MMC, Inc. HR Tip April 2010 Volume 2 Issue 4

Employee Discrimination Claims Hit Record High in 2009

Written by: Michele O'Donnell, M.S. Human Resources Management

The Equal Employment Opportunity Commission (EEOC) won $294 million on behalf of employees in 2009, and this number is expected to continue to rise in 2010. To illustrate this point, below are 10 headlines that were found with a quick Google search.

• Administaff to pay $115,000 for Religious Bias Suit
• K-Mart to pay $120,000 to settle Age Bias Suit
• Imagine Schools to pay $570,000 to settle Pregnancy Discrimination Lawsuit
• Les Schwab Tire Centers agrees to pay $2 million to settle hiring discrimination claim
• Lockheed Martin agrees to pay $2.5 million to settle race discrimination suit
• Allstate Insurance Co. to pay $4.5 million to settle age-discrimination class action lawsuit
• Massey Energy Co. settles age discrimination suit for $8.75 million
• Kroger will pay $16 million in discrimination suit settlement
• Age Discrimination Suit Nets $70 million for Hollywood TV Writers
• Equal Employment Opportunity Commission obtains $376 million for victims of discrimination

Conducting layoffs in your workplace? You might want to think twice.

On the “less expensive” end the settlement spectrum listed above the amount to $115,000 has the potential to be devastating to a smaller employer.  Some of the claims mentioned above were filed with the EEOC and some were handled through non-EEOC litigation and both send out the same message: employers must know and abide by non-discrimination laws imposed by federal and state regulations.

The EEOC is the federal agency responsible for enforcing federal laws that make it illegal to discriminate against a job applicant or employee for the following;

• Race
• Color
• Religion
• Sex (including pregnancy)
• National origin
• Age (40 or older)
• Disability or genetic information

It is important to note here that many states have enacted their own anti-discrimination legislation and it is imperative that an employer be knowledgeable of all regulations that apply to their operations. For example, in addition to the list above, California also prohibits discrimination based on the following;

• Ancestry
• Religious Creed
• Denial of FMLA
• Marital Status
• Medical Condition
• Sexual Orientation

In both the federal and state arenas, it is also illegal to discriminate or retaliate against an a person because they complained about discrimination, filed a discrimination claim or participated in an employment discrimination investigation or lawsuit. The anti-discrimination regulations apply to all aspects of employment including hiring, firing, promotions, harassment, training, wages and benefits.

Below is a breakdown of the claims filed with the EEOC in 2009, which can also be found on their website; 

EEOC Statistics	Graph
* Additional Notes: The number for total charges reflects the number of individual charge filings. Because individuals often file charges claiming multiple types of discrimination, the number of total charges for any given fiscal year will be less than the total of the eight types of discrimination listed.
Type of Charge # of Claims % Race 33,579 36.00% Retaliation - All Statutes 33,613 36.00% Retaliation - Title VII Only 28,948 31.00% Sex 28,028 30.00% Age  22,778 24.40% Disability 21,451 23.00% National Origin 11,134 11.90% Religion 3,386 3.60% Equal Pay Act 942 1.00% 2009 Total 93,277 *100%

As we all know, we live in an age where information is more readily available and easily accessible than ever which has no doubt played a part in the increase of claims filed as workers are more educated on their rights as employees. There is not a day that goes by that a news outlet, whether it be television, print media, or online, announces a story about corporate misbehavior resulting in a charge or possibly a settlement amount. In addition, there are law firms that have become savvy in marketing to persons that may have potential claims. Think about the commercials you have seen on late night television asking “Have you ever been wronged by an employer? Do you think you were not paid for all of the time you worked? Did an employer terminate you because you were pregnant?” The best defense to these tactics is to ensure the entire workforce is treated fairly and equitably, this starts with a thorough knowledge and understanding of all anti-discrimination rules that apply to your organization.

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