment of the Court of Appeals is reversed, and the case is remanded for further proceedings consistent with this opinion.
It is so ordered.
EQUAL EMPLOYMENT
OPPORTUNITY COMMISSION,
PETITIONER v. WAFFLE HOUSE, INC.
on writ of certiorari to the united states court of
appeals for the fourth circuit
[January 15, 2002]
Justice Thomas, with whom The Chief Justice and Justice Scalia join, dissenting.
The Court holds today that the Equal Employment
Opportunity Commission (EEOC or Commission) may obtain victim-specific
remedies in court on behalf of an
employee who had agreed to arbitrate discrimination claims against
his employer. This decision conflicts with both the Federal Arbitration
Act (FAA), 9 U. S. C. §1
et seq., and the basic principle that the EEOC must take a victim of
discrimination as it finds him. Absent explicit statutory authorization
to the contrary, I cannot agree
that the EEOC may do on behalf of an employee that which an employee
has agreed not to do for himself. Accordingly, I would affirm the judgment
of the Court of
Appeals.
I
Before starting work as a grill operator for
respondent Waffle House, Inc., Eric Scott Baker filled out and signed an
employment application. This application
included an arbitration clause providing that "any dispute or claim
concerning Applicant's employment with Waffle House, Inc., or any subsidiary
or Franchisee of
Waffle House, Inc., or the terms, conditions or benefits of such employment
... will be settled by binding arbitration." App. 59.
The Court does not dispute that the arbitration
agreement between Waffle House and Baker falls comfortably within the scope
of the FAA, see Circuit City
Stores, Inc. v. Adams, 532 U. S. 105 (2001), which provides that "[a]
written provision in ... a contract evidencing a transaction involving
commerce to settle by
arbitration a controversy thereafter arising out of such contract or
transaction ... shall be valid, irrevocable, and enforceable." 9 U. S.
C. §2. Neither does the Court
contest that claims arising under federal employment discrimination
laws, such as Baker's claim that Waffle House discharged him in violation
of the Americans with
Disabilities Act of 1990 (ADA), 42 U. S. C. §12101 et seq. (1994
ed. and Supp. V), may be subject to compulsory arbitration. See Gilmer
v. Interstate/Johnson
Lane Corp., 500 U. S. 20, 23 (1991) (holding that a claim arising under
the Age Discrimination in Employment Act of 1967 (ADEA), 29 U. S. C. §621
et seq.
(1994 ed.), may be subject to compulsory arbitration).1 The Court therefore
does not dispute that Baker, by signing an arbitration agreement, waived
his ability either
to bring an ADA claim against Waffle House in court or, consequently,
to obtain relief for himself in that forum.
The EEOC, in its complaint, sought to obtain
the victim-specific relief for Baker that he could not seek for himself,
asking a court to make Baker whole by
providing reinstatement with backpay and compensatory damages and to
pay Baker punitive damages.2 App. 39-40. In its responses to interrogatories
and directives
to produce filed the same day as its complaint, the EEOC stated unambiguously:
"All amounts recovered from Defendant Employer in this litigation will
be received
directly by Mr. Baker based on his charge of discrimination against
Defendant Employer." Id., at 52. The EEOC also admitted that it was "bring[ing]
this action on
behalf of Eric Scott Baker." 3 Id., at 51.
By allowing the EEOC to obtain victim-specific
remedies for Baker, the Court therefore concludes that the EEOC may do
"on behalf of Baker" that which he
cannot do for himself. The Court's conclusion rests upon the following
premise advanced by the EEOC: An arbitration agreement between an employer
and an
employee may not limit the remedies that the Commission may obtain
in court because Title VII "grants the EEOC the right to obtain all statutory
remedies in any
action it brings." 4 Brief for Petitioner 17. The EEOC contends that
"the statute in clear terms authorizes [it] to obtain all of the listed
forms of relief," referring to those
types of relief set forth in 42 U. S. C. §2000e-5(g)(1) (1994
ed.) (including injunctive relief and reinstatement with backpay) as well
as the forms of relief listed in
§1981a(a)(1) (compensatory and punitive damages). Brief for Petitioner
17-18. Endorsing the EEOC's position, the Court concludes that "these statutes
unambiguously authorize the EEOC to obtain the relief it seeks in its
complaint if it can prove its case against respondent." Ante, at 7.
The Court's position, however, is inconsistent
with the relevant statutory provision. For while the EEOC has the statutory
right to bring suit, see §2000e-5(f)(1), it
has no statutory entitlement to obtain a particular remedy. Rather,
the plain language of §2000e-5(g)(1) makes clear that it is a court's
role to decide whether "to
enjoin the respondent ... , and order such affirmative action as may
be appropriate, which may include, but is not limited to, reinstatement
or hiring of employees,
with or without back pay . . . or any other equitable relief as the
court deems appropriate." (Emphasis added.) Whether a particular remedy
is "appropriate" in any
given case is a question for a court and not for the EEOC.5 See Albemarle
Paper Co. v. Moody, 422 U. S. 405, 415-416 (1975) ("The [Title VII] scheme
implicitly
recognizes that there may be cases calling for one remedy but not another,
and ... these choices are, of course, left in the first instance to the
district courts"); Selgas v.
American Airlines, Inc., 104 F. 3d 9, 13, n. 2 (CA1 1997) ("It is clear
that in a Title VII case, it is the court which has discretion to fashion
relief comprised of the
equitable remedies it sees as appropriate, and not the parties which
may determine which equitable remedies are available").
Had Congress wished to give the EEOC the authority
to determine whether a particular remedy is appropriate under §2000e-5,
it clearly knew how to draft
language to that effect. See §2000e-16(b) (providing that the
EEOC shall have the authority to enforce §2000e-16(a)'s prohibition
of employment discrimination
within federal agencies "through appropriate remedies, including reinstatement
or hiring of employees with or without back pay, as will effectuate the
policies of this
section"). But Congress specifically declined to grant the EEOC such
authority when it empowered the Commission to bring lawsuits against private
employers. Both
the original House version and the original Senate version of the Equal
Employment Opportunity Act of 1972 would have granted the EEOC powers similar
to those
possessed by the National Labor Relations Board to adjudicate a complaint
and implement a remedy. See H. R. 1746, 92d Cong., 1st Sess., §706(h)
(1971), and S.
2515, 92d Cong., 1st Sess., §4(h) (1971), reprinted in Legislative
History of the Equal Employment Opportunity Act of 1972, pp. 7-8, 164-165.
These bills were
amended, however, once they reached the floor of both Houses of Congress
to replace such "cease-and-desist" authority with the power only to prosecute
an action
in court. See 117 Cong. Rec. 32088-32111 (1971); 118 Cong. Rec. 3965-3979
(1972).
The statutory scheme enacted by Congress thus
entitles neither the EEOC nor an employee, upon filing a lawsuit, to obtain
a particular remedy by establishing that
an employer discriminated in violation of the law.6 In both cases,
42 U. S. C. §2000e-5(g)(1) governs, and that provision unambiguously
requires a court to
determine what relief is "appropriate" in a particular case.7
II
Because Congress has not given the EEOC the
authority to usurp the traditional role of courts to determine what constitutes
"appropriate" relief in a given case, it is
necessary to examine whether it would be "appropriate" to allow the
EEOC to obtain victim-specific relief for Baker here, notwithstanding the
fact that Baker, by
signing an arbitration agreement, has waived his ability to seek such
relief on his own behalf in a judicial forum. For two reasons, I conclude
it is not "appropriate" to
allow the EEOC to do on behalf of Baker that which Baker is precluded
from doing for himself.
A
To begin with, when the EEOC litigates to obtain
relief on behalf of a particular employee, the Commission must take that
individual as it finds him. Whether the
EEOC or an employee files a particular lawsuit, the employee is the
ultimate beneficiary of victim-specific relief. The relevance of the employee's
circumstances
therefore does not change simply because the EEOC, rather than the
employee himself, is litigating the case, and a court must consider these
circumstances in
fashioning an "appropriate" remedy.8
As a result, the EEOC's ability to obtain relief
is often limited by the actions of an employee on whose behalf the Commission
may wish to bring a lawsuit. If an
employee signs an agreement to waive or settle discrimination claims
against an employer, for example, the EEOC may not recover victim-specific
relief on that
employee's behalf. See, e.g., EEOC v. Cosmair, Inc., 821 F. 2d 1085,
1091 (CA5 1987); EEOC v. Goodyear Aerospace Corp., 813 F. 2d 1539, 1543
(CA9
1987); see also EEOC: Guidance on Waivers Under the ADA and Other Civil
Rights Laws, EEOC Compliance Manual (BNA) N:2345, N:2347 (Apr. 10, 1997)
(hereinafter EEOC Compliance Manual) (recognizing that a valid waiver
or settlement agreement precludes the EEOC from recovering victim-specific
relief for an
employee). In addition, an employee who fails to mitigate his damages
limits his ability to obtain relief, whether he files his own lawsuit or
the EEOC files an action on
his behalf. See Ford Motor Co. v. EEOC, 458 U. S. 219, 231-232 (1982).
An employee's unilateral attempt to pursue his own discrimination claim
may also limit
the EEOC's ability to obtain victim-specific relief for that employee.
If a court rejects the merits of a claim in a private lawsuit brought by
an employee, for example,
res judicata bars the EEOC from recovering victim-specific relief on
behalf of that employee in a later action. See, e.g., EEOC v. Harris Chernin,
Inc., 10 F. 3d
1286, 1291 (CA7 1993).
In all of the aforementioned situations, the
same general principle applies: To the extent that the EEOC is seeking
victim-specific relief in court for a particular
employee, it is able to obtain no more relief for that employee than
the employee could recover for himself by bringing his own lawsuit. The
EEOC, therefore, should
not be able to obtain victim-specific relief for Baker in court through
its own lawsuit here when Baker waived his right to seek relief for himself
in a judicial forum by
signing an arbitration agreement.
The Court concludes that the EEOC's claim is
not "merely derivative" of an employee's claim and argues that "[w]e have
recognized several situations in which the
EEOC does not stand in the employee's shoes." See ante, at 18. The
Court's opinion, however, attacks a straw man because this case does not
turn on whether the
EEOC's "claim" is wholly derivative of an employee's "claim." Like
the Court of Appeals below, I do not question the EEOC's ability to seek
declaratory and
broad-based injunctive relief in a case where a particular employee,
such as Baker, would not be able to pursue such relief in court. Rather,
the dispute here turns on
whether the EEOC's ability to obtain victim-specific relief is dependent
upon the victim's ability to obtain such relief for himself.
The Court claims that three cases support its
argument that the EEOC's claim is not "merely derivative" of an employee's
claim. See Gilmer v. Interstate/Johnson
Lane Corp., 500 U. S., at 24; General Telephone Co. of Northwest v.
EEOC, 446 U. S. 318, 325 (1980); Occidental Life Ins. Co. of Cal. v. EEOC,
432
U. S. 355, 368 (1977). Once the actual nature of the dispute is properly
understood, however, it is apparent that these cases do not support the
Court's position, for
none of them suggests that the EEOC should be allowed to recover victim-specific
relief on behalf of an employee who has waived his ability to obtain such
relief for
himself in court by signing a valid arbitration agreement.
In Gilmer, for example, this Court addressed
whether arbitration procedures are inadequate in discrimination cases because
they do not allow for "broad equitable
relief and class actions." 500 U. S., at 32. Rejecting this argument,
the Court noted that valid arbitration agreements "will not preclude the
EEOC from bringing actions
seeking class-wide and equitable relief." Ibid. Conspicuously absent
from the Court's opinion, however, was any suggestion that the EEOC could
obtain
victim-specific relief on behalf of an employee who had signed a valid
arbitration agreement. Cf. ibid.
Similarly, in General Telephone, this Court
held only that lawsuits filed by the EEOC should not be considered representative
actions under Federal Rule of Civil
Procedure 23. In reaching this conclusion, the Court noted that "the
EEOC is not merely a proxy for the victims of discrimination." 446 U. S.,
at 326. To be sure, I
agree that to the extent the EEOC seeks broad-based declaratory and
equitable relief in court, the Commission undoubtedly acts both as a representative
of a specific
employee and to "vindicate the public interest in preventing employment
discrimination." Ibid. But neither this dual function, nor anything in
General Telephone,
detracts from the proposition that when the EEOC seeks to secure victim-specific
relief in court, it may obtain no more relief for an individual than the
individual
could obtain for himself.
Even the EEOC recognizes the dual nature of
its role.9 See EEOC Compliance Manual N:2346 (citing General Telephone,
supra, at 326). In its compliance
manual, the EEOC states that "every charge filed with the EEOC carries
two potential claims for relief: the charging party's claim for individual
relief, and the EEOC's
claim to `vindicate the public interest in preventing employment discrimination.'
" EEOC Compliance Manual N:2346. It is for this reason that "a private
agreement can
eliminate an individual's right to personal recovery, [but] it cannot
interfere with EEOC's right to enforce ... the ADA ... by seeking relief
that will benefit the public and
any victims of an employer's unlawful practices who have not validly
waived their claims." Id., at N:2347.10
In the final case cited by the Court, Occidental
Life Ins. Co. v. EEOC, this Court held that state statutes of limitations
do not apply to lawsuits brought by the
EEOC, because "[u]nlike the typical litigant against whom a statute
of limitations might appropriately run, the EEOC is required by law to
refrain from commencing a
civil action until it has discharged its administrative duties." 432
U. S., at 368. The Court also noted that the 1-year statute of limitations
at issue in that case "could
under some circumstances directly conflict with the timetable for administrative
action expressly established in the 1972 Act." Id., at 368-369. Precluding
the EEOC
from seeking victim-specific remedies in court on behalf of an employee
who has signed an arbitration agreement, however, would in no way impede
the Commission
from discharging its administrative duties nor would it directly conflict
with any provision of the statute. In fact, such a result is entirely consistent
with the federal policy
underlying the Court's decision in Occidental: that employment discrimination
claims should be resolved quickly and out of court. See id., at 368.
B
Not only would it be "inappropriate" for a
court to allow the EEOC to obtain victim-specific relief on behalf of Baker,
to do so in this case would contravene the
"liberal federal policy favoring arbitration agreements" embodied in
the FAA. See Moses H. Cone Memorial Hospital v. Mercury Constr. Corp.,
460 U. S. 1, 24
(1983).
Under the terms of the FAA, Waffle House's
arbitration agreement with Baker is valid and enforceable. See Part I,
supra. The Court reasons, however, that the
FAA is not implicated in this case because the EEOC was not a party
to the arbitration agreement and "[i]t goes without saying that a contract
cannot bind a
nonparty." Ante, at 14. The Court's analysis entirely misses the point.
The relevant question here is not whether the EEOC should be bound by Baker's
agreement to
arbitrate. Rather, it is whether a court should give effect to the
arbitration agreement between Waffle House and Baker or whether it should
instead allow the EEOC
to reduce that arbitration agreement to all but a nullity. I believe
that the FAA compels the former course.11
By allowing the EEOC to pursue victim-specific
relief on behalf of Baker under these circumstances, the Court eviscerates
Baker's arbitration agreement with
Waffle House and liberates Baker from the consequences of his agreement.
Waffle House gains nothing and, if anything, will be worse off in cases
where the EEOC
brings an enforcement action should it continue to utilize arbitration
agreements in the future. This is because it will face the prospect of
defending itself in two different
forums against two different parties seeking precisely the same relief.
It could face the EEOC in court and the employee in an arbitral forum.
The Court does not decide here whether an arbitral
judgment would "affect the validity of the EEOC's claim or the character
of relief the EEOC may seek" in
court.12 Ante, at 17. Given the reasoning in the Court's opinion, however,
the proverbial handwriting is on the wall. If the EEOC indeed is "the master
of its own
case," ante, at 11, I do not see how an employee's independent decision
to pursue arbitral proceedings could affect the validity of the "EEOC's
claim" in court.
Should this Court in a later case determine that an unfavorable arbitral
judgment against an employee precludes the EEOC from seeking similar relief
for that employee
in court, then the Court's jurisprudence will stand for the following
proposition: The EEOC may seek relief for an employee who has signed an
arbitration agreement
unless that employee decides that he would rather abide by his agreement
and arbitrate his claim. Reconciling such a result with the FAA, however,
would seem to be
an impossible task and would make a mockery of the rationale underlying
the Court's holding here: that the EEOC is "the master of its own case."
Ibid.
Assuming that the Court means what it says,
an arbitral judgment will not preclude the EEOC's claim for victim-specific
relief from going forward, and courts will
have to adjust damages awards to avoid double recovery. See ante, at
17. If an employee, for instance, is able to recover $20,000 through arbitration
and a court
later concludes in an action brought by the EEOC that the employee
is actually entitled to $100,000 in damages, one assumes that a court would
only award the
EEOC an additional $80,000 to give to the employee. Suppose, however,
that the situation is reversed: An arbitrator awards an employee $100,000,
but a court later
determines that the employee is only entitled to $20,000 in damages.
Will the court be required to order the employee to return $80,000 to his
employer? I seriously
doubt it.
The Court's decision thus places those employers
utilizing arbitration agreements at a serious disadvantage. Their employees
will be allowed two bites at the
apple--one in arbitration and one in litigation conducted by the EEOC--and
will be able to benefit from the more favorable of the two rulings. This
result, however,
discourages the use of arbitration agreements and is thus completely
inconsistent with the policies underlying the FAA.
C
While the Court explicitly decides today only
"whether the fact that Baker has signed a mandatory arbitration agreement
limits the remedies available to the
EEOC," ibid., its opinion sets this Court on a path that has no logical
or principled stopping point. For example, if "[t]he statute clearly makes
the EEOC the master of
its own case," ante, at 11, and the filing of a charge puts the Commission
"in command of the process," ibid., then it is likely after this decision
that an employee's
decision to enter into a settlement agreement with his employer no
longer will preclude the EEOC from obtaining relief for that employee in
court.
While the Court suggests that ordinary principles
of mootness "may apply to EEOC claims," ante, at 18, this observation,
given the reasoning in the Court's
opinion, seems largely beside the point. It should go without saying
that mootness principles apply to EEOC claims. For instance, if the EEOC
settles claims with an
employer, the Commission obviously cannot continue to pursue those
same claims in court. An employee's settlement agreement with an employer,
however, does not
"moot" an action brought by the EEOC nor does it preclude the EEOC
from seeking broad-based relief. Rather, a settlement may only limit the
EEOC's ability to
obtain victim-specific relief for the employee signing the settlement
agreement. See, e.g., Goodyear Aerospace Corp., 813 F. 2d, at 1541-1544.
The real question addressed by the Court's
decision today is whether an employee can enter into an agreement with
an employer that limits the relief the EEOC
may seek in court on that employee's behalf. And if, in the Court's
view, an employee cannot compromise the EEOC's ability to obtain particular
remedies by signing
an arbitration agreement, then I do not see how an employee may be
permitted to do the exact same thing by signing a settlement agreement.
See Scherk v.
Alberto-Culver Co., 417 U. S. 506, 511 (1974) (noting that one purpose
of the FAA is to place arbitration agreements "upon the same footing as
other contracts"
(citation omitted)). The Court's reasoning, for example, forecloses
the argument that it would be inappropriate under 42 U. S. C. §2000e-5(g)(1)
for a court to award
victim-specific relief in any case where an employee had already settled
his claim. If the statutory provision, according to the Court, does not
"permit a court to
announce a categorical rule precluding an expressly authorized form
of relief as inappropriate in all cases in which the employee has signed
an arbitration agreement,"
then it surely does not "constitute authorization for [a] judge-made,
per se rul[e]" barring the EEOC from obtaining victim-specific remedies
on behalf of an employee
who has signed a valid settlement agreement. Ante, at 12-13.
Unfortunately, it is therefore likely that
under the logic of the Court's opinion the EEOC now will be able to seek
victim-specific relief in court on behalf of
employees who have already settled their claims. Such a result, however,
would contradict this Court's suggestion in Gilmer that employment discrimination
disputes
"can be settled ... without any EEOC involvement." 500 U. S., at 28.
More importantly, it would discourage employers from entering into settlement
agreements and
thus frustrate Congress' desire to expedite relief for victims of discrimination,
see Ford Motor Co. v. EEOC, 458 U. S., at 221; Occidental Life, 432 U.
S., at
364-365, and to resolve employment discrimination disputes out of court.
See 42 U. S. C. §12212 (encouraging alternative means of dispute resolution,
including
settlement negotiations, to avoid litigation under the ADA).
III
Rather than allowing the EEOC to undermine
a valid and enforceable arbitration agreement between an employer and an
employee in the manner sanctioned by
the Court today, I would choose a different path. As this Court has
stated, courts are "not at liberty to pick and choose among congressional
enactments, and when
two statutes are capable of co-existence, it is the duty of the courts,
absent a clearly expressed congressional intention to the contrary, to
regard each as effective."
Pittsburgh & Lake Erie R. Co. v. Railway Labor Executives' Assn.,
491 U. S. 490, 510 (1989). In this case, I think that the EEOC's statutory
authority to
enforce the ADA can be easily reconciled with the FAA.
Congress has not indicated that the ADA's enforcement
scheme should be interpreted in a manner that undermines the FAA. Rather,
in two separate places,
Congress has specifically encouraged the use of arbitration to resolve
disputes under the ADA. First, in the ADA itself, Congress stated: "Where
appropriate and to
the extent authorized by law, the use of alternative means of dispute
resolution, including settlement negotiations, conciliation, facilitation,
mediation, factfinding,
minitrials, and arbitration, is encouraged to resolve disputes arising
under this chapter." 42 U. S. C. §12212 (emphasis added). Second,
Congress used virtually
identical language to encourage the use of arbitration to resolve disputes
under the ADA in the Civil Rights Act of 1991. See Pub. L. 102-166, §118,
105 Stat.
1081.13
The EEOC contends that these provisions do
not apply to this dispute because the Commission has not signed an arbitration
agreement with Waffle House and the
provisions encourage arbitration "only when the parties have consented
to arbitration." Reply Brief for Petitioner 17. Remarkably, the EEOC at
the same time
questions whether it even has the statutory authority to take this
step. See Brief for Petitioner 22, n. 7. As a result, the EEOC's view seems
to be that Congress has
encouraged the use of arbitration to resolve disputes under the ADA
only in situations where the EEOC does not wish to bring an enforcement
action in court. This
limiting principle, however, is nowhere to be found in §12212.
The use of arbitration to resolve all disputes under the ADA is clearly
"authorized by law." See Part I,
supra. Consequently,
I see no indication that Congress intended to grant
the EEOC authority to enforce the ADA in a manner
that undermines valid and enforceable arbitration
agreements.14
In the last 20 years, this Court has expanded
the reach and scope of the FAA, holding, for instance, that the statute
applies even to state-law claims in state court
and pre-empts all contrary state statutes. See Allied-Bruce Terminix
Cos. v. Dobson, 513 U. S. 265 (1995); Southland Corp. v. Keating, 465 U.
S. 1 (1984). I
have not always agreed with this Court's jurisprudence in this area,
see, e.g., Allied-Bruce, supra, at 285-297 (Thomas, J., dissenting), but
it seems to me that what's
good for the goose is good for the gander. The Court should not impose
the FAA upon States in the absence of any indication that Congress intended
such a result,
see Southland, supra, at 25-30 (O'Connor, J., dissenting), yet refuse
to interpret a federal statute in a manner compatible with the FAA, especially
when Congress
has expressly encouraged that claims under that federal statute be
resolved through arbitration.
Given the utter lack of statutory support for
the Court's holding, I can only conclude that its decision today is rooted
in some notion that employment discrimination
claims should be treated differently from other claims in the context
of arbitration. I had thought, however, that this Court had decisively
repudiated that principle in
Gilmer. See 500 U. S., at 27-28 (holding that arbitration agreements
can be enforced without contravening the "important social policies" furthered
by the ADEA).
For all of these reasons, I respectfully dissent.
FOOTNOTES
Footnote 1
The agreement states:
"The parties agree that any dispute or claim concerning Applicant's
employment with Waffle House, Inc., or any subsidiary or Franchisee of
Waffle House, Inc., or the
terms, conditions or benefits of such employment, including whether
such dispute or claim is arbitrable, will be settled by binding arbitration.
The arbitration
proceedings shall be conducted under the Commercial Arbitration Rules
of the American Arbitration Association in effect at the time a demand
for arbitration is made.
A decision and award of the arbitrator made under the said rules shall
be exclusive, final and binding on both parties, their heirs, executors,
administrators, successors
and assigns. The costs and expenses of the arbitration shall be borne
evenly by the parties." App. 59.
Footnote 2
Because no evidence of the employment practices alleged in the
complaint has yet been presented, we of course express no opinion on the
merits of the EEOC's
case. We note, on the one hand, that the state human rights commission
also investigated Baker's claim and found no basis for suit. On the other
hand, the EEOC
chooses to file suit in response to only a small number of the many
charges received each year, see n. 7, infra. In keeping with normal appellate
practice in cases
arising at the pleading stage, we assume, arguendo, that the EEOC's
case is meritorious.
Footnote 3
One member of the panel dissented because he agreed with the District
Court that, as a matter of fact, the arbitration clause was not included
in Baker's actual
contract of employment. 193 F. 3d, at 813.
Footnote 4
Section 12117(a) provides:
"The powers, remedies, and procedures set forth in sections 2000e-4,
2000e-5, 2000e-6, 2000e-8, and 2000e-9 of this title shall be the powers,
remedies, and
procedures this subchapter provides to the Commission, to the Attorney
General, or to any person alleging discrimination on the basis of disability
in violation of any
provision of this chapter, or regulations promulgated under section
12116 of this title, concerning employment."
Footnote 5
"(g) Injunctions; appropriate affirmative action; equitable relief; accrual of back pay; reduction of back pay; limitations on judicial orders
"(1) If the court finds that the respondent has intentionally engaged
in or is intentionally engaging in an unlawful employment practice charged
in the complaint, the court may enjoin the respondent from engaging in
such unlawful
employment practice, and order such affirmative action as may be appropriate,
which may include, but is not limited to, reinstatement or hiring of employees,
with or
without back pay (payable by the employer, employment agency, or labor
organization, as the case may be, responsible for the unlawful employment
practice), or any
other equitable relief as the court deems appropriate. Back pay liability
shall not accrue from a date more than two years prior to the filing of
a charge with the
Commission. Interim earnings or amounts earnable with reasonable diligence
by the person or persons discriminated against shall operate to reduce
the back pay
otherwise allowable." 42 U. S. C. §2000e-5(g)(1) (1994 ed.).
Footnote 6
Section 2000e-5(f)(3) provides:
"Each United States district court and each United States court of a
place subject to the jurisdiction of the United States shall have jurisdiction
of actions brought
under this subchapter. Such an action may be brought in any judicial
district in the State in which the unlawful employment practice is alleged
to have been committed,
in the judicial district in which the employment records relevant to
such practice are maintained and administered, or in the judicial district
in which the aggrieved
person would have worked but for the alleged unlawful employment practice,
but if the respondent is not found within any such district, such an action
may be brought
within the judicial district in which the respondent has his principal
office. For purposes of sections 1404 and 1406 of title 28, the judicial
district in which the
respondent has his principal office shall in all cases be considered
a district in which the action might have been brought."
Footnote 7
This framework assumes the federal policy favoring arbitration
will be undermined unless the EEOC's remedies are limited. The court failed
to consider, however,
that some of the benefits of arbitration are already built into the
EEOC's statutory duties. Unlike individual employees, the EEOC cannot pursue
a claim in court
without first engaging in a conciliation process. 42 U. S. C. §2000e-5(b)
(1994 ed.). Thus, before the EEOC ever filed suit in this case, it attempted
to reach a
settlement with respondent.
The court also neglected to take into account that the EEOC files suit
in a small fraction of the charges employees file. For example, in fiscal
year 2000, the EEOC
received 79,896 charges of employment discrimination. Although the
EEOC found reasonable cause in 8,248 charges, it only filed 291 lawsuits
and intervened in 111
others. Equal Employment Opportunity Commission, Enforcement Statistics
and Litigation (as visited Nov. 18, 2001), http://www.eeoc.gov/stats/enforcement.html.
In
contrast, 21,032 employment discrimination lawsuits were filed in 2000.
See Administrative Office, Judicial Business of the United States Courts
2000, Table C-2A
(Sept. 30, 2000). These numbers suggest that the EEOC files less than
two percent of all antidiscrimination claims in federal court. Indeed,
even among the cases
where it finds reasonable cause, the EEOC files suit in less than five
percent of those cases. Surely permitting the EEOC access to victim-specific
relief in cases where
the employee has agreed to binding arbitration, but has not yet brought
a claim in arbitration, will have a negligible effect on the federal policy
favoring arbitration.
Justice Thomas notes that our interpretation of Title VII and the FAA
"should not depend on how many cases the EEOC chooses to prosecute in any
particular
year." See post, at 18, n. 14 (dissenting opinion). And yet, the dissent
predicts our holding will "reduce that arbitration agreement to all but
a nullity;" post, at 12,
"discourag[e] the use of arbitration agreements;" post, at 14, and
"discourage employers from entering into settlement agreements," post,
at 16. These claims are
highly implausible given the EEOC's litigation practice over the past
20 years. When speculating about the impact this decision might have on
the behavior of
employees and employers, we think it is worth recognizing that the
EEOC files suit in less than one percent of the charges filed each year.
Footnote 8
Justice Thomas implicitly recognizes this distinction by qualifying
his description of the courts' role as determining appropriate relief "in
any given case," or "in a
particular case." See post, at 4, 6. But the Court of Appeals' holding
was not so limited. 193 F. 3d 805, 812 (CA4 1999) (holding that the EEOC
"may not pursue
relief in court ... specific to individuals who have waived their right
to a judicial forum").
Footnote 9
In Volt, the parties to a construction contract agreed to arbitrate
all disputes relating to the contract and specified that California law
would apply. When one party
sought to compel arbitration, the other invoked a California statute
that authorizes a court to stay arbitration pending resolution of related
litigation with third parties not
bound by the agreement when inconsistent rulings are possible. We concluded
that the FAA did not pre-empt the California statute because "the FAA does
not
confer a right to compel arbitration of any dispute at any time; it
confers only the right to obtain an order directing that `arbitration proceed
in the manner provided
for in [the parties'] agreement.' " 498 U. S., at 474-475 (quoting
9 U. S. C. §4). Similarly, the FAA enables respondent to compel Baker
to arbitrate his claim, but
it does not expand the range of claims subject to arbitration beyond
what is provided for in the agreement.
Our decision in Mastrobuono v. Shearson Lehman Hutton, Inc., 514 U.
S. 52 (1995), is not inconsistent with this position. In Mastrobuono, we
reiterated that
clear contractual language governs our interpretation of arbitration
agreements, but because the choice-of-law provision in that case was ambiguous,
we read the
agreement to favor arbitration under the FAA rules. Id., at 62. While
we distinguished Volt on the ground that we were reviewing a federal court's
construction of the
contract, 514 U. S., at 60, n. 4, regardless of the standard of review,
in this case the Court of Appeals recognized that the EEOC was not bound
by the agreement.
When that much is clear, Volt and Mastrobuono both direct courts to
respect the terms of the agreement without regard to the federal policy
favoring arbitration.
Footnote 10
We have held that federal statutory claims may be the subject
of arbitration agreements that are enforceable pursuant to the FAA because
the agreement only
determines the choice of forum. "In these cases we recognized that
`[b]y agreeing to arbitrate a statutory claim, a party does not forgo the
substantive rights afforded
by the statute; it only submits to their resolution in an arbitral,
rather than a judicial, forum.' [Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth,
Inc., 473 U. S.
614, 628 (1985)]." Gilmer v. Interstate/Johnson Lane Corp., 500 U.
S. 20, 26 (1991). To the extent the Court of Appeals construed an employee's
agreement to
submit his claims to an arbitral forum as a waiver of the substantive
statutory prerogative of the EEOC to enforce those claims for whatever
relief and in whatever
forum the EEOC sees fit, the court obscured this crucial distinction
and ran afoul of our precedent.
Footnote 11
If injunctive relief were the only remedy available, an employee
who signed an arbitration agreement would have little incentive to file
a charge with the EEOC. As a
greater percentage of the work force becomes subject to arbitration
agreements as a condition of employment, see Voluntary Arbitration in Worker
Disputes
Endorsed by 2 Groups, Wall St. J., June 20, 1997, p. B2 (reporting
that the American Arbitration Association estimates "more than 3.5 million
employees are
covered" by arbitration agreements designating it to administer arbitration
proceedings), the pool of charges from which the EEOC can choose cases
that best
vindicate the public interest would likely get smaller and become distorted.
We have generally been reluctant to approve rules that may jeopardize the
EEOC's ability
to investigate and select cases from a broad sample of claims. Cf.
EEOC v. Shell Oil Co., 466 U. S. 54, 69 (1984) ("[I]t is crucial that the
Commission's ability to
investigate charges of systemic discrimination not be impaired"); Occidental
Life Ins. Co. of Cal. v. EEOC, 432 U. S. 355, 368 (1977).
FOOTNOTES
Footnote 1
Admittedly, this case involves a claim under the ADA while Gilmer
addressed compulsory arbitration in the context of the ADEA. Nevertheless,
I see no reason why
an employee should not be required to abide by an agreement to arbitrate
an ADA claim. In assessing whether Congress has precluded the enforcement
of an
arbitration agreement with respect to a particular statutory claim,
this Court has held that a party should be held to an arbitration agreement
"unless Congress itself has
evinced an intention to preclude a waiver of judicial remedies for
the statutory rights at issue." Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth,
Inc., 473 U. S.
614, 628 (1985). Here, the text of the ADA does not suggest that Congress
intended for ADA claims to fall outside the purview of the FAA. Indeed,
the ADA
expressly encourages the use of arbitration and other forms of alternative
dispute resolution, rather than litigation, to resolve claims under the
statute: "Where
appropriate and to the extent authorized by law, the use of alternative
means of dispute resolution, including settlement negotiations, conciliation,
facilitation, mediation,
factfinding, minitrials and arbitration, is encouraged to resolve disputes
arising under this [Act]." 42 U. S. C. §12212 (1994 ed.).
Footnote 2
The EEOC, in its prayer for relief, also requested that the court
enjoin Waffle House from engaging in any discriminatory employment practice
and asked the court to
order Waffle House to institute policies, practices, and programs which
would provide equal employment opportunities for qualified individuals
with disabilities, and
which would eradicate the effect of its past and present unlawful employment
practices. App. 39. The Court of Appeals concluded that Baker's arbitration
agreement
did not preclude the EEOC from seeking such broad-based relief, and
Waffle House has not appealed that ruling. See 193 F. 3d 805, 813, n. 3
(CA4 1999).
Footnote 3
Although the EEOC's complaint alleged that Waffle House engaged
in "unlawful employment practices," in violation of §102(a) of the
ADA, 42 U. S. C. §12112(a),
it mentioned no instances of discriminatory conduct on the part of
Waffle House other than its discharge of Baker. App. 38 (emphasis added).
Footnote 4
Title I of the ADA expressly incorporates "[t]he powers, remedies,
and procedures set forth in [Title VII]." 42 U. S. C. §12117(a). That
includes the procedures
applicable to enforcement actions as well as the equitable relief available
under §2000e-5(g).
Footnote 5
The EEOC also points out that Title VII gives the EEOC, and not
an individual victim of discrimination, the choice of forum when the EEOC
files an enforcement
action. See §2000e-5(f)(3). Since the statute gives the victim
no say in the matter, the EEOC argues that an employee, by signing an arbitration
agreement, should not
be able to effectively negate ex ante the EEOC's statutory authority
to choose the forum in which it brings suit. Brief for Petitioner 21-23.
The Court, wisely, does not
rely heavily on this argument since nothing in the Court of Appeals'
decision prevents the EEOC from choosing to file suit in any appropriate
judicial district set forth in
§2000e-5(f)(3). Rather, the Court of Appeals' holding only limits
the remedies that the EEOC may obtain when it decides to institute a judicial
action. See 193 F. 3d,
at 806-807.
Footnote 6
The Court, in fact, implicitly admits as much. Contradicting its
earlier assertion that the "statutes unambiguously authorize the EEOC to
obtain the relief that it seeks in
its complaint if it can prove its case against respondent," ante, at
7 (emphasis added), the Court later concludes that the statutory scheme
gives the trial judge
"discretion in a particular case to order reinstatement and award damages
in an amount warranted by the facts of that case." Ante, at 12.
Footnote 7
Similarly, the EEOC's authority to obtain legal remedies is also
no greater than that of an employee acting on his own behalf. Title 42
U. S. C. §1981a(a)(2), which
was enacted as part of the Civil Rights Act of 1991, Pub. L. 102-166,
105 Stat. 1071, provides that the EEOC or an employee "may recover compensatory
and
punitive damages" in addition to the forms of relief authorized by
§2000e-5(g)(1). (Emphasis added.) Nothing in §1981a(a), however,
alters the fundamental
proposition that it is for the judiciary to determine what relief (of
all the relief that plaintiffs "may recover" under the statute) the particular
plaintiff before the court is
entitled to. The statutory language does not purport to grant the EEOC
or an employee the absolute right to obtain damages in every case of proven
discrimination,
despite the operation of such legal doctrines as time bar, accord and
satisfaction, or (as in this case) binding agreement to arbitrate.
Footnote 8
I agree with the Court that, in order to determine whether a particular
remedy is "appropriate," it is necessary to examine the specific facts
of the case at hand. See
ante, at 12. For this reason, the statutory scheme does not permit
us to announce a categorical rule barring lower courts from ever awarding
a form of relief expressly
authorized by the statute. When the same set of facts arises in different
cases, however, such cases should be adjudicated in a consistent manner.
Therefore, this Court
surely may specify particular circumstances under which it would be
inappropriate for trial courts to award certain types of relief, such as
victim-specific remedies.
Footnote 9
The EEOC has consistently recognized that the Commission represents
individual employees when it files an action in court. In this case, for
instance, the EEOC
stated in its answers to interrogatories that it brought this action
"on behalf of Eric Scott Baker." See Part I, supra. Moreover, the EEOC
has maintained in numerous
cases that its attorneys have an attorney-client relationship with
charging parties and their communications with charging parties are therefore
privileged. See, e.g.,
EEOC v. Johnson & Higgins, 1998 U. S. Dist. LEXIS 17612, *1 (SDNY,
Nov. 5, 1998); EEOC v. McDonnell Douglas Corp., 948 F. Supp. 54 (ED Mo.
1996).
Footnote 10
This Court has recognized that victim-specific remedies also serve
the public goals of antidiscrimination statutes. See, e.g., McKennon v.
Nashville Banner
Publishing Co., 513 U. S. 352, 357-358 (1995). Nevertheless, when the
EEOC is seeking such remedies, it is only serving the public interest to
the extent that an
employee seeking the same relief for himself through litigation or
arbitration would also be serving the public interest. It is when the EEOC
is seeking broader relief that
its unique role in vindicating the public interest comes to the fore.
The Commission's motivation to secure such relief is likely to be greater
than that of an individual
employee, who may be primarily concerned with securing relief only
for himself.
Footnote 11
The Court also reasons that "the FAA enables respondent to compel
Baker to arbitrate his claim, but it does not expand the range of claims
subject to arbitration
beyond what is provided for in the agree-
ment." Ante, at 13, n. 9. The Court does not explain, however, how
the EEOC's ADA claim on Baker's behalf differs in any meaningful respect
from the ADA claim
that Baker would have been compelled to submit to arbitration.
Footnote 12
In the vast majority of cases, an individual employee's arbitral
proceeding will be resolved before a parallel court action brought by the
EEOC. See Maltby, Private
Justice: Employment Arbitration and Civil Rights, 30 Colum. Human Rights
L. Rev. 29, 55 (1998) (reporting that in arbitration the average employment
discrimination
case is resolved in under nine months while the average employment
discrimination case filed in federal district court is not resolved for
almost two years).
Footnote 13
This provision states: "Where appropriate and to the extent authorized
by law, the use of alternative means of dispute resolution, including settlement
negotiations,
conciliation, facilitation, mediation, factfinding, minitrials, and
arbitration, is encouraged to resolve disputes arising under the Acts or
provisions of Federal law
amended by this title." Among "the Acts or provisions of Federal law"
amended by the Civil Rights Act of 1991 was the ADA. See Pub. L. 102-166,
§109, 105 Stat.
1071.
Footnote 14
I do not see the relevance of the Court's suggestion that its
decision will only "have a negligible effect on the federal policy favoring
arbitration" because the EEOC
brings relatively few lawsuits. Ante, at 10, n. 7. In my view, either
the EEOC has been authorized by statute to undermine valid and enforceable
arbitration
agreements, such as the one at issue in this case, or one should read
the Commission's enforcement authority and the FAA in a harmonious manner.
This Court's
jurisprudence and the proper interpretation of the relevant statutes
should not depend on how many cases the EEOC chooses to prosecute in any
particular year. I
simply see no statutory basis for the Court's implication that the
EEOC has the authority to undermine valid and enforceable arbitration agreements
so long as the
Commission only opts to interfere with a relatively limited number
of agreements.
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