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PRIVATE INDUSTRY ISSUES AND PRESS RELEASES

    NOTE: Both government and private industry EEO/AA cases often apply to both entities; however, to make your research quicker, we have separated them on this site, with exceptions found at the bottom on this section.

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EEOC PRESS RELEASE
8-26-11 ~ Captain's Galley Settles EEOC Male-on-Male Sexual Harassment Suit

Restaurant to Pay $86,000 to Former Male Employees Who Were Subjected to Abuse by Male Co-Worker

CHARLOTTE, N.C. -- Huntersville Seafood, Inc., doing business as Captain’s Galley restaurant, will pay $86,000 and furnish other relief to settle a sexual harassment and retaliation lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced late yesterday.

The settlement marks the resolution of the EEOC’s lawsuit (Equal Employment Opportunity Commission and Peter Economos v. Huntersville Seafood Inc., d/b/a Captain’s Galley; in the Western District of North Carolina, Civil Action 3:10-cv-00624), which charged that Peter Economos and other male employees were sexually harassed by a male coworker at Captain’s Galley, a seafood restaurant in Huntersville, N.C. Specifically, the EEOC said that Economos and other male employees were touched on the buttocks, nipples, and testicles and were subjected to almost daily sexual gestures and comments between 2007 and 2008. Despite complaints Economos and the other employees made to the restaurant’s owner, the harassment continued and after Economos complained about the harassment, he was ultimately discharged, the EEOC charged.

Sexual harassment is a form of sex discrimination that violates Title VII of the Civil Rights Act of 1964. When an employer terminates or disciplines an employee because the employee complains about workplace discrimination, the employer further violates Title VII’s anti-retaliation provision.

In addition to paying $86,000 in monetary damages to Economos and three other former male employees, the three-year consent decree settling the case provides, among other things, for sexual harassment training for managers and employees; requires Captain’s Galley to adopt a policy preventing sexual harassment; and requires that the restaurant report information about its employment practices and any sexual harassment complaints periodically to the EEOC.

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EEOC Press Release
8-24-11 ~ Forrest City Grocery Company To Pay $125,000 To Settle EEOC Sex Discrimination Suit

Federal Agency Charged Arkansas Company Denied Sales Jobs to Female Employee

FORREST CITY, Ark. -- Forrest City Grocery Company, a distributor of tobacco and grocery items to retail and convenience stores in six states, has agreed to pay $125,000 and furnish other relief to settle a sex discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today. The EEOC alleged that Forrest City Grocery, doing business as Dixie Tobacco & Candy Company in Shaw, Miss., now closed, denied sales positions to an employee because she is a woman.

According to the EEOC’s lawsuit, the company told Amanda McMillan the job of a salesman was too dangerous for a woman, and that she would not be a good mother if she were on the road meeting customers. The lawsuit charges that Forrest City Grocery paid McMillan less than men doing the same work.

Sex discrimination violates Title VII of the Civil Rights Act of 1964. The EEOC filed suit in U.S. District Court in the Northern District of Mississippi (EEOC v. Forrest City Grocery Company, Civil Action No.2:10-cv-00166), after first attempting to reach a pre-litigation settlement through its conciliation process.

Besides the monetary damages, the company also agreed to be monitored by the EEOC, to disseminate employment policies to employees, and provide ongoing training for management on sex discrimination.

“Women make valuable contributions to the work force, yet they are too often denied opportunities at work based on gender stereotypes and old-fashioned ideas about a woman’s proper place,” said Birmingham District Director Delner Franklin-Thomas. “Employers must ensure they, and their managers, are in compliance with the law for the benefit of themselves and their employees.”

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EEOC PRESS RELEASE
8-22-11 ~ 3M to Pay $3 Million to Settle EEOC Age Discrimination Suit

Federal Agency Obtains Settlement for Hundreds of Workers Dismissed Due to Age

MINNEAPOLIS -- Global technology giant 3M (NYSE: MMM) has agreed to pay $3 million to a class of former employees and implement preventive measures to resolve a nationwide age discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today.

The EEOC’s suit charged that 3M unlawfully laid off hundreds of employees over the age of 45 during a series of reductions in force (RIFs) from July 1, 2003 through Dec. 31, 2006. 3M laid off many highly paid older employees, among others, apparently to save money and cut workers in salaried positions up to the level of director, the agency said. The EEOC also asserted that older employees were denied leadership training and laid off to make way for younger leaders. The agency’s investigation found an employee e-mail describing then-CEO Jim McNerney’s “vision for leadership development” as “we should be developing 30 year olds with General Manager potential” and “He wants us to tap into the youth as participants in the leadership development.”

Age discrimination violates the Age Discrimination in Employment Act (ADEA), which protects people aged 40 and older from employment discrimination. The EEOC filed both the lawsuit and proposed consent decree resolving the suit simultaneously in U.S. District Court for Minnesota. The investigation, led by EEOC Investigator Scott Doughtie, involved coordinated efforts by EEOC’s San Francisco, Chicago and New York offices.

Pending judicial approval, the consent decree provides that 3M will pay $3 million in monetary relief to approximately 290 former employees. In addition, 3M has agreed to implement a review process for termination decisions and training on how to prevent age bias. The company will also post openings for positions it had not advertised previously, to enable older employees to apply. 3M will report on its compliance, provide RIF information to the EEOC over the next three years, and post a notice about the settlement.

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Supreme Court Upholds EEOC’s Retaliation Reach (EEOC)

Fiancé of Person Filing a Charge of Discrimination Protected from Employer’s Retaliatory Action, Court Rules 1-24-11

EEOC:  The Supreme Court ruled that the fiancé of a woman who filed a charge of discrimination with the EEOC, was protected from retaliation by their mutual employer and had standing to redress this illegal act. In a unanimous opinion, Thompson v. North American Stainless, LP, No. 09-291, the Supreme Court held that long-standing EEOC interpretations of the scope of the anti-retaliation provision of Title VII of the Civil Rights Act of 1964 (Title VII) applied to an individual harmed by retaliation, even if that person had not himself filed a charge of discrimination.

In Thompson, Miriam Regalado filed a charge of discrimination against her employer, North American Stainless (NAS). Three weeks after receiving notice of the charge from the EEOC, NAS fired Regalado’s fiancé, Eric Thompson, who also worked there. Thompson then filed his own charge, claiming his termination was in retaliation for Regalado’s initial charge. After the district court in Kentucky and the entire Sixth Circuit Court of Appeals ruled that Thompson could not raise a retaliation claim because he himself had not filed a charge of discrimination, the Supreme Court agreed to hear the case and issued its decision reversing the lower courts’ opinions.

This past fiscal year, the EEOC received more charges alleging retaliation than any other basis, supplanting race discrimination charges for the first time in its 45-year history as the most numerous.

Issues of Note:  The Supreme Court considered whether Thompson could sue his employer under Title VII even though he had not personally engaged in protected activity. The Court agreed Thompson could legally file suit because he was an employee of the same company (as his fiancé) and was within the “zone of interests protected by Title VII.”  The Court concluded that by injuring Thompson, an unlawful act occurred which was intended to further injure the original complainant. 

 

EEO GUIDANCE Comments:  The Supreme Court declined to identify a fixed class of relationships that are protected from third party retaliation; however, they did indicate that firing a close family member will almost always meet the standard and inflicting a milder reprisal upon a mere acquaintance will almost never do so.  As they have done in ADA cases, the Court is passing the judgment calls back to the employers to look at each case individually. Expect EEO retaliation claims to continue to grow and caution management employees of the consequences.  Supervisors and managers would do well to learn to bite down hard on their fingers before responding to anger that can quickly lead to retaliation.    
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Major Construction Firm to Pay $110,000 To Settle EEOC Suit For Sexual Harassment, Retaliation

Brand Energy Fired Employee for Refusing Supervisor’s Requests for Sex, Federal Agency Charged - 2-23-11 (EEOC web site)

Four related national construction companies -- Brand Energy & Infrastructure Services, Inc., Brand Services, LLC, Brand Energy Solutions, LLC, and Brand Scaffold Services, LLC (Brand) -- will pay $110,000 to settle a suit for sexual harassment and retaliation filed by the EEOC, the agency announced today. The court-approved settlement resolves the charge of a former employee, Jauronice Hayes, who worked for Brand at its Conoco Phillips facility in Belle Chasse, La.

In its suit, the EEOC charged that Hayes was sexually harassed by her male supervisor. The harassment included inappropriate sexual statements, requests and demands for sexual favors, and sexual touching, the EEOC said. The suit also charged that he exposed his genitals to Hayes and informed Hayes that if she did not have sex with him, she would be laid off. Hayes anonymously complained about the sexual harassment to a company hotline and also repeatedly opposed the sexual harassment and rejected her supervisor’s sexual advances, according to the suit.

As a result of her complaint, her opposition to this harassment and her rejection of his sexual advances, Brand fired Hayes, the EEOC said. After Brand terminated Hayes, her supervisor left the company’s employment.

The EEOC also alleges that this supervisor had previously harassed another female employee, who no longer works for the company.

“Egregious sexual harassment, including unwanted touching and demands for sex with the threat of being fired, fundamentally violates the notion of a fair workplace and is unlawful,” said EEOC General Counsel P. David Lopez. “When an employee is fired in retaliation for complaining about that kind of conduct, it is especially troubling. Employers must understand that if they subject employees to sexual harassment or fire them for complaining, there will be serious consequences.”

Sexual harassment and retaliation for complaining about it violate Title VII of the Civil Rights Act of 1964. The EEOC filed suit after first attempting to reach a pre-litigation settlement through its conciliation process.

“I just wanted to do my job and be left alone,” said Hayes. “My boss touching my body and trying to pressure me to have sex with him really hurt me. No woman should have to choose between putting up with this kind of abuse or losing her job and not being able to support her family. I could not stand the idea that the company or this man might do this again to someone else. I felt that if I did not stand up for myself, I would be letting others down and setting a bad example for my kids. People out there need to know that they have rights and that the EEOC can help them. The fact that the company will have to change the way it does things in the future was very important to me.”

Under the court-ordered consent decree settling the suit, which was filed with the U.S. District Court for the Eastern District of Louisiana (Case No. 10:3306 ), Brand will pay Hayes $100,000, and $10,000 to the second victim. The company will also provide annual training to more than 450 personnel in its Gulf Region, encompassing Texas and Louisiana, covering its operations involving about 6,500

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12-28-10 / EEOC Website

Haven Manor Settles EEOC Disability Discrimination Suit

Lincoln Assisted Living Facility Refused to Accept Hearing-Impaired Nursing Assistant, Federal Agency Charged

A Lincoln, Nebraska assisted living center has agreed to settle a disability discrimination lawsuit filed by the EEOC.  In its lawsuit filed in U.S. District Court for the District of Nebraska (Case No. 4:10CV03108) in June 2010, the EEOC charged that Haven Manor, Inc. violated the Americans With Disabilities Act (ADA) when it refused to accept temporary placement of Amanda Huff, a hearing-impaired certified nursing assistant (CNA), at its Lincoln facility because of her disability.

In the consent decree submitted to the court today for approval, Haven Manor agreed to pay Huff $10,000 in settlement of the EEOC claim. The company also agreed to provide training to all management and supervisory employees on the topics of disability discrimination and reasonable accommodation under the ADA. In addition, Haven Manor agreed for three years to provide the EEOC a report of every request for reasonable accommodation made by its employees or staffing agency employees seeking to be placed with Haven Manor.

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12-23-10 / EEOC Website

Crothall Healthcare to Pay $88,000 to Settle EEOC Pregnancy Discrimination Suit

Company Must Reinstate Employee Who Was Fired Because She Was Expecting

LITTLE ROCK, Ark. – Crothall Healthcare, Inc., a Pennsylvania-based nationwide provider of support services to health care institutions, will pay $88,422, reinstate a fired employee and furnish other relief to settle a pregnancy discrimination lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today.

According to the EEOC’s lawsuit, Civil Action No. 4:10 CV 1221 JMM, filed in U.S. District Court for the Eastern District of Arkansas, Crothall Healthcare fired a housekeeping employee working at Arkansas State Hospital in Little Rock after discovering that she was pregnant. 

Such alleged conduct violates Title VII of the Civil Rights Act of 1964, as amended by the Pregnancy Discrimination Act. The EEOC filed suit after first attempting to reach a pre-litigation settlement through its conciliation process.

Besides the monetary relief and reinstatement for the employee, the two-year consent decree enjoins Crothall from discriminating against any female employee based upon her sex, including pregnancy, childbirth or any related condition, and enjoins defendant from retaliating against an employee for complaining about perceived discrimination.

In addition, the decree requires Crothall to comply with anti-discrimination laws; amend its equal employment opportunity and non-discrimination policy to include specific reference to pregnancy, childbirth, or any related condition; conduct pregnancy discrimination and retaliation training for all managers and supervisors; and post notices about employment discrimination laws and this lawsuit. The company must also submit semi-annual reports to ensure compliance with the law.

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12-21-10 / EEOC Website

Wisconsin Staffing, Inc. Will Pay $20,000 Under Decree Ending EEOC Race Discrimination Lawsuit

Company Harassed American Indian Employee and Forced Her Out of Job

A Rhinelander, Wis.-based staffing firm, Wisconsin Staffing Services, Inc., doing business as Nicolet Staffing, will pay $20,000 under a consent decree entered yesterday, which ends a race discrimination and constructive discharge lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC).

According to the EEOC’s suit, the president of the company allegedly engaged in repeated, acts of racial harassment toward a Native American employee, Carolyn Red Bear, allegedly including derogatory comments about Red Bear’s “ethnic” appearance, suggestions that she seek alternative employment in personal home care as more consistent with the skills of Native American people, and statements that she did not “fit in” with the white community in Ladysmith, Wis. Despite complaints, the EEOC contended, the company allowed a non-Native American co-worker to refer to herself at work using the fictitious name “Pink Feather,” allegedly to mock Red Bear.

Ultimately, according to the EEOC, Wisconsin Staffing Services forced Red Bear out of her job when she refused to comply with a directive from the company president to cut her hair, change her last name, and to stop “rubbing in” her heritage.

Such alleged conduct violates Title VII of the Civil Rights Act of 1964, which makes it unlawful to harass employees based on race, including racial harassment. The EEOC filed suit ( EEOC v. Wisconsin Staffing Services, Inc.. d/b/a Nicolet Staffing, Inc., Case No. 3:10-cv-543) in U.S. District Court for the Western District of Wisconsin after first attempting to reach a pre-litigation settlement through its voluntary conciliation process.

In addition to the $20,000 in monetary relief to Red Bear, the two-year consent decree resolving the lawsuit enjoins Wisconsin Staffing Services from engaging in discrimination or harassment based on race or retaliation in violation of Title VII. The consent decree also mandates that Wisconsin Staffing will implement and distribute policies prohibiting discrimination and retaliation and set up procedures for receiving and investigating complaints. The company must also provide two hours of training on race discrimination laws to managers and employees and an additional hour of training to any manager designated to investigate discrimination complaints. The company is also required to report to the EEOC about the company’s response to any complaints of alleged discrimination and post a remedial notice.

"No employee can be required to endure harassment or mocking of her ethnic heritage as a price of holding on to her job,” said John Hendrickson, EEOC regional attorney in Chicago. “That’s contrary to our national tradition and to our law as enacted by Congress. It’s that law which undergirds this consent decree and which will assure a positive change at the defendant in this case.”

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12-21-10 / EEOC Website

Pharmacy Giant Omnicare Will Pay $195,000 Under Consent Decree Ending EEOC Sex Harassment Case

Women at La Crosse Pharmacy Endured Physical and Verbal Abuse, Agency Charged

MADISON, Wis. – Pharmacy giant Omnicare, Inc. will pay $195,000 to a class of five female sex discrimination victims under a consent decree entered by Magistrate Judge Stephen Crocker on December 21, 2010 in federal court in the Western District of Wisconsin. The damages had been sought in a sexual harassment lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC). The EEOC had charged that a class of women was subjected to sexual harassment at Omnicare’s Pinnacle Pharmacy in La Crosse, Wis.

According to the EEOC’s suit, a pharmacy manager engaged in repeated, egregious acts of sexual harassment toward female employees, such as unwelcome touching that included approaching female employees from behind and grinding his crotch on them, and making sexually explicit and demeaning comments to female employees. According to the EEOC, women complained about the manager’s behavior repeatedly, but no action was taken by Omnicare to put a stop to it.

Title VII of the Civil Rights Act of 1964 makes it unlawful to harass employees based on sex, including sexual harassment, and prohibits retaliation against someone who complains about discrimination. The EEOC filed suit ( EEOC v. Omnicare, Inc. d/b/a Pinnacle Pharmacy, Case No. 10 cv 364) on June 30 in U.S. District Court for the Western District of Wisconsin after first attempting to reach a pre-litigation settlement through its conciliation process.

Under the terms of the two-year consent decree settling the suit, Omnicare will pay $195,000 to the class of five women. In addition to monetary damages, the decree provides for injunctive relief enjoining Omnicare from maintaining a sexually hostile work environment or engaging in retaliation. The decree also requires the company to distribute its policy against sexual harassment along with a confidential survey assessing the company’s complaint reporting system, provide annual sexual harassment training for employees, and provide periodic reports to the EEOC.

“One would think that if any workplace would be free ofegregious sexual harassment, it would be a workplace connected to health care -- like a pharmacy,” said Regional Attorney John Hendrickson of the EEOC’s Chicago District. “But this case illustrates that when it comes to sexual harassment, our expectations are often out of order and that, in fact, no workplace is immune. That’s why we were in this case and why we insisted upon the terms of the consent decree entered by the court. We trust they will make a difference going forward.”

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Judge Bars DOD from Enforcing Don't Ask, Don't Tell (DADT)
October 2010

A federal judge in California affirmed an earlier decision declaring as unconstitutional the U.S. government's ban on gay and lesbian soldiers serving openly in the military. The judge granted an immediate and permanent injunction barring further enforcement of the controversial law and also ordered the government to suspend and discontinue all pending discharge proceedings and investigations under the DADT policy. The government will have 60 days to appeal. 

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HEALTH CARE PROVIDERS, CLICK HERE

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NOTICE TRAINING REQUIREMENTS BY THE COURTS - Don't wait to educate.  It can be a costly mistake. Check out court decisions for the past ten years and see how decisions have consistently included mandatory training for all employees to ensure further discrimination does not occur.  If the workforce has been educated prior to the discrimination, employer liability could be reduced and in some cases, eliminated.

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August 2010

ADA Meaning Further Defined

 

A federal district court in the Northern District of Indiana has held that an employee (Hoffman)  with cancer is considered to be disabled under the act, even if his condition is in remission at the time of the alleged adverse action taken by his employer (Carefirst of Fort Wayne Inc.).

Hoffman sued Carefirst under the ADAAA, alleging that his renal cancer—which admittedly was in remission at the time of his firing—was a disability. Carefirst argued that Hoffman was not disabled, based on these facts:   Hoffman returned to work without restrictions, worked a full schedule for a year, and did not miss significant time from work during that period.

The ADAAA went into effect on Jan. 1, 2009 and the changes further clarified the requirements of the ADA.  However, based on the clear wording of the act , “disability includes impairments “in remission” if the impairment would be a substantial limitation when active,” the court held that Hoffman did not need to show that he was substantially limited in a major life activity at the actual time of his termination, because his cancer would have substantially limited him had it been active. The court found him to be “disabled” for purposes of the ADAAA and denied Carefirst’s motion for summary judgment.  Discrimination is to be determined. 

Hoffman v. Carefirst of Fort Wayne Inc., N.D.Ind., No. 1:09-cv-00251 (Aug. 31, 2010).

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EEOC Settles Race Discrimination Claim for $1 Million  

August 2010

The EEOC has settled a race discrimination complaint against the largest commercial roofing contractor in New York State for $1 million.   Elmer W. Davis Inc. agreed to pay $1 million to black employees to settle a race discrimination lawsuit brought by the commission.

The EEOC’s lawsuit, filed in 2007, charged that black employees at Elmer W. Davis Inc. were subjected to a pattern of race discrimination, including harassment, unfair work assignments, failure to be promoted and retaliation for complaining about discrimination from at least 1993.

According to dozens of black employees, they were constantly subjected to racial slurs by their white foremen. They were also exposed to nooses and racially offensive graffiti and swastikas written on the walls of the toilets at worksites.

The company was charged with subjecting black employees to the most difficult, most dirty and least desirable jobs, while whites were assigned to detail work and service trucks to conduct repairs.

Black employees routinely were laid off first at the end of the roofing season and called back last in the beginning of the following season. The EEOC maintained the company systematically excluded black employees from promotion opportunities, which it accomplished by using a subjective system of promotions without job announcements or an application process, and by actively discouraging black employees from seeking promotions.

The EEOC alleged that the company’s conduct violated Title VII. Elmer W. Davis Inc. will be subject to a five-year consent decree. In addition to the monetary relief, the consent decree requires Elmer W.  Davis Inc. to hire an EEO coordinator to provide training, monitor race discrimination complaints and report to the EEOC on hiring, layoff and promotion activity.

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Wal-Mart to pay $11.7 million for discriminating against its women employees.

 EEOC PRESS RELEASE
3-1-10

Kentucky Distribution Facility Denied Jobs to Female Applicants on a Systemic Basis, Federal Agency Charged

INDIANAPOLIS –Walmart Stores will  pay $11.7 million in back wages and com­pen­satory damages, its share of  employer taxes, and up to $250,000 in administration fees and will furnish  other relief, including jobs, to settle a sex discrimination lawsuit filed by  the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced  today.

 

According to the EEOC’s lawsuit, Walmart’s  London, Ky., Distribution Center denied jobs to female applicants  from 1998 through February 2005. During  that time period, the EEOC contends, Walmart regularly hired male entry-level  applicants for warehouse positions, but excluded female appli­cants who were  equally or better qualified. The EEOC alleged  that Walmart regularly used gender stereotypes in filling entry-level order filler  positions. Hiring officials told  applicants that order filling positions were not suitable for women, and that  they hired mainly 18- to 25-year-old males for order filling positions, the  EEOC said.

Excluding women from employment or  excluding them from certain positions because of gender violates Title VII of  the Civil Rights Act of 1964.

The consent decree settling the  suit, entered by the court on March 1, 2010, requires Walmart to provide order  filler jobs, as they become available, to eligible and interested female class  members, as determined by a claims administrator. Walmart will fill the first 50 available  order filler positions with female class members. For the next 50 positions, female class  members will be offered every other job.  Thereafter, every third position will be offered to female class  members.

“Forty-plus years after the passage  of the Equal Pay Act and Title VII of the Civil Rights Act, far too many  employers are still blatantly excluding women from particular jobs, segregating  their workforces on the basis of sex, and denying women equal pay for equal  work,” said Acting EEOC Chairman Stuart J. Ishimaru. “Let this major settlement serve as a warning: Employers must stop engaging in these  outdated and sexist practices, or they will face severe legal consequences.”

Pursuant to the consent decree, Walmart  has agreed not to discriminate against females in hiring for order filler positions  and not to retaliate against applicants or employees who exercise their rights,  complain about discrimination or assist in an investigation or discrimination-related  proceeding. Walmart will post a notice  of non-discrimination at its warehouse facilities in Kentucky,  train its managers and employees involved in the hiring process at the London Distribution  Center, and use validated  interview questions for the order filler position. Walmart will also submit reports to EEOC  detailing its compliance with the decree.

A settlement administrator will  distribute the proceeds to eligible class members. Walmart has agreed to pay the first $250,000  of the administration costs______________________________

 

Big Lots to Pay $400,000 for Race Harassment

EEOC UPDATE:  February 2010

EEOC Alleged Black Employees Were Subjected to Racial Jokes and Slurs By a Hispanic Supervisor and Co-Workers

The EEOC settled arace harassment and discrimination lawsuit against Big Lots, Inc., the nation’s largest broadline closeout retailer. The settlement included total monetary relief of $400,000 to be paid to least five employees along with a group of unidentified class members. Big Lots also agreed to a two-year consent decree that calls for the implementation of a new policy, training, procedures and court monitoring to address harassment and discrimination in the workplace.

The EEOC originally filed suit against Big Lots in September 2008 in the U.S. District Court for the Central District of California (EEOC v. Big Lots, Inc., CV-08-06355-GW(CTx)). The agency alleged that Big Lots violated Title VII of the Civil Rights Act of 1964 when it subjected a black maintenance mechanic and other black employees to race harassment and discrimination at its Rancho Cucamonga, Calif., distribution center. Specifically, the EEOC alleged that an immediate supervisor and co-workers, all Hispanic, made racially derogatory jokes, comments, slurs and epithets, including the use of the words “n----r” and “monkey.” Despite learning of the harassment, the company took no steps to prevent or correct it.

“Working in a job that they valued highly, the employees in this case rightfully expected to earn a living free of discrimination,” said Anna Park, regional attorney of the EEOC’s Los Angeles District Office. “They should not have had to endure harassment or discrimination based on their race. The EEOC will continue to take all steps necessary to ensure that employees at all workplaces are respected and free from harassment, discrimination and retaliation.”

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$

6.2 Million Distribution in EEOC v. Sears Disability Settlement

From EEOC

235 Former Employees Terminated at End of Workers’ Compensation Leaves of Absence to Share Settlement Proceeds After Participating in Claims Process 

February 2010 - The U.S. EEOC announced court approval of the distribution of a $6,200,000 compensation fund in the landmark Americans With Disabilities Act (ADA) litigation between the EEOC and Sears, Roebuck & Co.  The distribution is being carried out pursuant to the terms of a consent decree approved by Federal District Judge Wayne Anderson.  In its lawsuit against Sears, the EEOC had alleged that Sears maintained an inflexible workers’ compensation leave exhaustion policy and terminated employees instead of providing them with reasonable accommodations for their disabilities, in violation of the ADA.  The case resulted in the largest ADA settlement in a single lawsuit in EEOC history.  

Under the terms of the decree, the EEOC provided claim forms to certain Sears employees who had been terminated under Sears’ workers’ compensation leave policy.  The claimants were asked to report to the EEOC, among other things, the extent of their impairments, their ability to return to work at Sears, and whether Sears had made any attempt to return them to work.  Based on these criteria, the EEOC found that 235 individuals were eligible to share in the settlement.  The average award was approximately $26,300.  More than twenty claimants were found to be ineligible by the EEOC.  As with all EEOC litigation, none of the settlement fund will retained by the EEOC; all of it will be distributed. 

“It is a satisfying day indeed when victims finally receive compensation for the wrongful discrimination they have endured,” said EEOC Acting Chairman Stuart J. Ishimaru.  “The EEOC is pleased and proud that we fought long and hard on this case to protect the rights of workers with disabilities, and that many Sears employees will now benefit from our law enforcement efforts.” 

Chicago Regional Attorney John Hendrickson said, “The Sears case has been a long haul, but now it’s over—this is it. The court has enjoined future discrimination by Sears and approved the amount of money each class member will receive for the particular discrimination he or she suffered.  Their day for compensation is here, and as far as the EEOC is concerned, that makes it a good day for everyone involved.” 

EEOC Trial Attorney Aaron DeCamp noted that, in addition to the disbursement of settlement funds, the EEOC is seeing positive effects from the consent decree.  “As a result of the decree, we believe Sears has an improved workers’ compensation leave process, and it has posted notices regarding the decree.  We know that employees have been seeing the notices because we’ve been receiving inquiries as a result.  So we think it’s pretty clear that our lawsuit genuinely benefited the employees of Sears and strengthened the company’s human resources processes.” 
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EEOC Update:   April 2009

NORDSTROM WILL PAY $292,500 TO SETTLE EEOC HARASSMENT LAWSUIT

The National department store Nordstrom, Inc. will pay $292,500 to 10 former employees and furnish other remedial measures to settle a harassment lawsuit filed by the EEOC.  EEOC charged that the Nordstrom manager harassed Hispanic and black employees based on their national origin, race, and color, and retaliated against those who complained about the harassment.

According to the EEOC’s lawsuit, an alterations department manager complained that she “hate[d] Hispanics,” and Hispanics were “lazy” and “ignorant.” Hispanic tailors were chastised by the alterations manager for speaking to each other in Spanish. The same manager made other derogatory remarks such as “I don’t like blacks” and “you’re black, you stink.” The alterations manager harassed the alterations staff at Nordstrom stores in two stores in Florida.

The employees complained to Nordstrom about the harassment, but the harassment did not stop. The alteration’s manager retaliated against those who complained by continuing the racially offensive comments, unfairly berating employees and citing them for alleged performance problems.

Nordstrom will pay $292,500 in damages under the terms of the consent decree. Nordstrom also agreed to distribute its policy addressing unlawful harassment to all employees in the Florida stores; provide harassment training, post a notice on the resolution of the lawsuit, and submit a semi-annual report to EEOC on all harassment complaints received during the next two years.

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EEOC Update:  April 2009

SILLED HEALTHCARE GROUP, INC. WILL PAY UP TO $450,000 FOR NATIONAL ORIGIN DISCRIMINATION

Skilled Healthcare Group, Inc., Skilled Healthcare, LLC, and other affiliated companies, will pay up to $450,000 and provide significant remedial relief to a class of Hispanic employees at its nursing homes and assisted living facilities who were subject to harassment, different terms and conditions of employment, promotion, compensation, and treatment through the implementation of an English-only rule that was only enforced against Hispanics, according to the EEOC.

The EEOC filed suit against Skilled Healthcare Group Inc., alleging national origin discrimination on behalf of Hispanics under Title VII of the Civil Rights Act in the U.S. District Court for the Central District of California.

“As our country’s workforce becomes increasingly diverse, employers must be vigilant in ensuring that if English-only rules are necessary, they are not discriminatory,” said EEOC Acting Chairman Stuart J. Ishimaru. The lawsuit arose from a charge of discrimination by a monolingual janitor, Jose Zazueta, who was fired from defendants’ Royal wood Care Center in Torrance, Calif., for violating the company’s English-only policy. By contrast, other employees at defendants’ facilities who spoke Tagalog were not disciplined or terminated for speaking that language at work.

The EEOC identified a total of 53 current and former Hispanic employees at facilities in California and Texas who were subjected to disparate treatment and harassment based on their national origin and shared Spanish language. The EEOC alleged that some workers were prohibited from speaking Spanish to Spanish-speaking residents of the facility, or disciplined for speaking Spanish in the parking lot while on breaks. Additionally, the EEOC alleged that defendants gave Hispanic employees less desirable work than non-Hispanic counterparts, paid them less, and promoted them less often.

As part of the, monetary relief for class members, the consent decree provides for the employers to offer English language classes to the 53 claimants. The three-year consent decree also requires that employees receive annual training regarding national origin discrimination; that defendants educate facility residents and patients regarding the rights of the employees under Title VII; that defendants designate an EEO monitor so that future discrimination complaints are closely monitored; and that defendants report annually to the EEOC regarding their employment practices.

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EEOC Update:  April 2009

 

 

   

                                                                                                                                                     JUDGE FINDS AGAINST SUNFIRE GLASS FOR SEXUAL HARASSMENT OF FEMALE WORKERS BY OWNER

A federal district court today entered a judgment for over $267,000 and significant injunctive relief in favor of the EEOC in a discrimination lawsuit against Sunfire Glass, Inc. The suit charged that the company’s owner subjected a class of female employees to severe physical and verbal sexual harassment.

The Judge found that Sunfire owner Paul McBride sexually harassed two female glassblowers by touching the women on their breasts and between their legs, hitting the women on the buttocks, making obscene gestures, and verbally harassing the women by talking about their bodies and using vulgar language.  At times, the court also found McBride would touch the women while they were working with hot glass and were unable to defend themselves against McBride’s advances.  The two women, Tineke Meyer and Karina Mercado, complained repeatedly to management, and no action was taken.  As a result of the abuse, both Meyer and Mercado were forced to resign.

The EEOC’s suit was filed in U.S. District Court for the District of Arizona in September 2008. Despite receiving notice of the lawsuit, McBride failed to submit an answer to the litigation or otherwise appear in the case, and the court entered a default judgment against the company.

The court, in making very specific findings of fact and conclusions of law, awarded Tineke Meyer the equitable remedy of back pay plus prejudgment interest through March 12, 2009, in the sum of $60,287; compensatory damages in the sum of $50,000; and punitive damages in the sum of $50,000; totaling $160,287 in damages against Sunfire Glass, Inc. The court also ordered post-judgment interest at the legal rate until paid in full. Additionally, the court awarded Karina Mercado the equitable remedy of back pay plus prejudgment interest through March 20, 2009, in the sum of $6,781; compensatory damages in the sum of $50,000; and punitive damages in the sum of $50,000; totaling $106,781 in damages against Sunfire Glass, Inc.

The judge ordered Sunfire enjoined from engaging in sex discrimination, ordered Sunfire to train employees on sexual harassment, ordered Sunfire to post notices about sex discrimination, and ordered Sunfire to create anti-discrimination policies and procedures.

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EEOC Update:  April 2009

MARJAM SUPPLY COMPANY TO PAY $495,000 TO SETTLE EEOC RACE DISCRIMINATION SUIT

Marjam Supply Company, Inc., a building materials supplier, will pay $495,000 to five former employees to settle a race discrimination lawsuit brought by the EEOC.  

Civil Action No. 03-cv-5413-SCR in the U.S. District Court for the Southern District of New York, White Plains Division

The EEOC’s lawsuit charged that Marjam discriminated against African American employees in its Newburgh warehouse facility on the basis of their race by subjecting them to differential discipline and termination, creating a hostile work environ­ment, and retaliating against employees who objected to the discrimination.

The EEOC charged that a Marjam supervisor and other Marjam employees made unwelcome racial slurs and comments. The racially hostile workplace included repeatedly calling an employee the N-word, talking about the Ku Klux Klan and referring to burning crosses in front of African American employees. An employee who complained was fired, the EEOC’s lawsuit charged.

The consent decree was sub­mitted to the district court judge for approval after the parties reached a settlement agreement in mediation. In addition to the $495,000 in back pay and compensatory damages to be paid to five former employees, the three-year consent decree includes the following injunctive relief:

  • Adopting non-discrimination and complaint procedures;
  • Appointing an Equal Employment Office Coordinator;
  • Establishing a toll-free number for reporting discrimination complaints;
  • Providing anti-discrimination training;
  • Issuing a memorandum to all employees on Marjam’s commitment to abide by all federal laws prohibiting employment discrimination;
  • Posting a notice about the EEOC, the lawsuit, and Marjam’s non-discrimination and complaint procedures; and
  • Monitoring and reporting on carrying out the settlement terms.

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ADEA, the NLRA, and the Supreme Court – April 1, 2009

14 Penn Plaza, LLC v. Pyett, No. 07-581, 556 U.S.

By a narrow (5-4) vote, the Supreme Court held that a collective bargaining agreement that clearly requires union members to arbitrate claimed violations of the Age Discrimination in Employment Act (ADEA) is enforceable. The decision, however, leaves more questions than answers, such as whether a union can waive a federal forum for discrimination claims if the union has the power to block individual employees from arbitrating such claims, as often is the case.   

To read more about this case, go to:  http://www.abanet.org/publiced/preview/briefs/pdfs/07-08/07-581_Petitioner.pdf

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E

EOC News:  March 2009

 

 

     

N-M VENTURES TO PAY $457,500 TO SETTLE EEOC RACE DISCRIMINATION / RETALIATION SUIT

N-W Ventures, the corporate owner of several restaurants in three states, will pay $457,500 to settle a race discrimination lawsuit filed by the U.S. EEOC. The EEOC charged that N-W Ventures, LLC in Las Vegas subjected a class of African American employees to discrimination, including racial harassment and retaliation. N-W Ventures owns several bars, steakhouses and lounges in Las Vegas, Chicago and Dallas.

According to the EEOC’s suit, eight black employees and other similarly situated individuals were forced to endure racist epithets and insults on many occasions. When some employees complained, managers retaliated against them by instructing supervisors to “get something on them, whether true or not,” and then firing them because of their race and as retaliation for the complaints.

Such alleged conduct violates Title VII of the Civil Rights Act of 1964. The EEOC filed suit (No. CV-07-1197-PMP-GWF in U.S. District Court for the District of Nevada) after first attempting to reach a voluntary settlement.

Besides paying $457,500 to the discrimination victims, N-M Ventures LLC is prohibited from discriminating based on race, and from retaliating against any employee because he or she opposed discrimination. Further, the company must establish an appropriate and effective mechanism for handling complaints of discrimination, and provide training for its managers and employees with respect to the law against racial discrimination and harassment and retaliation at its Las Vegas facility.

Lucy V. Orta, the EEOC’s local director in Las Vegas, said, "To counter these race discrimination trends, employers must be more proactive in preventing and eliminating racist behavior in the workplace."

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EEOC News:  March 2009

EEOC OBTAINS $290,000 FOR FEMALE WORKERS WHO WERE SEXUALLY HARASSED BY MALE NURSE

First Street Surgical Center Settles Discrimination Lawsuit; Remedial Relief Included

First Street Surgical Center, L.P. and First Surgical Partners, LLC., a Houston-area surgical center, will pay $290,000 and provide significant remedial relief to settle a sexual harassment and retaliation lawsuit filed by the U.S. EEOC under Title VII of the Civil Rights Act.  The EEOC charged the surgical center with subjecting several female workers at their Bellaire, Texas, facility to a sexually hostile work environment and that the center retaliated against women who complained about the unlawful conduct.

The EEOC’s lawsuit (Civil Action No. 4:08cv2894, filed in September 2008 in U.S. District Court for the Southern District of Texas, Houston Division) asserted that a male nurse, who eventually was promoted to a supervisory position, made unwanted sexual advances and sexual jokes and innuendos to female colleagues and subordinates. The EEOC said that women who rejected the advances or complained about harassment were then burdened with more difficult job assignments and had their work performance unfairly disparaged. A nurse who made a written complaint detailing acts of alleged sexual harassment by the supervisor was fired the following day. Another woman was given a poor evaluation because she complained about harassment.

“Employers must be vigilant in preventing and addressing discrimination or risk a lawsuit filed by the EEOC,” stated EEOC Acting Chairman Stuart J. Ishimaru.

The settlement terms, set forth in a consent decree require the center to pay $210,000 in relief to compensate three women who filed charges of discrimination with the EEOC. Additionally, $80,000 will be distributed among other current and former employees and contract workers who may have been subjected to sexual harassment or retaliation, and the male nurse whose actions provoked complaints will be permanently barred from working for the center. The decree also requires other corrective actions, including the demotion of the director of nursing, the hiring of a human resources specialist, and training designed to prevent future acts of sexual harassment or retaliation.

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EEOC News:  March 2009

UNITED AIRLINES TO PAY $850,000 FOR DISABILITY DISCRIMINATION

United’s Policy Denied Employees With Disabilities Opportunity to Work Overtime

United Airlines agreed to settle a federal lawsuit alleging that the Chicago-based company’s overtime policy violated the Americans With Disabilities Act (ADA). According to the EEOC’s suit and settlement (CV 09 0784 EMC) filed in U.S. District Court, United will pay $850,000 to a class of employees with disabilities and has agreed not to enforce such a policy in the future.

The suit arose from a charge filed by Samuel Chetcuti, a storekeeper working for United at the San Francisco International Airport. The EEOC’s suit asserted that United’s policy of denying the opportunity to work overtime to anyone placed on light or limited duty had greater repercussions for employees with disabilities, since these workers were more likely to be assigned to light duty. For example, Chetcuti, who has epilepsy, was under medical restrictions that prevented him from operating heavy machinery and working at heights, but did not restrict the number of hours a week he could work. Chetcuti was given light duty for his regular work schedule, and as a result, United had barred him from an overtime schedule despite the fact that he was medically cleared to work overtime.

EEOC San Francisco Regional Attorney William R. Tamayo said, “This blanket policy barring employees working with restrictions from overtime work had a disproportionate impact on workers with disabilities. It runs counter to the ADA’s goal that each employee be evaluated individually on whether they can get the job done, with or without an accommodation.”

The settlement also requires United to notify all current and former employees at the San Francisco Airport who were subject to the rescinded policy and invite them to submit claims to share in the $850,000. Claims may also be submitted to EEOC attorney David Offen-Brown at 350 The Embarcadero, Suite 500, San Francisco, CA 94105 or david.offen-brown@eeoc.gov.

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EEOC NEWS:  March 2009

WHEELER CONSTRUCTION TO PAY $325,000 TO SETTLE EEOC SUIT FOR NATIONAL ORIGIN HARASSMENT, RETALIATION

The EEOC announced that Wheeler Construction, Inc., a Phoenix-based construction company, has agreed to settle a national origin harassment lawsuit for $325,000 and other relief on behalf of Mexican workers.

The EEOC’s complaint charged that employees Leonard Lopez and Juan Campos were subjected to harassment based on their national origin (Mexican) and retaliation for complaining about it. The harassment included comments by a supervisor referring to employees as “wetbacks” and “s--cs” and telling Latino employees to “go back to Mexico.” Lopez was born and raised in Glendale, Ariz., and had 20 years of service with Wheeler Construction at the time of the harassment. When Lopez complained to management about the harassment he was fired.

Campos also attempted to complain about the harassment and Wheeler failed to take any action to address it. After an EEOC investigation, the agency found that two additional employees alerted management of the discrimination and no action was taken.

Wheeler Construction agreed to settle the case for $325,000 and substantial remedial relief, including an injunction, posting an anti-discrimination notice, and training its employees on anti-discrimination laws.

“These victims attempted to speak out and address their unlawful treatment, and their complaints were ignored,” said Chester V. Bailey, director for the EEOC’s Phoenix District Office. “Employers need to take action when alerted to illegal discrimination in the workplace. No employee should be subjected to such intolerable work conditions.”

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BASIC ENERGY SERVICES WILL PAY QUARTER MILLION TO SETTLE EEOC SEX DISCRIMINATION, HARASSMENT AND RETALIATION SUIT

Oil Contractor Fired Woman for Complaining About Sexual Harassment and Unequal Treatment, Federal Agency Charged

Basic Energy Services, L.P. agreed to pay $250,000 and consented to substantial injunctive relief to settle a sex discrimination and retaliation suit brought by the U.S. EEOC. The EEOC charged in its suit that the Midland, Texas-based company, a major oil well servicing contractor, had discriminated against a former field attendant because of her sex and then fired her because she complained about a discriminatory promotion denial and sexual harassment.

According to the EEOC’s suit (No.5:08-CV-1361 in U.S. District Court), Basic Energy Services denied Tawnya Smith, who worked for the company as a field disposal attendant, a promotion to field supervisor in 2006 because of her gender. Further, the EEOC asserted, Smith also was subjected to months of sexual harassment by her immediate supervisor, Roger Caldwell. After Smith filed a charge of discrimination with the EEOC and made an internal complaint about the sexual harassment, the suit said, the company terminated her in March 2007 in retaliation.

The EEOC’s suit was resolved by a consent decree, entered into the record of U.S. District Court for the Western District of Louisiana on March 6, 2009.

Although the company denied wrongdoing, it agreed to pay Tawnya Smith $250,000 in damages. Basic Energy also agreed to post and disseminate new or revised anti-discrimination and anti-retaliation policies and have many of its corporate officers and managers undergo annual training on sex discrimination and the anti-retaliation provisions of Title VII. The company will also develop and implement a recruiting and/or job training program designed to increase a pool of female candidates for promotion in all the company’s Ark-La-Tex Division field positions, excluding those positions typically held by females, for the decree’s three-year term. The company also agreed to report its compliance with the decree terms to the EEOC.

Keith Hill, field director of the EEOC’s New Orleans Field Office, said, “The EEOC’s New Orleans Field Office remains committed to the vigorous pursuit of employers who have denied women equal opportunities to which they are entitled under the law -- especially when the employer then retaliates against women who complained about discrimination.”

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EEOC NEWS:  March 2009

INVESTMENT FIRM SETTLES EEOC PREGNANCY DISCRIMINATION LAWSUIT

MayfieldGentry Fired Woman Right After Maternity Leave, Federal Agency Charged

MayfieldGentry Realty Advisors, L.L.C., a Detroit securities investment firm, agreed to settle a pregnancy discrimination lawsuit filed by the U.S. EEOC. The EEOC charged that MayfieldGentry violated Title VII of the Civil Rights of 1964 when it fired an employee because of her pregnancy.

According to the lawsuit (Case No. 2:08-cv-14105 filed in the U.S. District Court), in October 2006 Yvette Williams was hired as a receptionist / administrative assistant. The EEOC said that on the second day of her employment, Williams advised her supervisor that she was pregnant. A few months later, the EEOC said, MayfieldGentry hired Williams’s replacement and required her to train the new employee. Within a day after Williams returned from maternity leave, MayfieldGentry told Williams that her position had been eliminated and terminated her employment.

Under the consent decree settling the suit, MayfieldGentry agreed to train its managerial staff on Title VII’s prohibition of pregnancy discrimination. In addition, Williams will receive $25,000 in monetary compensation.

“Title VII clearly protects every woman’s right to be free from pregnancy discrimination,” said Laurie Young, regional attorney for the EEOC’s Indianapolis District Office, whose jurisdiction includes Michigan. “No woman should lose her job simply because she decided to have a child.”

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NASHVILLE WAFFLE HOUSE SETTLES EEOC SEXUAL HARASSMENT LAWSUIT

Night Shift Cook Harassed Servers While Managers Ignored Complaints, Federal Agency Charged

A Nashville Waffle House restaurant has been ordered to allow unsecured claims in its Chapter 11 bankruptcy action totaling $45,000 for several women who EEOC claims the company subjected to a sexually hostile work environment.

The EEOC’s lawsuit (Civil Action No. 3:07-cv-00690), charged that SouthEast Waffles, LLC subjected several servers on the night shift at a Waffle House restaurant in Nashville to sexual harassment by a cook who was in charge of the night shift. The suit said the sexual harassment included unwelcome sexual touching, frequent requests for sexual conduct, other frequent sexual comments and other sexual conduct. The EEOC said the women made several complaints to their managers about the sexual harassment, but the managers failed to take prompt and appropriate corrective action to end the harassment.

Under the terms of the three-year consent, SouthEast Waffles is enjoined from subjecting women employees to sexual harassment, and from discriminating against employees because they have opposed employment discrimination made unlawful by Title VII or participated in an investigation or proceeding under Title VII. The settlement also requires anti-discrimination training, corrective action affecting one of the managers who was involved in the alleged illegal conduct, modification of the company’s policies prohibiting harassment, and reporting to the EEOC for three years about all complaints concerning sexual harassment.

"Sexual harassment, and managers’ failure to stop sexual harassment, has been a very serious problem for employees for far too long,” said Faye Williams, the EEOC’s regional attorney for its Memphis District. “We obtained appropriate remedies and corrective action, and we are confident this will help prevent sexual harassment in the future. All employers must respond quickly and effectively to stop this kind of abuse when it occurs.”

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EEOC News:  March 2009

EEOC REPORTS JOB BIAS CHARGES HIT RECORD HIGH OF OVER 95,000 IN FISCAL YEAR 2008

Commission Obtains $376 Million for Victims of Discrimination

The U.S. EEOC announced that workplace discrimination charge filings with the federal agency nationwide soared to an unprecedented level of 95,402 during Fiscal Year (FY) 2008, which ended Sept. 30. This level is a 15 percent increase from the previous fiscal year. The FY 2008 enforcement and litigation statistics, which include trend data, are available online at http://www.eeoc.gov/stats/enforcement.html.

“The EEOC has not seen an increase of this magnitude in charges filed for many years. While we do not know if it signifies a trend, it is clear that employment discrimination remains a persistent problem,” said the Commission’s Acting Chairman, Stuart J. Ishimaru. “The EEOC is committed to vigorously enforcing federal laws prohibiting employment discrimination and will continue to invest in programs such as its systemic litigation program to maximize its effectiveness.”

According to the FY 2008 data, all major categories of charge filings in the private sector (which includes charges filed against state and local governments) increased. Charges based on age and retaliation saw the largest annual increases, while allegations based on race, sex and retaliation continued as the most frequently filed charges. The surge in charge filings may be due to multiple factors, including economic conditions, increased diversity and demographic shifts in the labor force, employees’ greater awareness of the law, EEOC’s focus on systemic litigation, and changes to EEOC’s intake practices.

The FY 2008 data also show that the EEOC filed 290 lawsuits, resolved 339 lawsuits, and resolved 81,081 private sector charges. Through its combined enforcement, mediation and litigation programs, the EEOC recovered approximately $376 million in monetary relief for thousands of discrimination victims and obtained significant remedial relief from employers to promote inclusive and discrimination-free workplaces.

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AMERICANS with DISABILITIES ACT and THE STRENGTH OF A SENIORITY SYSTEM

In the past, the Department of Labor/OFCCP has taken the stand that an employer’s seniority system typically takes precedence over accommodating the needs of disabled employees….and according to the Supreme Court, that is correct interpretation of the ADA and other disability related laws/regulations. 

At least this was the ruling by the Supreme Court involving a baggage handler for US Airways who injured his back on the job.  The baggage handler wanted a job in the mailroom but two co-workers with more seniority were placed in the positions before the employee with a disability. The disabled employee filed a discrimination suit charging that US Airways didn't make a "reasonable accommodation" under the
Americans with Disabilities Act. (US Airways v. Barnett, No. 00-1250, April 29, 2002)


Although seniority will typically rule, please understand that the employer should be consistent with actions.  If the employer has allowed an accommodation to take precedence over seniority in the past, then that employer has changed the policy and should consider all requested in the same manner. 

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LEDBETTER DECISION

President Barack Obama signed his first piece of legislation -- the Lilly Ledbetter Fair Pay Act.

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Filipino Nurses Entitled to Back Pay After Pay Disparity

Alden Mgt. Servs. Inc. v. Chao, 7th Cir., No. 07-3828

June 25, 2008

The 7th U.S. Circuit Court of Appeals ruled that several Chicago-area nursing homes owe a group of Filipino nurses more than $1 million in back pay because they were paid less than nurses who are U.S. citizens.

Alden Management Services, paid Filipino nurses less than it paid registered nurses who are U.S. citizens. The focus was on whether Alden violated the Immigration Nursing Relief Act and it was decided that Alden had paid the nurses less because of the fact that they were non-citizens.  Alden was ordered to pay the difference for the time they were employed under H-1A visas.

Alden argued that the back pay order was invalid because the complaint had not been filed by neither a nurse nor a union. The district court entered judgment for the secretary.

Employers should note that the back-pay in this case extended beyond the typical two-year limit.  Victims of pay disparity may be awarded back-pay for as long as workers continue to receive less pay than the law requires.

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ADEA:  Supreme Court Decides on Age Discrimination Disparate Impact Case

6/19/08  Meacham v. Knolls Atomic Power Laboratory, No. 06-1505

The U.S. Supreme Court placed the burden of persuasion on employers in Age Discrimination in Employment Act (ADEA) disparate impact claims, making it more difficult for employers to defend themselves from ADEA impact claims.   

This decision encourages employers to take an analytical approach when deciding the factors for reductions in force (RIFs).

During a layoff, Knolls Atomic Power Laboratory, a contractor with the U.S. Navy allowed a buyout for 100 employees; however, Knolls continued to have 31 salaried jobs which needed to be eliminated.

To make their selections, employees were evaluated based upon three factors (performance, flexibility, and critical skills), along with total years of service.  Thirty of the thirty-one employees RIFed were over 40 and a disparate impact class action was filed. 

The decision of the Supreme Court was the burden of persuasion falls on the person who wants an exemption (to the ADEA) in the law to apply. 

Bottom Line:  If an employer is considering a RIF, it would behoove that employer to carefully review the criteria for selecting those who will be released.  Ensure that a criterion is objective, with little room for subjective evaluation.  Also, it would be beneficial to conduct an Impact Ratio Analysis on the statistics prior to taking action. 

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ADEA:  Supreme Court Rules:  Basing Disability Benefits on ‘Pension Eligibility,’ is not discriminatory

June 2009   Ky. Ret. Sys. v. EEOC, U.S., No. 06-1037

The Supreme Court ruled that a state’s disability retirement plan that disqualifies employees in hazardous jobs from receiving disability retirement benefits if they become disabled after reaching age 55 does not violate the Age Discrimination in Employment Act (ADEA).  

The Supreme Court held that awarding disability benefits based on pension status is not age discrimination unless pension status is a “proxy for age.”

A benefit program will be reviewed independently, apart from the impact it may have on people who are over 40.  If it benefits younger people, the court will look at it further to decide if the distinction is age-determined.

The Court noted that an employee claiming disparate treatment must prove that age motivated the employer’s decision.  The Court added that ADEA permits an employer to condition pension eligibility upon age, thus it must be decided whether a plan that lawfully makes age in part a condition of pension eligibility and treats workers differently in light of their pension status, automatically discriminates because of age.

The Court found that in the Kentucky case, pension status did not serve as a proxy for age, and the disparity in treatment had a clear non-age-related rationale of treating a disabled worker as if he/she had become disabled after becoming eligible for normal retirement benefits, rather than before.

The Court concluded,” The rule we adopt today for dealing with this sort of case is clear.” “Where an employer adopts a pension plan that includes age as a factor, and that employer then treats employees differently based on pension status, a plaintiff, to state a disparate treatment claim under the ADEA, must come forward with sufficient evidence to show that the differential treatment was ‘actually motivated’ by age, not pension status.”

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SUPREME COURT DECIDES ON RETALIATION CASES

May 27, 2008

The U.S. Supreme Court issued two opinions relating to illegal retaliation, as it pertains to EEO issues.  The Court decided retaliation is a valid issue and should be allowed protection, even in Age Discrimination in Employment Act (ADEA) cases.

In Gomez-Perez v Potter, Postmaster General, a45 year old postal worker claimed she was retaliated against after she filed an administrative ADEA complaint.  The First Circuit Court of Appeals said that the ADEA prohibits discrimination based on age; however, it does not cover retaliation.  The Supreme Court reversed the ruling of the appeals court.  For a copy of the decision, go to: 
http://www.supremecourtus.gov/opinions/07pdf/06-1321.pdf

In CGOCS West, Inc. v. Humphries, a minority employee complained to his managers that a co-worker was dismissed because of discrimination (race/black). Soon following his allegations Humphries was terminated and he claimed illegal EEO retaliation for his
expression of concern.  The Supreme Court agreed with Humphries.  For a copy of the decision, go to: 
http://www.supremecourtus.gov/opinions/07pdf/06-1431.pdf

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EEOC SETTLES CASE INVOLVING DISCHARGE OF SEVEN MIDDLE EASTERN CREW MEMBERS FROM THE CRUISE SHIP PRIDE OF ALOHA

May 2008

The EEOC announced the settlement of a federal lawsuit against NCL America, Inc. for $485,000 to seven former employees and remedial relief. The EEOC alleged NCL America discharged seven Middle Eastern crew members from various positions on the cruise ship “Pride of Aloha.” NCL America denied that it had acted improperly against these crew members in agreeing to resolve the lawsuit.

 

“We are very pleased with this outcome, and NCL America should be applauded for its commitment to prevent discrimination by agreeing to the comprehensive injunctive relief in this case,” said Anna Y. Park, regional attorney for the EEOC’s Los Angeles District Office, which includes Hawaii.

 

As part of the two year consent decree resolving the case, NCL America agrees to pay the crew members $485,000. With respect to the injunctive relief, NCL America further agrees, among other things, to revise its policies to ensure a workplace that promotes EEO, to hire an EEO consultant, and to provide training to its managers and employees on the company’s equal employment policy and complaint procedure.

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This is a federal case; however, it is a good lesson on how to handle pregnancy leave.

EEOC SETTLES SEX BIAS CASE WITH STATE CORRECTIONS DEPARTMENT FOR ALMOST $1 MILLION

May 2008

 

Corrections Department Provided Lesser Benefits to Female Corrections Officers Who Gave Birth While on Workers’ Compensation Leave

 

The New York State Department of Correctional Services will pay nearly $1 million to settle a sex discrimination lawsuit filed by the EEOC and the U.S. Attorney for the Southern District of New York, the two offices announced today. The EEOC and the United States had charged the Corrections Department with violating federal law by providing inferior benefits to female employees on maternity leave.

 

The EEOC suit, filed under the Equal Pay Act of 1963 (Case No. 07-CV-2587 in U.S. District Court for the Southern District of New York), charged that the Corrections Department gave male employees with work-related injuries up to six months of paid workers’ compensation leave. Female employees could be granted the same leave, but pregnant employees on such leave were involuntarily switched to maternity leave at or around the time they gave birth. The Corrections Department’s maternity leave policy requires that women first use their accrued sick or vacation leave with pay; then, if approved, sick leave with half pay and then sick leave without pay.

 

The EEOC charged that switching women from workers’ compensation leave to maternity leave resulted in lesser benefits for those women due to their sex, violating the Equal Pay Act (EPA). The EPA is a federal law requiring that employers pay men and women equally for equal work.

 

The U.S. Attorney for the Southern District of New York joined the lawsuit by adding claims under Title VII of the Civil Rights Act of 1964. The U.S. Attorney’s Office alleged that the Corrections Department engaged in a pattern and practice of employment discrimination on the basis of sex as a result of its categorical determination that a female employee who gives birth to a child should be transferred from workers’ compensation leave and benefits without making a determination whether, on an individual basis, an employee continues to be eligible for workers’ compensation leave and benefits.

 

The court granted final approval of an Order and Stipulation Providing for Injunction and Affirmative Relief, which provides $972,000 in compensatory damages, liquidated damages, back pay and interest to 23 female Corrections employees. The back pay, which includes the value of leave some women were forced to take, has already been paid.

 

The Corrections Department agreed to several elements of injunctive relief as to all its facilities statewide. It has amended its workers’ compensation directive to provide that no female Corrections officer shall be removed from workers’ compensation benefits due to pregnancy or the birth of a child, and it will provide anti-discrimination training to employees across the state, along with training in the administration of workers’ compensation benefits to its personnel employees. The Corrections Department will also give to each female employee preparing to take a maternity leave a packet of all applicable policies, procedures and benefits.

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Read the story (below), recently published in Business First,  then keep reading to find out how you can let your voice be heard:

COURT DECISIONS FURTHER DEFINE EEO LAW 

PAYROLL DISCRIMINATION – WHAT YOU DON’T KNOW CAN COST YOU!

By:  Carol A. Dawson

 

Submitted July 10, 2007

 

I have been increasingly concerned about Supreme Court decisions in the past few years; however, a May 29 decision, (Ledbetter v. Goodyear Tire and Rubber Company) should alarm anyone who believes in equal pay for equal work.   The decision added insult to injury to an already victimized employee.  In a narrow 5/4 decision, the Court ruled that employees who suffer pay discrimination can not file a suit after the 180 day timeframe set for filing an EEO complaint with the EEOC, even if the discrimination is on-going. 

 

Victimized employees typically don’t discover a pay inequity until well beyond the 180 day period after the discriminatory pay is established. The Ledbetter decision, if left unchecked by Congress, will set our quest for equitable pay practices back decades.   

 

Lilly Ledbetter, a female manager at a Goodyear plant, filed a charge with the Equal Employment Opportunity Commission (EEOC) asserting a Title VII claim of sex discrimination. Ledbetter filed after receiving an anonymous letter informing her she had been paid considerably less than her male counterparts for several years.

 

Ledbetter was 60 years old and close to retirement when she learned of the illegal pay practices.  She had presumed through the years that she was being paid equal to the men for the work they were performing.   She discovered her pay had been consistently lower then her male co-workers, including recent male hires with far less on the job experience.   Ledbetter filed her complaint with the EEOC within 180 days from the time she was made aware of the pay disparity, which began “years” earlier.

 

The Supreme Court’s interpretation in the Ledbetter case is disturbing on many levels; primarily, there is the presumption that employees somehow have insights into how their pay has been established and have a vehicle to determine if there is inequity.  While many private sector employers have “open” pay structures, this generally provides only broad salary ranges or bands for various jobs, and certainly does not provide a mechanism to identify discriminatory pay practices.  Consequently, an employee is unable to file a complaint of discrimination if he or she has no clue it has occurred until much later, in many cases, years later.  Sadly, during this time the employee can suffer severe financial consequences. 

 

Most who file EEO complaints do so after evidence shows possible discrimination; however, this decision may encourage employees not to wait. 

 

In this case, the Justices were asked to decide whether the 180-day filing period for a pay claim can be extended as a result of some of the factors outlined earlier in this article. There was a firm line of disagreement with the final decision.  Justices Ginsburg, Breyes, Stevens, and Souter argued in vain to allow flexibility in the 180 day timeframe.

 

Speaking for the minority, Justice Ginsburg stated, “The majority’s decision is totally at odds with the robust protection against workplace discrimination Congress intended Title VII to secure.”  She added, “In our view, this court does not comprehend, or is indifferent to, the insidious way in which women can be victims of pay discrimination.” 

 

After much debate, the Court majority agreed with Goodyear, holding that an employee must specify a discrete unlawful practice within the required 180-day time period, i.e., if the aggrieved employee cannot specify a distinct discriminatory action within the 180-day filing period, the complaint is time-barred, even though the discrimination continues. 

 

Justice Ginsburg called upon Congress to create legislation to counter the Supreme Court’s decision and several members of Congress have taken up her call to action.  Several members of Congress introduced legislation addressing the Supreme Court's decision.  The U.S. House Education and Labor Committee approved a bill titled the Lilly Ledbetter Fair Pay Act (HR 2831).  The bill would change the current statute of limitations on pay discrimination claims filed under Title VII, the Age Discrimination in Employment Act (ADEA), the Rehabilitation Act, and the Americans with Disabilities Act (ADA).  If this legislation is passed, a discriminatory-pay action would occur each time a discriminatory paycheck is issued.

 

The gender gap for pay continues to be a seemingly uncontrollable issue for women in the workplace and the Ledbetter decision perpetuates this practice.   Most employees who suffer pay discrimination are not aware the disparity exists until an extended period has expired.  This decision adds another deterrent for filing legitimate claims; while many individuals are already fearful of retaliation when raising the issue internally or talking with government.  

 

After many years enforcing EEO laws with large and small employers in a variety of industries, I am convinced that most want to pay employees in the proper manner.  All employers should be cognizant of their continued obligations to ensure all employees are being paid according to non-discriminatory factors such as knowledge, skill, ability, effort, and responsibility level. 

 

Prudent employers are encouraged to regularly analyze pay practices and make appropriate adjustments if signs of discriminatory practices are found.  Don’t wait until you are squinting under the bright lights of the federal investigators.

 

Carol A. Dawson is the President of EEO GUIDANCE, Inc., a national EEO/AA/Diversity training and consulting business.  A former Area Director with the U.S. Department of Labor/OFCCP, Carol spent her federal career enforcing EEO and Affirmative Action laws.  She can be reached via e-mail at Cdawson@eeoguidance.com or website: www.eeoguidance.com.   

LET YOUR VOICE BE HEARD: Decisions such as this could set back equality for women (and all people) back to the 1960s.  Think about what this would mean to the next generation of working women. 

EEO GUIDANCE, inc. has become involved in supporting those who are attempting to overturn this recent Supreme Court decision (5-4) which would, if left unchecked, allow U.S. workers to be discriminated against based upon their gender, race, color, etc.   The decision, Ledbetter vs Goodyear Tire and Rubber (hereinafter Goodyear), specifically relates to compensation disparity/discrimination based upon gender/sex.    If you believe in equal pay for equal work, no matter your gender, race, color, religion, physical ability or disability, age, or national origin, then you should get involved by supporting the legislation to reverse this decision.  Legislation (Lilly Ledbetter Fair Pay Act) has been introduced in the House and it passed by a narrow margin (225-199).  The Bush Administration has threatened to veto the legislation. 

The plaintiff (Ledbetter) was discriminated against for nearly her entire 20 years of service to Goodyear...that is not disputed (as she won every lower court and jury decision).  She lost her case merely on a technicality or interpretation of the timeframe to file her complaint.  Since she was not aware of the discriminatory pay until she was told via an anonymous letter, she could not have acted within the 180 day timeframe.  How can you file a discrimination complaint on something like salary or wages, when most companies do not allow employees to discuss compensation?!?!?! 

Prior to this decision, the two EEO Agencies, the Equal Employment Opportunity Commission and the Office of Federal Contract Compliance Programs (OFCCP), used either the date the complainant was made aware of the discriminatory act or  (if discovered by OFCCP or the EEOC), the date of the last issued discriminatory paycheck.  However, the Ledbetter decision would make it impossible to recover lost wages, unless you somehow know about the disparity (from talking to other employees, receive a timely anonymous letter, etc.) and file within the stated 180 day timeframe.  Supreme Court Justices Alito, Thomas, Scalia, Kennedy, and Roberts...along with President Bush have decided it is acceptable to discriminate against a woman (in compensation/salary), as long as she doesn't find out about it until the 180 days have passed from the time the first act of discrimination occurs.  If left unchecked, no longer will an employee (and the government EEO agencies) be able to claim each paycheck is a continued discriminatory act.   

What is next?  Should women, or anyone who believes they are being discriminated against in compensation because of an EEO basis, have to file a discrimination complaint the day they receive their first paycheck to be sure to ensure they are being treated fairly? Considering the EEOC recently moved their backlog of complaints to an acceptable level, I do not believe such a response is the answer.   

A good site for letting your voice be heard is: http://www.CorrectTheCourt.org

The actual decision can be found at: 
http://www.supremecourtus.gov/opinions/06pdf/05-1074.pdf

By the way, Goodyear is not a novice at dealing with discrimination lawsuits and complaints.   We are working to creat an all-inclusive list; however, this is a quick start. 

* In January 2007, Goodyear Tire & Rubber agreed to pay

a total of $925,000 to hundreds of women (approx. 800), who were denied tire-building jobs at its plant in Virginia. The women who were discriminated against by not being hired, will receive an average payment of about $1,150.  The monetary payment is part of a consent decree approved by an Administrative Law Judge to resolve a lawsuit filed by the Labor Department last year on behalf of some 800 women who were denied jobs at the Danville, Va., plant over a year and a half in the late 1990s.

* A 1986 settlement with Goodyear Tire and Rubber Co. provided $5.3 million in back pay to 285 persons, and $340,670 in retirement benefits to 54 other claimants.

This decision is bringing a lot of supporters together to push for the Equal Rights Amendment (ERA) once again. If you know of an upcoming meeting or gathering to discuss the Ledbetter decision, passing the ERA, or other women's issues, please let me know and I will post the information on this site. 

National Ratification Status

Unratified States

Alabama
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Florida
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Utah
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If you want to get involved, check out these events listed below: 

Kentucky:  Find out what you can do but attending a special meeting of the Kentucky Pro ERA Alliance on Saturday, September 8, from 10-11:30 a.m. at the Lang House (115 S. Ewing Avenue, Louisville).  For information call (502) 585-5390 or sistahsoul415@yahoo.com.

 

National Organization of Women (NOW): 

Take a moment today to write to your representative. Our legislative action system will provide a sample message based on how your representative voted on this important bill.

You may recall that in May the Supreme Court wrongly interpreted the rules of the Title VII law against employment discrimination, stating that an employee only has 180 days from the first discriminatory paycheck in which to file a claim of sex discrimination. To correct this error, we worked with allies in Congress to pass the Ledbetter Fair Pay Act; it clarifies the law's original intent of providing that 180 day window from the most recent discriminatory paycheck.

So stay tuned, as a similar bill will be heard by the Senate, likely in September. Because President Bush has pledged to veto this legislation if it comes to him, we need to build a veto-proof majority in both houses of Congress.

Take Action: Let your representative know what you thought of her/his vote on the Ledbetter Fair Pay Act!

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SUPREME NORTHWEST LLC TO PAY $427,000 TO SETTLE EEOC NATIONAL ORIGIN DISCRIMINATION SUIT – For more information, go to:  http://www.eeoc.gov/press/1-7-08.html

 

LOCKHEED MARTIN TO PAY $2.5 MILLION TO SETTLE RACIAL HARASSMENT LAWSUIT - EEOC Says African American Electrician Subjected to ‘N-Word’ and Threats of Lynching at Worksites Across the Country – For more information, go to:  http://www.eeoc.gov/press/1-2-08.html

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L.A. WEIGHT LOSS TO FACE TRIAL FOR SEX BIAS AND RETALIATION

EEOC Class Suit Charges Company with Discrimination Against Men

September 2007 – (Synopsized from the EEOC web site):  A federal court  ruled that the EEOC may proceed to trial with its class sex discrimination lawsuit against L.A. Weight Loss Centers, Inc. (LAWL) on behalf of qualified male applicants nationwide.

The U.S. District Judge rejected LAWL’s court filed motions to dismiss the case. The court held that the testimonial evidence alone that was presented by the EEOC, including discriminatory admissions by various high-level LAWL officials, entitled the EEOC to present its case at trial. The court also granted partial summary judgment to the EEOC regarding LAWL’s failure to maintain relevant employment records.

The EEOC sued LAWL under Title VII of the 1964 Civil Rights Act alleging the company engaged in a pattern or practice of disparate treatment against men in its recruiting, hiring, and assignment of employees. In its suit (Civil Action No. WDQ-02-0648), the EEOC also charged that LAWL disciplined and ultimately terminated employee Kathy Koch, a trainer with the company, in retaliation for attempting to hire male applicants and for her complaints that LAWL failed to hire qualified male applicants because of their gender.

“We are pleased by the court’s ruling allowing the EEOC to proceed to trial,” said EEOC Regional Attorney Jacqueline McNair. “This case is an example of the EEOC’s focus on systemic litigation. Employers should be mindful that Title VII’s prohibition against sex discrimination protects men, as well as women, from being denied employment opportunities based on their gender.”

On March 9, 2007, LAWL filed a motion for summary judgment to dismiss the case, arguing that the EEOC could not establish a prima facie case that LAWL engaged in a pattern or practice of sex discrimination. LAWL also contended that Title VII’s limitations period for filing an individual charge of discrimination limited the scope of relief that the EEOC could obtain in a pattern or practice discrimination lawsuit.

The EEOC also filed a motion for partial summary judgment, arguing that LAWL failed to comply with the statutory obligation to preserve records relevant to the retaliation claim on behalf of Koch, and to preserve hiring and other employment records relevant to the pattern or practice claim. The EEOC requested that the court issue an injunction requiring LAWL to preserve relevant records and give an adverse inference jury instruction regarding the destruction of these employment records.

The court held that in a pattern or practice case under Section 707 of Title VII, the EEOC's remedies are not limited by the 180 or 300-day period for filing an individual charge of discrimination. The court also granted an injunction and adverse jury instruction against LAWL based on its failure to preserve relevant evidence regarding EEOC's retaliation claim.

The EEOC litigation team in the case, added, “The court's ruling is noteworthy because it reaffirms the important principle that the EEOC possesses broad statutory authority to remedy systemic violations of Title VII in their entirety, not simply portions of a systemic violation that happened to occur within the charge filing period applicable to individual plaintiffs. We’re pleased that a jury will have an opportunity to hear the evidence and decide this case.”

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Non-minority Male Discrimination Case Moves Forward

Decorte v. Jordan, 5th Cir. No. 05-31042, 8/15/07.

 

In a much publicized Title VII case, a federal appeals court affirmed a decision against New Orleans' black district attorney who was charged with discrimination by terminating a group of white employees.

 

The lawsuit was filed shortly after the District Attorney won the election and appointed a transition team to evaluate non-attorney staff. According to the lawsuit, within 72 days of his election, the composition of the non-attorney staff changed from 77 whites and 56 blacks to 27 whites and 130 blacks. The district attorney's defense was he was attempting to surround himself with people, regardless of their race, who he knew was supportive.

 

The District Attorney had also pledged during his campaign to hire a staff reflective of New Orleans' racial composition.  Evidence that damaged the District Attorney's case was a "Cultural Diversity Report," prepared by his transition team. The court treated the report as an affirmative-action plan "to focus on race in employment decisions and an intent to achieve a desired racial balance." This violates Supreme Court precedent and EEOC regulations that prohibit an employer's voluntary efforts to achieve or maintain racial balance absent specific findings of past discrimination and manifest imbalance through a court ordered consent decree.

 

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CAESARS PALACE TO PAY $850,000 FOR SEXUAL

HARASSMENT AND RETALIATION

Supervisors Forced Sex on Hispanic Female Workers, EEOC Charged

August 2007

EEOC:  Caesars Palace will pay $850,000 to settle a sexual harassment and retaliation lawsuit filed by the U.S. EEOC. The EEOC had charged that the Las Vegas resort/casino’s Latina kitchen workers were subjected to repeated and sometimes severe sexual harassment.

In its 2005 lawsuit against Desert Palace, Inc., doing business as Caesars Palace, the EEOC asserted that male supervisors would demand and/or force female workers to perform sex with them under threat of being fired. Women, predominantly monolingual Spanish speakers, were forced to have sex in makeshift sex rooms. In addition, EEOC claimed that supervisors performed other lewd acts on or in front of women, including unwanted sexual touching.

The EEOC also charged that management failed to address and correct the unlawful conduct, even though women complained about it. Further, the EEOC said, when workers complained about the unlawful conduct, they were retaliated against in the form of demotions, loss of wages, further harassment, discipline or discharge.

Sexual harassment and retaliation for complaining about it violates Title VII of the Civil Rights Act of 1964.  “In a case like this where many of the workers were monolingual Spanish speakers, victims of sexual harassment often feel further isolated, marginalized and unable to vindicate their rights,” said Anna Park, Regional Attorney for the EEOC’s Los Angeles District. “This case also illustrates that employers need to ensure their policies and procedures provide adequate avenues for complaint and redress to non-English speakers.”

Under the three-year consent decree resolving the case, Caesars Palace agreed to pay $850,000 to the employees identified by the EEOC to have been sexually harassed or retaliated against. As part of the injunctive relief, Caesars Palace further agreed: (1) to provide training to all employees in English or Spanish; (2) to provide semi-annual reports to the EEOC regarding its employment practices for a period of three years; and (3) to revise its employment policies and procedures to conform to its obligations under Title VII. The EEOC filed the suit and consent decree in U.S. District Court for the District of Nevada (EEOC v. Caesars Entertainment, Inc., et al., 2:05-CV-0427-LRH-PAL).

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Ignoring Sexual Harassment Claims Can Result In Rewards To Include Punitive Damages.

June 2007

Parker v. General Extrusions Inc.

A federal appeals court upheld a $50K punitive-damages award against General Extrusions, Inc., because of inappropriate sexual comments made to the female employee by her coworkers rather than by management staff. When the female (Parker) complained about the sexual harassment to supervisors and HR personnel, she received no guidance or assistance, resulting in the court’s decision that a reasonable jury would find that General Extrusions Inc. chose to ignore sexual harassment against Parker and showed a reckless disregard for her rights under Title VII.   

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Starbucks Settles Disability Discrimination Case With Mental Disability (Bipolar Barista).

June 2007

EEOC v. Starbucks Coffee Company

In addition to paying the employee with a mental disability (Bipolar Disease) $75,000, Starbucks will be donating $10,000 to the Disability Rights Legal Center, along with training all managers and supervisors about disability discrimination.  They also were required to inform the EEOC about internal disability claims received over the next year. The employee alleged that despite receiving extra training and support while satisfactorily performing her job for two years, new management refused to provide reasonable accommodations and then terminated her employment because she was not "Starbucks material."

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IS IT  ILLEGAL TO DENY CARE GIVER ACCOMMODATIONS
May 2007

For the most part, previous guidance by the EEOC meant there was no requirement under the ADA that an accommodation be provided to a person who is giving care to a close friend or family member who has a disability.  At the most, it has addressed the requirement not to discriminate against that employee. 

You may want to think again about the ADA interpretation.  The EEOC has provided a fact sheet on this subject:  http://www.eeoc.gov/policy/docs/caregiving.html

 
Commissioner Stuart J. Ishimaru said, "This guidance recognizes the
connection between parenthood, especially motherhood, and employment
discrimination.  An employer may violate Title VII [of the Civil
Rights Act of 1964] when it takes actions or limits opportunities for
employees because of beliefs that the employer has about mothers and
caregivers..."

This new guidance goes to the core of work/family balance issues.
According to Dr. Anika Warren, research director of Catalyst, Inc.,
"women of color are the fastest growing segment of the workforce."
Employers that make use of "diverse talent...through effective and
inclusive organization policies and practices [will have a]
competitive advantage..."

Two social trends in the United States have been driving this type of
guidance from the Commission.  The first is that women continue to
be the primary caregivers within the population, and there are many
more working mothers than in the past.

Employers should avoid inquiring about caregiver responsibilities during
the employment screening process.  If an employer provides child care
leave to women, it should not deny the same leave, under the same
circumstances, to men.  Pregnant employees should be treated no differently
from other workers with similar work restrictions or disability
accommodation requests.  Requests for accommodation based on the need
to take care of a disabled family member should be taken seriously and
reviewed individually. 

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Sexist  Comments By Co-workers Can Create A Hostile Working Environment.

June 2007

Boumehdi v. Plastag Holdings LLC

The federal appeals court for the Seventh Circuit reversed a ruling that had dismissed a female press-department worker's claims of a hostile work environment, constructive discharge, retaliation and sex discrimination in pay and other conditions of employment. The female complainant alleged her supervisor made multiple sexist comments as opposed to comments to sexual comments or sexual advances. The court ruling favored the complainant, concluding the employee should not be required to produce evidence of misconduct of a sexual nature to support the hostile-work-environment claim, adding that comments revealing "anti-female animus" can be severe enough to support a hostile-environment claim under Title VII and Equal Pay Act.  

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$287,640 AWARDED TO FIRED MUSLIM WOMAN IN EEOC LAWSUIT
May 2007


A Phoenix jury awarded $21,640 in back pay, $16,000 in compensatory damages (pain and suffering), and $250,000 in punitive damages to a Somali Customer Service Representative with Alamo Car Renter, Bilan Nur.

The company fired her for wearing a head scarf during the Muslim
holy month of Ramadan.  The Commission called the case a backlash to
the events of September 11, 2001, when America was attacked and the
World
Trade Center destroyed.

Alamo refused to permit Nur to continue to cover her head, as she had
done in previous years, even if she wore an approved Alamo-logo scarf.
The case was prosecuted as religious discrimination under Title VII
of the Civil Rights Act of 1964.   (CIV 02-1908-PHX-ROS, U.S. District Court for the District of Arizona)
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8th Circuit Court Rejects Pregnant Nurse’s Discrimination and Retaliation Claims

6/15/07  - An employee who was pregnant and involved in reporting alleged misconduct was found to not be protected by the Pregnancy Discrimination Act or whistleblower prohibitions, according to the 8th U.S. Circuit Court of Appeals.

Tanya Fjelsta was one of two registered nurses working for Zogg Dermatology in Albert Lea, Minn. She received  a “guardedly positive” probationary evaluation and was offered permanent employment.  Her employer and supervisors were Brian Zogg, medical director, and Deanne Zogg, office manager.

Soon after being hired, the only other Zogg nurse became pregnant and announced her plans to take a leave of absence. According to Fjelsta, in response to Medd’s announcement, Deanne Zogg said, “Tanya, you better take precautions so both you girls don’t end up pregnant. We can’t have both nurses gone at the same time.”

On July 10, Fjelsta told Deanne Zogg that she was also pregnant. Two weeks later, Deanne Zogg gave Fjelsta a poor evaluation and, citing an alleged failure to follow proper surgical procedures, placed her on a 90-day probation.

Fjelsta submitted a written rebuttal to her evaluation. Instead of addressing the basis for her poor evaluation,  she reiterated a previously voiced opinion that a certain procedure of Zogg—allegedly reusing syringes with new sterile needles attached when using multi-dose vials with multiple patients—was inappropriate and in violation of a rule established under state law. Within 30 minutes of submitting the letter, she was asked to leave for the day due to “insubordination.” Deanne Zogg consequently told employees that Fjelsta had been discharged.

Citing Deanne Zogg’s alleged comment about becoming pregnant, Fjelsta sued Zogg Dermatology, alleging that her termination violated Title VII. She also brought a claim under the State (Minnesota) Whistleblower Act. The district court granted summary judgment to Zogg on both claims, and the 8th Circuit affirmed.

The 8th Circuit determined that Deanne Zogg’s comment, made one month before the termination, was considered a stray remark in the workplace. The court noted, the statement reflected no negative attitude toward pregnancy and did not forecast how Zogg would respond if Fjelsta became pregnant. The court concluded that a statement that merely mentions a protected characteristic is insufficient to maintain a discrimination claim.

As for the whistle-blowing claim, the court noted that an essential element of the claim is that the employee make the report “for the purpose of blowing the whistle; to expose an illegality.” The court found Fjelsta’s report lacking in this regard because Fjelsta had previously raised and discussed the same issue with Deanne Zogg. The court concluded that Fjelsta was simply revisiting her dissatisfaction with the policy in an effort to rebut her performance appraisal and that, given her prior raising of the issue, “there was no whistle to blow.” Fjelsta v. Zogg Dermatology, 8th Cir., No. 06-1965 (May 29, 2007).

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9th Circuit: Discrimination Claim Against Kelly Services Corp. (‘Fourth Way’ Members) Will Move Forward

June 2007

Claims of religious discrimination are typically based on the beliefs of the alleged victim or victims.  However, a claim also can be based on the absence of a religious belief, as demonstrated by a decision by the 9th U.S. Circuit Court of Appeals.

Lynne Noyes, a full-time software developer for Kelly Services Corp., sued alleging she was the victim of religious discrimination under Title VII and California law when she was denied a promotion to a manager’s position.

The basis of the claim had nothing to do with her personal religious belief.  Her claim was that she was discriminated based upon the fact that she was not a member of the selecting official’s religious organization called “Fourth Way.”

While a plaintiff typically needs to show he/she is a member of the protected group, that requirement is flexible and could be met by a claim of discrimination based on the non-belief in the same religious tenets as the decision-maker’s. In this case, the individual receiving the promotion, like the alleged decision-maker, was a believer in the “Fourth Way.”

While the district court issued a summary judgment for the employer, the appeals court indicated that a plaintiff, to defeat summary judgment, had to show only that the employer’s asserted reason was a pretext and that she could do so with either direct evidence of discriminatory motive or indirect evidence that undermined the credibility of the employer's reasons.

In finding that there was sufficient evidence of pretext, the appeals court noted the evidence of ongoing favoritism toward members of the Fourth Way, including past favorable treatment of the woman who obtained the promotion. The court reversed the district court summary judgment, which will likely result in either a trial or settlement.

This reveals that discrimination claims can be pursued even if the alleged victim is not a member of a traditional protected group.   Noyes v. Kelly Services, 9th Cir., No. 04-17050 (May 29, 2007).

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From the EEOC.gov site: 

GERIATRIC CENTER TO PAY $900,000 FOR RACE BIAS, NATIONAL ORIGIN DISCRIMINATION, RETALIATION

May 2007 - EEOC Says Benenson Rehabilitation Pavilion Harassed Black and Caribbean Workers

A New York geriatric center will pay $900,000 to settle a class race and national origin discrimination lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today (Civ. No. 05-4601).

The EEOC charged that Flushing Manor Geriatric Center, Inc., doing business as William O. Benenson Rehabilitation Pavilion, subjected 29 black and Caribbean employees (specifically, Haitian and Jamaican) to harassment and retaliation.

According to the EEOC’s lawsuit, the Pavilion permitted harassing comments based on race and/or national origin by its managers and residents against the workers, who served in the nursing, food service, housekeeping, and recreation departments. The EEOC said the Pavilion also prohibited Haitian employees from speaking in Creole while allowing other non-English languages to be spoken at the facility; subjected black and/or Caribbean employees to stricter disciplinary actions as compared to others; and retaliated against those who brought these issues to management.

Employees at the facility formally complained about discrimination to management in 2002, 2003 and 2004 without any effective remedy, the EEOC said. This case also involved egregious retaliation in that the owner attempted to force the charging parties to withdraw their EEOC charges through harassing telephone calls to one of the claimant’s family members. All of this alleged conduct violates Title VII of the 1964 Civil Rights Act.

In addition to monetary payment to the claimants, the settlement requires the facility to hire a qualified human resources professional, implement anti-discrimination polices and procedures, conduct extensive anti-discrimination training, and report internal complaints of discrimination to EEOC over a five-year period.

EEOC New York District Director Spencer H. Lewis, Jr. added, “Employers must be warned that retaliation, such as discouraging employees from filing discrimination charges, is itself illegal.”

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April 2007

FEDEX EXPRESS TO PAY $53.5 MILLION TO SETTLE RACE CLASS ACTION

FedEx Express will pay $53.5 million to settle a racial-bias class action suit if a district court approves the proposed settlement this week.  The race based discrimination lawsuit was filed in November 2003 on behalf of black/Hispanic/ Latino employees and includes charges of compensation bias, discrimination in performance evaluations, promotion, and unfair disciplinary actions.

 

If the FedEx Express settlement is approved by the U.S. District Court for the Northern District of California, the award could benefit 20,000 hourly and entry-level employees who have worked in FedEx's western region since October 1999, and would be among the 10 largest bias settlements in U.S. courts.  However, in the consent decree, FedEx Express denies having discriminatory practices.

 

8TH CIRCUIT UPHOLDS $3.4 MILLION EMPLOYMENT TESTING AWARD AGAINST DIAL CORPORATION


Three judges upheld the District Court ruling in the case of the EEOC v. Dial Corporation (8th Cir, Nos. 05-4183/4311, November 17, 2006), awarding $3.4 million to 50 women who were screened out from employment through discriminatory testing.

Dial is a meat packing company and was experiencing exceptionally
high rates of workers' compensation accidents.  In an effort to
help control expensive job-related back injuries, the company devised
an employment screening tool that would determine if job candidates
could perform the lifting required for particular positions.

The job which showed disparate impact against women was at the Fort Madison, Iowa canned meat plant.  They required workers to daily lift and carry up to 18,000 pounds of sausage, walking up to four miles a day.  They are also required to carry approximately 35 pounds of sausage at a time, lifting the load to heights between 30 and 60 inches above the floor. This job had their highest accident rate.

As part of an effort to control the accident rate, Dial devised a new employment strength test to evaluate job applicants.  In this test, the Work Tolerance Screen (WTS), job applicants were asked to carry a 35 pound bar between two frames, approximately 30 and 60 inches off the floor, and to lift and load the bar onto these frames.  The test was monitored by an occupational therapist who documented how many lifts each applicant completed, and recorded her comments about the applicant's performance.

The case was tried before a jury which found that the physical
performance test did not prove to be a determining factor in job success and had an illegal disparate impact against women.

Does your company conduct an Impact Ratio Analysis or statistical analysis on employment selections at each step in your screening process to
determine if potential problem exist with disparate impact against minorities or women?  If not, you could be one of the EEOC or OFCCP's statistics.  Give us a call or send an email to find out how we can help keep your company in compliance.    For the complete opinion on the Dial case, go to: 

http://caselaw.lp.findlaw.com/data2/circs/8th/054183p.pdf

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Amerigroup Fined $48M for Discrimination

October 2006

Insurance company Amerigroup Corp. (a company that specializes in healthcare for low income patients) and its Illinois affiliate were held liable for what may ultimately total $144 million in damages for discriminating based upon sex - against pregnant women.

A federal court jury returned a verdict against Amerigroup, calling for $48 million in damages.  Lawyers believe this would be tripled under state and federal laws.

Besides the damages, Amerigroup, a company that had revenue of $2.3 billion in 2005 could be penalized with additional fines reaching well into the millions.

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Sexual Harassment Costs The Source $14.5 Million

When will we take this subject seriously?  This complaint came from a top level official...read on...

 

A federal judge in Manhattan ruled in favor of The Source's former editor, Kimberly Osorio, and has ordered the magazine, dubbed the bible of hip hop, to pay $14.5 million in damages.

Osorio, who was The Source's first woman editor in chief, took the publication to court after she was fired last year following a complaint about a workplace that was unfriendly to women employees. Osorio claims she repeatedly was verbally abused, sexually harassed and physically threatened.

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RETALIATION FURTHER DEFINED


The Supreme Court could soon clarify the question, "What constitutes a retaliatory employment practice?" The Court's ruling in Burlington Northern Santa Fe Railway Co. v. White, No. 05-259, may answer some crucial questions regarding retaliation for filing EEO claims. How the Supreme Justicies choose to define retaliatory treatment will have a significant effect on discrimination claims against both private industry employers and also government agencies. A strict standard could potentially discourage targeted employees from speaking up about retaliation; however, a broad interpretation could open the EEO door to a signficant increase in unjustified retaliatory complaints.

Southwest Airlines Will Pay $27.5M

April 2006

Samantha Carrington of Santa Barbara, California was awarded $27.5 million in damages by a jury who agreed who with her allegations that she was racially profiled when Southwest Airlines Co. accused her of assaulting a flight attendant. Carrington is of Iranian descent. Her suit alleged false imprisonment and malicious prosecution. Federal authorities arrested her in 2003 after her Houston to Los Angeles flight made a scheduled stop in El Paso; however, she was not charged with a crime.

Southwest claims that three flight attendants said Carrington, a naturalized citizen from Iran, became verbally abusive, grabbed a flight attendant's arm and threatened to go to the cockpit if the captain was not summoned. Carrington said that the flight attendants were lying and she was the one mistreated. "In the evidence it came out that one of the flight attendants stated that Ms. Carrington reminded her of a terrorist, and in our views she was the victim of profiling stereotypes and discrimination," her lawyer, Enrique Moreno, told the El Paso Times.

A Southwest spokesperson stated they will appeal the verdict.

Commercial Coating Service, Inc. PAYS $1 MILLION TO BLACK MAN CHOKED WITH HANGMAN’S NOOSE BY WHITE CO-WORKERS

March 2006

The EEOC announced the settlement of a racial harassment lawsuit against Commercial Coating Service, Inc. for more than $1 million on behalf of a black employee who was subjected to a barrage of racial epithets, culminating in an incident where white co-workers placed a noose around his neck in the company bathroom and choked him in October 2002.

In its lawsuit, filed in 2003 (EEOC et al. v. Commercial Coating Service, Inc., civil action no. H-03-3984), the EEOC asserted that Commercial Coating did not stop its employees, including managers, from harassing charging party Charles Hickman on the basis of his race (black) and subjecting him to a racially hostile work environment – including verbal and physical abuse. The company, located in Conroe, Texas, specializes in internal and external application of various coating bends, fittings, fabricated spools, valves, and short runs of straight pipe. In addition to the monetary relief for Mr. Hickman, who worked as a sandblaster, the company agreed to enter into a consent decree that will overhaul its employment practices to improve the corporate culture and further equal employment opportunities.

EEOC’s Houston Regional Attorney, Jim Sacher noted, “In addition to being choked with a hangman’s noose, Mr. Hickman was called the N-word and a monkey. The facts showed that the company was aware of the unlawful conduct and did not stop it, which only caused a bad situation to get much worse.”

From EEOC web site data

Employers Charged with Imposing English-Only Rule, Harassing Hispanics and Forcing Out Some Employees After New Company Took Over Hotel


March 2006

The former Melrose Hotel New York and Berwind Property Group, Ltd. (Berwind) will pay $800,000 for national origin discrimination against Hispanic employees and take substantial steps to prevent future workplace bias as part of a major litigation settlement announced today by the EEOC.

The EEOC's lawsuit charged the companies with subjecting Hispanic employees to a hostile work environment; subjecting Hispanic employees to an English-only rule requiring them to speak only English at all times, including while on breaks; firing Hispanic employees; and retaliating against employees for complaining of discrimination. The Melrose Hotel New York was a luxury hotel located on Manhattan's Upper East Side until it closed in July 2005. Berwind is a real estate management company located in Philadelphia.

A consent decree resolving the case (Civil Action No. CV-04-7514), was filed with Judge Alvin Hellerstein of the U.S. District Court for the Southern District of New York. Pursuant to the consent decree, the companies will pay $800,000 in damages to 13 former employees of the hotel.

The consent decree also prohibits the companies from maintaining an English-only rule for employees and requires them to amend and reissue their non-discrimination policy, train employees and managers in equal employment law, and provide periodic reports to the EEOC concerning any new discrimination complaints. The suit was filed by the EEOC on September 23, 2004, after the agency first attempted to reach a voluntary, pre-litigation settlement.


LITHIA CAR DEALERSHIP TO PAY $562,500 FOR RACE BIAS AGAINST BLACK SALESMEN TARGETED BY MANAGER

March 2006

The EEOC announced that a federal district court approved a $562,500 settlement of a race discrimination lawsuit brought by the federal agency and private counsel against Lithia Motors, Inc. and Lithia Cherry Creek Dodge on behalf of three African American former employees who were targeted for harassment and retaliation. Lithia is a national car dealership with headquarters in Medford, Ore.

In the case, James Witherspoon filed a charge of discrimination with the EEOC’s Denver office in 2003 after he received no response to filing an internal complaint with Lithia. Witherspoon alleged that the general manager, who transferred to Cherry Creek Dodge from another Lithia dealership, told him that he would not tolerate “B-P” (“black people”), and that he had fired “some of you people” already. This general manager had in fact fired three black salesmen at his first staff meeting. The discrimination against Witherspoon, including racial slurs, only increased after he filed the internal complaint, forcing him out of his job. However, Lithia’s internal investigation found no problems.

“Too often, employers use their resources to wear down employees financially and emotionally when they seek a remedy for discrimination,” said Witherspoon, commenting on the case. “I am extremely appreciative that the EEOC has worked so hard to compensate me for the losses I suffered.” In addition to the monetary relief, the four-year consent decree provides significant injunctive relief, including the review and implementation of company anti-discrimination policies and procedures, and the provision of training on equal employment opportunity law. The EEOC’s suit was filed under Title VII of the Civil Rights Act of 1964 in September 2005, after the agency first attempted to reach a voluntary settlement through its conciliation process. Federal District Court Judge Phillip S. Figa approved the consent decree in the case, EEOC v. Lithia Motors, Inc. and Lithia Cherry Creek Dodge, Inc. case (CIV 05-cv-01901-PSF-MJW).

According to its web site (www.lithia.com), “Lithia Motors, Inc. is one of the largest full-service new vehicle retailers in the United States with 94 stores and 186 franchises in 12 states in the Western United States.”

Yes, Virginia, There Really Is Such A Thing As 'Frivolous' Legal Action

A federal judge ruled that the EEOC must pay more than $1 million to the law firm, Robert L. Reeves & Associates. In 2001, the EEOC sued the firm unsuccessfully for allegations of sexual harassment and pregnancy discrimination. The law firm practices immigration law.

Reeves maintained that EEOC should have known that the harassment and discrimination allegations the agency was pursuing were part of a plan by two former law associates to destroy the firm. EEOC Regional Attorney (LA District Office), Anna Park advised the EEOC has appealed the judge's finding.

Before the EEOC sued Reeves, Tevrizian said, commission staffers only interviewed the two former Reeves associates and a third person who was romantically involved with one of them. One of the former associates, Tevrizian added, was also a decision maker in the firm's dismissal of an employee who complained she was fired after she became pregnant.

No illegal Bias Against Flight Passenger Who is Overweight


February 2006
Southwest Airlines was found not guilty of "racially" discriminating against an overweight flight passenger when she was required to purchase two seats side by side. The federal court jury didn't deliberate long before coming to this conclusion against Nadine Thompson. Thompson alleged she was singled out because of her race (black), indicating the arilines (Southwest) policy on customer's size was applied to her unfairly. She filed the complaint in June of 2003.

Southwest argued their only mistake was to tell Thompson she had to purchase a second ticket after she had already boarded the plane. The airline employees stated they were not aware of the provision that allowed her to sit in two seats if she had already boarded the plane. The airline employees said they simply misunderstood the policy and made a mistake; however, they claimed the mistake was not made because of race. "Is everyone who makes a mistake a racist?" asked Southwest's Garry Lane in his closing arguments. "They didn't know they were doing it wrong."

The "customer of size" policy for Southwest Airlines applies to customers who can't sit in a seat without having the armrest raised and are sitting on part of the adjacent seat. Thompson, who said she doesn't consider herself a "customer of size," didn't challenge the policy; however, she stated that it allows any employee to operate "in a discriminatory way about the policy."

 

Dept. of Justice Settles Case Against AMC Over Theater Design

January 12, 2006

To settle a US lawsuit, AMC Entertainment Inc., the nation's second-largest movie-theater chain, agreed to upgrade seating for patrons in wheelchairs at 1,200 of its stadium-style movie auditoriums and pay $300,000 in penalties and civil damages.

Justice Department officials said the order settles its 1999 lawsuit against the company claiming AMC violated the Americans with Disabilities Act because it doesn't provide comparable seating for people in wheelchairs.

The Kansas City–based company also must ensure that all theaters built over the next five years comply with requirements set out by U.S. District Judge Florence-Marie Cooper in Los Angeles. The stadium-style seating gives everyone unobstructed views of the screen. But most wheelchair spaces are at the base of the stadium tiers, forcing those patrons to crane their necks to see the movie.

As part of the order, privately held AMC, which operates more than 3,300 screens, must build ramps in more than 360 theaters, providing wheelchair spaces on higher seating tiers. The company also must pay $200,000 to theatergoers who originally complained to the Justice Department about the seating arrangements and $100,000 in fines. "Providing the same moviegoing experience for individuals in wheelchairs that other patrons enjoy delivers on the promise of the ADA ," Assistant Attorney General Wan J. Kim said in a release. "These improvements will make the goals of the ADA a reality for thousands of Americans who want to enjoy this popular form of entertainment."

 

GM's Decision Refusing to Have Religious Employee Groups is Okay
December 2005

The 7th Circuit U.S. Court of Appeals in Chicago ruled (December 2005) that GM's Affinity Group diversity program does not discriminate against Christians. The ruling stressed the fact that they treat all religions equally.

The court upheld a decision by a federal judge in Indianapolis, where the original lawsuit was filed by John Moranski, a born-again Christian who works at GM's Allison Transmission plant in Indianapolis.

Moranski applied in December 2002 to start an interdenominational Christian employees group as part of the diversity program, according to court documents. Currently, GM allows programs for gays and lesbians, Latinos, blacks individuals with disabilities, and other diverse groups to organize in employee groups.

GM rejected the application because program guidelines do not allow Affinity Groups to promote religious positions, the documents state. Moranski filed a complaint with the Equal Employment Opportunity Commission and then filed a federal lawsuit claiming that the denial constituted illegal religious discrimination.The appeals court agreed. "The allegations in Moranski's complaint make clear that General Motors would have taken the same action had he possessed a different religious position," Judge Ann Claire Williams wrote in opinion. Williams wrote, "Simply stated, General Motors's Affinity Group policy treats all religious alike—it excludes them all from serving as the basis of a company-recognized Affinity Group."

EXPANSION OF "HOSTILE ENVIRONMENT" IN 9th CIRCUIT

November 2005

Employers in the 9th U.S. Circuit Court of Appeals received a surprise decision
on September 2, 2005, when the appellate body published its ruling
in the case of EEOC v. National Education Association.

Circuit Judge Alfred T. Goodwin wrote in the Court's opinion,
"This appeal presents the question whether harassing conduct
directed at female employees may violate Title VII in the absence
of direct evidence that the harassing conduct or the intent that
produced it was because of sex. We hold that offensive conduct
that is not facially sex-specific nonetheless may violate Title
VII if there is sufficient circumstantial evidence of qualitative
and quantitative differences in the harassment suffered by female
and male employees."

In this case, there was no demand for sexual favors. There were no sex-related
jokes. There were no photos or drawings of a sexual nature in the
workplace. However, the impact of the supervisor's abusive behavior
was apparently terrifying to the female employees while the male employees
were basically unaffected. Even though the supervisor was spiteful and
abusive to everyone, both men and women, Judge Goodwin indicated it
was the impact that mattered. The Court said there is a difference
in impact on the women, therefore the impact of the abusive
behavior is sex related. And, that is illegal discrimination based
on sex, a violation of Title VII of the Civil Rights Act of 1964.

Judge Goodwin concludes, "There was sufficient evidence for a
rational trier of fact to conclude that the alleged harassment
by [the boss] was both because of sex and sufficiently severe to
support a hostile work environment claim under Title VII."

COURTS CHANGE WITH EACH DECISION…WHAT IS “REASONABLY SHOULD HAVE KNOWN” REGARDING SEXUAL HARASSMENT?

November 2005

 

The U.S. Ninth Circuit Court of Appeals ruled on a sexual harassment case in which the employee notified the employer that something was amiss; however, would not provide detailed information, i.e., who, what, when, where, etc., and they subsequently could not perform an investigation.

 

How many times have you heard someone say, "I want to ask you about something, but I can't give you all the details and I don't want you to do anything about it?"  More often than you would like, I'm sure. This is not a good position for a manager, and the best thing you can do at that time is to take copious notes of the conversation, look into the information provided (to the best of your ability given limited information), and reiterate the EEO policy to all employees and managers. Hopefully by the time the issue comes up, you have already trained your managers and employees and they know harassment is against the company policies as well as the law.

In this case, an appellate court ruled (Hardage v CBS Broadcasting, Inc. - U.S. 9th Cir., 03-35906, 11/1/2005 ) held that the employer may not be held liable if the employee won't release any information about what happened and who was involved.  In this case, the employee charged harassment but refused to give the HR manager any of the "gory details." 

The court said, "...an employer's response to a harassment complaint may be deemed reasonable as a matter of law even though the employer conducted no investigation and took no action to address the harassing behavior."  In a minority opinion the court wrote, "The most significant immediate measure an employer can take in response to a sexual
harassment complaint is to launch a prompt investigation to determine whether the complaint is justified."

Obviously, there are still mixed opinions about liability in these circumstances.  The safest approach seems to be one where the employer opens an investigation, even if it knows or suspects in advance that there won't be enough information with which to conduct a thorough investigation.  Making such a determination formally requires an investigation be opened.

Want to read the court's opinion?  http://caselaw.lp.findlaw.com/data2/circs/9th/0335906p.pdf

AEROSPACE COMPANY TO PAY $1.25 MILLION FOR HARASSMENT OF HISPANIC EMPLOYEES

EEOC Suit Charged Hamilton Sundstrand National Origin Discrimination


May 2005 - The EEOC settled a class-wide discrimination lawsuit against aerospace and industrial product manufacturer Hamilton Sundstrand charging that a class of Hispanic employees at the company's Grand Junction, Colorado, facility was harassed and subjected to a hostile work environment based on their national origin.
The consent decree, a voluntary agreement between EEOC and Hamilton Sundstrand, provides for $1.25 million to resolve the lawsuit on behalf of 12 class members who were harmed by the alleged unlawful conduct. In addition to the monetary relief, the consent decree requires Hamilton Sundstrand to:
Provide training on the requirements of federal anti-discrimination laws, with appropriate levels of information presented to non-supervisory employees, managers, and human resource employees.
Appoint an EEO Coordinator to ensure compliance with the consent decree and oversee the company's investigation of employee complaints of discrimination, including retaliation complaints made by employees after reporting possible violations of anti- discrimination laws.
Review and revise policies and procedures to ensure compliance with federal anti- discrimination laws, as well establishing and maintaining an effective complaint procedure for all employees.
"This settlement represents a major step forward in the EEOC establishing a strong presence on the Western Slope," said Joseph H. Mitchell, Regional Attorney in the EEOC's Denver District Office. "Employees and employers alike need to be aware that discrimination laws are vigorously enforced throughout our jurisdiction and across the country - not just in Denver."

JILLIAN'S TO PAY $360,000 FOR SEX DISCRIMINATION AGAINST MEN EEOC Lawsuit Said Company Maintained Sex-Segregated Job Classifications

2004: The U.S. EEOC announced the settlement of a sex discrimination lawsuit under Title VII of the 1964 Civil Rights Act for $360,000 and comprehensive injunctive relief against Jillian's of Indianapolis IN Inc., Jillian's Entertainment Holdings Inc., and Jillian's Entertainment Corporation, on behalf of a class of male employees.

Jillian's operates a nationwide chain of family dining/entertainment facilities in about 25 states with more than 5,000 employees. The company is headquartered in Louisville, Kentucky. Further information about the company is available online at www.jillians.com.

The suit, filed in the United States District Court for the Southern District of Indiana, Indianapolis Division, alleged that Jillian's maintained sex-segregated job classifications on a nationwide basis and failed to hire and/or transfer a class of male employees to lucrative server positions and other so-called "female" job classifications because of their sex. The EEOC alleged that the company's actions were intentional and demonstrated a reckless indifference to the rights of the class of men. Under the terms of the three-year Consent Decree settling the case, Jillian's agreed to:

•  Pay $350,000 in damages to Indianapolis class members - estimated to be at least 100 men - and $10,000 in administrative expenses to advertise for and locate Indianapolis class members;

•  Hire/place employees at all its facilities without regard to sex, and prepare sex-neutral job descriptions;

•  Post and distribute a notice of non-discrimination at all facilities nationwide and append a notice of non-discrimination to its employment applications;

•  Train its managers nationally on Title VII's prohibition against sex-based hiring/placement and include a notice of non-discrimination in its employment advertising; and

•  Maintain applicant flow logs and report to the EEOC on complaints of discrimination.

$80 Million Settles Race-Bias Case
May 2005 - Washington Post

Sodexho Inc., the Gaithersburg-based food and facilities-management company, agreed Wednesday to pay $80 million to settle a lawsuit that claimed it systematically denied promotions to 3,400 black mid-level managers.

The company also agreed to widespread training and a more structured hiring process for its 106,000 employees throughout the country, in an effort to promote more minorities into higher corporate jobs. A panel appointed by the plaintiffs and the company will monitor Sodexho's compliance.

Sodexho admitted no wrongdoing but plaintiffs said settlement of the case, which was to go to trial next week, vindicates their contention that the company regularly overlooked qualified blacks for corporate promotions. The thousands of members of the certified class will receive as much as to $60,000 each, based on their length of service, while 10 named plaintiffs who brought the
case in 2001 will receive an additional $120,000 each.

Cynthia Carter McReynolds, one of the named plaintiffs, said she hoped the settlement would let others avoid the sense of frustration she felt over 20 years as Sodexho moved her laterally from one location to another but never promoted her. McReynolds, who has a master's degree in management and human
resources, is now general manager of food and nutrition at Howard University.

In the years since the Sodexho lawsuit was filed, the proportion of blacks in management positions at the company has remained around 12 percent, Aun said. Currently, 1,921 of Sodexho's 15,532 managers are black.

In contrast, the plaintiffs maintained, only 2 percent of the company's upper management is black. About one-fourth of the company's total workforce is black.

For years, Sodexho fought to get the lawsuit dismissed. After a federal judge certified it as a class action in 2002, the company appealed all the way to the U.S. Supreme Court, which declined to hear the case.

$29M in Damages to Ex-UBS Exec ~ Gender Discrimination
April 2005


A federal jury awarded $29 million in damages Wednesday to a former Wall Street executive who sued UBS AG, alleging the bank discriminated against her because she was a woman. Retaliation was also part of the claim. Zubulake, 44, a former director for the bank's Asian equities sales desk in Manhattan and Stamfort, Connecticut said also included retaliation in her claim. Zubulake sued UBS, Switzerland's largest bank, after being two years into the job, in 2001.


The jury awarded $9.1 million in compensatory damages and $20.1 million in punitive damages. In her closing statement, lawyer Bettina Plevan for UBS said Zubulake was fired because she "had performance problems" and was not a team player. "Despite the extensive coaching and counseling she received, she did not improve and she didn't even acknowledge that there was a problem that she needed to address," Plevan said.


Complainant's lawyer, James R. Hubbard, had asked the jury to award Zubulake between $9.7 million and $10.2 million. Hubbard told jurors a male executive said Zubulake was "old and ugly and she can't do the job." Zubulake stated she hoped the verdict would encourage "all women on Wall Street who experience similar things."

SUPREME COURT LOWERS BURDEN OF PROOF IN AGE DISCRIMINATION CASES

Workers will now be able to claim disparate impact when suing employers over age discrimination, the Supreme Court ruled Wednesday.

The 5-3 ruling allows workers to sue employers when a policy produces a discriminatory effect based on age, not only when the policy intentionally discriminates based on age.

The decision removed the caveat, deemed necessary by a number of lower courts, that employees must produce a proverbial "smoking gun" evidence to pursue a suit.

The ruling could affect approximately 75 million people in the public and private sectors, according to briefs filed with the court. It is estimated that more than half of the entire workforce will be over 40 by 2010.

Employers, however, did retain some power after the decision.

Justice John Paul Stevens wrote in the majority opinion that employers could defend themselves by proving that a challenged policy was grounded in "reasonable factors other than age."

The court's decision stemmed from a lawsuit brought by group of older police officers in Jackson, Miss., who challenged the city's decision to give proportionately higher pay to younger officers. The court allowed the group to use a disparate impact argument but ruled against the officers.

Justices Ruth Bader Ginsberg, David Souter, Stephen Breyer, and Anthony Kennedy backed Stevens' opinion.

In a concurring opinion, Justice Sandra Day O'Connor stated that allowing workers to use "disparate impact" as a basis for litigation would hamper businesses seeking to cut costs. Companies looking to dump large salaries-typical of older workers with seniority-will now have a harder time doing so.

March 2005 - EEOC WINS JURY VERDICT OF NEARLY $400,000 FOR OLDER WORKER FIRED BY CASKET COMPANY


(...recognize the last name?)


The EEOC announced an award of $397,948 in backpay and damages to a 56-year old veteran foreman of a Baltimore, Maryland-based wholesaler of burial caskets who was fired due to age discrimination after three decades of work for the company.
The EEOC's lawsuit said that
Fred W. Kuehnl, who upholstered the interior of caskets and served as foreman of the Warfield-Rohr Casket Company's trimming division for 29 years, was fired by CEO Howard Ayres on April 28, 2000, due to ageism. Warfield-Rohr, founded in 1870, is one of the oldest casket makers and funeral supply firms in the Mid-Atlantic, with operations in Maryland, Virginia, and Delaware.
"Although it took over five years, it feels good when you know that you were right," said Kuehnl after the verdict was delivered following a four-day trial. "I feel vindicated for the discrimination I suffered because of my age." In addition to the nearly $400,000 in lost wages, the EEOC is requesting that the court also award equitable relief to Kuehnl, including front pay and an injunction prohibiting the company from future acts of age discrimination.
The EEOC asserted in the suit that prior to terminating Kuehnl, CEO Ayres made numerous inflammatory age-based remarks and indicated that a younger employee could better serve the company. Despite Kuehnl's superior experience and qualifications as a long-time employee of the division, he was forced to train his 33-year old replacement prior to his termination. Kuehnl testified that when he told Ayres that he planned to work until age 65, the CEO remarked in a derisive tone, "We will see about that."

Lesbian UPS Driver Terminated Because She Was Considered Unfeminine

March 16, 2005

A California jury awarded $63,670 to a lesbian UPS driver who sued the company for wrongful termination. Kathy Hoskins, a delivery driver, sued after being terminated for taking "personal time during work hours."  Hoskins has been with UPS for 15 years.  Hoskins argued that her dismissal was based upon her appearance a demeanor, "gender presentation," instead of abuse of personal time policies.

The San Francisco jury agreed, noting she had been subjected to, " unwanted harassing conduct " from coworkers and supervisors. The jury did not that  they did not believe UPS' behavior was "outrageous,"it was found that the company did not take timely or appropriate corrective action. (Something we have been telling our clients for years.) Hoskins was awarded economic damages to the tune of $13,670 and $50,000 for emotional distress.  Oh yes, and additional award to cover all attorneys' fees and costs.

 

Dept. of Homeland Security (DHS) gets a lesson in McDonnell Douglas (burden of proof) ~ Patrick v. Ridge, U.S. Court of Appeals for the Fifth Circuit, No. 04-10194

December 15, 2004

Note: This is long, but it is an important EEO decision and can be viewed under the government side of the case page.
In a case in which a Department of Homeland Security (DHS) employee alleged that she was discriminated against because of her age, the agency’s statement that the employee was not “sufficiently suited” for the position she sought was not specific enough to satisfy the agency’s burden of proof under McDonnell Douglas, the Fifth Circuit ruled last month.

Bottom Line: DHS’S STATEMENT THAT THE EMPLOYEE WAS NOT “SUFFICIENTLY SUITED” FOR THE POSITION WAS NOT SPECIFIC ENOUGH TO SATISFY ITS BURDEN OF PROOF IN THIS AGE DISCRIMINATION CASE

February 2005 - Air Force settles discrimination Case Filed by Non-minority Males

I have been warning agencies and companies for years now that employment quotas are illegal if they are based upon a discriminatory basis...gender, race, etc. The Air Force apparently found out too late. They have agreed to pay $880,000 to nine white male workers at Georgia's Robins Air Force Base who claimed that a quota system gave preferential treatment to black and female employees at the base. The Atlanta Journal-Constitution reported that the Air Force settled the case, which was filed in April 2002.

Lee Parks, who represented the workers, said the quotas were part of a system wide problem, however the government settled on behalf of the nine workers because evidence of discrimination against them was particularly strong. Lee cited e-mails from supervisors admitting that they were pressured by Air Force headquarters and the Pentagon "to increase the appraisals of blacks and women and decrease those of other workers," according to the newspaper. "The quota-based performance process went on for a good number of years and affected hundreds, if not thousands, of people," Parks said. 

Hint: Forget the term, "Reverse Discrimination," as the term does not make sense. The definition of reverse is: to turn completely about in position or direction. If you were to reverse discrimination, you would be eliminating it.  Discrimination against any person based upon race, color, religion, sex/gender, disability, age, national origin, or special veteran status is simply put...discrimination.  Learn what Affirmative Action is and what it is not - it is not a quota in employment, unless the courts have put the agency or company under a consent decree. For more information, contact us!

 

EEOC AND NORTHWEST AIRLINES, INC., ANNOUNCE SETTLEMENT OF DISABILITY DISCRIMINATION SUIT
MINNEAPOLIS, Minn. - The EEOC and Northwest Airlines, Inc. (Northwest) today announced the settlement of a lawsuit under the Americans with Disabilities Act (ADA). EEOC's lawsuit, filed on April 25, 2001, alleged that Northwest excluded applicants for airport ramp equipment service employee and cleaner positions if they had epilepsy or insulin-dependent diabetes. Northwest specifically denies the allegations and believes that its hiring processes are and were proper, but is voluntarily entering into the settlement to avoid protracted litigation.
A key element of the agreement is that Northwest will offer an individualized assessment of the current ability of an airport ramp position applicant with insulin-dependent diabetes or a seizure disorder to safely perform, with or without reasonable accommodation, the job's essential functions. Northwest also will provide a settlement fund of $510,000 for distribution among 28 individuals for whom the EEOC was seeking relief.


Whoa...what were they thinking???

EEOC AND JOHNSON INTERNATIONAL SETTLE PREGNANCY DISCRIMINATION SUIT FOR $450,000
Job Offer Withdrawn After Pregnancy Revealed, Suit Charged
MILWAUKEE - The EEOC has settled, for $450,000, its lawsuit against Johnson International, Inc. The EEOC suit alleged that the company, now known as Johnson Financial Group, discriminated against Rae Ann Good by withdrawing a job offer as Executive Vice President after she disclosed that she was pregnant.
Under a Consent Decree settling the suit, approved by U.S. District Judge Thomas J. Curran on December 27, 2004, Johnson International will pay $450,000 in lost wages to Ms. Good. The company is also ordered not to discriminate on the basis of pregnancy, and to report to the EEOC for the next two years concerning female applicants for executive positions.
In its lawsuit, the EEOC alleged that Ms. Good applied to Johnson Financial Group in Racine, Wisc., for a position as Executive Vice President in April 2002. After a number of interviews and reference checks, she was offered a written employment offer, which she accepted. She then disclosed that she had recently learned that she was pregnant. The job start date was then postponed and eventually canceled, the EEOC says.


JURY ORDERS FEDERAL EXPRESS TO PAY $1.57 MILLION IN EMPLOYMENT BIAS SUIT BY EEOC
EEOC and Plaintiff's Counsel Score Victory for White Senior Manager Retaliated Against for Lodging Discrimination Complaint
ORLANDO, Fla. - In a trial ending today, a jury in Federal District Court for the Middle District of Florida in Orlando returned a $1.57 million dollar verdict in favor of the EEOC, Ted Maines and his private counsel, Jill Schwartz & Associates, P.A., in their workplace discrimination lawsuit against Memphis, Tenn.-based shipping giant Federal Express Corporation for violating Title VII of Civil Rights Act of 1964.
The jury found Federal Express liable for retaliation and the constructive termination of Maines, a 21-year employee of the company, and awarded him $201,000 in back pay and $1,370,000 in compensatory damages for emotional pain and distress. Maines, who is white, sought to promote an African American and a Hispanic, both longtime Federal Express employees, to supervisory positions, but was rebuffed and retaliated against by a corporate management official who favored a white female recently employed by Federal Express.
Maines began his career with Federal Express more than two decades ago answering telephones in their customer call center and rose through the ranks over the years to Senior Manager of the Customer Account Service Department in Orlando. After the jury verdict was read, he commented:
"I feel vindicated for trying to do the right thing," said Maines. "As a senior manager for one of the world's most recognized companies, I tried promoting people based on merit and their qualifications for the job, regardless of what their skin color, race or ethnicity happened to be. When I saw that management was engaging in what I believed was discrimination against individuals I selected for promotion, I thought that calling the Legal Department was the right thing to do. For that, I was met with harsh retaliation by corporate management which nearly ruined my life and career. I am grateful for the EEOC and my attorneys, Jill Schwartz and Andrew Wedmore, for their efforts on my behalf to ensure that justice was done and the rule of law prevailed."
The suit (Case 6:02-CV-1112-ORL-28DAB), filed by EEOC in September of 2002, alleged that Federal Express violated the law when it retaliated against Maines after he consulted the company's in- house legal department at corporate headquarters on or about February 7, 2001. At the time, Maines reported what he reasonably believed to be discriminatory employment practices on the part of one of the company's vice presidents who rejected his attempt to promote an African American and Hispanic employee to the supervisory level.
Approximately one week later, as a result on his speaking out, Federal Express gave Maines the following ultimatum: either accept a demotion of five pay grade levels and report to his subordinate, or be issued a strongly worded warning letter and face immediate termination for any subsequent "mistake."
When Maines advised the company that he could not reasonably accept either "option," Federal Express immediately issued a disciplinary warning letter containing a threat of termination as well as a verbal admonishment stating that the vice president wanted him to know that the very next mistake he makes would be his last as a Federal Express employee. Thereafter, Maines was subjected to intense scrutiny, including electronic monitoring. He believed that his phones were monitored and his work was subjected to a heightened level of review. As a result of his being targeted by Federal Express for retaliatory conduct, the terms and conditions of Maines' employment became so intolerable that he was forced to resign (constructive discharge).
Delner Franklin-Thomas, EEOC's Miami Regional Attorney who oversees the federal agency's litigation in the state of Florida, said Maines should be applauded for his willingness and courage to speak out against what he reasonably believed to be discrimination by a high ranking Federal Express officer. "Maines spoke to the Federal Express legal department because he sincerely believed that a Black and Hispanic employee were being deprived of promotions due to a company vice president's discriminatory desire to promote a recently hired white employee into the vacant management position."
Federico Costales, Director of the EEOC's Miami District Office, noted: "It is unfortunate that Federal Express, in this instance, failed to exhibit model corporate responsibility by addressing the concerns raised by Maines, but instead launched a campaign of unlawful retaliation against him. This jury's million dollar verdict sends a strong message to Federal Express and other employers that EEOC will vigorously prosecute employers who chose to retaliate against employees who engage in conduct protected by the federal anti-discrimination laws."

Sunoco Agrees to $5.5M Race-Discrimination Settlement

December 2004

Sunoco Inc. has agreed to pay $5.5 million to settle a discrimination suit filed by current and former employees who said they were denied promotions based upon their race (black).  The 2001 class-action suit claimed that black managers, administrators, accountants and other white-collar workers had a harder time advancing at Sunoco than white workers with similar skills and experience.

Approximately 200 current and former employees at the Philadelphia oil refiner's headquarters and facilities around the city could beneift as part of the settlement. 

Sunoco spokesperson Gerald Davis said company officials still believe the lawsuit was without merit and the company did not discriminate, but felt it was in the company's best interest to settle before the case got to trial. "Sunoco is committed to providing equal employment opportunities to all qualified candidates,'' Davis said. "We feel good about the progress the company has made in the representation of African Americans in both supervisory and management positions."

HONEYWELL INTERNATIONAL TO PAY $2.15 MILLION FOR AGE DISCRIMINATION, IN EEOC SETTLEMENT

October 2004

NEWARK, N.J. - The EEOC has resolved a class action employment discrimination lawsuit against Morristown, N.J.-based Honeywell International, a global diversified technology company with over 100,000 employees in 95 countries. EEOC's litigation alleged violations of the Age Discrimination in Employment Act of 1967 (ADEA) at the company's headquarters and various regions nationwide by representatives of the former AlliedSignal Automotive Aftermarket (the makers of consumer car care items such as Prestone and Fram products), which Honeywell, Inc. acquired during a 1999 merger.

According to EEOC's suit, a class of sales managers and representatives were either terminated or demoted in 1997 because of their age during a companywide reorganization. Assertedly, in many instances, younger workers with less experience were retained and/or offered those positions. The suit was filed in federal district court in New Jersey by the agency's Philadelphia District Office.

In the Consent Decree resolving the lawsuit, Honeywell denies any wrongdoing. Honeywell and EEOC entered into the agreement in order to avoid the time, expense and uncertainty of further litigation. Honeywell agrees to provide a total of $2,150,000 to resolve the lawsuit. In addition, it agrees to post a notice concerning the lawsuit at appropriate facilities and to provide training in the provisions of the ADEA to all the managers and supervisors in the Consumer Products Group (CPG) and Frictions Materials (FM) businesses. The term of the decree is approximately two years.

JILLIAN'S TO PAY $360,000 FOR SEX DISCRIMINATION AGAINST MEN
August 2004

The EEOC announced the settlement of a sex discrimination lawsuit under Title VII of the 1964 Civil Rights Act for $360,000 and comprehensive injunctive relief against Jillian's of Indianapolis IN Inc., Jillian's Entertainment Holdings Inc., and Jillian's Entertainment Corporation, on behalf of a class of male employees.
Jillian's operates a nationwide chain of family dining/entertainment facilities in about 25 states with more than 5,000 employees. The company is headquartered in Louisville, Kentucky.
The suit, filed in the United States District Court for the Southern District of Indiana, Indianapolis Division, alleged that Jillian's maintained sex-segregated job classifications on a nationwide basis and failed to hire and/or transfer a class of male employees to lucrative server positions and other so-called "female" job classifications because of their sex. The EEOC alleged that the company's actions were intentional and demonstrated a reckless indifference to the rights of the class of men. Under the terms of the three-year Consent Decree settling the case, Jillian's agreed to:
Pay $350,000 in damages to Indianapolis class members - estimated to be at least 100 men - and $10,000 in administrative expenses to advertise for and locate Indianapolis class members; Hire/place employees at all its facilities without regard to sex, and prepare sex-neutral job descriptions; Post and distribute a notice of non-discrimination at all facilities nationwide and append a notice of non-discrimination to its employment applications; Train its managers nationally on Title VII's prohibition against sex-based hiring/placement and include a notice of non-discrimination in its employment advertising; and Maintain applicant flow logs and report to the EEOC on complaints of discrimination.

Gender-Bias Settlement: Boeing to Pay Up to $72.5 Million
July 2004

Boeing Co. announced Friday it will award up to $72.5 million in a sex-bias class action case. Boeing, the world’s second-largest commercial-aircraft maker, will pay between $40.6 million and $72.5 million stemming from a class-action lawsuit on behalf of 29,000 women workers at plants in Settle, Everett and Renton, Wash., according to a story on Bloomberg.com.

The settlement did not address executive women, but it did force Boeing to address how it paid many of its women employees less even as they held the same positions as men.

Boeing agreed to changes in practice, including how salary and promotional decisions are made and fair access to overtime pay.

 

Morgan Stanley's $54 Million Gender-Bias Settlement
July 2004

Morgan Stanley settled a $54 million gender-bias case, the first brought against a brokerage firm by the EEOC.

The EEOC announced its lawsuit against the brokerage firm in 2001, but until last weekend, Morgan Stanley refused to settle with the 300+ women employees who filed the class action complaint.

According to a press release on the company's Web site, "Morgan Stanley denied the allegations and any liability and contends that it has, at all times, treated its women employees fairly and equitably."

Large Settlement Shows the Price of Harassment and Discrimination

May 2004

Over a hundred women who work (or worked) for Combined Insurance, a subsidiary of Chicago-based insurance company Aon, have charged the company with sexual harassment.  The harassment charges range from economic discrimination to gang rape. Combined is seeking to settle a couple of lawsuits before they are certified as class actions and go to trial. Given the egregious allegations, a settlement could surpass the $34 million Mitsubishi paid to settle a class complaint of approx. 450 plaintiffs. 

Troubles in the Food Industry: EEOC Sues Bob Evans, Steak n Shake

The U.S. Equal Employment Opportunity Commission (EEOC) filed separate lawsuits Thursday against two restaurants, Bob Evans and Steak n Shake. Steak n Shake was accused of refusing to hire a deaf job applicant. EEOC is alleging that a restaurant manager of Bob Evans Farms sexually harassed three female employees. Both were filed in federal court for the eastern district of Missouri in St. Louis for unspecified damages.
EEOC senior trial attorney Melvin Kennedy said Kerry Gillihan interviewed in 2001 to work as a dishwasher or cook at Steak n Shake in the St. Louis suburb of Fenton. Gillihan allegedly was told by a manager that he could not be hired because he wouldn't hear a bell to know when to add soap to a dishwasher or might be hurt because of his lack of hearing.
Kennedy said the restaurant could have tried to accommodate Kennedy, perhaps by adding a light as a signal rather than having a bell ring.
The commission also filed a separate lawsuit against Bob Evans Farms, based in Columbus, Ohio. The EEOC said a manager at the St. Louis suburban restaurant in Bridgeton directed vulgar sexual comments and conduct to female employees. Kennedy said the sexual harassment dated back at least to 1992; a woman filed a complaint with the EEOC in 2002. The manager allegedly engaged in such behavior as pinning a female employee against a wall while attempting to unbutton her blouse and making frequent sexual comments.

What?  You mean you can't select or deny a person a job based simply on their gender or terminate them based upon their national origin or race?  Add some of these cases to your egregious list of blatant equality violations.

Female Basketball Coach Illegally Denied Job
For Boys' Varsity Team, Sixth Circuit Decides

A female coach who was denied a job coaching a high school boys' varsity basketball team in Michigan is entitled to $245,000 in damages and instatement to the position, the U.S. Court of Appeals for the Sixth Circuit ruled March 24 ( Fuhr v. School Dist. of the City of Hazel Park, 6th Cir., No. 01-2215, 3/24/04). Geraldine Fuhr "presented direct evidence that gender was a factor in the decision not to hire [her] as the boys' varsity basketball coach," Judge Alice M. Batchelder said, writing for the appeals court. She found the jury was entitled to disbelieve the nondiscriminatory reasons proffered by the Hazel Park, Mich., school district and to believe the testimony by several witnesses that Fuhr was denied the job because she is a woman.

The appeals court also affirmed the trial court's order that Fuhr be placed in the job, displacing a male coach. The central purpose of Title VII of the 1964 Civil Rights Act and Michigan's Elliott-Larsen Civil Rights Act is to make the person whole for injuries suffered because of illegal discrimination, Batchelder said. She found the trial court weighed the relative hardships and did not abuse its discretion. During the investigative process, it was proven that Fuhr was immanently more qualified (through direct experience) than the male placed into the position. 

Sega, Spherion to Pay Filipino Wokers $600,000 to Settle EEOC Discrimination Suit
SAN FRANCISCO--Video game maker Sega of America Inc. and staffing agency Spherion Corp. have settled for $600,000 an Equal Employment Opportunity Commission discrimination and retaliation complaint involving the companies' termination of Filipino American game testers, EEOC said March 25 (EEOC v. Sega of Am. Inc., N.D. Cal., No. C-02-04735, consent decree filed 3/8/04).
The companies, without admitting guilt, agreed to a two-year consent decree to settle the lawsuit alleging that Sega's San Francisco offices in 2002 fired 13 Filipino temporary employees. In addition, the EEOC alleged that at the same time the Filipino workers were fired, five non-Filipino testers were fired in retaliation for their friendship with a worker who had threatened to file a complaint alleging preferential treatment of Filipino workers, EEOC said.
The Filipino workers were never told their performance was poor, nor were they given a reason for their termination, although it was clear the firings were based on national origin, EEOC Regional Attorney Bill Tamayo told reporters.

Judge Rules for Boeing in Sex-Discrimination Case


A federal judge denied a request for class-action status in a sex-discrimination case brought by female workers at The Boeing Co.'s St. Louis plants. U.S. District Judge Catherine Perry denied the request Wednesday, saying evidence does not support the class-action status of the claims. Jeff Sprung, a Seattle attorney for the women in the suit, said it was too soon to say whether Perry's ruling would be appealed.

The Missouri lawsuit was filed in January 2002 by St. Louis women alleging sex discrimination at Boeing and McDonnell Douglas, whose operations Boeing acquired in 1997. The St. Louis plaintiffs cited an analysis of Boeing data, contending female employees were overlooked for promotions and raises because of their gender.

The judge concluded that some managers in some groups may use their discretion to discriminate against women, but the data do not show a company-wide policy of discrimination. (AP)

Allstate Age-Discrimination Complaint Dismissed (3/04)

A U.S. judge has ruled that Allstate Insurance Co. did not commit age discrimination in 2000 when it forced thousands of its agents to become private contractors with limited benefits.
In a class action lawsuit, a group of agents had alleged that the 6,400 people affected by the reorganization had a median age of 50 and were the victims of a policy that unfairly targeted older workers. Allstate's response was that they were simply trying to save $600 million US a year and had no plan to rid itself of older workers.
In a pretrial ruling signed Tuesday, U.S. District Judge John P. Fullam said there was no basis for the age discrimination claim "for the simple reason that employees of all ages were treated alike."
"An employer who visits adverse consequences upon all employees, irrespective of age, cannot be held liable for age discrimination," Fullam wrote. "The fact, if it is a fact, that many of the affected employees, or even a majority, are within the protected age group, is irrelevant." The complaint had been joined by the EEOC.
The judge left standing two other major parts of the case in which the plaintiffs alleged that the company violated labour law and committed a breach of contract by laying them off and then rehiring them as contractors with few retirement benefits on June 30, 2000.
In another plaintiff victory, Fullam said the company was wrong to have forced the agents to either sign a release waiving their right to sue for discrimination. He gave the agents the option of voiding the waivers within the next 90 days, although those that do so would have to repay the company any financial benefits they had been offered for signing. (AP)

 

SUPREME COURT SAYS OLDER WORKERS CAN BE TREATED BETTER THAN YOUNGER WORKERS ~ March 2004

The U.S. Supreme Court has issued a decision saying the "Age Discrimination in Employment Act (ADEA) does not prohibit employers from treating older workers better than younger workers.  The ruling came from the case of General Dynamics Land Systems, Inc. v. Cline (No 02-1080), and Justice David H. Souter was the majority opinion. The vote was 6-3. In 2002, the 6th U.S. Circuit Court of Appeals heard the case and said a group of 200 employees over the age of 40 could proceed with their age discrimination suit against the company. At issue was the claim that the company cut off rights to retiree medical benefits for everyone except those over 50 years of age on the qualifying date. Those who filed the class action case were ages 40 - 49. 

Be careful, however, before revising your retirement packages without first consulting legal advisors.  There could be impact on the Employee Retirement Income Security Act (ERISA) requirements. 

Kmart Settles Bias Suit Filed by EEOC


Kmart Corp. will pay $60,000 to settle a job-discrimination lawsuit filed on behalf of a Kansas man with mental disabilities, the U.S. Equal Employment Opportunities Commission (EEOC)'s St. Louis district office said. The lawsuit filed by the EEOC in July alleged that Kmart violated the Americans with Disabilities Act (ADA) by refusing to hire Edward Jones of Overland Park, Kan., as a stocker for its store in the Kansas City suburb.

Jones is mildly mentally retarded but qualified to perform the job, the EEOC said. The lawsuit claimed he scored higher on a pre-employment questionnaire than applicants later hired for the job.

Kmart, based in Troy, Mich., also agreed to post a new policy against discrimination and provide ADA training to employees at the Overland Park store. A statement from Kmart said the company's policy is to practice equal opportunity for employment and promotion, and to be in full compliance with the ADA. The statement said the company was pleased to resolve the case. (AP)

Cracker Barrel Racial-Bias Case Settled and Company Agrees To Training
May 2004

Cracker Barrel restaurants agreed to expand current sensitivity training for employees as part of an agreement to settle a race discrimination claim by cutomers.  Cracker Barrel spokesperson, Julie Davis, stated that Cracker Barrel agreed to take steps to change its practices but did not admit any wrongdoing and will pay no fines or penalties.  "This moves us forward in a direction we were already going," Davis said. "It allows both sides to avoid protracted and costly litigation."

Under the consent decree, filed in U.S. District Court in Atlanta, this action settles a government lawsuit which contended that Cracker Barrel violated the 1964 Civil Rights Act by "engaging in a pattern or practice of discrimination against African-American customers" at many of their restaurants.  R. Alexander Acosta, assistant attorney general for civil rights stated, "To discriminate on the basis of race in the provision of food and service tramples most gravely not only on the civil rights laws, but also our nation's promise of equality."

 

Federal Express to Pay over $3.2 Million to Female Truck Driver for Sex Discrimination, Retaliation


EEOC and Plaintiff's counsel score trial Victory 'for every woman' at Fedex
PHILADELPHIA - A federal jury late yesterday returned a multi-million dollar verdict in favor of the U.S. Equal Employment Opportunity Commission (EEOC) and Marion Shaub of Wrightstown, Pa., in their lawsuit against Memphis, Tenn.-based shipping giant Federal Express Corporation for violations of Title VII of the 1964 Civil Rights Act and the intentional infliction of emotional distress to Ms. Shaub.
The jury found Federal Express liable for a sex-based hostile work environment and retaliation and awarded Ms. Shaub $391,400 in back pay and front pay, $350,000 in compensatory damages for emotional pain and distress, and $2.5 million dollars in punitive damages.

 

United Airlines to Pay $36.5M in Sex-Bias Case

Feb. 2004
A judge ordered United Airlines to pay $36.5 million to settle a sex-discrimination lawsuit brought by 13 former flight attendants over the airline's weight policy. The original settlement in the case was suspended in 2002 when United filed for bankruptcy. A judge reinstated the settlement Wednesday in San Francisco.

In 2000, an appeals court had found that the weight policy for flight attendants, in place from 1980 to 1994, discriminated against women. The airline imposed weight limits on flight attendants of both genders but set stricter standards for women, who were required to weigh between 14 and 27 pounds less than male colleagues of the same height and age. All 13 plaintiffs, who sued in 1992, were disciplined or fired by United for violating the weight policy.

"We're glad to have resolved this issue," United spokesman Jason Schechter said, noting that the litigation concerned a company policy discontinued in 1994. (AP)

 

Two Florida Restaurants To Pay $525,000 For Sexual Harassment of Teenagers

EEOC Settles Bias Suits with ABC Pizza and Longhorn Steakhouse (Miami):

The EEOC announced two settlements of employment discrimination lawsuits under Title VII of the 1964 Civil Rights Act against Tampa, Fla.-area restaurants for sexual harassment of teenaged former employees. The settlements against Pizza of Florida, Inc., doing business as ABC Pizza, and Rare Hospitality International, Inc., doing business as Longhorn Steakhouse, total $525,000 in monetary relief and include extensive remedial relief, such as company training, posting of notices, and monitoring provisions.

The EEOC's lawsuit against Pizza of Florida (Civil Action No.8:03cv567-T17MSS), charged the Tampa Bay area pizza chain with subjecting female employees to a sexually hostile working environment. The EEOC contends that the sexually harassing conduct, created by the restaurant's manager, was primarily directed towards two sisters who were ages 16 and 17 at the time they were employed with ABC Pizza. The conduct included inappropriate touching as well as egregious verbal comments. The $325,000 in monetary relief, includes a $100,000 fund to be distributed among other similarly situated female employees subjected to the sexually harassing conduct.

The settlement with Longhorn (Civil Action 8:02-CV-1770-T-30TBM) requires the company to pay Collen Falkowski and two other former similarly situated employees a total of $200,000 in monetary relief for harassment that they were subjected to at the hands of an assistant manager. Ms. Falkowski was 16-years old when she associated with Longhorn as part of a high school on-the-job training class requirement. The assistant manager subjected Ms. Falkowski and the two other similarly situated female employees to conduct ranging from inappropriate hip and lower back touches and breast grabbing to inappropriate verbal comments, the EEOC's lawsuit said.

 

Court OKs HP Firing for Anti-Gay Messages

Hewlett-Packard (HP) had the right to fire an employee who posted anti-gay messages at his cubicle to protest the company's diversity policy, a federal appeals court ruled. HP had fired Richard Peterson, who worked in the company's support division in Boise, Idaho, after he displayed passages from the Bible about making gay sex punishable by death. Peterson, who worked at HP for more than two decades, said he was singled out. He said other employees were allowed to display religious symbols and pro-diversity posters. But the 9th U.S. Circuit Court of Appeals said Tuesday that Peterson was not a victim of religious discrimination. The Palo Alto-based company had the right to enforce an evenhanded policy against harassment and discrimination, the court said. (AP)


AN EXAMPLE OF HOW GOOD TRAINING AND FAST ACTION CAN ELIMINATE OR REDUCE LIABILITY IN EEO CLAIMS:


QUICK, EFFECTIVE ACTION SHIELDS USPS FROM HARASSMENT LIABILITY

The complainant was subjected to an incident involving verbal and physical sexual harassment by a coworker. The agency avoided liability by insuring managers were properly trained on sexual harassment policies/procedures and by taking prompt and appropriate action. Although the incident involved was severe, the agency had no reason to suspect the coworker would act in such a manner. It took prompt and appropriate action by sending the coworker home, conducting an investigation, issuing the coworker a notice of removal and assuring the complainant she would not have to work with him again. This quick action shielded it from liability. Archie v. U.S. Postal Service, 103 LRP36442.

TRAINING REQUIREMENTS FOR MANAGEMENT AND EMPLOYEES:

EEOC AND THE PALM RESOLVE INQUIRY INTO RECRUITING AND HIRING PRACTICES

In January 2004, the U.S. Equal Employment Opportunity Commission (EEOC) and Palm Management Corporation, which manages The Palm Restaurants, announced the resolution of an EEOC Commissioner's Charge, ending a nationwide investigation focusing on past recruitment and hiring practices. The pre-litigation agreement was voluntarily entered into by The Palm and obtained through the EEOC's conciliation process. The terms of the agreement include The Palm's already extensive diversity program with mandatory EEO training for managers and employees, and the establishment of a class fund in the amount of $500,000.
The EEOC's investigation was based on allegations that The Palm violated Title VII of the Civil Rights Act of 1964 by failing to recruit and hire women into service worker positions. However, beginning in 2000, the Palm had implemented changes in its employment practices, which included providing mandatory training to supervisors concerning the avoidance of discrimination in hiring, and more effective applicant tracking and record-keeping systems.

December 2003 -Burger King Sued for $103 Million for Race, Age, Disability Bias

Burger King, the nation's No. 2 fast-food chain, is responding to a $103 million lawsuit of race, age, and disability discrimination. Eleven former employees and three job applicants claim they were fired or denied jobs because managers at a Patchogue, N.Y. Burger King only wanted to employ Latino employees.
According to a complaint filed Nov. 25 in the U.S. District Court in Central Islip, N.Y., Kathleen Mindlin's position as manager of the Patchogue Burger King was terminated because she refused to follow orders from her immediate supervisor to fire African-American workers and employees with disabilities without sufficient cause. Mindlin, who is white, said Burger King District Manager Tracy DeFranco described the restaurant's African-American employees as "drug addicts" and "thieves" and instructed her to replace these employees with Latinos because "Hispanics are better workers."

LIVERMORE LAB SETTLES $17.9M DISCRIMINATION SUIT

Lawrence Livermore National Laboratory in California has settled a gender discrimination lawsuit for $17.9 million, plus a 1 percent raise for the lab's 2,500 women employees. The settlement reached Wednesday is the largest of its kind for the University of California, which operates the lab for the federal government.

EEOC SUES L'OREAL FOR AGE DISCRIMINATION AND RETALIATION

EEOC says Cosmetics Giant Told Senior Director She Didn't Fit 'Youthful Image'
In September 2003, the EEOC announced it has filed an age discrimination and retaliation suit against L'Oreal U.S.A., Inc., claiming that the cosmetics giant discriminated against a former female Senior Director by subjecting her to a hostile work environment because of her age.
The EEOC says that a L'Oreal Senior Director was fired in retaliation on March 12, 2003 for having previously complained about discriminatory age comments to Human Resource personnel, in violation of the Age Discrimination in Employment Act of 1967 (ADEA). L'Oreal, based in Clichy, France, has over 50,000 employees and had sales of over $16 billion in 2002.


California Proposition 54 Rejected - October 2003

Proposition 54, the Racial Privacy Initiative, which would have prohibited state and local governments from using race, ethnicity, color or national origin to classify current or prospective students, contractors or employees in public education, contracting, or employment operations, was defeated.

California voters rejected the measure that would have ended collection of racial data.

EEOC RESOLVES SEX DISCRIMINATION LAWSUIT AGAINST NBA's PHOENIX SUNS AND SPORTS MAGIC FOR $104,500

In October 2003, the EEOC announced the resolution of a sex bias lawsuit against the Phoenix Suns Limited Partnership and Sports Magic Team, Inc. (SMT), an Orlando, Florida.-based sports entertainment firm, for over $100,000 and other relief on behalf of a former female employee, Kathryn Tomlinson, and other women who were discriminated against on the basis of gender when they were deprived of the opportunity to compete for positions with the Phoenix Suns' "Zoo Crew" entertainment troupe.
The Zoo Crew provides entertainment during Phoenix Suns basketball games, including shooting T-shirts into the crowd with a giant toy bazooka, assisting with half-time promotions, and performing trampoline dunks with the Phoenix Suns gorilla, the team mascot. The troupe also participates in community events designed to promote the Suns.
According the EEOC, Charging Party Tomlinson performed well during her employment as a Zoo Crew member during the 1998-1999 season. The EEOC's suit, alleged that in 1999-2000, the Phoenix Suns and SMT adopted new sex-restrictive hiring policies for the Zoo Crew, limiting positions to "males with athletic ability and talent." This hiring policy was disseminated in the form job announcements posted around the Phoenix Metropolitan area and in a newspaper advertisement in several newspapers, including The Arizona Republic, Mesa Tribune, and The New Times.

EEOC AND ELECTROLUX REACH VOLUNTARY RESOLUTION IN CLASS RELIGIOUS ACCOMMODATION CASE

In September 2003, the EEOC and the Electrolux Group announced the voluntary resolution of a major religious accommodation case filed under Title VII of the 1964 Civil Rights Act on behalf of 165 Somali workers who were allegedly subjected to unlawful employment discrimination based on their religion and national origin. Electrolux is the world's largest producer of appliances and equipment for kitchen, cleaning and outdoor use.
The case is being hailed by the Commission as a prime example of how employers should work cooperatively with the federal agency when subjected to a Charge of Discrimination. According to the charge filing, Electrolux was denying religious accommodations to Somali employees who are Muslim and treating them differently than similarly-situated Somali employees with regards to the terms and conditions of their employment.
Pursuant to the tenets of the Islamic faith, Muslims, male and female, must offer at least five daily prayers. Two of these prayers, the early morning prayer or Salatu-l-Fajr and the Sunset Prayer or Salatu-l-Maghrib must be observed within a restricted time period of between one and two hours. Muslim employees of the Electrolux Home Products plant in St. Cloud alleged that they were discriminated against due to their religious beliefs and observance when they were disciplined for using an unscheduled break traditionally offered to line employees on an as needed basis to observe their sunset prayer.
Electrolux expressed a desire to work with the EEOC to resolve the case in a manner that would respect the needs of its Muslim workers without creating a business hardship. The resulting agreement affords Muslim employees with an opportunity to observe their sunset prayer. It also provides for a Somali translator at specified occasions and for policies and procedures to be available in Somali. Diversity training will be held for corporate managers, line leaders and supervisors. The company will also make a monetary donation to the Islamic Center in St. Cloud, Minnesota to provide needed services to Somali families in the St. Cloud area.

__________________

OFCCP Issues Regulation Formalizing Exemption for Religious Organizations From the Nondiscrimination Requirements of E.O. 11246
OFCCP’s new regulation merely codifies an amendment to E.O. 11246 made last December that exempts religious organizations from the Order’s nondiscrimination clause if they discriminate because of religious reasons.

Courts Agree With Employer Who Banned Confederate Flag From Workplace

2003: Coburg Dairy in Charleston, SC, won a lawsuit filed by Matthew Dixon, complaining that his constitutional rights and the public policy of South Carolina had been violated when he was fired for refusing to remove confederate flag stickers from his toolbox. The U.S. Court of Appeals for the Fourth Circuit made two critical points when making the decision for the employer: 1) The First Amendment to the U.S. Constitution protects citizens only from government or state interference with their rights to free speech. Coburg Dairy is not a state entity, and therefore any actions they take would not violate the Constitution. 2) Even if Dixon were a state employee, he still could have been lawfully fired for his refusal to remove the decals, and the employer acted in an effort to keep conflict among its employees at a minimum and to avoid potential liability for racial harassment under federal law.

EEOC WINS OVER $4 MILLION RETALIATION CLAIM IN JURY VERDICT AGAINST HOSPITAL
Federal Agency Says Director Forced Out for Trying to Stop Sexual Harassment

NORFOLK, Va.- On September 3, 2003, the U.S. Equal Employment Opportunity Commission (EEOC) announced that a federal jury awarded $4,050,000 to Stephanie Denninghoff following a four- day trial conducted on her behalf by the EEOC against Bon Secours DePaul Medical Center, Inc. for unlawful retaliation. The jury awarded $1,050,000 in compensatory damages and $3 million in punitive damages to Ms. Denninghoff after she was forced to resign from her position as Director of Operative Services following her attempts to prevent sexual harassment in the hospital's operating rooms and facility. "I feel vindicated," said Stephanie Denninghoff, following the jury's verdict.

Supercuts to Pay $3.5 Million for Race Bias and Train Hundreds of Managers, In EEOC Settlement
Regional Vice President Targeted African American Employees and Applicants

On August 13, 2003, the EEOC announced a voluntary pre-litigation settlement of a race discrimination case against Supercuts, Inc., a nationwide chain of hair salons based in Minneapolis, Minn., for $3.5 million and significant remedial relief. The agreement, obtained through EEOC's conciliation process, resolves a charge by former Regional Manager Richard Quick, who claimed that Supercuts Eastern Regional Vice-President terminated him for refusing to go along with a plan to "balance the platform" by reducing the number of African Americans employed with the company. The charge also included claims that Supercuts failed to hire and promote African Americans and terminated them due to their race.

EEOC and Cheap Tickets Reach $1.1 Million Settlement in Sexual Harassment Suit ~ August 7, 2003

The EEOC and Cheap Tickets, a leading retailer of discounted leisure travel products, today announced a $1.1 million settlement of the EEOC class action sexual harassment lawsuit under Title VII of the Civil Rights Act of 1964 against Cheap Tickets, Inc. The female agents working at Cheap Tickets' Los Angeles Call Center (which closed in September 2001) were subjected to a sexually hostile work environment by their supervisors. Moreover, EEOC says that the woman who filed the initial discrimination charge was subjected to retaliation. The settlement includes a provision for monetary relief to any unidentified victims.

EEOC Sues John Harvard's Brew House For Pregnancy Discrimination ~ August 6, 2003 ~ Expecting Mother Forced to Choose Between Parenthood and Livelihood, Suit Says ~

Updated: August 2000

The EEOC filed a pregnancy discrimination lawsuit in federal district court against John Harvard's Brew House, a restaurant and brewery business operating in nine states with a local branch in Lake Grove, Long Island.
The EEOC's suit, Civil Action No.03- CV-3800, filed in U.S. District Court for the Eastern District of New York, charges that John Harvard's Brew House discriminated against Jennifer James once she informed its management that she was pregnant. Ms. James' career had advanced rapidly from a starting position of Server, to Supervisor, and to Manager-in-training. However, as soon as she informed the company of her pregnancy, her career abruptly ended. She was told to "consider her options." When she insisted on continuing with her pregnancy, her management training was discontinued and she was ultimately terminated from her employment in August 2001.

EEOC Announces Applebee's Case Settlement ~ August 7, 2003 ~ Rare Bias Case Involves Dark Skin Color of African American Employee

The EEOC today announced the settlement of a rare color harassment and retaliation lawsuit under Title VII of the Civil Rights Act of 1964 against Applebee's Neighborhood Bar & Grill, an international restaurant chain headquartered in Overland Park, Kansas. The settlement provides $40,000 to Dwight Burch, an African American former employee who was discriminated against based on his dark skin color by a light skinned African American manager, and terminated when he complained to corporate headquarters.

The EEOC investigated and found probable cause to believe the claims. According to the terms of the settlement, Applebee's must improve training and reporting procedures.

Applebee's spokesperson Frank Ybarra said in a statement that the company admits neither wrongdoing nor liability and agreed to the settlement "to clear the way for the sale of our restaurants in Atlanta to one of our franchisees."

The company, which prior to the suit had no written policy in effect prohibiting discrimination based on color, since has amended its harassment and discrimination policies to include color, the EEOC said.

IN A NUTSHELL:

Reported by OFCCP July 2003

OFCCP Settlements in Southeast U.S.:

Perdue Farms, Dillon, South Carolina - Affected Class (hiring) (gender and race) - Total $1.7 million
Jimmy Dean Foods, Newbern, Tennessee - Affected Class (hiring) (gender-women) Total $1,140,000
Oliver Rubber, Asheboro, NC - Affected Class (gender - women) - Total $336,324
McKesson Atlanta Distribution Center, Atlanta, GA - Affected Class (hiring) (gender - women) - Total $156,215
Boise Cascade, Charlotte, North Carolina - Affected Class (hiring) (race - minorities) Total $181,718
The Medical University of South Carolina (MUSC), Charleston, SC - Disparate mpact (gender-women) Total $115,720
Pictsweet Frozen Foods, Bells, Tennessee - Affected Class (hiring) (black and white Applicants)- Total $2,388,059

Central Station Casino To Pay $1.5 Million In EEOC Settlement For National Origin Bias : Hispanic Employees Verbally Harassed, Subjected to Speak-English-Only Rules

The U.S. Equal Employment Opportunity Commission (EEOC) (July 18, 2003) announced the settlement of a national origin discrimination lawsuit under Title VII of the 1964 Civil Rights Act against Anchor Coin, doing business as Colorado Central Station Casino, Inc. (CCSC), for $1.5 million and other relief on behalf of a class of Hispanic employees of the housekeeping department who were verbally harassed and subjected to unlawful English-only rules.  In addition to the monetary relief for Debra Castillo, Maria Fernandez, Antonio Montoya, Sharon Chavez, Humberto Moreno, and other similarly situated Hispanic workers, CSSC will notify all its employees that it has no blanket English-only policy and provide training to ensure that discrimination does not occur.

NOTE: Sexual harassment cases seem to be escalating. Several of the recent EEOC rulings have included settlements in favor of the complainants. To emphasize the seriousness of these decisions (and the high dollar awards), we have provided more in depth information relating to a few of the cases (below). Remember: Employers are responsible for establishing effective sexual harassment policies and training employees and managers to fully understand requirements.

Pizza Hut to Pay $360,000 for Settlement of Sexual Harassment Complaint

July 2003 - The EEOC announced the settlement of a sexual harassment lawsuit against Pizza Hut, the national restaurant chain based in Dallas, Texas, for $360,000 on behalf of four female former employees who were subjected to a sexually hostile work environment. The settlement also includes a number of anti-discrimination training obligations, review of appropriate complaint procedures, and record-keeping and reporting obligations to be monitored by the EEOC over the duration of the two year term of the Consent Decree.
Among other things, the EEOC's lawsuit alleged that former female employees were sexually harassed by a co-worker at a Pizza Hut restaurant in Diamond Bar, Calif. The harassment included sexual touching and groping.
The lawsuit also alleges that Pizza Hut had notice of the sexual harassment and failed to prevent and/or promptly correct the unlawful behavior. In addition, the suit charged the employer with the constructive termination of the women.

EEOC Wins $1.55 Million Dollar Jury Verdict in Sexual Harassment Suit Against Florida Restaurant

The EEOC today announced that a jury in Federal District Court in Tampa, Florida, has returned a $1,550,000 verdict in a major sexual harassment lawsuit brought by the EEOC and the private law firm of Florin, Roebig & Walker, P.A. The lawsuit was originally brought against Applebee's International, Inc., Rio Bravo International, Inc. and Innovative Restaurant Concepts, Inc. for sexual harassment occurring from approximately 1994 until early 1998 at their formerly owned Rio Bravo Cantina restaurant in Clearwater, Fla.
The jury rendered a verdict in favor of the EEOC and private plaintiffs, awarding $10,000 each to the five women represented in the case to compensate them for the emotional pain and suffering they endured, and awarded punitive damages against the remaining two corporate defendants in the amount of $500,000 each for three of the five women.
The EEOC lawsuit, filed in 1999, said that former waitresses and hostesses were subjected to egregious acts of verbal and physical sexual conduct on the part of one of the employer's assistant managers and, despite repeated complaints to management, the corporate defendants failed to take necessary steps to stop the harassment. The harassment of the young women included touching, groping and rubbing their breasts, legs and buttocks in a sexually offensive manner; forcing the women to sit on the assistant manager's lap before leaving their shifts; attempting to kiss them; and making graphic, offensive sexual remarks. EEOC asserted that the women repeatedly complained to management about the sexually offensive conduct; however, the corporate defendants failed to implement corrective action, allowing the behavior to continue and escalate.

EEOC Sues Rockford 'Machine Shed' For Sexual Harassment

July 2003 - The U.S. Equal Employment Opportunity Commission (EEOC) filed a sexual harassment lawsuit against Heart of America Management Co., which does business locally as the Machine Shed Restaurant. The EEOC's suit charges that the Machine Shed permitted the sexual harassment of a server at its restaurant. Heart of America Management Co. operates numerous midwestern restaurants and hotels under the "Heart of America Restaurants & Inns" trademark and has offices on River Drive in Moline, Ill. – on the Mississippi River.
EEOC said that its administrative investigation which preceded the lawsuit revealed that the harassment, which was carried out by a male server and observed by other employees, involved almost daily propositions and explicit sexual remarks which were graphic and offensive in the extreme, as well as the man physically grabbing the woman.
When the server (Haas) complained about the constant harassment, according to the EEOC investigation, management told her that she "shouldn't get worked up about it," that there was "nothing [they] could do," that she should avoid the harasser, and that the harasser claimed that she had been making sexual remarks to him. The investigation also indicated that, after Haas was forced out of her job by the harassment, the harasser was eventually discharged because her complaints were corroborated by other employees.


The Supreme Court Decides On Constitutionality of Gay Sex Law

Associated Press

On April 24, 2003, the Supreme Court struck down a ban on gay sex, ruling that the law was an unconstitutional violation of privacy.

The 6-3 ruling reverses course from a ruling 17 years ago that states could punish homosexuals for what such laws historically called deviant sex. Laws forbidding homosexual sex, once universal, now are rare. Those on the books are rarely enforced but underpin other kinds of discrimination, lawyers for two Texas men had argued to the court. The men ''are entitled to respect for their private lives,'' Justice Anthony M. Kennedy wrote. ''The state cannot demean their existence or control their destiny by making their private sexual conduct a crime,'' he said.

Justices John Paul Stevens, David Souter, Ruth Bader Ginsburg and Stephen Breyer agreed with Kennedy in full. Justice Sandra Day O'Connor agreed with the outcome of the case but not all of Kennedy's rationale. Chief Justice William H. Rehnquist and Justices Antonin Scalia and Clarence Thomas dissented.


Supreme Court Upholds Affirmative Action as “Compelling State Interest”

The Affirmative Action ruling is finally in from the Supreme Court Justices! In one of the most significant affirmative-action decisions in over a decade, the Supreme Court has upheld diversity as a "compelling state interest." However, the court overturned the use of an affirmative-action point system which has been in place for the University of Michigan ’s undergraduate programs.

The AP reported that the long awaited ruling (upheld by Justices Stevens, O’Conner, Souter, Ginsburg and Breyer) endorsed the University of Michigan ’s law school program which was created to ensure a “critical mass” of students of color on campus. The Justices agreed, in a 5-4 vote that the program is not an illegal quota. However, the court rejected the use of a point system now in place at the University of Michigan ’s undergraduate level. Many believe this decision will provide direction for schools of higher education which will clarify the contradictory affirmative action decisions which have been passed down for years.

Jonathan Alger, assistant general counsel to the University of Michigan stated, "This is a significant victory for higher education and provides us with guidance so we know how to design programs that are constitutionally sound.” "The university will obviously comply with the court's decision."

What does this mean for you, the federal contractor/subcontractor? Nothing changes…goals, as written and required by Executive Order 11246 are alive and well. Keep up your good faith efforts.

© 2003 EEO Guidance, Inc.® ~ Carol A. Dawson


Capital One Agrees to Settle Age Suit

Capital One Financial Corp. agreed Thursday to settle an age-discrimination lawsuit employees filed against the credit card company. As many as 60 former Capital One employees age 40 and older alleged that the McLean, Virginia based company instituted a plan of forced separations that were unfair to older employees. The plaintiffs alleged they were fired because they were considered too old for the company and the youth culture it promoted. The plaintiffs sought more than $50 million in damages in the lawsuit filed last December in U.S. District Court in Richmond, Virginia. Terms of the settlement were not disclosed.

Desert Palace, Inc., v. Costa

On June 9, 2003, the U.S. Supreme Court ruled that an employer can be found liable for discrimination in a “mixed-motive” case even if there is no direct evidence of the employer’s actual motive.

A female employee was terminated after she was involved in a physical altercation with a co-worker. The company (Caesars) argued that the discharge was based on her history of disciplinary actions, including the most recent. The female claimed her sex was the motivating factor in the termination decision. The court found that the complainant must simply show that a protected basis (gender) was the motivating factor in the termination, indicating Title VII imposes no requirement that direct evidence of discrimination be shown.

Judge: Woman Can't Wear Veil in ID Photo

A Florida judge ruled Friday that a Muslim woman cannot wear a veil in her driver's license photo, agreeing with state authorities that the practice could help terrorists conceal their identities.

After hearing three days of testimony last week, Circuit Judge Janet C. Thorpe ruled that Sultaana Freeman's right to free exercise of religion would not be infringed by having to show her face on her license. Thorpe said the state "has a compelling interest in protecting the public from criminal activities and security threats," and that photo identification "is essential to promote that interest."


04/29/2003: Judge Grants EEOC's and Dial's Request to Enter Joint Consent Decree in Harassment Case

The U.S. Equal Employment Opportunity Commission (EEOC) and The Dial Corporation (Dial) announce that they have agreed to resolve the claims brought by the EEOC alleging sexual harassment at Dial's Montgomery, Illinois, facility. The parties have reached a settlement that involves payment by Dial of $10 million pursuant to a Consent Decree entered on April 29, 2003, by the Court to resolve the case (EEOC v. The Dial Corporation, N.D. Illinois No. 99 C 3356).

Christopher J. Littlefield, Dial's Senior Vice President and General Counsel, said, "Today's announcement closes the door on this lawsuit, and we have agreed with the EEOC to put the past behind us. Instead of looking backward, we have made a business decision to move forward with our commitment to the moral and business importance of providing equal opportunity and a positive work environment for all of our employees. Simply put, Dial does not tolerate harassment of any kind. It is directly contrary to our No Harassment Policy, as well as our Cultural Contract and Code of Ethics and Business Responsibilities that guide our decisions and actions every day."


04/09/2003: EEOC Announced Largest Sexual Harassment Settlement Ever in New York

On April 9, 2003, the U.S. Equal Employment Opportunity Commission (EEOC) announced its largest sexual harassment settlement ever in the state of New York for $5.425 million and significant remedial relief on behalf of a class of female workers at Lutheran Medical Center (Lutheran), a hospital based in Brooklyn, New York.

In the lawsuit filed under Title VII of the Civil Rights Act of 1964 (EEOC v. Lutheran Medical Center, No. 01-5494, E.D.N.Y.), EEOC alleged that Dr. Conrado Ponio, during his employment at Lutheran, abused his authority by sexually harassing a class of female employees when conducting employment related medical examinations. The sexual harassment included invasive touching and intrusive questions about the employees' sexual practices. Additionally, the EEOC alleged that Lutheran knew or should have known of the sexual harassment and failed to take adequate measures to prevent such harassment. Eight female employees had filed charges with EEOC that led to the litigation, which was filed after the agency exhausted its conciliation efforts to reach a voluntary pre-litigation settlement.


04/08/2003: EEOC Announce $700,000 Settlement Against Lexus of Kendall

On April 8, 2003, the U.S. Equal Employment Opportunity Commission (EEOC) announced a $700,000 settlement of a national origin, religion and racial discrimination lawsuit against Lexus of Kendall, a South Dade, Fla.-based automotive dealership which specializes in the sale and service of high-end luxury vehicles.The EEOC's lawsuit (Civil Action No. 01-4035-MARTINEZ/DUBE), in U.S. District Court for the Southern District of Florida, Miami Division, charged Lexus of Kendall with violating Title VII of the Civil Rights Act of 1964 by subjecting four Hispanic and Jewish employees, along with several similarly situated black employees, to an abusive and hostile working environment because of their race, religion and/or national origin. The EEOC contends that the harassment included unwelcome religious, ethnic and racial epithets made by the owner's son and two managers at the Lexus of Kendall location in South Dade. The EEOC filed suit after investigating the case and exhausting its efforts in conciliation to reach a voluntary pre-litigation settlement."The harassment by the owner's son and the two managers was so intolerable that I felt less than human," said one of the harassment victims. "I'm so happy that EEOC agrees that what we suffered was not only wrong, but illegal."


04/07/2003: Muslim Worker Targeted for Religious Discrimination Before and After 9/11, EEOC Lawsuit Says

The U.S. Equal Employment Opportunity Commission (EEOC) today filed its fourth post-9/11 backlash discrimination lawsuit against Norwegian American Hospital for subjecting Charging Party Rashidah Abdullah to harassment, discriminatory discipline, retaliation, and termination because of her religion, Islam.


EEOC and TIC the Industrial Company Settle Discrimination Lawsuit

African-Americans to Benefit from Consent Decree

NEW ORLEANS The U.S. Equal Employment Opportunity Commission (EEOC) and TIC The Industrial Company (TIC) today announced the entry of a $2,500,000 settlement of a class racial discrimination lawsuit filed against the Steamboat Springs, Colorado-based industrial construction company (EEOC v. TIC The Industrial Company, C.A. No. 01-1776, E.D. La). The settlement, by Consent Decree, was approved by U.S. District Court Judge Lance Africk. The EEOC's lawsuit alleged that TIC violated Title VII of the Civil Rights Act of 1964 by failing to recruit and hire African-Americans into construction positions. TIC has denied the allegations made by the EEOC.


03/19/2003: Pakistani-American Workers to Share $1.11 Million in Harassment Settlement with Stockton Steel

EEOC Settles Harassment Suit for Pakistani-American Workers Who were Ridiculed While Engaging in Prayer.


03/05/2003: WASTE MANAGEMENT COMPANY TO PAY NEARLY $200,000 FOR DISABILITY DISCRIMINATION

Qualified Employee with Crohn's Disease Fired Unlawfully, EEOC Suit Says BALTIMORE - The U.S. Equal Employment Opportunity Commission (EEOC) today announced a $194,000 settlement of an employment discrimination lawsuit filed under the Americans with Disabilities Act of 1990 (ADA) on behalf of a qualified former employee with Crohn's disease who was terminated by Browning-Ferris, Inc., a waste management company.


02/13/2003: OFCCP Issues Notice of Debarment for BFI Waste Services, LLC (Baltimore)

BFI Waste Services, LLC will be debarred as being an eligible bidder on Government contracts or extensions or modifications of existing contracts. On January 30, 2003, the U.S. DOL Administrative Law Judge Burke approved a Consent Decree. Within the decree, BFI agrees to not bid on government contracts for the next 180 days.

The following are informative government cases to review:

IRS fails to stop decade-long stop sexual harassment by coworker

After a bench trial, the U.S. District Court, Northern District of Texas, found the plaintiff was subjected to sexual harassment by a male coworker who repeatedly made unwelcome advances that were not addressed by the agency despite the plaintiff's numerous complaints. The court awarded the plaintiff $50,000 in nonpecuniary damages. An agency cannot avoid liability if officials are aware of unlawful harassment, but fail to make an effort to stop it. O'Brien v. Department of the Treasury, 104 LRP 1908.

Complainant's disqualification is not disability discrimination

The complainant was not subjected to disability discrimination when he was found ineligible for an immigration inspector position because of his physical limitations. In order to fall within the protection of the Rehabilitation Act, the complainant must show he is a "qualified" individual with a disability. The complainant was not qualified for the position because his physical impairments limited his ability to perform the types of actions necessary to prevent people from illegally entering the United States. Reyes v. Department of Homeland Security, 103 LRP 53944.

Disability Law - Fitness for Duty (USPS)

Unnecessary Fitness-for-Duty Examination Violates the Rehabilitation Act. The Commission found that the agency violated the Rehabilitation Act, when it ordered complainant to undergo a fitness-for-duty examination and then suspended her for not submitting to the examination. The Commission noted that, irrespective of whether an employee is an individual with a disability, an agency may only make a disability-related inquiry or require a medical examination if it is job related and consistent with business necessity. The Commission awarded complainant $50,000 for non-pecuniary harm. Amen v. United States Postal Service, EEOC Appeal No. 07A10069 (January 6, 2003).

Census Bureau (NPC) Ordered to Pay Female Employee $50,000 by EEOC

July 2003 - The EEOC ruled that the Census Bureau (NPC), Jeffersonville, Indiana, was guilty of allowing a female clerk to be harassed by two male supervisors, thus creating a hostile working environment. Census (NPC) had conducted it's own internal investigation, as required by Commerce harassment policy, and determined there was no harassment by the supervisors. The clerk (Cain) claimed she had complained to management about the harassment, but the Agency failed to take corrective action. In addition to the $50K, the Census Bureau (NPC) will also pay the legal fees for the complainant, which is estimated to be $36K, provide training in equal opportunity requirements to the supervisors, and post the non-discrimination policy for all employees (for at least 60 days).

Disability Law - Reasonable Accommodation (USPS)

Complainant Unlawfully Denied Reasonable Accommodation. The Commission found that the agency violated the Rehabilitation Act when it failed to provide complainant, a deaf employee who uses sign language to communicate, with an interpreter during a safety talk. The Commission found no evidence to support a finding that the provision of interpreter services would have caused an undue hardship. EEOC also noted that the agency failed to provide evidence that it attempted to contract the services of an interpreter in contemplation of the safety talk. As part of the relief ordered, the Commission directed the agency to train its management officials as to their obligations under the Rehabilitation Act; to notify complainant of his right to submit objective evidence in support of his claim for compensatory damages; and to consider disciplining the responsible management official(s). Saylor v. United States Postal Service, EEOC Appeal No. 01A05281 (November 15, 2002); see also Holton v. United States Postal Service, EEOC Appeal No. 01991307 (November 7, 2002) (denial of services of interpreter for hearing impaired employee for presentation of new automation concept violated Rehabilitation Act).

Federal Bureau of Prisons Grievant Claims Assignment Decision Violated his Civil Rights

A male grievant's request to be assigned to supervise a detail of female-only inmates was denied by the agency. The arbitrator agreed with the agency. The union's claim that the award violated the Civil Rights Act was dismissed by the FLRA. The position would occasionally require that strip searches be performed on female inmates. Having a male officer conduct these searches "could violate the inmates' privacy rights," the FLRA determined. AFGE, Local 3584 and Department of Justice, Federal Bureau of Prisons, Federal Correctional Institution, Dublin, CA, 103 LRP 15926.

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