The EEOC recently reached a $20 million settlement in a race discrimination case with pharmacy giant Walgreen Co. The Equal Employment Opportunity Commission (EEOC) alleges that Walgreen denied promotions to black managers and pharmacists because of their race. Instead, according to the suit, Walgreen steered African-American employees into jobs at underperforming stores in predominantly black neighborhoods.
While the initial complaints concerned 20 employees in St. Louis, Tampa, Detroit and Kansas City, the court soon made this a class-action suit with over 10,000 plaintiffs. EEOC sources say that Walgreen engaged in similar practices nationwide against African-American employees.
The suit was combined with a 2003 suit alleging similar violations, to form a class action suit with 10,000 or more plaintiffs.
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.”
Walgreen denies the allegations made in both suits.
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.”
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 seeks an injunction barring Walgreen from engaging in further discrimination.
This is just one in a series of settlements for race discrimination this year.
Earlier this year, Quietflex Manufacturing Company, L.P. recently paid $2.8 million for discriminating against Hispanic employees. The lawsuit alleges that 78 Latino employees were discriminated against in the company’s transfer policies, and in pay.
Quietflex produces flexible air conditioning ducts and components. The company has repeatedly denied all wrongdoing in the case.
According to the suit, the company denied Hispanic employees higher-paying jobs in departments with better working conditions. After a work stoppage to protest the discrimination, the EEOC alleges that Quietflex illegally retaliated against the employees by terminating them. All the employees were rehired shortly afterward.
In January, Target Corp. paid $775,000 for racial harassment to settle a suit. The suit alleged that Target Violated Title VII of the Civil Rights Act of 1964 by creating a racially hostile work environment at the Springfield, Pennsylvania Target store.
In the suit, the EEOC said that Michael Hill was an apprentice in training to become a store manager. He was subjected to racial harassment by a white store manager. When Hill complained, he was retaliated against, leaving him no choice but to resign.
Target operates more than 1,500 stores in 47 states, including 175 SuperTarget stores. As part of the settlement, Target agreed to train employees at the Springfield store.
“We are pleased that the parties could reach an amicable resolution of this matter,” said EEOC Regional Attorney Jacqueline McNair. “We expect the proposed training and emphasis on anti-discrimination policies to create a more employee-friendly work environment at Target’s facility.”
Title VII makes it illegal to deny a person any employment opportunity because of that person’s race or color, sex, religion or national origin. A work environment free from illegal harassment and different treatment based on race are included in the range of such employment opportunities. In addition, Title VII recognizes that persons made to work in an intolerable environment may be constructively discharged, or compelled to resign their employment. Finally, it is illegal to retaliate against someone because he has made a complaint of illegal discrimination.
What if an employer fails to follow all of these labor laws for new hire reporting, or what if an employer just chooses not to do all of the new hire reporting called for by the labor laws?
In that case, at least in the state of Florida, the state has the option to come after you. They can do so because the federal organization in charge of all the new hire reports across the country—the Federal Office of Child Support Enforcement, or OCSE—provides the state of Florida every business quarter with a report that contains information on all employers there who may or may not be reporting new hires as per the law.
The state of Florida then uses the quarterly reports to contact all of those employers who appear to be not following the laws. Consider the letter a warning, and a friendly reminder of what the labor law calls for when it comes to reporting new hires and re-hires. Follow these laws going forward, and you and the state of Florida will get a long.
If you don’t, the state withholds the right to punish and fine you for your infractions. The state can fine employers up to $25 for each new hire not reported. If the state finds that the employer and the employee conspired to break the labor law and knew exactly what they were doing, then the state can fine you up to $500 per employee. That isn’t chump change for a small employer, and for big employers with thousands of employees, those fines can surely add up.
One of the reasons that Florida sends out the warning letter first is that you could be considered noncompliant with the law even if you are sending in new hire information to the state—if that information is inaccurate. Again, we run into another example of hwy proper employee files organization and human resource forms are so important.