Shaw v. AutoZone, Inc.

The full case caption appears at the end of this opinion. Manion, Circuit Judge. The district court granted summary judgment to AutoZone on Tiffany Shaw’s claim that her supervisor, Donald Noble, sexually harassed her by creating a hostile work environment. While the case was pending on appeal, the Supreme Court changed the standard of employer liability for sexual harassment perpetrated by a supervisor. See Burlington Indus., Inc. v. Ellerth, 118 S. Ct. 2257 (1998); Faragher v. City of Boca Raton, 118 S. Ct. 2275 (1998). Shaw argues that because the district court applied the wrong liability standard to her case, this court should vacate summary judgment. AutoZone counters that the record supports the affirmative defense recognized in Ellerth. See 118 S. Ct. at 2270. Because the undisputed facts establish that AutoZone is entitled to the Ellerth affirmative defense, we affirm. I. Facts Tiffany Shaw was an assistant manager of AutoZone’s Rock Falls, Illinois, store from February to June of 1995. AutoZone is an automotive parts retailer with many stores nationwide. The store manager in Rock Falls was Donald Noble. Noble’s supervisor was Area Advisor Dave Hunsche; Hunsche’s supervisor was District Manager Steve Lang. Shaw submitted an employment application to Noble at the Rock Falls store. Noble sent the application to Steve Dauw, a recruiter who then reviewed the application along with other people in AutoZone’s management. Noble was asked for his input in the hiring process, but Dauw conducted the employment interview and offered Shaw the job. Store managers did not have authority to hire, fire, or promote employees on their own. Area advisors made hiring and promotion decisions, and termination decisions were made by an area advisor or district manager after consulting with the director of human resources or the equal opportunity manager. When AutoZone hired Shaw, it provided her with a copy of the AutoZone Handbook and Safety Booklet, and it informed her that it was her “responsibility to read and learn the policies and procedures contained in the AutoZone Handbook and Safety Booklet.” Shaw signed a form acknowledging her receipt of the handbook and her understanding of her responsibility to read and learn the policies and procedures contained in it. The AutoZone Handbook contained a sexual harassment policy which provided: Sexual Harassment AutoZone will not tolerate sexual harassment. Such conduct or the encouragement of such conduct may result in termination. AutoZone’s stance on this issue extends to all AutoZoners, as well as people outside AutoZone that we do business with–our customers, suppliers and vendors. Every AutoZoner needs to be aware of AutoZone’s sexual harassment policy. Sexual harassment means unwelcome sexual advances, verbal or physical. Sexual harassment occurs when: