Melissa Lee Renda Vs. Iowa Civil Rights Commission ( 2010 )

IN THE SUPREME COURT OF IOWA
No. 08–0428
Filed June 4, 2010
MELISSA LEE RENDA,
Appellant,
vs.
IOWA CIVIL RIGHTS COMMISSION,
Appellee.
Appeal from the Iowa District Court for Polk County, Donna L.
Paulsen, Judge.
Petitioner appeals from district court’s decision affirming Iowa Civil
Rights Commission’s decision that it did not have jurisdiction to hear
petitioner’s claim. AFFIRMED IN PART, REVERSED IN PART AND
CASE REMANDED.
Roxanne Barton Conlin and Melinda Ellwanger of Roxanne Conlin
& Associates, P.C., Des Moines, for appellant.
Thomas J. Miller, Attorney General, and Teresa Baustian,
Assistant Attorney General, for appellee.
2
HECHT, Justice.
Melissa Renda, an inmate at the Mt. Pleasant Correctional Facility,
filed a complaint with the Iowa Civil Rights Commission (ICRC) alleging
sexual harassment and retaliation in her employment and housing. The
ICRC concluded it did not have jurisdiction to hear Renda’s complaint
because the correctional facility was not a “dwelling,” and, as an inmate,
Renda was not an “employee” for purposes of the Iowa Civil Rights Act
(the Act). Renda sought judicial review, and the district court affirmed
the decision of the ICRC. On appeal, we agree that a correctional facility
is not a dwelling for purposes of the Act, but we conclude Renda’s status
as an inmate working within the prison did not necessarily preclude her
status as an employee. We affirm in part, reverse in part, and remand
for further proceedings consistent with this opinion.
I. Background Facts and Proceedings.
Melissa Renda filed a complaint with the ICRC on June 27, 2007.
According to the complaint, Renda began working as a receiving and
discharge clerk in November 2005 while she was incarcerated at the
Mt. Pleasant Correctional Facility. According to Renda, the clerk position
was the most respected and highest paid job within the prison. Shortly
after she started working in the receiving and discharge department,
officer Jim Ackles, who also worked in the department, began making
romantic overtures toward her. In addition to the sexual advances,
Ackles also gave her gifts and money in violation of prison policy. At one
point, he forced her to forge a property receipt to cover up the fact that
he had given her a CD. Ackles threatened to have Renda transferred to
the correctional institution in Mitchellville if she reported his conduct to
prison authorities.
3
In June of 2006, Renda was approached by an investigator
following up on an anonymous report of Ackles’ inappropriate behavior.
Out of fear, Renda refused to talk to the investigator and was punished
by being placed in solitary confinement for nine days. After getting out of
solitary confinement, she returned to her job but was fired a few days
later “on trumped up charges.” Eventually, Renda cooperated with the
investigation into officer Ackles’ behavior, and when the investigation
was closed, Renda was informed that she was “100% credible” and that
her allegations were “founded.” Despite the results of the investigation,
Renda became depressed about the ordeal and lost her “level 4 status”
because she was irritable to others. She felt ostracized, and she was
later denied a job in the recreation department because of the forged
property receipt incident.
In her complaint filed with the ICRC, Renda claimed she was
discriminated against on the basis of her sex and that she was retaliated
against in the areas of employment and housing. The ICRC closed her
complaint as “non-jurisdictional” because the complaint did “not allege a
‘discriminatory practice’ as defined by Iowa Code Chapter 216.”
Specifically, the ICRC determined that an inmate is not considered an
employee and a prison is not considered a dwelling under the Act.
Renda sought judicial review, and the district court affirmed the
decision of the ICRC. Renda appeals.
II. Scope and Standards of Review.
Judicial review of an agency decision is controlled by the
provisions of Iowa Code section 17A.19(10) (2009). 1 ABC Disposal Sys.,
Inc. v. Dep’t of Natural Res., 681 N.W.2d 596, 601 (Iowa 2004). We will
1Unless otherwise noted, all statutory citations are to the current version of the
Iowa Code.
4
apply the standards of section 17A.19(10) to determine if we reach the
same results as the district court. Id. The district court may grant relief
if the agency action has prejudiced the substantial rights of the petitioner
and if the agency action meets one of the enumerated criteria contained
in section 17A.19(10)(a) through (n). Id.The parties disagree about whether subsection (c) or (l) applies to
our review of ICRC’s interpretation of the terms “employee” and
“dwelling” as used in the Act. Renda contends section 17A.19(10)(c)
applies because the ICRC has not been clearly vested with the authority
to interpret the Act, and accordingly, we are free to substitute our
judgment for that of the ICRC. See Iowa Code § 17A.19(10)(c). The ICRC
argues subsection (l) applies because it has been vested with the
authority to interpret the Act, and, as a result, we must defer to the
agency’s interpretation and may only reverse if the interpretation is
“irrational, illogical, or wholly unjustifiable.” Id. § 17A.19(10)(l).
We begin by noting that despite the parties’ articulation of the
issue as whether the ICRC has the authority to interpret the Act, we do
not view the issue so broadly. The focus of our inquiry is not whether
the ICRC has the authority to interpret the entire Act. Rather, we must
determine whether the interpretation of the specific terms “employee”
and “dwelling” has been clearly vested in the discretion of the
commission.
We have not addressed the standard of review of statutory
interpretation by the ICRC subsequent to the amendment and
clarification of chapter 17A in 1998. We addressed the standard of
review of the ICRC’s interpretation of various provisions of the Act on
several occasions before chapter 17A was amended. Unfortunately,
however, many of our decisions from that period did not clearly articulate
5
the standard of review applied in reviewing the commission’s statutory
interpretations. In Good v. Iowa Civil Rights Commission, 368 N.W.2d
151 (Iowa 1985), we concluded that
[i]n reviewing an administrative agency’s interpretation
of a statute, this court may give some weight to the agency’s
determination, but “the meaning of a statute is always a
matter of law, and final construction and interpretation of
Iowa statutory law is for this court.” Our review in this case,
however, is not without its limited perimeters. Although
construction of this statute is a function of the courts, we
have always held that a reviewing court should give
appropriate weight to the judgment of the agencies charged
with the special duty of administering a particular statute.
Good, 368 N.W.2d at 155 (quoting Schmitt v. Iowa Dep’t of Soc. Servs.,
263 N.W.2d 739, 745 (Iowa 1978)); see also Sommers v. Iowa Civil Rights
Comm’n, 337 N.W.2d 470, 472 (Iowa 1983) (stating that when reviewing
the ICRC’s interpretation of statutory provisions “we may give deference
to, but are not bound by,” the ICRC’s interpretation because “[t]he
ultimate interpretation of Iowa statutory law is the province of the
supreme court”). We do not find these early articulations of the level of
deference to be granted the ICRC’s statutory interpretation particularly
illuminating to our determination of whether subsection (c) or (l) of the
current section 17A.19(10) applies.
The amendments to chapter 17A clarified when the court should
give deference to an agency’s interpretation of law.
Normally, the interpretation of a statute is a pure
question of law over which agencies are not delegated any
special powers by the General Assembly so, a court is free to,
and usually does, substitute its judgment de novo for that of
the agency and determine if the agency interpretation of the
statute is correct. . . . But, where the General Assembly
clearly delegates discretionary authority to an agency to
interpret or elaborate a statutory term based on the agency’s
own special expertness, the court may not simply substitute
its view as to the meaning or elaboration of the term for that
of the agency but, instead, may reverse the agency
interpretation or elaboration only if it is arbitrary, capricious,
6
unreasonable, or an abuse of discretion—a deferential
standard of review.
Arthur E. Bonfield, Amendments to Iowa Administrative Procedure Act,
Report on Selected Provisions to Iowa State Bar Association and Iowa
State Government 62 (1998) [hereinafter Bonfield]. Notably, section
17A.10(c) does not require that the discretion be “expressly” vested in the
agency, but instead uses the less restrictive term “clearly.”
This means that the reviewing court, using its own
independent judgment and without any required deference
to the agency’s view, must have a firm conviction from
reviewing the precise language of the statute, its context, the
purpose of the statute, and the practical considerations
involved, that the legislature actually intended (or would
have intended had it thought about the question) to delegate
to the agency interpretive power with the binding force of law
over the elaboration of the provision in question.
Id. at 63.
The question of whether interpretive discretion has clearly been
vested in an agency is easily resolved when the agency’s enabling statute
explicitly addresses the issue. For example, in Iowa Ass’n of School
Boards v. Iowa Department of Education, 739 N.W.2d 303 (Iowa 2007), we
noted that the enabling statute provided the director of the department of
education “ ‘shall . . . [i]nterpret the school laws and rules relating to the
school laws.’ ” Iowa Ass’n of Sch. Bds., 739 N.W.2d at 307 (alterations in
original) (quoting Iowa Code § 256.9(16) (2003)). The explicit grant of
authority made clear the General Assembly’s intent to vest the discretion
to interpret the laws with the department, and we concluded that the
department’s interpretation was entitled to deference pursuant to section
17A.19(10)(c). Similarly, in Mosher v. Department of Inspections &
Appeals, 671 N.W.2d 501, 509–10 (Iowa 2003), we concluded that
because the General Assembly had explicitly given the authority to
interpret the phrase “dependent adult” to a different agency, by
7
implication it had not delegated the interpretive authority to the
department of inspections and appeals.
However, because the legislature does not usually explicitly
address in legislation the extent to which an agency is authorized to
interpret a statute, most of our cases involve an examination of the
phrases or statutory provisions to be interpreted, their context, the
purpose of the statute, and other practical considerations to determine
whether the legislature intended to give interpretive authority to an
agency. This sort of analysis has not proven conducive to the
development of bright-line rules. It must always involve an examination
of the specific statutory language at issue, as well as the functions of and
duties imposed on the agency. It is conceivable that the legislature
intends an agency to interpret certain phrases or provisions of a statute,
but not others.
Our first occasion to examine whether an agency had been granted
the authority to interpret a statute under the amended chapter 17A was
City of Marion v. Iowa Department of Revenue & Finance, 643 N.W.2d 205(Iowa 2002). In that case, we confronted the question of whether the
department had correctly interpreted the term “athletic sport” to include
swimming. 643 N.W.2d at 206. We noted that “athletic sport” was not
defined in the statute and that the department had been given the
authority to create rules “ ‘necessary and advisable for its detailed
administration.’ ” Id. at 207 (quoting Iowa Code § 422.68(1) (2001)). We
concluded that because the term was not defined in the statute and
because the department must necessarily interpret the term in order to
carry out its duties, the power to interpret the term was clearly vested in
the department and deference was therefore given. Id.8
We have reached similar conclusions in several more recent cases.
In Auen v. Alcoholic Beverages Division, 679 N.W.2d 586, 590 (Iowa
2004), we concluded the division had been vested with the authority to
interpret the phrase “directly or indirectly being interested in the
ownership” of another licensee. We again relied on the division’s
rulemaking authority and the necessity of interpreting that phrase in
conducting the division’s work. Auen, 679 N.W.2d at 590. Likewise,
ABC Disposal Systems addressed whether the Iowa Department of
Natural Resources (DNR) had the authority to interpret the term
“sanitary disposal project.” 681 N.W.2d at 602. Because the DNR had
the authority to establish rules “ ‘relating to the establishment and
location of sanitary disposal projects,’ ” we concluded the legislature had
clearly vested the authority to define what constituted a “sanitary
disposal project.” Id. (quoting Iowa Code § 455B.304(1) (2001)); see also
City of Coralville v. Iowa Utils. Bd., 750 N.W.2d 523, 527 (Iowa 2008)
(concluding the “ ‘broad general powers to effect the purposes’ of chapter
476, which includes the authority to regulate public utility rates,” vested
the utilities board with authority to interpret the rates and services
provision of section 476.1 (quoting Iowa Code § 476.2(1) (2005)));
Birchansky Real Estate, L.C. v. Iowa Dep’t of Pub. Health, 737 N.W.2d
134, 138 (Iowa 2007) (holding authority of department to make final
decision on all “certificate of need” applications coupled with rulemaking
authority demonstrated that the authority was clearly vested with the
department to interpret an exception to the certificate of need
requirements); Iowa Ag Constr. Co. v. Iowa State Bd. of Tax Review, 723
N.W.2d 167, 173–74 (Iowa 2006) (concluding that the board’s rulemaking
authority also gave it the authority to determine whether certain
equipment was “directly and primarily used in livestock production”);
9
Thoms v. Iowa Pub. Employees’ Ret. Sys., 715 N.W.2d 7, 11 (Iowa 2006)
(holding rulemaking authority gave IPERS the authority to interpret a
statutory provision providing for calculation of retirement benefits). 2
However, we have not concluded that a grant of mere rulemaking
authority gives an agency the authority to interpret all statutory
language. We have determined that the department of revenue has not
been vested with the special authority to interpret the term “competent
evidence” as it is used in chapter 622, the evidence code. Lange v. Iowa
Dep’t of Revenue, 710 N.W.2d 242, 247 (Iowa 2006). We likewise noted
that while the Iowa Finance Authority had been given “ ‘all of the general
powers needed to carry out its purposes and duties, and exercise its
specific powers’ ” as well as the authority to adopt rules “ ‘necessary for
the implementation of the title guaranty program,’ ” the agency did not
have the authority to interpret the terms “hardship” and “public interest”
2However, despite the abundance of authority concluding an agency with the
authority to enforce a specific statute and with rulemaking authority has been clearly
vested with the authority to interpret specialized terms and provisions within the
subject matter statute, we reached the opposite result in Mycogen Seeds v. Sands, 686
N.W.2d 457 (Iowa 2004), and P.D.S.I. v. Peterson, 685 N.W.2d 627 (Iowa 2004),
regarding the authority of the workers’ compensation commissioner to interpret various
workers’ compensation provisions. In those cases, this court concluded that
[w]e see nothing in the workers’ compensation statutes that convinces us
that the legislature has delegated any special powers to the agency
regarding its interpretation of . . . statutes. So the agency’s
interpretation has not “clearly been vested by a provision of law in the
discretion of the agency.”
P.D.S.I., 685 N.W.2d at 633 (quoting Iowa Code § 17A.19(10)(c) (2001)); see also
Mycogen Seeds, 686 N.W.2d at 464 (“We see nothing in Iowa Code chapter 85 that
convinces us that the legislature has delegated any special powers to the agency
regarding statutory interpretation in these areas.”). Although not acknowledged in
either opinion, the workers’ compensation commissioner is required to “[a]dopt and
enforce rules necessary to implement” chapters 85, 85A, 85B, 86, and 87. Iowa Code
§ 86.8(1). The commissioner is also charged with the responsibility of presiding over
contested cases brought under chapters 85, 85A, 85B, and 86 and has the authority to
order payments once the parties agree on liability or the commissioner makes a
determination of liability. Id. §§ 86.17(1), 85.21.
10
found in section 16.91(5). Iowa Land Title Ass’n v. Iowa Fin. Auth., 771
N.W.2d 399, 402 (Iowa 2009) (quoting Iowa Code §§ 16.5, 16.91(8)
(2007)). Similarly, “[a]lthough the legislature gave the labor
commissioner the authority to promulgate Iowa’s occupational safety and
health standards under section 88.5, the legislature did not vest the
interpretation of ‘willful’ under the penalty provision with the
commissioner or the Board.” Insituform Techs., Inc. v. Employment
Appeal Bd., 728 N.W.2d 781, 800 (Iowa 2007); see also State v. Pub.
Employment Relations Bd., 744 N.W.2d 357, 360 (Iowa 2008) (concluding
the board was not vested with the authority to interpret a provision
which would determine if the board had the authority to remedy
nonwillful, as well as willful, violations of chapter 20). And, in Doe v.
Iowa Board of Medical Examiners, 733 N.W.2d 705 (Iowa 2007), we
concluded that we owed no deference to the board’s interpretation of
“confidential.”
Whether information is confidential is not informed by the
expertise of the board, but rather focuses on the interests of
the parties. The legislature did not give the board the
discretion to determine what information is, and is not,
confidential.
733 N.W.2d at 708.
Our review of authorities on this subject has confirmed our belief
that each case requires a careful look at the specific language the agency
has interpreted as well as the specific duties and authority given to the
agency with respect to enforcing particular statutes. It is generally
inappropriate, in the absence of any explicit guidance from the
legislature, to determine whether an agency has the authority to
interpret an entire statutory scheme. As we have seen, it is possible that
an agency has the authority to interpret some portions of or certain
11
specialized language in a statute, but does not have the authority to
interpret other statutory provisions. Accordingly, broad articulations of
an agency’s authority, or lack of authority, should be avoided in the
absence of an express grant of broad interpretive authority.
We also think certain guidelines have become evident that may
inform our analysis of whether the legislature has clearly vested
interpretative authority with an agency. We note that when the statutory
provision being interpreted is a substantive term within the special
expertise of the agency, we have concluded that the agency has been
vested with the authority to interpret the provisions. See City of
Coralville, 750 N.W.2d at 527 (provisions relating to the regulation of
public utility rates and services); Thoms, 715 N.W.2d at 11–12
(provisions relating to the calculation of retirement benefits); ABC
Disposal, 681 N.W.2d at 602 (sanitary disposal project). When the
provisions to be interpreted are found in a statute other than the statute
the agency has been tasked with enforcing, we have generally concluded
interpretive power was not vested in the agency. See, e.g., Lange, 710
N.W.2d at 247 (department of revenue’s interpretation of generally
applicable statutory rule of evidence); Mosher, 671 N.W.2d at 509(department of inspections and appeals’ interpretation of dependant
adult abuse provisions). When a term has an independent legal
definition that is not uniquely within the subject matter expertise of the
agency, we generally conclude the agency has not been vested with
interpretative authority. See Iowa Land Title Ass’n, 771 N.W.2d at 401–
02 (“hardship” and “public interest”); Pub. Employees Relations Bd., 744
N.W.2d at 359–60 (“willful” and “non-willful”); Doe, 733 N.W.2d at 708(“confidential”); Insituform, 728 N.W.2d at 800 (“willful”).
12
Turning to the case at hand, we first note that the Act does not
explicitly grant the agency the authority to interpret the terms
“employee” and “dwelling.” We must then determine, after reviewing “the
precise language of the statute, its context, the purpose of the statute,
and the practical considerations involved,” if we are firmly convinced that
“the legislature actually intended (or would have intended had it thought
about the question) to delegate to the agency interpretive power with the
binding force of law over the elaboration” of the terms. Bonfield at 63.
We are not convinced the legislature intended to vest the ICRC
with authority to interpret the terms at issue here. Both terms have
specialized legal meaning and are widely used in areas of law other than
the civil rights arena. The fact that the parties rely on definitions of
these terms from various other substantive areas of law indicates the
interpretation of these terms is not within the special expertise of the
ICRC. The commission itself, when defining the terms and rejecting
Renda’s claims, relied on definitions of the terms gleaned from other
areas of law, including Iowa workers’ compensation statutes, Iowa
unemployment compensation statutes, statutes pertaining to the
department of corrections, the Federal Fair Housing Act, Federal Cable
Communications Act, and Colorado penal statutes. Given the
commission’s need to examine such far-ranging legal sources to interpret
these terms, we are not convinced that “employee” and “dwelling” are
specialized terms within the expertise of the agency. Rather, these terms
have specialized legal definitions that extend beyond the civil rights
context and are more appropriately interpreted by the courts.
Accordingly, we do not give deference to the agency’s interpretation and
13
will substitute our judgment for that of the commission if we conclude
the ICRC made an error of law. Iowa Code § 17A.19(10)(c). 3
III. Discussion.
The ICRC concluded it did not have jurisdiction over Renda’s
complaint because it did “not allege a ‘discriminatory practice’ as defined
by Iowa Code Chapter 216.” Specifically the commission determined that
a prison is not a “dwelling” and an inmate is not an “employee” for
purposes of the Act. Renda claims both of these conclusions constitute
errors of law, and we will review each in turn.
A. Is a Prison a “Dwelling”? The Act prohibits discrimination
on the basis of a person’s sex with respect to housing. Iowa Code
§§ 216.8, 216.8A. The terms “real property,” “housing,” “housing
accommodation,” and “dwelling” are used in the various statutory
provisions to describe the type of facilities to which the prohibition
applies. Id. These terms, however, are not defined in the statute. When
3We think it appropriate to note at this juncture the maxim occasionally
expressed in this court’s prior decisions that we give deference to an agency’s statutory
interpretation “in areas of the agency’s expertise.” See Panda Eng’g & Land Surveying
Examining Bd., 621 N.W.2d 196, 198 (Iowa 2001) (citing a 1995 case for the proposition
that “we will give careful consideration to an agency’s determination of a question of law
in areas of the agency’s expertise.”). This maxim was derived from our understanding of
the Iowa Administrative Procedure Act prevailing prior to the 1998 amendments. We
conclude the 1998 amendments were calculated in relevant part to clarify the
circumstances in which deference is owed by courts to agency decisions. See Bonfield
at 59–60 (noting that the amendments to the scope of review provisions “may mildly
increase the intensity of judicial review of agency action” by “providing much greater
specificity” and “stating explicitly the exact circumstances in which the [court] is or is
not required to give deference to an agency’s view of a matter”). The 1998 amendments
more clearly circumscribe the circumstances in which deference is owed by courts,
substituting the specific inquiry whether a matter has been clearly vested in the agency
in place of the more nebulous inquiry of whether the matter is within the agency’s
expertise. See Locate.Plus.Com, Inc. v. Iowa Dep’t of Transp., 650 N.W.2d 609, 613
(Iowa 2002); Iowa Code § 17A.19(10). Our analysis of the extent to which this court
owes deference to the ICRC’s definition of “employee” cannot be driven by the former
standard of whether the agency has expertise in deciding who should be treated as an
employee within the penal system. Locate.Plus.Com., 650 N.W.2d at 613. The limits of
our deference to the agency’s definition must instead, consistent with the 1998
amendments, be determined by whether the legislature has clearly vested such
authority in the ICRC. Id. As we conclude a clear vesting of such authority has not
occurred, we do not give deference to the ICRC’s definition of “employee.”
14
interpreting statutory provisions, we utilize our well-established rules of
statutory construction. We “ ‘avoid strained, impractical or absurd
results.’ ” Sommers, 337 N.W.2d at 472 (quoting Franklin Mfg. Co. v.
Iowa Civil Rights Comm’n, 270 N.W.2d 829, 831–32 (Iowa 1978)).
Usually, we will give an ordinary meaning to the language, “ ‘but the
manifest intent of the legislature will prevail over the literal import of the
words used.’ ” Id. at 472–73. If the language is clear and plain, we will
not utilize construction. Id. at 473. We “ ‘look to the object to be
accomplished and the evils and mischiefs sought to be remedied in
reaching a reasonable or liberal construction which will best effect its
purpose rather than one which will defeat it.’ ” Id. All parts of the
statute will be considered together, and we will not give undue
importance to any single portion. Id.
The ICRC determined that a prison is not a dwelling by relying on a
decision from a federal district court case which determined that a jail
was not a dwelling for purposes of the Fair Housing Act. While
interpretations of the Fair Housing Act are instructive when interpreting
the housing provisions of the Iowa Civil Rights Act, they are not
controlling. State v. Keding, 553 N.W.2d 305, 307 (Iowa 1996).
Renda directs us to various federal cases which interpret what
constitutes a dwelling for purposes of the Fair Housing Act. She argues
the term “dwelling” has been interpreted broadly to include a wide range
of nontypical residences. The types of facilities that have been
determined to constitute dwellings for purposes of the Fair Housing Act
range from substance abuse treatment facilities to nursing homes,
homeless shelters, hospices, and residential schools. See, e.g., Lakeside
Resort Enters. v. Bd. of Supervisors, 455 F.3d 154, 160 (3d Cir. 2006)
(substance abuse treatment facility); Hovsons, Inc. v. Twp. of Brick, 89
15
F.3d 1096, 1102 (3d Cir. 1996) (nursing home for disabled elderly
people); Turning Point, Inc. v. City of Caldwell, 74 F.3d 941, 945 (9th Cir.
1996) (homeless shelter); United States v. Columbus Country Club, 915
F.2d 877, 881 (3d Cir. 1990) (summer bungalows run by a country club);
Lauer Farms, Inc. v. Waushara County Bd. of Adjustment, 986 F. Supp.
544, 559 (E.D. Wis. 1997) (migrant workers’ trailers); La. Acorn Fair
Hous. v. Quarter House, 952 F. Supp. 352, 359–60 (E.D. La. 1997) (units
in a time-share resort); United States v. Mass. Indus. Fin. Agency, 910
F. Supp. 21, 26 n.2 (D. Mass. 1996) (residential school for emotionally
disturbed adolescents); Baxter v. City of Belleville, 720 F. Supp. 720, 731
(S.D. Ill. 1989) (AIDS hospice).
Renda argues the key to determining whether a facility is a
dwelling under the Act is whether the person intends to remain at the
facility for more than a brief period of time and whether the person
considers the facility a residence to which he or she will return. She
argues her residence at the prison is analogous to other residential
facilities in that she considers her cell her residence, she returns to it
each night, and her stay at the prison is for more than a brief period of
time. She claims that facilities that have been found not to constitute
dwellings under the Fair Housing Act, such as motels and bed and
breakfasts, are distinguishable from the prison on these same grounds.
See Schneider v. County of Will, 190 F. Supp. 2d 1082, 1087 (N.D. Ill.
2002); Patel v. Holley House Motels, 483 F. Supp. 374, 381 (S.D. Ala.
1979). A person does not usually intend to stay at a motel or bed and
breakfast for an extended period, and a person does not generally
consider a motel a residence or home.
Although an inmate such as Renda may consider her cell, and the
prison as a whole, her indefinite residence and expect to remain in the
16
prison for an extended length of time, we do not believe those
considerations are determinative of whether a prison is a dwelling for
purposes of the Act. We agree with the conclusion reached by the court
in Garcia v. Condarco, 114 F. Supp. 2d 1158, 1161 (D. N.M. 2000):
“[T]here is fundamentally a distinction between a home on the one hand,
and a detention facility on the other.” Some facilities are designed and
intended to be residential, but a prison “is designed and intended to be a
penal facility.” Garcia, 114 F. Supp. 2d at 1161. Our determination of
this issue is strongly influenced by the fact that Renda has no choice in
her placement at the Mt. Pleasant Correctional Facility, and freedom of
choice is crucial to the purposes of the Iowa Civil Rights Act and the Fair
Housing Act. Each of these Acts was intended to promote freedom of
choice in housing and prohibit discrimination. Id. at 1162; see also
Keding, 553 N.W.2d at 307 (noting that the housing provisions of the
Iowa Civil Rights Act were patterned on the Fair Housing Act). “The
element of freedom of choice is . . . paramount” and the primary purpose
of the Act “has no application in the prison context.” Garcia, 114
F. Supp. 2d at 1162. Accordingly, the purposes of eliminating
discrimination in housing and promoting freedom of choice in housing
are not furthered by applying the Act to inmates in a prison context, and
we conclude that the ICRC correctly determined that a prison is not a
“dwelling” for purposes of the Act.
B. May an Inmate Be an “Employee”? The Act prohibits
discrimination on the basis of sex in employment. Iowa Code § 216.6.
An employee is defined broadly as “any person employed by an
employer.” Id. § 216.2(6). Employer is defined as “the state of Iowa or
any political subdivision, board, commission, department, institution, or
school district thereof, and every other person employing employees
17
within the state.” Id. § 216.2(7). Several categories of employers and
employees are exempted from the discrimination prohibitions, including
employers of fewer than four employees, employees who work within the
employer’s home, employees hired to perform personal services for the
employer’s family members, and bona fide religious institutions in
certain situations. Id. § 216.6(6)(a)–(d). No explicit exception exists for
inmates of correctional facilities—in fact, inmates are not mentioned at
all in the statute. Given the sheer breadth of the definitions of
“employee” and “employer” and the fact that the few exclusions that are
identified are extremely narrow, we are inclined to start from the premise
that inmates may be considered employees unless some compelling
reason exists to convince us that the legislature meant to exclude them
despite utilizing such expansive language.
The ICRC, relying on a 1990 opinion of the Attorney General,
concluded that
[a]n inmate is not an “employee” within the meaning of the
Iowa Civil Rights Act if employed by the State or subdivision
of the State but may be an “employee” within the meaning of
the statute if employed through the work release or prison
industry programs by employers who are otherwise subject
to the Iowa Civil Rights Act.
The ICRC and the Attorney General’s opinion noted that in other
worker-related contexts inmates are treated differently and concluded
that they should also be treated differently in the civil rights context. See
1990 Iowa Op. Att’y Gen. 93 (Opinion No. 90–10–3); Iowa Code § 85.59(explicitly addressing modified workers’ compensation coverage for
inmates); Iowa Code § 96.19(18)(g)(10) (providing explicit exception to
unemployment compensation coverage for inmates of correctional
institutions). The ICRC contends that these explicit exceptions to other
worker-related programs demonstrate that inmates are considered
18
differently from other groups. We, however, believe these explicit
exceptions for inmates demonstrate the legislature is well aware that
many inmates work within correctional settings and that certain worker-
related provisions may apply to them unless they are expressly excluded
or exempted. The fact that the legislature did not provide an explicit
exception for inmates within the Act leads us to believe that the
legislature did not intend one.
The ICRC also points to certain provisions of chapter 904 which
indicate an employee-employer relationship is not created when an
inmate performs work for the prison. Section 904.701 provides inmates
shall be required to perform hard labor while incarcerated. Iowa Code
§ 904.701(1). When practicable, the director may pay the inmate “an
allowance” deemed “proper in view of the circumstances, and in view of
the cost attending the maintenance of the inmate. The allowance is a
gratuitous payment and is not a wage arising out of an employment
relationship.” Id. § 904.701(2). 4 Section 904.901 requires the
department of corrections to establish a work release program in which
inmates may be granted the privilege of leaving the correctional facility
and working at gainful employment. Id. § 904.901. When working in
such a program,
[a]n inmate employed in the community under this
chapter is not an agent, employee, or involuntary servant of
the department of corrections, the board of parole, or the
judicial district department of correctional services while
released from confinement under the terms of a work release
plan. If an inmate suffers an injury arising out of or in the
course of the inmate’s employment under this chapter, the
inmate’s recovery shall be from the insurance carrier of the
employer of the project and no proceedings for compensation
4This provision might be relevant to a determination of whether inmates may be
considered employees entitled to fair wages under Iowa minimum wage laws or the
Federal Fair Labor Standards Act. However, because Renda’s claim alleges employment
discrimination in violation of the Civil Rights Act, not unfair pay, we do not find this
provision applicable to our analysis.
19
shall be maintained against the insurance carrier of the state
institution, the state, the insurance carrier of the judicial
district department of correctional services or the judicial
district department of correctional services, and there is no
employer-employee relationship between the inmate and the
state institution, the board of parole, or the judicial district
department of correctional services.
Id. § 904.906.
The ICRC contends these provisions demonstrate the legislature’s
intent to exclude inmates from the definition of “employee.” We disagree
because we do not believe the cited provisions in chapter 904 are
determinative of the issue. We think the focus of section 904.701(2) is
pay-related, intended to clarify the discretionary nature of the payment—
that it need only be made at the director’s discretion when “practicable”
and should take into account the cost of the maintenance of the inmate.
Id. § 904.701(2). In other words, an inmate working at hard labor is not
entitled to earn “a fair and reasonable wage” as that concept might be
defined outside the prison context. 5 The provisions explaining that an
inmate employed in the community through the work release program is
not an employee of the state is not inconsistent with a conclusion that an
inmate employed by the prison inside the prison is an employee for
purposes of the Act. Section 904.906 simply says that an inmate
working outside the prison is an employee of that outside employer,
particularly for workers’ compensation purposes. It has no bearing on
whether Renda may have been an employee of the prison.
Both parties cite various federal decisions interpreting Title VII,
including several cases involving inmates at federal correctional facilities.
5Compare the provisions regarding payment for hard labor with the provisions
addressing payment to inmates participating in the work release program. The inmate
employed in the community pursuant to the work release program shall be paid a fair
and reasonable wage for his work. Iowa Code § 904.905. After certain deductions are
taken from the wages (for obligations such as child support, restitution, the cost of food
and lodging), the balance of the wages will be held for the inmate until his release. Id.20
Because the Act was modeled after Title VII, we find these decisions
instructive, but not controlling. Annear v. State, 419 N.W.2d 377, 379
(Iowa 1988). The ICRC directs our attention to several federal cases
concluding that an inmate is not considered an employee for Title VII
purposes. See Williams v. Meese, 926 F.2d 994, 997 (10th Cir. 1991)
(concluding an inmate is not an employee because his relationship with
the Bureau of Prisons arises out of his status as an inmate and the
primary purpose of their association is incarceration, not employment);
McCaslin v. Cornhusker State Indus., 952 F. Supp. 652, 657 (D. Neb.
1996) (concluding that an inmate is not an employee because the
“prisoner does not enter into a bargain with the prison to become a
prisoner in order to be able to work in prison industries, as might a
private individual who contracts with an employer”).
However, the court in Baker v. McNeil Island Corrections Center,
859 F.2d 124, 128 (9th Cir. 1988), reached the opposite conclusion and
determined the fact that the prison has so much control over its inmates
actually weighs in favor of considering inmates employees for Title VII
purposes. In that case, an inmate alleged he applied for and was denied
a job in the prison library because the head librarian did not want “to
work with a black man.” Baker, 859 F.2d at 127. The court concluded
Baker’s claim should not have been dismissed on a motion to dismiss
because “the court could not be convinced beyond doubt that no set of
facts could be proven to entitle Baker to relief.” Id. at 128. While the
court did not reach the issue of whether Baker was an employee, it
remanded the case for further proceedings because it was possible that
an employment relationship could be established on remand. Id. at 129.
Other courts have followed the reasoning of Baker, concluding the
determination of whether an inmate is an employee must be made on a
21
case-by-case basis rather than with a per se rule. See Moyo v. Gomez, 32
F.3d 1382, 1385 (9th Cir. 1994) (relying on Baker to conclude that
inmates may be considered employees if their work can be distinguished
from the obligatory on-site prison labor); Walker v. City of Elba, 874
F. Supp. 361, 365–66 (M.D. Ala. 1994) (relying on Baker to conclude that
a work-release inmate was entitled to Title VII protections).
The Act was adopted “to eliminate unfair and discriminatory
practices in . . . employment.” 1965 Iowa Acts ch. 121 (title of act). It
was designed to “correct a broad pattern of behavior rather than merely
affording a procedure to settle a specific dispute.” Estabrook v. Iowa Civil
Rights Comm’n, 283 N.W.2d 306, 308 (Iowa 1979). When we consider
the purposes of the Act and whether they might be achieved when
applied to inmates working within a prison, we reach the same
conclusion as the Seventh Circuit Court of Appeals did when explaining
why Title VII might apply in the prison context, even if the Fair Labor
Standards Act did not.
Prison is in many ways a society separate from the outside
world. Discrimination, however, maintains the same
invidious character within the world of the prison and
outside of it. Given the broad policies behind Title VII, there
would appear to be no reason to withhold Title VII’s
protections from extending inside the prison walls.
Vanskike v. Peters, 974 F.2d 806, 810 n.5 (7th Cir. 1992). Accordingly,
given the broad definition of “employee” utilized in the Act, and the lack
of an explicit exception for inmates from the classification of “employee,”
along with the evils of employment discrimination the Act seeks to
remedy, we conclude the legislature did not intend to exclude inmates
from protection against discrimination in employment within the prison.
Our conclusion does not mean that all work performed by an
inmate will constitute employment. We agree with the Baker court’s
22
implicit holding that the determination of whether an inmate is an
employee will need to be reached on a case-by-case basis, with a
consideration of various factors, including the voluntariness of the
position, whether the inmate went through an application process, and
the nature and extent of similarities between the circumstances of the
inmate’s job in the prison and jobs outside the penal context.
To assist in determining the similarities between jobs inside and
outside the prison, we think it may also be useful to consider how other
courts have distinguished between employees and independent
contractors for purposes of Title VII. The Eighth Circuit Court of Appeals
has explained that when confronted with the issue, “nearly every
appellate court has applied a test described as a hybrid of the common-
law test and economic realities test.” 6 Wilde v. County of Kandiyohi, 15
F.3d 103, 105 (8th Cir. 1994). “Under the hybrid test, the term
‘employee’ is construed in light of general common-law concepts, taking
into account the economic realities of the situation.” Id. The hybrid test
has been described as an
application of general principles of the law of agency to
undisputed or established facts. Consideration of all the
circumstances surrounding the work relationship is
essential, and no one factor is determinative. Nevertheless,
the extent of the employer’s right to control the “means and
manner” of the worker’s performance is the most important
factor to review here, as it is at common law . . . . If an
employer has the right to control and direct the work of an
individual, not only as to the result to be achieved, but also
as to the details by which that result is achieved, an
employer/employee relationship is likely to exist.
6The common-law test was first set forth in Community for Creative Non-Violence
v. Reid, 490 U.S. 730, 109 S. Ct. 2166, 104 L. Ed. 2d 811 (1989), and the economic
realities test was developed in a Fair Labor Standards Act case, Goldberg v. Whitaker
House Coop., Inc., 366 U.S. 28, 81 S. Ct. 933, 6 L. Ed. 2d 100 (1961). See Moland v. Bil-
Mar Foods, 994 F. Supp. 1061, 1068 (N.D. Iowa 1998).
23
Spirides v. Reinhardt, 613 F.2d 826, 831–32 (D.C. Cir. 1979) (footnotes
omitted).
Additional factors relevant for consideration include
(1) The kind of occupation, with reference to whether the
work usually is done under the direction of a supervisor or is
done by a specialist without supervision; (2) the skill
required in the particular occupation; (3) whether the
“employer” or the individual in question furnishes the
equipment used and the place of work; (4) the length of time
during which the individual has worked; (5) the method of
payment, whether by time or by job; (6) the manner in which
the work relationship is terminated, i.e., by one or both
parties, with or without notice and explanation; (7) whether
annual leave is afforded; (8) whether the work is an integral
part of the business of the “employer”; (9) whether the
worker accumulates retirement benefits; (10) whether the
“employer” pays social security taxes; and (11) the intention
of the parties.
Id. at 832.
Although Renda has not asserted a workers’ compensation claim in
this case, this court has addressed the standard for determining whether
a worker is employed for purposes of chapter 85 of the Iowa Code. 7 We
have concluded the major factors considered in determining whether an
employer-employee relationship exists in the workers’ compensation
context are whether the party alleged to be the employer (1) is the
“responsible authority in charge of the work or for whose benefit the
work is performed,” (2) has the right to select, “or to employ at will,” (3)
has a responsibility for payment of wages, (4) has “the right to discharge
or terminate the relationship,” and (5) has “the right to control the work.”
Sister Mary Benedict v. St. Mary’s Corp., 255 Iowa 847, 851–52, 124
7As Renda has not made a claim based on Iowa Code chapter 85, we do not
address the provisions of Iowa Code section 85.59 detailing the circumstances in which
inmates may receive workers’ compensation benefits. We cite our decisions detailing
the standard for determining whether an employer-employee relationship exists in the
workers’ compensation context not because that standard is controlling in this case,
but to emphasize its similarity with the standard applied in the Title VII cases cited
above.
24
N.W.2d 548, 551 (1963); see also Henderson v. Jennie Edmundson Hosp.,
178 N.W.2d 429, 431 (Iowa 1970).
Although a few of the factors considered in determining whether an
employer-employee relationship exists in the Title VII and workers’
compensation contexts may not be applicable in the prison setting, we
think most of them are useful and relevant in assessing the similarities
between jobs inside and outside the prison, and in determining whether
an inmate claiming a violation of chapter 216 is an employee protected
under the Act.
Although Renda asserts on appeal that the circumstances of her
prison job bring her comfortably within the definition of “employee,”
because the ICRC refused to entertain jurisdiction over her claim, the
record does not contain evidence sufficient to allow us to address the
issue on appeal. 8 Accordingly, we conclude that inmates may be
employees for purposes of the Act and the ICRC committed legal error in
concluding it had no jurisdiction over Renda’s complaint.
IV. Conclusion.
We affirm the determination of the district court that the ICRC did
not err in determining that the housing provisions of the Act do not apply
to inmates housed in a correctional facility. We conclude the ICRC erred
in deciding as a matter of law that an inmate could not be considered an
employee for purposes of the Act. We therefore affirm in part and reverse
8Renda’s complaint merely states that she “started working as a R&D (Receiving
& Discharge) Clerk” and does not provide any background on her application process or
whether she was required to work in that position. Later, after she was terminated
from the R&D position, she states she “was denied a job at the Recreation Department
because of the [property sheet forging] incident.” This allegation implies she may have
gone through an application process for the second job, but we still believe the record
must be developed.
25
in part the district court’s judgment and remand to the district court for
remand to the ICRC for further proceedings consistent with this opinion.
AFFIRMED IN PART, REVERSED IN PART, AND CASE
REMANDED.
All justices concur except Cady, J., who dissents, and Appel, J.,
who takes no part.
26
#44/08–0428, Renda v. Iowa Civil Rights Comm’n
CADY, Justice (dissenting).
I respectfully dissent from that portion of the holding of the
majority declaring a prison inmate is an employee of the State of Iowa
entitled to seek relief under the Iowa Civil Rights Act from discriminatory
practices while performing a regularly assigned prison job when various
factors used to distinguish employees from independent contractors
militates in favor of a finding that the inmate is an employee. This
holding is contrary to the position of the Iowa Civil Rights Commission,
as well as the interpretation of related federal laws by the Equal
Employment Opportunity Commission, the Department of Labor, and
nearly every court in the nation that has addressed the application of the
Fair Labor Standards Act to prisoners who work in state prison
industries. See McCaslin v. Cornhusker State Indus., 952 F. Supp. 652,
656–58 (D. Neb. 1996) (noting that a majority of jurisdictions, along with
the EEOC and Department of Labor, do not consider prisoners
employees). Moreover, the majority’s holding is unfaithful to the
principles of statutory interpretation we are obligated to apply when we
declare the statutory intent of our legislature. See Teamsters Local Union
No. 421 v. City of Dubuque, 706 N.W.2d 709, 713 (Iowa 2005)
(recognizing we apply the rules of statutory construction to attain our
goal of interpreting statutes according to the intent of the legislature). I
would affirm the decision of the district court and conclude the
legislature did not intend for prison inmates who, like Renda, perform
regular prison labor to be included within the provisions of Iowa’s civil
rights act relating to unfair or discriminatory practices in the workplace.
At the outset, I acknowledge discrimination exists in prisons as it
still does in society in general. Moreover, a prison setting in no way
27
excuses the presence of discrimination. Yet, the question is not whether
the overarching policies behind the enactment of Iowa’s civil rights act
pertaining to employment discrimination apply to prisons, but whether
the legislature intended for the provisions to apply to prisoners engaged
in regularly assigned labor. The majority has failed to properly analyze
this question and, accordingly, has answered it incorrectly.
The majority first rejects the Iowa Civil Rights Commission’s
interpretation by finding the legislature did not give the commission the
power to interpret the meaning of an “employee” under the act. Yet, this
conclusion simply aligns the standard of judicial review on appeal. The
majority may not be required to give the commission’s interpretation
deference, but courts may nevertheless utilize all agency interpretations
as a helpful tool in conducting independent analysis. See PanDa Eng’g v.
Eng’g & Land Surveying Examining Bd., 621 N.W.2d 196, 198 (Iowa
2001) (recognizing we give weight to an agency’s statutory interpretation
“in areas of the agency’s expertise”). The majority proceeded to
substitute its judgment for that of the commission without pausing to
give any thought to the commission’s interpretation.
More importantly, the majority builds its decision on two false
premises that have no foundation in law or logic. These false premises
are responsible for the majority’s faulty conclusion. The majority begins
its analysis with the premise that the word “employee” is a broad term
and, therefore, must include prison inmates unless there is a “compelling
reason” to the contrary. This homespun principle has no support in the
law and is totally contrary to our long-standing rule of statutory
interpretation that, when a statute does not provide a helpful definition
of a disputed term, courts should not imply a meaning that is broader
than the common-law definition. See Nationwide Mut. Ins. Co. v. Darden,
28
503 U.S. 318, 322–23, 112 S. Ct. 1344, 1348, 117 L. Ed. 2d 581, 588–89
(1992) (applying test to the term “employee”); see also Harvey v. Care
Initiatives, Inc., 634 N.W.2d 681, 685 (Iowa 2001) (“[W]e construe
statutory language consistent with our case law and the common law
. . . . Words that have a well-defined meaning in the common law have
the same meaning in statutes dealing with similar subject matter.”
(Citations omitted.)). Furthermore, this approach reveals our legislature
did not intend to include prison inmates as employees under Iowa Code
chapter 216. See Frederick v. Men’s Reformatory, 203 N.W.2d 797, 798
(Iowa 1973) (holding inmates are not “employees” under the workers’
compensation statute). The majority totally ignores the common-law
context and, from that point, sets course on its misguided path of a
“compelling reason” to exclude.
The majority next declares, again, without any authority, that the
absence of a statutory exception for prison inmates in chapter 216
signals that the legislature intended to include prison inmates within the
parameters of chapter 216. This premise totally misses the point of our
applicable rules of interpretation and sinks an already distressed
analysis.
Under our principles of statutory interpretation, an exception to a
statute created by the legislature normally indicates the matter excepted
would have been included in the statute absent the exception. River
Bend Farms, Inc. v. M & P Mo. River Levee Dist., 324 N.W.2d 460, 462
(Iowa 1982); see also 2A Norman J. Singer & J.D. Shambie Singer,
Statutes and Statutory Construction § 47:11, at 333 (7th ed. 2007)
(stating the general rule that “statutory exceptions exist only to exempt
something which would otherwise be covered”). However, the absence of
an exception for a particular matter in a statute, as in this case, does not
29
present the same inference. The absence of an exception may simply
signal that the legislature never considered the matter to be covered
under the statute in the first place. For example, in 1973, we held the
workers’ compensation statute applicable to employees in this state did
not include prison inmates working in prison industries, even though
they were not specifically excluded from the statute. Frederick, 203
N.W.2d at 798. We found the relationship between the state and its
prisoners were, in fact, “the antithesis of voluntary employment,” and
inmates were not included in the statute because they were not
employees. Id. Subsequently, the legislature amended the workers’
compensation statute to provide for limited workers’ compensation
coverage for inmates engaged in special work such as services rendered
under a chapter 28E agreement, services rendered for private industry
maintained in the prison or under section 904.809, and certain other
special work assignments and projects. See generally Iowa Code § 85.59(2009) (providing benefits for certain specified inmates). Thus, the
special statutory inclusion of inmates performing certain jobs confirmed
our legislature’s intent not to generally include inmates in the statute.
Under our accepted rules of interpretation, we must accept that
our legislature does not include inmates in matters relating to
employment without special rules for inclusion. The approach of the
majority is contrary to the weight of our rules of interpretation and the
clear intent of our legislature.
Lastly, the majority places a great amount of emphasis on the
Baker case. Baker v. McNeil Island Corr. Ctr., 859 F.2d 124 (9th Cir.
1988). The holding is a minority position, and the case can be
distinguished from this case because it dealt with a voluntary work
assignment.
30
Notwithstanding, the multifactor test ultimately adopted by the
majority is misplaced as a means to decide if inmates performing
mandated labor within the walls of a prison for no wage are employees.
See Iowa Code § 904.701 (indicating all inmates are required to perform
labor and providing rules for paying inmates “gratuitous allowances” for
services rendered to prison). The test focuses primarily on control, which
is the very point of incarceration. Incarceration provides the ultimate
control. In fact, incarceration provides so much control that an inmate
performing regular work, like Renda, could never become an employee.
See Vanskike v. Peters, 974 F.2d 806, 810 (7th Cir. 1992) (“In those
cases the question is essentially whether there is enough control over the
individual to classify him as an employee. But here . . . there is
obviously enough control over the prisoner; the problematic point is that
there is too much control to classify the relationship as one of
employment.”). As we recognized in Frederick, an inmate is the
antithesis of a voluntary employee. 203 N.W.2d at 798.
The majority has analyzed the issue in this case without following
our rules of interpretation and has reached a conclusion that is clearly
contrary to the intent of our legislature. For that reason, I respectfully
dissent. Our role of interpreting statutes is too important to take the
approach followed by the majority.