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You can search the entire site. or go to the recent opinions, or the chronological or subject indices. Russell Baker v. Alaska State Commission for Human Rights and Federal Express Corporation (9/18/2020) sp-7483

Russell Baker v. Alaska State Commission for Human Rights and Federal Express Corporation (9/18/2020) sp-7483

           Notice:   This opinion is subject to correction before publication in the P                     ACIFIC  REPORTER.  

           Readers are requested to bring errors to the attention of the Clerk of the Appellate Courts,  

                                                                                                                          

           303 K Street, Anchorage, Alaska 99501, phone (907) 264-0608, fax (907) 264-0878, email  

                                                                                                                            

           corrections@akcourts.us.  



                       THE SUPREME COURT OF THE STATE OF ALASKA                                        



RUSSELL  BAKER,                                                   )  

                                                                  )    Supreme Court No. S-17379  

                                                                                        

                                                                                                         

                                 Appellant,                       )  

                                                                  )    Superior  Court  No.  3AN-17-08687  CI  

           v.                                                     )  

                                                                                            

                                                                  )    O P I N I O N  

                                

ALASKA STATE COMMISSION                                           )  

                                                                                                                    

                                          

FOR HUMAN RIGHTS and                                              )    No. 7483 - September 18, 2020  

                    

FEDERAL EXPRESS                                                   )  

CORPORATION,                                                      )  

                                                                  )  

                                 Appellees.                       )  

                                                                  )  



                                                                                                                

                                            

                      Appeal from the Superior Court of the State of Alaska, Third  

                                                                                                         

                      Judicial District, Anchorage, Jennifer Henderson, Judge.  



                                                                                                                         

                      Appearances:  Russell Baker, pro se, Anchorage, Appellant.  

                                                                                                                     

                      William E. Milks, Assistant Attorney General, and Kevin G.  

                                                                                                            

                      Clarkson,  Attorney  General,  Juneau,  for  Appellee  Alaska  

                                                                                                            

                      State  Commission  for  Human  Rights.                             William J.  Evans,  

                                                                                                                  

                      Sedor, Wendlandt, Evans & Filippi, LLC, Anchorage, and  

                                                                                                        

                      P. Daniel Riederer, Federal Express Corporation, Memphis,  

                                                                                           

                      Tennessee, for Appellee Federal Express Corporation.  



                                                                                                         

                      Before:  Bolger, Chief Justice, Winfree, Stowers, Maassen,  

                                            

                      and Carney, Justices.  



                                                   

                      BOLGER, Chief Justice.  


----------------------- Page 2-----------------------

I.        INTRODUCTION  



                    A pilot was fired by his employer after he collected a relocation allowance  

                                                                                                                    



based on misleading statements that his spouse had relocated with him.   While his  

                                                                                                                              



employment termination proceedings were ongoing, he filed complaints with the Alaska  

                                                                                                                         



State Commission on Human Rights, contending first that his employer engaged in  

                                                                                                                               



marital status discrimination by requiring married pilots to relocate their spouses as a  

                                                                                                                                 



condition of the relocation allowance and second that his employer retaliated against him  

                                                                                                                             



for filing the first complaint.   The Commission concluded that there was substantial  

                                                                                                                  



evidence of illegal discrimination, but exercised its statutory discretion to dismiss the  

                                                                                                                              



complaint instead of bringing an enforcement action.  The Commission also dismissed  

                                                                                                                    



his second complaint, concluding that there was not substantial evidence of retaliation.  

                                                                                                                                    



The pilot appealed the Commission's decisions to the superior court, which affirmed the  

                                                                                                                              



decisions, and he now appeals to this court.  We conclude that the Commission did not  

                                                                                                                              



abuse its substantial discretion by declining to prosecute the discrimination complaint.  

                                                                                                                                    



We also conclude that the Commission did not err by concluding that the employer did  

                                                                                                                              



not retaliate against the pilot after he filed his discrimination complaint.  We therefore  

                                                                      



affirm.  

            



II.       FACTS AND PROCEEDINGS  

                                 



                    Russell  Baker  was  hired  by  Federal  Express  Corporation  (FedEx)  in  

                                                                                                                               



June 2006.  Employment agreements between FedEx and its pilots are established via  

                                                                                                                              



collective  bargaining  with  a  union,  the  Air  Line  Pilots  Association,  International  

                                                                                                               



(ALPA).  During the relevant period of Baker's employment, ALPA's agreement with  

                                                                                                                            



FedEx offered pilots on foreign duty assignments options to finance either relocation  

                                                                                                                   



housing or their commute.   Pilots based in  Hong  Kong could elect an "enhanced"  

                                                                                                                 



relocation package instead of commuting.  Pilots choosing that package had 18 months  

                                                                                                                        



to complete their relocation, but were obligated to reimburse FedEx if they did not  

                                                                                                                              



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----------------------- Page 3-----------------------

                                                                                                                              

actually relocate.  FedEx retained the right to request documentation establishing that  



                                                                                                                                 

relocation had actually occurred, including "verification of the permanent relocation of  



                                                                                                                                  

a pilot's spouse, and/or dependent children under the age of 18 years, if applicable."  



                                                                                                                                

                    In  August  2009  Baker  accepted  an  assignment  to  Hong  Kong.                                          In  



                                                                                                                               

November 2009 he submitted a signed "Pilot Relocation Request Form" selecting the  



                                                                                                                

housing allowance "Enhanced Option," indicating that he understood the requirements  



                                                                                                                        

and attesting that his spouse would relocate with him.  In November Baker also emailed  



                                                                                                                               

the FedEx relocation department, writing, "As you saw we're planning on taking the  



                                                                                                                          

relocation package." He further wrote, "We [are] planning on traveling to [Hong Kong]  



                                                      

just after Christmas to get set up."  



                                                                                                                          

                    Baker began flying trips out of Hong Kong in January 2010.  In March  



                                                                                                                    

Baker leased an apartment in Hong Kong.   He began receiving housing allowance  



                                                                                                                                 

payments in April.  According to Baker, he verbally informed the assistant chief pilot in  



                                                                                                                            

Hong Kong that his spouse would relocate in the fall of 2010 after she resolved some  



                                                  

health and employment issues.  



                                                                                                                      

                    In August 2010 Baker requested FedEx's relocation department purchase  



                                                                                                                         

a one-way airplane ticket for his wife to travel from Anchorage to Hong Kong, stating,  



                                                                                                              

"My wife is ready to join me in Hong Kong" and "[w]e're finishing up our relocation  



                                                                                                                             

process to [Hong Kong]."  On October 16, 2010, his wife traveled to Hong Kong with  



                                                                                                                        

a  FedEx-purchased  airplane  ticket,  but  unbeknownst  to  FedEx,  she  had  already  



                                                                                                                               

purchased a return ticket. On October 25, 2010, she flew back to Anchorage, and did not  



                                                                                                 

return to Hong Kong for the remainder of Baker's assignment.  



                                                                                                            

                    In May 2011 the FedEx Hong Kong assistant chief pilot emailed pilots a  



                                                                                                                                 

new housing allowance claim form and guidelines regarding the housing allowance.  In  



                                                                                                                                

June 2011 Baker returned the form, attesting that he understood the requirements and the  



                                                                                                                               

potential consequences of falsification. He did not mark "yes" or "no" in response to the  



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----------------------- Page 4-----------------------

                                                                                                                                 

question, "Does your spouse reside with you at the residence listed above?"  Instead, he  



                                                                                                                         

wrote "see note" and attached a "Note of Explanation Regarding My Spouse's Current  



                                                                                                                           

Hong Kong Residency." His note stated, "After talking with ALPA, I realize my spouse  



                                                                                                                                

may not currently qualify as a resident in Hong Kong.  I had previously considered her  



                                                                                                                                

a resident, based on many factors, including completion of her physical relocation, the  



                                                                                                                                  

establishment  of  our  private  Hong  Kong  apartment,  [and]  her  documentation  as  a  



                                                                                                                                

resident . . . ."  Baker added that although he found the requirements unclear, he did not  



                                                                                                                                 

believe  his  wife's  return  to  the  United  States  violated  company  policy  because  he  



                                                                                                                      

"expected her to return with a frequency and duration" that would satisfy residency  



                                                                                                                                

requirements.  He acknowledged that his wife had not "expressed plans to return [to  



                                                                                                                    

Hong Kong] within the next 45 days." He requested a waiver if the company determined  



                                                                                                                        

he was not in compliance with the housing allowance requirements, without offering  



                                                                                                                               

information regarding any extenuating circumstances other than his current visitor visa  



                                                                                                 

status and the scheduled end of his foreign duty assignment in six months.  He did not  



                                                                                  

raise concerns about marital status discrimination or allege that the housing allowance  



                                                                         

requirements unfairly impacted married pilots.  



                                                                                                                           

                    On  September  21,  2011,  FedEx  notified  Baker  that  he  was  under  



                                                                                                                                

investigation for having improperly collected housing allowance payments. Around this  



                                                                                                   

time, FedEx began similar investigations of several other pilots.  



                                        

                    On October 12, 2011, Baker filed a complaint with the Commission.  He  



                                                                                                                                      

stated that FedEx's housing allowance policy constituted marital status discrimination.  



                                                                                                                         

On the same date Baker also responded to FedEx's notice of investigation.  He asserted  



                                                                                                                                 

that he had expected to have an 18-month window to complete any relocation, that he  



                                                  

found the company's residency requirements subjective and confusing, that the policy  



                                                                                                                             

constituted discrimination against married  pilots, and that he believed he had been  



                                                                -4-                                                         7483
  


----------------------- Page 5-----------------------

                                                                                                                               

appropriately  forthcoming with  the company  regarding  his "good  faith" attempt to  



                

relocate.  



                                                                                                                       

                    In December 2011 FedEx held a preliminary hearing as part of a internal  



                                                                                                                         

disciplinary process.   Baker was represented by an ALPA member and two ALPA  



                                                                                                                    

attorneys.   At the hearing Baker acknowledged that he had requested the enhanced  



                                                                                                                       

housing allowance knowing that he and his wife were required to establish a primary  



                                                                                                                                

residence in Hong Kong.  Baker stated that he was aware that his wife's nine-day trip to  



                                                                                                     

Hong Kong might not constitute a relocation, but that he believed they had 18 months  



                                                                                                        

to complete the relocation.   He further acknowledged that he had received monthly  



                                                                                                                           

housing allowance payments beginning in April 2010, that his wife had not been to Hong  



                                                                                                                            

Kong since October 2010, and that he had not submitted his "Note of Explanation" until  



                   

June 2011.  



                                                                                                                   

                    In early March 2012, FedEx proposed a settlement agreement.  According  



                                                                                                           

to FedEx, similar proposals were extended to all pilots found to have inappropriately  



                                                                                                             

collected the housing allowance.  According to this proposal, if Baker acknowledged  



                                                                                                                    

FedEx had just cause to terminate his employment based on his inappropriate collection  



                                                                                                                          

of the housing allowance, underwent a disciplinary suspension without pay, and repaid  



                                                                                                                              

the cost of the housing allowance, he could retain his job.  Baker did not accept the  



                           

settlement offer.  



                                                                                                                                    

                    Later  that  month,  the  hearing  officer  issued  a  preliminary  decision.  



                                              

Addressing Baker, he wrote:  



                                                                                                       

                              It is clear from the record that you knew at all times  

                                                                                   

                    pertinent to this case that you were not entitled to receive  

                                                                                                         

                    [Hong Kong] housing allowance payments unless both you  

                                                                                                     

                    and your wife relocated your primary residence to [Hong  

                                                                                                       

                    Kong]. . . . [Y]ou knew that both you and your wife were  

                                                                                                 

                    required to complete the relocation of your primary residence  

                                                                                 

                    to [Hong Kong] by approximately June 2011.  



                                                               -5-                                                        7483
  


----------------------- Page 6-----------------------

                                                           It is also clear from the record that your wife did not                                                                                

                                       complete the relocation of her permanent residence to [Hong                                                                                                  

                                       Kong] at any time, and certainly not within 18 months from                                                                                                       

                                       the   date   of   your   activation   into   your   [Hong   Kong]   crew  

                                       position.    



The hearing officer further found that the record undercut Baker's representation that he                                                                                                                                                              



believed his wife had a "genuine intent" to relocate based on the way her trip to Hong   



Kong   was   planned   and   executed.     The   hearing   officer  noted   that   although   Baker  



requested a one-way ticket from FedEx for his wife's relocation to Hong Kong, he was                                                                                                                                                              



aware that she personally purchased a return ticket for nine days later without a plan to                                                                                                                                                               



return.    This indicated to the hearing officer that Baker's wife's October 2010 trip                                                                                                                                                            



occurred only to create the appearance of relocation.                                                                                                       



                                       The               hearing                     officer                  additionally                             observed                        that             Baker                   frequently  

                                        1 to Anchorage, but rarely used jumpseats on FedEx flights and that Baker  

"jumpseated"                                                                                                                                                                                                                                 



himself was reluctant to testify about his jumpseating practices during the period when  

                                                                                                                                                                                                                                              



his wife was allegedly still planning to relocate to Hong Kong.   These facts led the  

                                                                                                                                                                                                                                                    



hearing officer to conclude that Baker wanted to conceal the frequency of his trips to  

                                                                                                                                                                                                                                                        



avoid raising questions regarding whether he and his wife resided in Hong Kong. Based  

                                                                                                                                                                                                                                            



on the record in Baker's case,thehearing officer recommended thathis employment with  

                                                                                                                                                                                                                                                 



FedEx be terminated.  

                                                                 



                                       Baker availed himself of an internal appeals process. In early March 2013,  

                                                                                                                                                                                                                                             



the panel considering his appeal issued a final decision stating that FedEx "has clearly  

                                                                                                                                                                                                                                          



and convincingly established the existence of just cause for [Baker's] termination" by  

                                                                                                                                                                                                                                                      



                    1                  The record indicates that pilots who declined to relocate were eligible to                                                                                                                                       



commute   to   their   workplace   via   "staging   jumpseat   travel."     Jumpseat   privileges  

apparently allow pilots to occupy open crew member seats for personal and staging                                                                                                                                                       

travel.   



                                                                                                                           -6-                                                                                                                 7483
  


----------------------- Page 7-----------------------

showing that he "intentionally deceived [FedEx] into believing that his spouse had                                                                                                                                                                                                       



completed her relocation or would be completing it, while at the same time accepting                                                                                                                                                                                 



housing allowance payments . . . he knew he would not be eligible to receive."                                                                                                                                                                                                



                                              Meanwhile,   in   April   2012,   Baker   filed   a   second   complaint   with   the  



Commission, alleging that FedEx had retaliated against him for filing the October 2011                                                                                                                                                                                                



marital status discrimination complaint, first by suspending his jumpseat privileges and                                                                                                                                                                                                   



then by firing him.                                              The Commission investigated both of Baker's claims and dismissed                                                                                                                                    



them, initially concluding that the Commission lacked jurisdiction over the issue of                                                                                                                                                                                                           



marital status discrimination because it had occurred in Hong Kong.                                                                                                                                                                       Multiple superior   



                                                                                                                                                                                                                               2  

court appeals and extensive administrative proceedings followed.                                                                                                                                                                     



                                             After  the  most  recent  May  2016  remand  from the  superior  court,  the  

                                                                                                                                                                                                                                                                                           



Commission  expanded  its  investigation  of  both  the  marital  status  discrimination  

                                                                                                                                                                                                                                                   



complaint and the retaliation complaint.  Ultimately, the Commission found substantial  

                                                                                                                                                                                                                                                                  



evidence that FedEx had discriminated against married pilots.  It noted that a "pilot's  

                                                                                                                                                                                                                                                                             



spouse was required to relocate with them for the pilot to be eligible for the enhanced  

                                                                                                                                                                                                                                                         



option," but "[u]nmarried pilots were not subject to the same requirements."  It stated,  

                                                                                                                                               



"Investigation did not show . . . that the reasonable demands of the position required  

                                                                                                                                                                                                                                                                          



 [FedEx] to make a distinction on the basis of a pilot's marital status to determine their  

                                                                                                                                                                                                                    



housing allowance eligibility." But instead of proceeding to an enforcement hearing, the  

                                                                                                                                                                                                                                                                                             



Commission closed the marital status discrimination case, citing AS18.80.112(b)(5) and  

                                                                                                                                                                                                                                                                                           



                       2                      These   proceedings  included   the   initial   investigation,   closure   of   that  



investigation by the Commission, an appeal to the superior court, a                                                                                                                                                                                request by the                          

Commission for remand so that it could address issues with the record, and further                                                                                                                                                                                            

investigation, which was followed by another closure.                                                                                                                                     In total, this generated a record                                                   

of nearly 2,000 pages. We do not discuss these proceedings in detail, as they are not the                                                                                                                                                                                                   

subject of the present appeal.                                                                       



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----------------------- Page 8-----------------------

                   3  

(6).   It explained, "A hearing would not represent the best use of Commission resources                                                                                                                                                                                                                                                                                                                                        



and would not advance the purposes stated in AS 18.80.200."                                                                                                                                                                                                                                                                                     



                                                                        TheCommission                                                                               also issuedadetermination                                                                                                                       addressingBaker's retaliation                                                                            



claim. The determination summarized the facts and chronology of Baker's employment                                                                                                                                                                                                                                                                                                                              



in Hong Kong, his selection of the enhanced housing allowance, and his communication                                                                                                                                                                                                                                                                                                           



with FedEx regarding his relocation with his wife.                                                                                                                                                                                                                                 The Commission noted that Baker   



did not file a complaint with the Commission until October 12, 2011 - three weeks after                                                                                                                                                                                                                                                                                                                                                                    



FedEx   began   the   investigation.     The   Commission   concluded   that   "[t]here   was   no  



evidence . . . that [FedEx] treated [Baker] any differently in its settlement attempts than                                                                                                                                                                                                                                                                                                                                                                



the several other pilots who were also under investigation for improperly receiving the                                                                                                                                                                                                                                                                                                                                                                           



housing allowance" even though the other pilots had not filed complaints with the                                                                                                                                                                                                                                                                                                                                                                               



Commission.    



                                                                        The Commission also considered a statement made by FedEx's in-house                                                                                                                                                                                                                                       



counsel   in   December   2011  that   Baker's   complaint   with   the   Commission   was   "not  



helping   him   with   [FedEx],   and,   in   fact,   [was]   having   the   opposite   effect."     The  



Commission   investigated   this   statement  and   re-interviewed   the   in-house   counsel.   



Counsel indicated that he did not recall making the statement, but it would have related                                                                                                                                                                                                                                                                                                                                                      



                                    3                                   AS 18.80.112(b) states:                                                                                                           



                                                                                                            At any time before the issuance of an accusation under                                                                                                                                                                                                          

                                                                        AS 18.80.120, the executive director may dismiss without                                                                                                                                                                                                                                

                                                                        prejudiceacomplaint                                                                                                iftheexecutivedirector determines                                                                                                                                                          that  



                                                                                                             . . . .  



                                                                                                             (5)   a   hearing   will   not   represent   the   best   use   of  

                                                                        commission resources;                                                                                                         



                                                                                                             (6)  a hearing will not advance the purposes stated in                                                                                                                                                                                                                            

                                                                        AS 18.80.200. . . .                                                                    



                                                                                                                                                                                                                                   -8-                                                                                                                                                                                                                   7483
  


----------------------- Page 9-----------------------

to FedEx's "inability to progress in settlement discussions with [Baker] because of                                                                                                                                                                                                                                                                                                                                                                                                                          



 . . . [his] litigious posture."                                                                                                                                        The Commission determined that the statement did not                                                                                                                                                                                                                                                                           



 constitute substantial evidence of retaliation, because ultimately Baker was offered the                                                                                                                                                                                                                                                                                                                                                                                                                



 same settlement agreement as other pilots who had not filed discrimination complaints,                                                                                                                                                                                                                                                                                                                                                                 



 and those other pilots who did not accept the settlement were also terminated.                                                                                                                                                                                                                                                                                                                                                                                                                The  



 Commission noted that Baker's "intentional deceit of the company[] was clearly an                                                                                                                                                                                                                                                                                                                                                                                                                          



 offense warranting termination," and "there was no evidence to suggest that, had [Baker]                                                                                                                                                                                                                                                                                                                                                                                       



not filed his complaint with the Commission, he would have escaped the same discipline                                                                                                                                                                                                                                                                                                                                                                             



meted out to others."                                                                                                         



                                                                               Baker appealed both decisions to the superior court.                                                                                                                                                                                                                                                                 In Baker's briefing,   



he challenged a range of FedEx and ALPA procedural and policy issues and questioned                                                                                                                                                                                                                                                                                                                                                                         



the factual basis for his termination.                                                                                                                                                                             However, only two issues were actually before the                                                                                                                                                                                                                                      



 superior   court:     "whether  [the   Commission]   properly   dismissed   the   discrimination  



 complaint under AS 18.80.112(b)(5) and (6)" and "whether [the Commission] complied                                                                                                                                                                                                                                                                                                                                                                                   



with the [superior] court's remand order when it dismissed the retaliation complaint for                                                                                                                                                                                                                                                                                                                                                                                                                  



 lack of substantial evidence."                                                                                                                                                 The superior court ruled in favor of the Commission on                                                                                                                                                                                                                                                                      



both issues.                                                           



                                                                               Baker now appeals.                                                                                                    



 III.                                   STANDARD OF REVIEW                                                                                          



                                                                               When considering an administrative agency's decision after the superior                                                                                                                                                                                                                                                                                                                     



 court acts as an intermediate appellate court, "we independently review the merits of the                                                                                                                                                                                                                                                                                                                                                                                                                

                                                                                                                       4                 We  generally  refrain  from  reviewing  an  executive  agency's  

 agency's   decision."                                                                                                                                                                                                                                                                                                                                                                                                                                              



                                        4                                     Rossv.Alaska                                                                        State Comm'n for Human Rights                                                                                                                                                                 , 447 P.3d 757, 764 (Alaska                                                                                    



 2019) (quoting                                                                              Pub. Safety Emps. Ass'n, AFSCME Local 803, AFL-CIO v. City of                                                                                                                                                                                                                                                                                                                                                    

Fairbanks, 420 P.3d 1243, 1248 (Alaska 2018)).                                                                                                                                                                                                                                                    



                                                                                                                                                                                                                                                       -9-                                                                                                                                                                                                                                      7483
  


----------------------- Page 10-----------------------

                                                                                        5  

 exercise of discretionary enforcement authority.                                           However, "we may review such an                     



 exercise to [ensure] its 'conformity with law and that it is not so capricious or arbitrary                                                  



                                                  6  

 as to offend due process.' "                        



                                                                                                                                            

                         In  reviewing  questions  of  law  that  do  not  involve  agency  expertise,  



                                                                                                                                                        

including  constitutional questions,  "we .  .  .  substitute our  judgment  for  that of the  

                                            7    A determination that a party failed to produce substantial  

                                                                                                                                          

 administrative agency." 



 evidence of retaliation is also a question of law to which we apply our independent  

                                                                                                                                       

judgment. 8  

                      



IV.	        DISCUSSION  

                                           



            A.	          The  Commission's  Decision  To  Dismiss  Baker's Discrimination  

                                                                                                              

                         Complaint Was Not So Arbitrary And Capricious As To Offend Due  

                                                                                                                                                      

                         Process.  

                                          



                         Baker argues that by declining to prosecute his discrimination complaint,  

                                                                                                                                           



without articulating a justification, the Commission violated due process because he  

                                                                                                                                                         



 cannot assess or challenge its reasoning. Baker contrasts the present record with the facts  

                                                                                                                                                      



             5           Yankee  v.  City  &  Borough  of  Juneau,  407  P.3d  460,  463  (Alaska  2017).   



             6          Id.  (quoting   Vick  v.  Bd.  of  Elec.  Exam'rs,  626  P.2d  90,  93  (Alaska  1981)).   



             7           Cook  Inlet  Pipe  Line  Co.  v.  Alaska  Pub.  Utils.  Comm'n,  836  P.2d  343,  348  



 (Alaska   1992).   



             8           See  Raad  v.  Alaska  State   Comm'n  for  Human  Rights,   86  P.3d   899,   904  



 (Alaska  2004)  (applying  de  novo  review  to  the  Commission's  determination  that  there  

was not substantial  evidence  of  retaliation);  cf.  Rodriguez  v.  Alaska  State  Comm'n  for  

Human Rights,  354  P.3d  380,  385  (Alaska  2015)  (holding  that  a  determination  that  a  

party  failed  to  produce  substantial  evidence  of  discrimination  is  a  question  of  law,  which  

we  review  de  novo).   



                                                                           -10-	                                                                    7483
  


----------------------- Page 11-----------------------

                                                                                                9  

of   Yankee v. City & Borough of Juneau                                                        ,  in which the government provided specific                                             



reasons   for   declining   to   exercise   discretionary   enforcement   authority.     Baker   also  



suggests that the Commission improperly accepted factual assertions by FedEx without                                                                                                    



appropriate evidence in the record to support those assertions.                                                                                   Baker implies that such                      



evidentiary flaws, especially when considered in the aggregate and in the context of the                                                                                                           



Commission's repeated dismissal of his case, constitute a due process issue even under                                                                                                       



our   highly   deferential   standard   of   review.     Baker   additionally   asserts   that   the  



Commission's determination that pursuing his complaint would not advance agency                                                                                                          



                                                                 10  

purposes was unreasonable.                                             



                               The Commission and FedEx argue that the Commission acted with clear  

                                                                                                                                                                                               



statutory authority, that this court reviews an administrative decision not to prosecute  

                                                                                                                                                                                   



with  substantial  deference,  and  that,  regardless  of  the  standard  of  review,  the  

                                                                                                                                                                                                 



Commission's investigation and decision were thorough, appropriate, and accurate.  

                                                                                                                                                                                                     



                               In reviewing the Commission's invocation of AS 18.80.112(b), we ask  

                                                                                                                                                                                                  



whether the Commission's decision not to issue an accusation (1) did not conform with  

                                                                                                                                                                                                

the law or (2) was so arbitrary and capricious as to offend due process.11  Despite finding  

                                                                                                                                                                                          



that substantial evidence supported Baker's marital status discrimination complaint, the  

                                                                                                                                                                                                   



Commission declined to pursue it further, stating that "[a] hearing would not represent  

                                                                                                                                                                                     



the best use of Commission resources and would not advance the purposes stated in  

                                                                                                                                                                                                     



AS 18.80.200."  

          



                9              407 P.3d 460.                      



                10             Baker   raises   multiple   related   concerns   regarding   the   Commission's  



decision:     the   agency   was   biased   against   him;   marital   status   discrimination   was  

widespread,  suggesting  that  enforcement  would  actually  be  a  good  use  of  agency  

                                                                                                                                                                                        

resources; and pursuing the complaint could establish valuable precedent.                                                                           



                11              Yankee, 407 P.3d at 463.  

                                                                                            



                                                                                                -11-                                                                                          7483
  


----------------------- Page 12-----------------------

                                                                                                                                                                                               12  

                              The Commission's mandate and powers stem from AS 18.80.010-300.                                                                                                        



                                                                                                                                                                                               

This statute directs the Commission to seek to "eliminate and prevent discrimination in  

                                                                                                           13  Alaska Statutes 18.80.112(b)(5) and  

employment . . . because of . . . marital status." 



(6), however, vest the executive director of the Commission with the authority to dismiss  

                                                                                                                                                                                   

a complaint without prejudice for the very reasons cited by the Commission.14                                                                                                             The  

                                                                                                                                                                                         



statute indicates that the executive director can, on a case-by-case basis, determine  

                                                                                                                                                                            

whether to refer substantiated cases to hearings when conciliation is unsuccessful.15  

                                                                                                                                                                                               



                              While the Commission cited two statutory bases for declining to prosecute  

                                                                                                                                                                              



Baker's complaint, we can affirm based on the first:  AS 18.80.112(b)(5), that further  

                                                                                                                                                                                    



proceedings would not represent the best use of Commission resources. The first prong  

                                                                                                                                                                                      



of the two-part Yankee test, whether the decision did not conform with the law, does not  

                                                                                                                                                                                            



require detailed analysis. The legislature clearly authorized the Commission to consider  

                                                                                                                                                                                



resource limitations when deciding whether or not to issue accusations.  And, as the  

                                                                                                                                                                                            



               12             Relevant portions of the statute set out the investigation and conciliation                                                               



structure (AS 18.80.110); describe the grounds on which the Commission can dismiss                                                 

a complaint without prejudice (AS 18.80.112); describe procedures for a hearing if                                                                                                             

conciliation   procedures  fail   after   the   Commission   finds   substantial   evidence   of  

discrimination    (AS    18.80.120);    describe    the    enforcement    mechanisms    that    the  

Commission    can    utilize    if    the    hearing    produces    a    finding    of    discrimination  

(AS 18.80.130); and describe the overall purpose of the Commission (AS 18.80.200).                                                                                                                   



               13             The totality of the Commission's defined purpose is much broader.  See  

                                                                                                                                                                                          

AS 18.80.200(b) (addressing discrimination because of "race, religion, color, national  

                                                                                                                                                                  

origin, sex, age, physical or mental disability, marital status, changes in marital status,  

pregnancy or parenthood.").  

                                                                  



               14             AS 18.80.112(b); see supra note 3 (setting out statutory language).  

                                                                                                                                                                                        



               15             See AS 18.80.120(a) (referring to executive director power to issue an  

                                                                                                                                                                                             

accusation and forward acomplaint for hearing);AS18.80.112(b) (describingconditions  

                                                                                                                                                                             

under which the executive director may dismiss a complaint instead of forwarding it to  

                                                                                                                                                                                               

a hearing).  

                          



                                                                                             -12-                                                                                       7483
  


----------------------- Page 13-----------------------

superior court stated, the Commission "knows its resources best, and it is entitled to                                                                       



deference for its evaluation of them."                                 



                         We        next         consider            whether            the       Commission's                   dismissal             under  

                                                                                                                                                 16   If the  

AS 18.80.112(b)(5) was so arbitrary and capricious as to offend due process.                                                                               



Commission cannot pursue all potentially actionable cases, it must make some difficult  

                                                                                                                                                  



decisions; the statute defining the Commission's purpose describes a broad range of  

                                                                                                                                                             



protected classes and forms of discrimination without mandating how the Commission  

                                                                                                                                          

should prioritize cases if resource considerations prevent it fromaddressing all of them.17  

                                                                                                                                                    



                         Unfortunately, the Commission failed to further delineate its reasoning for  

                                                                                                                                                            



dismissing the case, or why continued prosecution would not represent the best use of  

                                       



its  resources.                 However,  neither  the  Commission's  authorizing  statute  nor  the  

                                                                                                                                                          



constitutional right to due process require the Commission to explicitly connect its  

                                                                                                                                                            



ultimate decision not to issue an accusation to relevant evidence in the record. Inferences  

                                                                                                                                              



are  acceptable  when  applying  deferential  standards  of  review  to  administrative  

                                                                                                                                     

                   18  We can infer a range of legitimate reasons why the Commission might have  

decisions.                                                                                                                                               



concluded that further pursuit of Baker's complaint would not represent the best use of  

                                                                                                                                                             



its resources.  We note that FedEx seems to have modified the policy to no longer treat  

                                                                                                                                                         



married pilots differently than unmarried pilots for purposes of housing subsidies.  We  

                                                                                                                                                           



notetheinternal arbitrationfindingsthatBakerhadintentionally deceived FedEx without  

                                                                                                                                                   



raising preliminary concerns about a discriminatory policy, and that said deception was  

                                                                                                                                                          



             16          See  Yankee,  407  P.3d  at  463.   



             17          See  AS   18.80.200(b).   



             18          Cf.  Ainsworth  v.  Skurnick,  960  F.2d  939,  941  (11th  Cir.  1992)  ("An  award  



is   arbitrary   and   capricious   only   if   'a   ground   for   the   arbitrator's   decision   cannot   be  

inferred  from  the  facts  of  the  case.'  "  (quoting  Raiford  v.  Merrill  Lynch,  Pierce,  Fenner  

&  Smith,  Inc.,  903  F.2d   1410,   1413  (11th  Cir.   1990))).   



                                                                            -13-                                                                       7483
  


----------------------- Page 14-----------------------

 actually the basis for his termination.                                                                                                                                                              Furthermore, we note that, presumably unlike                                                                                                                                                                       



 some complainants seeking aid from the Commission, Baker had access to a lengthy                                                                                                                                                                                                                                                                                                                           



union arbitration process, during which he was represented by counsel, and that he                                                                                                                                                                                                                                                                                                                                                          



declined a settlement that would have allowed him to keep his job.                                                                                                                                                                                                                                                                                          We also note that                                                          



Baker's ability to engage in further private enforcement of his discrimination claim was                                                                                                                                                                                                                                                                                                                                               



not foreclosed by the Commission's decision not to issue an accusation.                                                                                                                                                                                                                                                                                                             



                                                                     The circumstances                                                                              ofthis                           case, when considered alongsidethelegislature's                                                                                                                                         



clear grant of prosecutorial discretion, prompt us to uphold the Commission's exercise                                                                                                                                                                                                                                                                                                                          



of that discretion. The Commission's application of AS 18.80.112(b)(5) to Baker's case                                                                                                                                                                                                                                                                                                                                               



is not so arbitrary and capricious as to offend due process.                                                                                                                                                                                                                                                 



                                  B.	                                The Statute Vesting The Commission With Substantial Prosecutorial                                                                                                                                                                                                                                           

                                                                    Discretion Does Not Offend Due Process.                                                                                                                                                                                           



                                                                     Baker asks us to consider whether AS 18.80.112(b)(5) and (6), as written,                                                                                                                                                                                                                                                                     



meet constitutional due process requirements. Alaska Statute 18.80.112(b) provides that                                                                                                                                                                                                                                                                                                                                                 



"before the issuance of an accusation . . . the executive director may dismiss without                                                                                                                                                                                                                                                                                                                            



prejudice a complaint if the executive director" makes any of seven determinations.                                                                                                                                                                                                                                                                                                                                                            



                                                                     The decision to bring an enforcement matter, whether civil or criminal, is                                                                                                                                                                                                                                                                                                   



                                                                                                                                                19  

 subject to agency discretion.                                                                                                                                                                                                                                                                                                                                                                                               

                                                                                                                                                            The United States Supreme Court grants extremely broad  

                                                                                                                                                                                                                                                                                                                             20                 We  have  previously  

                                                                                                                                                                                                                                                                                                                                                                                                 

discretion  to  agency  decisions  not  to  prosecute  or  enforce. 



 endorsed                                                 this                          discretion,                                                      noting                                       that                          "generally,                                                         courts                                     decline                                         to                   review  

                                                                                                                                                                                                                                                                                                                                                                                                               



 executive-branch decisions not to prosecute an individual or not to enforce a law under  

                                                                                                                                                                                                                                                                                                                                                                                                                            



                                   19                                Yankee, 407 P.3d at 464.                                                                               



                                  20                                Hecklerv.Chaney                                                                              , 470 U.S. 821,                                                           831(1985)("[TheUnited                                                                                                            StatesSupreme   



 Court] has recognized on several occasions over many years that an agency's decision                                                                                                                                                                                                                                                                                                                          

not to prosecute or enforce, whether through civil or criminal process, is a decision  

                                                                                                                                                                                                                                                                                                                                                                                                              

generally committed to an agency's absolute discretion.").                                                                                                                                                                                                                                                   



                                                                                                                                                                                                                    -14-	                                                                                                                                                                                                         7483
  


----------------------- Page 15-----------------------

                                            21  

particular circumstances."                      And the legislature can properly expand or contract the                                    



                                                                                                     22  

prosecutorial discretion of agencies such as the Commission.                                               



                      Here, the challenged provisions simply grant the Commission discretion to  

                                                                                                                                              



dismiss complaints without prejudice based on considerations of agency resources and  

                                                                                                                                          

statutory purpose.23                We have previously accepted the constitutionality of the basic  

                                                                                                                                       



premisethat thelegislaturecanstatutorilygranttheCommission significant prosecutorial  

                                                                                                                           

discretion.24          We conclude that AS 18.80.112(b)(5) and (6) meet constitutional due  

                                                                                                                                          



process requirements.  

               



           C.	        The  Commission  Did  Not  Err  By  Finding  Baker's  Retaliation  

                                                                                                                           

                      Complaint Was Not Supported By Substantial Evidence.  

                                                                                                          



                      Baker  asserts  that  the  Commission  erred  by  finding  there  was  not  

                                                                                                                                          



substantial evidence of illegal retaliation.  Alaska Statute 18.80.220(a)(4) provides that  

                                                                                                                                          



it is unlawful for an employer "to discharge, expel, or otherwise discriminate against a  

                                                                                                                                               



person because the person has opposed any practices forbidden under AS 18.80.200- 

                                                                                                                              



 18.80.280  or  because  the  person  has  filed  a  complaint,  testified,  or  assisted  in  a  

                                                                                                                                              



[Commission] proceeding."  

                                                



           21	         Yankee,  407 P.3d at 464 (emphasis in original).                



           22         See State, Dep't of Fish &Game, Sport Fish Div. v. Meyer, 906 P.2d 1365,  

                                                                                                                                       

 1373-74 (Alaska1995) (noting compulsory languageofCommission'sstatutorymandate  

                                                                                                                                   

and observing while there might be valid reasons for the Commission staff to have the  

                                                                                                                                           

power to dismiss cases with individual merit but no widespread impact, the legislature  

                                                                                                                         

would have to authorize that discretion), superseded by statute, Ch. 63, § 4, SLA 2006,  

                                                                                                                                       

as recognized in Huit v. Ashwater Burns, Inc., 372 P.3d 904, 914 n.52 (Alaska 2016).  

                                                                                                                                     



           23         AS 18.80.112(b)(5) allows a dismissal based on a determination that "a  

                                                                                                                                             

hearing         will       not      represent          the      best      use       of     commission              resources,"            and  

                                                                                                                                        

AS 18.80.112(b)(6) allows a dismissal based on a determination that "a hearing will not  

                                                                                                                                           

advance the purposes stated in AS 18.80.200."  

                                                                                



           24         Meyer, 906 P.2d at 1374.  

                                                                  



                                                                     -15-	                                                             7483
  


----------------------- Page 16-----------------------

                        The Commission's determination that Baker failed to produce substantial                                        



                                                                                                                                                       25  

evidence   is  a   question   of   law   to   which   we   apply   our   independent   judgment.                                                            



"Substantial evidence is 'such relevant evidence as a reasonable mind might accept as  

                                                                26   To uphold the Commission's decision, we must  

adequate to support a conclusion.' "                                                                                                              

                                                               



conclude that a person of reasonable mind would not accept the evidence in the record  

                                                                                                                                               

as adequate to support a determination that FedEx retaliated against Baker.27  

                                                                                                                          



                        Bakerfiledhismarital status discriminationcomplaint on October 12, 2011,  

                                                                                                                                                 



after he was notified of an internal investigation of his potentially improper receipt of the  

                                                                                                                                                     

housing allowance.28                     The FedEx activity to be considered is the activity occurring  

                                                                                                                                         



            25          See Rodriguez v. Alaska State Comm'n for Human Rights                                                  , 354 P.3d 380,       



385 (Alaska 2015).                  



            26         Button v. Haines Borough, 208 P.3d 194, 200 (Alaska 2009) (quoting  

                                                                                                                                          

S. Anchorage Concerned Coal., Inc. v. Municipality of Anchorage Bd. of Adjustment ,  

                                                                                                                                     

 172 P.3d 774, 780 (Alaska 2007)).  

                                                                



            27          Although the Commission's most recent decision focused on three pieces  

                                                                                                                                               

of  evidence  highlighted  by  the  superior  court  on  remand,  our  review  of  the  

                                                                                                                                                   

Commission's decision requires consideration of the entire record.  See Ross v. Alaska  

                                                                                                                                              

State Comm'n for Human Rights, 447 P.3d 757, 764 (Alaska 2019) ("The substantial  

                                                                                                                                       

evidence test is highly deferential, but we still review the entire record to ensure that the  

                                                                                                                                                     

evidence detracting from the agency's decision is not dramatically disproportionate to  

                                                                      

the evidence supporting it such that we cannot 'conscientiously' find the evidence to be  

                                                                                                                                                      

'substantial.' " (quoting Pub. Safety Emps. Ass'n, AFSCME Local 803, AFL-CIO v. City  

                                                                                                                                                   

of Fairbanks, 420 P.3d 1243, 1248 (Alaska 2018))).  

                                                                                               



            28          We  see  no  evidence  that  Baker  raised  allegations  of  marital  status  

                                                                                                                                               

discrimination prior to FedEx's initiation of disciplinary proceedings.  Baker contends  

                                                                                                                                          

his  June  2011  note  "tacitly  questioned  the  policy's  legitimacy,"  but  this  does  not  

                                                                                                                                                    

constitute a claim that would trigger anti-retaliation protections.  Baker's note did not  

                                                                                                                                                    

discuss marital status discrimination; instead he expressed his concerns about his wife's  

                                                                                                                                               

eligibility for the housing allowance and the lack of clarity in the residency guidelines.  

                                                                                                                                                            

Baker's wife emailed FedEx alleging that the policy was discriminatory, but her first  

                                                                                                                                                   

                                                                                                                                  (continued...)  



                                                                         -16-                                                                    7483
  


----------------------- Page 17-----------------------

between   October   12,   2011   and   March   27,   2012,   when  FedEx  issued   a   notice   of  



termination.     Baker   does   not   dispute   that   other   pilots   were   also   investigated.     A  



reasonable mind would consider whether Baker received the same or materially similar                                                                                                                                                                                                                                                       



treatment to other pilots under investigation, who did not file complaints, and weigh                                                                                                                                                                                                                                                         



other evidence in that context.                                                                                                  



                                                        Baker was afforded internal union arbitration protections, including a full                                                                                                                                                                                                                   



hearing during which he was represented by counsel, and an appeal of the FedEx hearing                                                                                                                                                                                                                                                   



officer's decision to a balanced arbitration panel. And despite having filed a complaint,                                                                                                                                                                                                                               



Baker was offered the same settlement agreement as the other pilots. Baker did not agree                                                                                                                                                                                                                                                          



to   the   settlement   and   was   ultimately   terminated.     FedEx   produced   records   from  



disciplinary proceedings of other pilots also accused of obtaining the housing allowance                                                                                                                                                                                                                                      



improperly.     The   record   suggests   other   investigated   pilots   faced   similarly   detailed  



questioning, and other pilots who did not agree to the settlement were also terminated.                                                                                                                                                                                                                                                                                      



                                                        One   piece   of   information  could   potentially   be   considered   evidence   of  



retaliation:   the FedEx in-house counsel's statement to the ALPA union representative,                                                                                                                                                                                                                    



in the course of the internal disciplinary process, that Baker's Commission complaint                                                                                                                                                                                                                                         



was "not helping him with FedEx, and, in fact, it's having the opposite effect."                                                                                                                                                                                                                                                                    The  



counsel told the Commission that he did not recall making that statement, but that any  



 such statement or sentiment would have related to FedEx's inability to progress in                                                                                                                                                                                                                                                                           



 settlement   discussions   because   of   Baker's   "litigious   posture."     The   Commission  



determined  that   this   did   not   constitute   substantial   evidence   of   retaliation,   because  



ultimately Baker was offered the same settlement agreement as other pilots who had not                                                                                                                                                                                                                                                                     



                            28                          (...continued)  



                                                                                                                                                                                                                                                                                                                                                              

email was sent on September 26, 2011, five days after Baker received the notice of  

                                                                                                                                                                                                                                                                                                                                              

investigation.                                                     Therefore,  like  Baker,  she  first  raised  allegations  of  marital  status  

                                                                                                                                                                                                                                              

discrimination after the investigative process had begun.  



                                                                                                                                                                            -17-                                                                                                                                                                    7483
  


----------------------- Page 18-----------------------

filed discrimination complaints, and those other pilots who did not accept the settlement                                                                                                                                                         



were also terminated.                                                 



                                          To determine whether a reasonable mind could consider this statement                                                                                                                                     



sufficient to support a conclusion of retaliation, we consider the situational context.                                                                                                                                                                                               



Alaska Statute 18.80.220(a)(4) states that an employer may not "discharge, expel or                                                                                                                                                                                        



otherwise   discriminate   against   a   person   because   the   person   has   opposed   [practices  



forbidden by the statute] or because the person has filed a complaint." This is consistent                                                                                                                                                         



with the general premise that retaliation requires evidence of action taken to cause actual                                                                                                                                                                     

                  29   Even if the FedEx counsel made his statement intending to threaten Baker or out  

harm.                                                                                                                                                                                                                                                                    



of anger that Baker had filed a complaint, the statement was not followed by harm that  

                                                                                                                                                                                                                                                                      



could constitute retaliation.   Baker received the same procedural protections and the  

                                                                                                                                                                                                                                                                        



same disciplinary consequences as other similarly situated pilots.  There is no evidence  

                                                                                                                                                                                                                                                      



of a causal connection between his discharge and the filing of his complaint.  In this  

                                                                                                                                                                                                                                                                      



context, the counsel's statement did not constitute substantial evidence of retaliation.  

                                                                                                                                                                                                                                                                               



V.                   CONCLUSION  



                                          We AFFIRM the superior court's decision upholding the Commission's  

                                                                                                                                                                                                                                    



dismissals of Baker's complaints.  

                                                                                                              



                     29                   "Employment retaliation" is defined as "[a]n adverse employment                                                                                                                                                    action  



taken because an employee has engaged in a legally protected activity."                                                                                                                                                                    Retaliation,  

BLACK 'S  LAW  DICTIONARY  (11th ed. 2019) (emphasis added).                                                                                                                   



                                                                                                                                   -18-                                                                                                                            7483
  

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