labor lawAdivision of labor law center

The year 2007 saw a significant number of high awards in cases of race and sex discrimination, and harassment based on race or sex.

The $2.5 million Lockheed Martin settlement – one of the biggest awards ever to a single individual – is just the most recent example.  In that case, Charlie Daniels, an African-American avionics electrician, was the target of slurs, physical threats and retaliation. When Daniels complained, the harassment only escalated. When he filed a complaint with the EEOC, the Lockheed Martin HR person ridiculed him, saying, “We are Lockheed Martin. We never lose.” Maybe not, but they sure do settle out of court.

In August, Nike settled a race discrimination suit for its Chicago, Illinois Niketown location. The company paid $7.6 million to about 400 African-American employees. The EEOC alleged that Nike hired African-American employees only for part-time jobs as stock clerks and cashiers, and systematically denied them the opportunity to be promoted into higher-paying management and sales positions.

The suit also alleged that African-American employees were searched when leaving the building, while Caucasian employees were not. Black employees also received lower wages, and benefits, were disciplined more severely for attendance problems and other infractions, and failed to receive the employee discount given to others.

These charges are especially ironic, considering that a major portion of Nike’s advertising uses prominent black athletes like Michael Jordon and Kobe Bryant to sell athletic shoes and apparel to young black men.

This is just one in a series of settlements for race discrimination this year.

In September, Walgreen settled a suit by paying $20 million to employees. The suit alleged that the nation’s largest drugstore retailer limited opportunity for African-American pharmacists and managers by assigning them only to underperforming stores in predominantly black neighborhoods.

That case was brought by employees in Tampa, St. Louis, Kansas City and Detroit but rapidly spread throughout the country.  The Walgreen suit was combined with one from 2003, creating more than 10,000 plaintiffs.

The suit against Walgreen sought back pay for the employees plus compensation for “emotional pain, suffering, inconvenience, loss of enjoyment of life and humiliation.” It also sought an injunction barring Walgreen from engaging in further discrimination.

After settling the Walgreen suit for $20 million, EEOC Chair Naomi C. Earp had conciliatory words for the retail giant. “We commend Walgreen for working cooperatively with us to reach an amicable settlement of this case without protracted litigation.” Earp said, “We believe this is a satisfactory resolution for all parties.”

Walgreens’ CEO, Jeffrey A. Rein, said, “We are pleased to reach a resolution that is consistent with our past and future diversity and equal opportunity objectives. Our company was built on principles of fairness and equality, and we do not tolerate discrimination in any aspect of employment including store assignment, compensation and promotion opportunities. In fact, we’re a drugstore industry leader when it comes to the employment and promotion of African American managers and pharmacists.”

The Walgreen attorneys added, “Walgreens is a rapidly growing company with lots of opportunity for its employees. We look forward to working with Walgreens to promote fair and equal employment opportunities for all employees.”

All of the companies mentioned in this article deny any wrongdoing.

On February 28, 2007, EEOC Chair Naomi C. Earp launched the Commission’s E-RACE Initiative (Eradicating Racism And Colorism from Employment). E-RACE is a national outreach, education, and enforcement campaign focusing on new and emerging race and color issues in the 21st century workplace.

In 2006, the EEOC received 27,238 complaints alleging race-based discrimination, accounting for 36 percent of the agency’s complaints in the private sector.  Historically, race-based charges are the most frequent type of filing with EEOC offices nationwide.

Last 10 posts by Amelia

• COBRA Subsidy Extended Again - March 5th, 2010
• New York Uniform, Meals and Lodging Rules - February 10th, 2010
• New York Non-Exempt Employee Rules - February 3rd, 2010
• New York Tipped Minimum Wage is $4.75 - January 27th, 2010
• Oklahoma Direct Deposit - January 20th, 2010
• 2010 Minimum Wage Recap - January 1st, 2010
• Vermont Minimum Wage 2010 is $8.06 - December 30th, 2009
• New GINA Regulations - December 23rd, 2009
• Kansas 2010 Minimum Wage Increases to $7.25 - December 9th, 2009
• 2010 Washington Minimum Wage is $8.55 - December 2nd, 2009