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Charles Phillips and Clarence Littlejohn



v.



Department of Navy

01992787, 01A01596

June 8, 2000



Charles Phillips, Complainant,

Appeal No. 01992787

Agency No. 99-00181-009P



and



Clarence Littlejohn, Complainant,

Appeal No. 01A01596

Agency No. 99-00181-037P



v.



Richard J. Danzig, Secretary,

Department of the Navy,

Agency.



DECISION



The above captioned appeals present an issue of first impression. At

issue

is the legitimacy of a Pilot EEO Dispute Resolution Program (Pilot

Program)

designed by the agency to provide an alternative means of processing EEO

complaints. At the pre-complaint counseling stage, both complainants

elected

to participate in the Pilot Program. When alternative dispute resolution

failed, they requested final agency decisions which they now appeal. The

Commission accepts and consolidates the appeals pursuant to 64 Fed. Reg.

37,644, 37,659 (1999)(to be codified at 29 C.F.R. . 1614.405). For the

following reasons, the Commission finds that the Pilot Program fails to

comport with 29 C.F.R. Part 1614; vacates the final agency decisions; and

remands both complaints for further processing.



On November 9, 1999, the Commission issued revised regulations requiring

agencies to establish or make available an alternative dispute resolution

(ADR) program. 64 Fed. Reg. 37,644, 37,655 (1999)(to be codified at and

hereinafter referred to as 29 C.F.R. . 1614.102(b)(2)). The Equal

Employment

Opportunity Management Directive for 29 C.F.R. Part 1614 (EEO MD-110),

Chapter

3 (November 9, 1999) provides guidance for the development of these

programs.

The Commission intends for the ADR program to operate within the Part

1614

process, not to replace it. The Commission requires that an ADR program

not

diminish an individual's right to pursue his or her claim under the Part

1614

process should ADR not resolve the dispute. For example, an ADR program

may

not require an individual to waive his or her right to an investigation,

a

hearing or an appeal to the EEOC. EEO MD-110, 3-2. After a thorough

review

of the Pilot Program's guidelines and its operative consequences on the

underlying complaints at issue, the Commission finds that the Pilot

Program

is not a method of alternative dispute resolution which satisfies the

regulatory requirements of 29 C.F.R. Part 1614. See 64 Fed. Reg. 37,644,

37,656 (1999)(to be codified at and hereinafter referred to as 29 C.F.R.

.

1614.105). The Commission concludes that the Pilot Program is actually a

substitute procedure for the federal sector EEO process and that, as

such,

it violates the policies, procedures and guidance set forth in the EEO

Management Directive.



The agency has structured the Pilot Program such that individuals who

wish

to pursue an EEO matter have a choice to proceed pursuant to the Part

1614

process or pursuant to the Pilot Program. If an individual chooses to

proceed under the Pilot Program, the agency requires the individual to

sign

an agreement waiving his or her right to: (1) remain anonymous; (2)

request

a hearing before an EEOC Administrative Judge; and (3) "opt out" of the

Pilot Program. Having signed the agreement, the individual is given a

choice between four forms of alternative dispute resolution:

conciliation;

mediation; early neutral inquiry; or a settlement conference. The Pilot

Program provides that during the forty-five day period the parties have

to

achieve resolution, a "factual record" will be developed by a Dispute

Resolution Specialist (DRS). If the parties do not reach a satisfactory

resolution, the agency is then required to collect and incorporate any

documentation to complete the record upon which a final agency decision

can

be made should the individual request one. The final agency decision is

drafted by a "reviewer" and forwarded to the agency's legal counsel for

comment. If dissatisfied with the final agency decision, the individual

may appeal to the EEOC or file a civil action.



By requiring an individual to waive his or her right to "opt out," the

Pilot Program deprives the individual of the right to return to the Part

1614 process should ADR not resolve the dispute to the individual's

satisfaction. Thus, the "opt out" requirement diminishes an individual's

rights under Part 1614 and violates a core principle of any successful

ADR program: voluntariness. EEO MD-110, 3-16. Furthermore, the revised

regulations provide that if a matter is not resolved either through

traditional counseling or the ADR process, the agency must ensure that an

EEO counselor's report is prepared and that the allegedly aggrieved

individual is given a final interview and informed of the right to file a

formal complaint. 29 C.F.R. . 1614.105(d). If the individual files a

formal complaint, the agency is required to conduct an impartial and

appropriate investigation and notify the individual of his or her right

to request a hearing before an EEOC Administrative Judge. 64 Fed. Reg.

37,644, 37,656-57 (1999)(to be codified at 29 C.F.R. . 1614.108). The

Pilot Program rejects these regulatory requirements and gives an

individual

two choices: either abandon the complaint or request a final agency

decision without a traditional investigation and without a hearing.



The Commission finds that in designing the Pilot Program to eliminate the

hearing, the agency successfully avoids the most significant regulatory

change in the Part 1614 process: making decisions of EEOC Administrative

Judges binding on the parties. 64 Fed. Reg. 37,644, 37,657 (1999)(to be

codified at 29 C.F.R. . 1614.109(i)). Although the Pilot Program

preserves

the individual's right to appeal the final agency decision to the EEOC,

the Commission finds that by depriving an individual of a traditional

investigation and the right to request a hearing, there is no mechanism

to ensure that if the individual files an appeal to the Commission, the

"factual record," which replaces the impartial and appropriate

investigation

required by 64 Fed. Reg. 37,644, 37,656 (1999)(to be codified at 29

C.F.R. .

1614.106(e)(2)), will be sufficient to make a determination on the

merits of

the underlying complaint. The Pilot Program also fails to address how

the

agency will handle a record that is deemed insufficient for review and

remanded by the Commission.



Furthermore, the role of the DRS, who is not only charged with providing

traditional pre-complaint counseling but is also responsible for

developing

the "factual record," seriously undermines a second core principle of a

successful ADR program: neutrality. EEO MD-110, 3-16. If the individual

selects conciliation or early neutral inquiry, the Pilot Program

Guidelines

provide for the DRS to participate. If the individual opts for a

settlement

conference, no neutral third party is present and the DRS conducts the

conference. If ADR fails, the DRS is then responsible for ensuring that

the record is complete should the individual request a final agency

decision.

The Commission concludes that by requiring the DRS to participate in

pre-complaint counseling, the "factual development" of the record, and

the

ADR stage, any semblance of neutrality is lost, and the promotion of

trust

between the parties is severely compromised. EEO MD-110, 3-12.

Moreover,

these three techniques, which require the DRS to keep a written record of

the proceedings, appear to violate a third core principle of a successful

ADR program: confidentiality. EEO MD-110, 3-16,17. The Commission

requires that explicit limits be placed on the dissemination of

information concerning ADR proceedings in order to promote trust that

such information will not be later used against participating parties.

Id. The Pilot Program, in requiring the DRS to be present during the

ADR proceedings and to complete the "factual development" of the record

should ADR fail, invites the disclosure of the precise information the

confidentiality requirement is intended to protect.



The instant appeals are examples of how the Pilot Program operates to

disadvantage individuals whom ADR fails. In agency complaint no.

99-00181-037P, complainant, a Police Officer, chose to participate

in conciliation. Complainant alleges that the agency refused to

accommodate his medical condition and assigned him to clean toilets.

The record, developed during both the conciliation process and after it

failed, contains the following documents: a position description; a

performance evaluation; a graphic of the chain of command; a computer

generated list of employees names, genders and disability codes;

agency instruction no. 12339.1 concerning medical determinations

related to employability; blank medical evaluations; and memos and

notes describing how poorly the conciliation meeting went and the

fact that management had no information to offer. There is one

statement from complainant documenting his lack of trust in the process

wherein he alleged that portions of his intake complaint remained

incorrect

and that the conciliation meeting was very intimidating. We note that

complainant abruptly left the conciliation meeting whereupon it ended.



The record also contains a summary report from the Dispute Resolution

Specialist (DRS). The summary report describes the claims, lists the

names and titles of several so-called witnesses most of whom have no

knowledge of the incidents at issue, and contradictory evidence about

accommodations and toilet cleaning duty. The summary report fails to

indicate whether any of the presumably named comparative employees were

similarly situated to complainant and fails to follow up on one witness'

statement that complainant was essentially treated differently from other

officers. There were no sworn affidavits from anyone with whom the DRS

spoke. The final agency decision ignored the contradictory evidence

raised

in the summary report and drew conclusions for which we find no support

in

the above described record.



In agency complaint no. 99-00181-009P, complainant, a Sheet-Metal

Mechanic,

chose to participate in mediation. Complainant alleges that he was

transferred from one job and reassigned to another. The factual record

developed includes a graphic of the chain of command of a project

management

team; computer generated lists showing overtime worked by comparative

employees; copies of e-mail messages from the management officials

concerning

the transfer; and the DRS' summary report. The final agency decision

found

that complainant proffered "mere assertions" and failed to rebut

management's

explanation for his transfer. We note that after mediation failed, while

gathering information for the issuance of the final agency decision, the

DRS

sent an e-mail message to one of the named responsible management

officials

stating, "We want to make sure the Activity is seen in the appropriate

light."

The Commission finds that the factual development of this record was

not completed by a neutral, disinterested individual.



The Commission concludes that if the Pilot Program had been in compliance

with the revised regulations and the EEO Management Directive, after ADR

failed to resolve the instant complaints, complainants would have

received

a final interview and a notice of the right to file a formal complaint.

See

64 Fed. Reg. 37,644, 37,645 (1999); EEO MD-110, 3-8. Therefore, the

Commission

remands both complaints for resumed processing in accordance with 29

C.F.R. .

1614.105(d). The Commission further orders the agency to immediately

suspend

the Pilot Program and take action consistent with the ORDER set forth

below.



ORDER



The Commission orders the agency to take the following action:



(1) The agency shall process the remanded claims separately in accordance

with 29 C.F.R. 1614.105(d). Each complainant shall be informed in

writing

by an EEO Counselor, no later than the thirtieth day after this decision

becomes final, of his right to file a formal EEO discrimination

complaint.

The notice shall inform complainant of the right to file his complaint

within fifteen days of receipt of the notice, of the appropriate official

with whom to file a complaint and of complainant's duty to inform the

agency if he retains counsel or a representative.



(2) Upon receipt of this decision, the agency shall immediately suspend

the Pilot Program. The agency shall deem all complaints which are

currently

being processed through the Pilot Program as unresolved, and no later

than

the thirtieth day after this decision becomes final, the agency shall

notify

all affected individuals whose complaints are currently being processed

through the Pilot Program of their right to file a formal EEO

discrimination

complaint pursuant to 29 C.F.R. . 1614.105(d).



(3) Any ADR program which the agency establishes pursuant to 29 C.F.R. .

1614.102(b)(2) must satisfy the requirements of 29 C.F.R. Part 1614 and

comport with EEO MD-110, Chapter 3(November 9, 1999).



(4) The agency is directed to submit a report of compliance, as provided

in the statement entitled "Implementation of the Commission's Decision."

The report shall include evidence that the corrective action in

paragraphs

(1) and (2) has been implemented.



IMPLEMENTATION OF THE COMMISSION'S DECISION (K1199)



Compliance with the Commission's corrective action is mandatory. The

agency

shall submit its compliance report within thirty (30) calendar days of

the

completion of all ordered corrective action. The report shall be

submitted

to the Compliance Officer, Office of Federal Operations, Equal Employment

Opportunity Commission, P.O. Box 19848, Washington, D.C. 20036. The

agency's report must contain supporting documentation, and the agency

must

send a copy of all submissions to the complainant. If the agency does

not

comply with the Commission's order, the complainant may petition the

Commission for enforcement of the order. 29 C.F.R. . 1614.503(a). The

complainant also has the right to file a civil action to enforce

compliance

with the Commission's order prior to or following an administrative

petition

for enforcement. See 64 Fed. Reg. 37,644, 37,659-60 (1999) (to be

codified

and hereinafter referred to as 29 C.F.R. .. 1614.407, 1614.408), and 29

C.F.R. .

1614.503(g). Alternatively, the complainant has the right to file a

civil

action on the underlying complaint in accordance with the paragraph below

entitled "Right to File A Civil Action." 29 C.F.R... 1614.407 and

1614.408.

A civil action for enforcement or a civil action on the underlying

complaint

is subject to the deadline stated in 42 U.S.C. . 2000e-16(c)(Supp. V

1993).

If the complainant files a civil action, the administrative processing of

the complaint, including any petition for enforcement, will be

terminated.

See 64 Fed. Reg. 37,644, 37,659 (1999) (to be codified and hereinafter

referred to as 29 C.F.R. . 1614.409).



STATEMENT OF RIGHTS - ON APPEAL

RECONSIDERATION (M0300)



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

case

if the complainant or the agency submits a written request containing

arguments

or evidence which tend to establish that:



1. The appellate decision involved a clearly erroneous interpretation

of

material fact or law; or



2. The appellate decision will have a substantial impact on the

policies,

practices, or operations of the agency.



Requests to reconsider, with supporting statement or brief, MUST BE

FILED WITH

THE OFFICE OF FEDERAL OPERATIONS (OFO) WITHIN THIRTY (30) CALENDAR DAYS

of

receipt of this decision or WITHIN TWENTY (20) CALENDAR DAYS OF RECEIPT

OF

ANOTHER PARTY'S TIMELY REQUEST FOR RECONSIDERATION. See 64 Fed. Reg.

37,644, 37,659 (1999) (to be codified and hereinafter referred to as 29

C.F.R. .

1614.405); Equal Employment Opportunity Management Directive for 29

C.F.R.

Part 1614 (EEO MD-110), 9-18 (November 9, 1999). All requests and

arguments

must be submitted to the Director, Office of Federal Operations, Equal

Employment Opportunity Commission, P.O. Box 19848, Washington, D.C.

20036.

In the absence of a legible postmark, the request to reconsider shall be

deemed timely filed if it is received by mail within five days of the

expiration of the applicable filing period. See 64 Fed. Reg. 37,644,

37,661 (1999) (to be codified and hereinafter referred to as 29 C.F.R.

1614.604). The request or opposition must also include proof of service

on the other party.



Failure to file within the time period will result

in dismissal of your request for reconsideration as untimely, unless

extenuating circumstances prevented the timely filing of the request.

Any supporting documentation must be submitted with your request for

reconsideration. The Commission will consider requests for

reconsideration

filed after the deadline only in very limited circumstances. See 29

C.F.R. .

1614.604(c).



COMPLAINANTS' RIGHT TO FILE A CIVIL ACTION (R0400)



This is a decision requiring the agency to continue its administrative

processing of your complaint. However, if you wish to file a civil

action,

you have the right to file such action in an appropriate United States

District Court WITHIN NINETY (90) CALENDAR DAYS from the date that you

receive this decision. In the alternative, you may file a civil action

AFTER ONE HUNDRED AND EIGHTY (180) CALENDAR DAYS of the date you filed

your complaint with the agency, or filed your appeal with the Commission.

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

COMPLAINT

THE PERSON WHO IS THE OFFICIAL AGENCY HEAD OR DEPARTMENT HEAD,

IDENTIFYING

THAT PERSON BY HIS OR HER FULL NAME AND OFFICIAL TITLE. Failure to do so

may

result in the dismissal of your case in court. "Agency" or "department"

means

the national organization, and not the local office, facility or

department

in which you work. Filing a civil action will terminate the

administrative

processing of your complaint.



RIGHT TO REQUEST COUNSEL (Z1199)



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

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

appoint

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

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

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

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

The

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

Court.

Filing a request for an attorney does not extend your time in which to

file

a civil action. Both

the request and the civil action must be filed within

the time limits as stated in the paragraph above ("Right to File A Civil

Action").



FOR THE COMMISSION:



June 8, 2000

_______________

Date





_____________________

Frances M. Hart

Executive Officer

Executive Secretariat



CERTIFICATE OF MAILING



For timeliness purposes, the Commission will presume that this decision

was received within five (5) calendar days of mailing. I certify that

the decision was mailed to complainant, complainant's representative (if

applicable), and the agency on:



_______________

Date





__________________________

Equal Opportunity Assistant



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