Sieden v. Chipotle Mexican Grill, Inc.

Citations: 128 F. Supp. 3d 1133; 2015 U.S. Dist. LEXIS 117458; 127 Fair Empl. Prac. Cas. (BNA) 1773; 2015 WL 5165337Docket: Case No. 14-cv-56 (JNE/BRT)

Court: District Court, D. Minnesota; September 3, 2015; Federal District Court

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Philip Sieden, an openly gay man and former employee of Chipotle Mexican Grill, filed an employment discrimination lawsuit against the company, asserting claims of reprisal, age discrimination, and sexual orientation discrimination under the Minnesota Human Rights Act. The court addressed Chipotle's motion for summary judgment, granting it for the reprisal and sexual orientation claims, but denying it for the age discrimination claim.

Sieden began his employment with Chipotle in 2001, progressing to positions including General Manager and Restaurateur, with responsibilities over multiple stores. His performance reviews fluctuated, with mixed ratings from his supervisors. Tensions arose in April 2013 when Sieden objected to a comment made by Team Director Travis Moe regarding the hiring of Hmong employees at Sieden's home store. Subsequently, Sieden's responsibilities were reduced, and he was ultimately terminated in June 2013, with Chipotle citing "Unacceptable Work Performance" as the reason.

Following the termination, Sieden filed suit, which Chipotle moved to remove to federal court. After completing the discovery phase, Chipotle sought summary judgment on the claims.

Summary judgment is appropriate when there is no genuine dispute regarding material facts and the movant is entitled to judgment as a matter of law, as per Fed. R.Civ. P. 56(a). To contest a fact's dispute, a party must reference specific materials in the record or demonstrate that the opposing party cannot provide admissible evidence to support the fact (Fed. R.Civ. P. 56(c)(1)(A)). The court primarily considers cited materials but may review additional record materials (Fed. R.Civ. P. 56(c)(3)). In evaluating summary judgment, the court must view disputed facts favorably towards the nonmovant and draw all reasonable inferences in their favor, per Ricci v. DeStefano and Anderson v. Liberty Lobby.

Chipotle's motion for summary judgment addresses three claims, starting with the reprisal claim. Sieden alleges his termination violated the Minnesota Human Rights Act (MHRA) due to reprisal for objecting to discriminatory comments. Reprisal claims are assessed using the McDonnell Douglas framework. Sieden must establish a prima facie case by showing he engaged in protected conduct, suffered an adverse employment action, and demonstrated a causal connection. The burden then shifts to Chipotle to provide a legitimate reason for the termination, after which Sieden must prove that this reason is a pretext for discrimination.

Sieden cites temporal proximity between his protected activity (objection to a comment) and his termination, arguing it was either seven or ten weeks apart. However, temporal proximity alone does not suffice to establish pretext; Sieden must present additional evidence. He lists twelve types of evidence, but the court finds none persuasive. Notably, a favorable performance review prior to his termination does not effectively demonstrate pretext, as it highlighted concerns about his commitment and effort, which were cited in the decision to terminate him. The review indicated that his team's performance suffered due to insufficient dedication on his part, necessitating improvement in his management approach.

Email communications from April and May 2013 reveal serious concerns about Sieden's performance at the Blaine restaurant, leading to his removal and subsequent termination. Patet highlighted alarming findings from an audit, while Sieden acknowledged his lack of engagement after returning from vacation. Following further complaints about recurring issues, Chipotle terminated Sieden, citing his failure to connect with his team as a key factor. Testimonies from Moe and Patet indicated Sieden's performance was largely unsatisfactory due to insufficient effort. 

Sieden contested his termination by arguing that Chipotle did not adhere to a progressive discipline policy, which he could not substantiate with written evidence, relying instead on his own deposition testimony that suggested inconsistency in disciplinary practices. Furthermore, he claimed Chipotle typically does not fire managers without prior poor performance reviews, yet his evidence only demonstrated that the company tends to terminate its lowest performers, not that his own three-star review precluded termination.

Sieden also argued that Chipotle altered its reasons for his termination. However, the official reason listed was "Unacceptable Work Performance," and subsequent clarifications from Moe and Patet provided additional specific reasons that aligned with this general explanation. The court found no substantial change in the rationale for Sieden's termination, supporting Chipotle's position and undermining Sieden's claims of pretext.

Many of the reasons provided during Sieden's deposition align with those mentioned in the June 20, 2013 email to a Chipotle co-CEO regarding his termination, suggesting that Chipotle's rationale has remained consistent despite the litigation. Sieden challenges the validity of Chipotle's reasons based on observations from Derek Her, a subordinate who was mentored by Sieden, but Her's inconsistent assessments do not undermine the evaluations made by Sieden’s superiors, Patet and Moe, or feedback from his team. 

Sieden also points to the continued employment of Restaurateur Alex Cortes, who faced issues at two of his four locations, as evidence of potential discrimination or retaliation; however, Sieden lacks evidence regarding the nature and severity of Cortes's performance issues, which are not comparable to Sieden’s documented shortcomings. Consequently, Cortes's situation does not support a claim that Chipotle's termination rationale is illegitimate, as established in Fiero v. CSG Systems, Inc., which emphasizes the necessity for comparators to be similarly situated in all relevant respects.

Additionally, Sieden claims that Chipotle's failure to investigate his report of Moe’s discriminatory comment indicates pretext. However, he did not formally escalate his complaint beyond a casual discussion with area manager Eric Grant, who was subordinate to Moe, and did not notify Moe’s superiors or reference any policies that would necessitate an investigation.

Lastly, Sieden argues that minor violations cited by Chipotle could reflect pretext, yet these instances, such as his poor scheduling and lack of communication regarding personal days, are contextualized by the broader concerns about his performance raised by Moe and Patet. Patet specifically criticized Sieden for blaming scheduling issues on subordinates, highlighting a lack of ownership and effort.

Sieden contends that a jury could find he was not terminated due to his failure to achieve Restaurateur status, as most Chipotle locations in Minnesota also lack this status. However, he acknowledges that it was his responsibility to secure this status for the Blaine and Crystal locations and admits to failing in this regard. The Court is not positioned to evaluate the weight Chipotle assigned to this failure, as established in Logan v. Liberty Healthcare Corp., which emphasizes that courts do not assess employer business judgments unless they involve discrimination or retaliation. 

Sieden asserts he excelled at developing leaders, a claim Chipotle acknowledges. Nonetheless, this success does not create a factual dispute regarding whether his other job performance issues justified his termination. He also argues that his brief tenure at the North Maplewood restaurant—only a month—indicates pretext, as he did not have enough time to show results. However, Chipotle’s management was able to observe his efforts and deemed them insufficient. 

Regarding his performance, Sieden points out that the Vadnais Heights restaurant was still generating strong results, suggesting this undermines Chipotle's rationale for his termination. He admits he was primarily focused on the North Maplewood location leading up to his termination, making it reasonable for Chipotle to assess his performance based on that site.

Sieden claims Chipotle's statements about who made the termination decision are inconsistent, highlighting that Moe was involved alongside Patet. Chipotle clarifies that Patet’s decision was based on independent observations and not solely on Moe’s input. The brief indicates that Moe was indeed a decision-maker, and the term "independently" does not imply he lacked influence. 

Despite Sieden's extensive evidence attempting to demonstrate pretext, the arguments presented do not convincingly establish a trial-worthy issue on his reprisal claim. In terms of age discrimination, the Minnesota Human Rights Act (MHRA) prohibits termination based on age, with a debate on whether the plaintiff must prove age was the 'but for' cause or 'actual motivation' behind the employment decision. The Court deems it unnecessary to resolve this debate, as Sieden’s claim would survive summary judgment under either standard.

A plaintiff can establish age discrimination either directly or through the McDonnell Douglas burden-shifting framework. Direct evidence relies on clear indications of discriminatory intent. In Sieden's case, direct evidence consists of comments made by Moe during Sieden's termination, where Moe referred to a younger employee's success and implied that Sieden's time had “come and gone.” However, these comments do not explicitly indicate a preference for younger employees or refer to Sieden's age, thus failing to constitute direct evidence of age discrimination. 

To avoid summary judgment, Sieden must meet the prima facie requirements for an age discrimination claim, which include being over 40, experiencing an adverse employment action, being qualified for the position, and being replaced by someone substantially younger. Chipotle contests Sieden's claim on the grounds of the third and fourth elements. It argues that Sieden did not meet the employer’s legitimate expectations and that he cannot demonstrate replacement since his role as a Restaurateur is deemed irreplaceable. However, the Eighth Circuit has clarified that meeting expectations does not place a significant burden on the plaintiff, who need only demonstrate qualification without preemptively disproving the employer's reasons for termination. Given Sieden's extensive management experience and success, he meets the qualification requirement.

Regarding the irreplaceability claim, Chipotle's distinction between Restaurateurs and General Managers is questioned, as evidence suggests they may be effectively the same role. Moe himself indicated they are interchangeable, undermining Chipotle's argument that Sieden was not replaced after his termination.

Chipotle asserts that at the time of Sieden's termination, his sole role was acting General Manager of North Maplewood, despite holding the title of Restaurateur. Patet clarified that Sieden's responsibilities were those of a General Manager, as he oversaw a single restaurant. A replacement does not need to share the same title, only the job duties, allowing for the possibility that the individual who took over Sieden’s managerial tasks could be considered his replacement, regardless of title. Evidence indicates that Aaron Parr, 32, became the manager of North Maplewood after Sieden’s departure, which Chipotle does not contest. Sieden argues he was not only managing North Maplewood but also Vadnais Heights, where after his termination, 23-year-old Yeleng Michael Lor became General Manager, further supporting Sieden's claim of having been replaced by someone substantially younger. To substantiate his claim of age discrimination, Sieden points to comments made by Moe during his termination, suggesting a preference for younger leaders and implying older employees should step aside. This includes Moe’s remarks that Sieden was “part of the past” and had not “evolved.” The cumulative evidence presents a sufficient basis for Sieden to overcome a summary judgment motion, indicating a potential bias against older employees in favor of younger managers.

Chipotle's characterization of "young leaders" as relating to experience rather than age is challenged by evidence suggesting otherwise. Comments made by Moe during Sieden’s termination, particularly comparing Sieden’s performance to that of a 21-year-old and stating his "time has come and gone," indicate a preference for younger employees. This context raises the possibility that Sieden’s termination was motivated by age discrimination, as it aligns with Moe's goal of promoting younger leaders within the company. A jury could reasonably infer that Moe's desire to oust older managers like Sieden led to the termination, particularly since Moe was significantly involved in the decision-making process. Although Chipotle argues that Patet independently decided to terminate Sieden without age bias, evidence indicates Moe's influence was substantial, as he was involved in discussions and justifications for the termination, indicating that his discriminatory motives could have affected the decision. 

Additionally, Sieden claims his termination violated Minnesota’s Human Rights Act regarding sexual orientation discrimination, citing a comment by Moe where he referred to Sieden as "fraulein." However, this remark is deemed insufficient to demonstrate discrimination or pretext due to its remoteness from the termination decision.

Sieden presented evidence that two openly gay restaurateurs, Scott Showalter and Jean Hutar, were supervised by Moe and experienced suspicious terminations. While Sieden argues that treatment of other employees in the same protected class can demonstrate discrimination, he fails to clarify how Moe's actions toward Showalter and Hutar indicate bias based on sexual orientation. Showalter claimed he resigned after Moe suggested he was underperforming, while Hutar stated she quit after a demotion but did not perceive Moe’s treatment as discriminatory. Both testified they had not experienced or witnessed any discriminatory remarks from Moe regarding sexual orientation. The existence of adverse actions against two openly gay managers alone does not substantiate Sieden’s discrimination claim. Additionally, Sieden's other evidence was previously deemed unpersuasive in the analysis of his reprisal claim. Consequently, the Court concluded that no reasonable jury could find in favor of Sieden regarding his sexual orientation claim. The Court ordered that the defendant’s motion for summary judgment be granted regarding Sieden's reprisal and sexual orientation discrimination claims, dismissing those claims, while denying the motion concerning Sieden's age discrimination claim. Moe contested Sieden's account, highlighting performance issues as reasons for his termination, and Sieden did show he was replaced by younger employees. The Court noted that Sieden had acted as General Manager of the North Maplewood store before his termination.