January 
2008
 Compliance Matters

Words Matter

In yet another bitter reminder of just how vulnerable employers are to the misbehavior of their supervisors and employees, the U.S. Equal Employment Opportunity Commission (EEOC) just announced a $2.5 Million settlement of a race discrimination and retaliation lawsuit against one of the world's largest military contractors.  The claimant was an African American electrician who purportedly was subjected to a racially hostile work environment at several job sites nationwide - including threats of lynching and the "N-word."

Notably, the monetary relief for the former employee is the largest amount ever obtained by the EEOC for a single person in a race discrimination case, and one of the largest amounts recovered for an individual in any litigation settlement by the agency.  Additionally, the Company agreed to terminate the harassers and make significant policy changes to address any future discrimination.

The EEOC's suit alleged that the employee was the target of persistent verbal abuse by co-workers and a supervisor whose racial slurs and offensive language included calling him the "N-word" and saying "we should do to blacks what Hitler did to the Jews" and "if the South had won, then this would be a better country." The employee also claimed that he was subjected to multiple physical threats, such as lynching and other death threats after he reported the harassment. According to the EEOC complaint, not only did the employer fail to discipline the alleged harassers, it allowed the offensive behavior to continue unabated - even though the Company was aware of the unlawful conduct.

According to EEOC statistics, racial harassment charge filings with EEOC offices nationwide have more than doubled since the early 1990s.  Additionally, race remains the most frequently alleged basis of discrimination in charges brought to the EEOC, accounting for about 36% of the agency's private sector caseload.

In announcing the settlement, EEOC officials took the opportunity to remind employers that it is imperative that employers take proactive measures to ensure that discrimination complaints are taken seriously and that all employees work in an environment free of harassment.
 

Further, employers in California have an added legal burden under the California Fair Employment and Housing Act to insure that race and other forms of prohibited harassment do not occur in the first place and to promptly investigate and remedy such claims as soon as management is made aware of them.

California state law also mandates preventative training on workplace harassment of all kinds, including sexual harassment.  During a lawsuit or government investigation, evidence that an employer failed to conduct such training can be used to demonstrate that the company culture does not take such matters seriously.  That kind of evidence can bolster an award of punitive damages.
 
This case is a stark reminder that the behavior of the supervisory team carries significant legal consequences and that they must be trained to refrain from actions that create or condone an offensive work environment for others.  Click here if you would like to see a schedule of our upcoming public supervisory training seminars and webinars.
 
Contact our seminar coordinator, Linda Gibson at lgibson@brgslaw.com for a copy of our training brochure and registration information.

For more information, call us today at (818) 508-3700, or visit us on the web, at www.brgslaw.com.
 
Sincerely,

Richard S. Rosenberg
Partner
BRG&S, LLP

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