$2 Million Dollar Consent Decree Against Tire Chain - What Lessons Learned for Employers?
Earlier this week, a federal judge approved a $2 million consent decree, finally settling an Equal Employment Opportunity Commission (EEOC) suit alleging that the Les Schwab Tire Center violated Title VII by discriminating against women in its 420 stores in California, Idaho, Montana, Nevada, Oregon, Utah, and Washington. Click here to download a copy of the EEOC v. Les Schwab Consent Decree.
The consent decree comes out of a lawsuit filed by the EEOC alleging that Les Schwab had a pattern and practice of hiring men for sales and service positions (such as tire changers and brake and alignment techs), while hiring women for less-desirable administrative positions. The EEOC also alleged that promotions to store management positions were only made from the male-dominated ranks of the sales and service employees. The $2 million will be shared by an estimated 200 women who filed applications for sales and service positions and were turned down by the tire chain. Les Schwab also agreed to make its best efforts to hire women into service and sales positions in proportion to their availability in the qualified applicant pool, affirm its commitment to equal employment opportunity, achieve a diverse workforce, review its recruiting and hiring procedures, and train its employees on equal employment opportunity issues.
The Les Schwab case illustrates a difficult reality that many employers face: certain industries are, for various non-discriminatory reasons, dominated by employees of one sex. While that is not necessarily proof of sex discrimination, the EEOC (and plaintiff's lawyers) absolutely look at such industries very, very carefully for signs of discrimination. Employers in such industries can take steps to ensure that they don't become the next target of an EEOC lawsuit, including:
- Review application statistics to ensure that women and men are hired in proportions roughly equal to the number of qualified female and male applicants
- Review promotion statistics to ensure that women and men are promoted in proportions roughly equal to the number of qualified female and male employees
- If employees appear to be segregated by sex into different jobs, investigate why this is and ensure that it is not for discriminatory reasons
- Ensure that your EEO policies are up to date, appropriately posted, and understood by all employees
- Provide EEO training to managers who make hiring decisions
- Partner with trade schools and colleges to actively recruit members of the underrepresented sex
- Review job descriptions to ensure that any physical requirements are job-related and necessary
Salvation Army Settles "English Only" Lawsuit with EEOC
A Massachusetts federal court last week approved a consent decree settlement of an Equal Employment Opportunity Commission (EEOC) lawsuit against the Salvation Army over the firing of two Spanish-speaking employees who failed to adhere to the employer's "English only" policy. To read the consent decree in that case, click here.
In that suit, the EEOC had accused the Salvation Army with national origin discrimination under Title VII for enforcing an English-only policy that required its thrift store employees to speak only English in the workplace, even when on breaks. The EEOC argued that the English-only policy violated Title VII because it was not justified by “business necessity," as it was used to terminate two clothes sorters who had no customer contact.
Under the consent degree, the Salvation Army will adopt new policy that employees shall use English in the workplace “to the best of their abilities when speaking to any other employee, beneficiary, customer, or a supervisor"--however, the policy will allow non-English speaking employees to speak their native language during work breaks and to use languages other than English with customers who speak the same foreign language.
This case is a reminder to employers that English-only policies may only be used and enforced if English is a "business necessity." Requiring employees to speak English during working time when speaking to customers, supervisors and coworkers is generally accepted. However, requiring employees to speak only English during breaks or in private, or requiring employees to demonstrate English proficiency when English is not a bona fide job requirement is highly risky. If you have or are considering an English-only policy for your workplace, you may want to ask your employment attorney to review that policy. To read the EEOC's guidance on English-only policies, click here.
