Pregnancy Discrimination Lawsuit Filed Against Bloomberg L.P.

Pregnancy discrimination, which is a form of gender discrimination, is becoming a hot button issue in 2008. The Equal Employment Opportunity Commission (EEOC) has filed a class-action lawsuit against Bloomberg L.P., the financial-services and media company founded by Mayor Michael R. Bloomberg, on behalf of at least 54 women who accuse the firm of discriminating against pregnant employees. The suit puts Bloomberg L.P. in a familiar position, representing the latest in a series of discrimination and sexual harassment complaints filed against the firm since the 1990s.

According to EEOC lawyer, Raechel L. Adams, the number of women represented in the class action is likely to grow. As part of its continuing investigation, the EEOC is interviewing 478 Bloomberg L.P. female employees who took maternity leave at some point from 2002 to the present.

Monica Prestia is among those represented in the suit. According to the lawsuit, Ms. Prestia received the worst performance review of her career after giving birth to her first child in 2005. Thereafter, the suite alleges, she experienced hostility from a supervisor who could not have children and was asked by a different supervisor: “What is this, your third baby?”

Although Mayor Bloomberg remains the firm’s majority shareholder, the suit does not name him as a defendant. For more information about this issue, please visit the New York Times article entitled, 54 More Women Accuse Bloomberg Firm of Bias.

Race Discrimination Class Action Against New York City Settles for $21 million

Employment discrimination cases do not resolve themselves overnight. In 1999, twenty employees of the City’s Department of Parks and Recreation filed complaints with the federal Equal Employment Opportunity Commission (EEOC) alleging discrimination on the basis of race and national origin in both hiring practices and promotion decisions. After approximately nine years of litigation, New York City has agreed to pay more than $21 million to settle what has grown to become a class-action lawsuit on behalf of 3,500 former and current workers.

Beginning in December 2006, the NAACP Legal Defense and Educational Fund helped coordinate the effort to reach a settlement with the City. Theodore M. Shaw, of the Legal Defense and Educational Fund, had this to say:

Today’s settlement is a clear victory for those who were denied equality in the workplace for so long. L.D.F. commends the black and Latino workers of the New York City Department of Parks and Recreation who stood up to this injustice and had the courage to fight for change.

In reaching such a successful result, the plaintiff’s relied on well-known economist, Dr. Stephen A. Schneider of Nathan Associates, Inc., who testified as an expert witness on the issue of liability and damages.

To read more about the settlement, visit the New York Times article entitled, City Settles Parks Bias Suit for $21 Million.

Pregnancy Discrimination Complaints on the Rise According to the EEOC

Pregnancy discrimination may be on the rise. The Equal Employment Opportunity Commission (EEOC) has reported an up-tick in such complaints. Over the past year, complaints of pregnancy discrimination complaints rose 14% to 5,587. This represents the biggest annual increase in 13 years. Even more alarming, the number of pregnancy discrimination complaints has surged 40% from a decade ago. To read more about this trend, check out Sue Shellenbarger’s informative article in the Wall Street Journal entitled, More Women Pursue Claims of Pregnancy Discrimination.

Pregnancy discrimination, also known as family rights discrimination, has certainly picked up steam in the past two years. In December 2007, for instance, the New York Times published a sampling of newly minted buzzwords. Included in the list was “maternal profiling,” which the Times defined as:

Employment discrimination against a woman who has, or will have, children. The term has been popularized by members of MomsRising, an advocacy group promoting the rights of mothers in the workplace.

(The article is entitled, All We Are Saying)

Surprisingly, the Massachusetts Fair Employment Practices statute (M.G.L. c. 151B, §4) does not explicitly prohibit discrimination based upon parenthood. In 2006, a Massachusetts Superior Court in Sivieri v. Commonwealth of Massachusetts interpreted the statute to include such a prohibition. Under Sivieri, pregnancy discrimination constitutes gender discrimination.

In Sivieri, the plaintiff worked as a paralegal for the state Department of Transitional Assistance (DTA). In November 1999, Sivieri gave birth to her daughter. After returning from maternity leave, Sivieri’s direct supervisor allegedly made numerous negative comments about her pregnancy. In one instance, her supervisor allegedly remarked that their work unit would maintain its productivity as long as no other employees became pregnant. Thereafter, Sivieri was passed up for a promotion for which she believed she was qualified.

In 2002, Sivieri filed suit on the basis that DTA’s failure to promote her constituted unlawful gender discrimination. Relying on the plain language of M.G.L. c. 151B, §4, DTA moved for summary judgment, arguing that the alleged discrimination related to parental status vs. gender, and parents are not members of a protected category under Chapter 151. The Superior Court rejected DTA’s position, holding that her supervisor’s negative remarks toward pregnancy and child rearing was based on gender stereotypes and, therefore, constituted gender discrimination.

The Sivieri decision is undoubtedly a step in the right direction. As the EEOC’s statistics indicate, however, there is still much progress to be made.

Race Discrimination Settlement Reached Against Walgreen’s

In March 2007, the U.S. Equal Employment Opportunity Commission (EEOC) filed a lawsuit alleging that Walgreen’s discriminated against thousands of black workers in hiring and work assignment decisions.

This past week, a federal judge approved a settlement in which Walgreen’s agreed to pay $24 million to compensate approximately 10,000 past and present Walgreen’s employees who suffered racial bias. Attorneys’ fees in the case amounted to approximately $4.5 million. The settlement also requires Walgreen’s to hire outside consultants to review and revise their employment practices.

Supreme Court Refuses to Review Age Discrimination Case Involving Retirees’ Health Benefits

The Supreme Court recently rejected a legal challenge from AARP, which contended that employers that reduce health benefits for former employees who become eligible for Medicare violate age discrimination laws.

The case began approximately eight years ago in 2000 when retired county workers in Erie, Pennsylvania who had their health benefits reduced when they turned 65 claimed that such a policy violated the Age Discrimination in Employment Act (ADEA). The U.S. Court of Appeals in Philadelphia held that this policy amounted to age discrimination.

Initially, the Equal Employment Opportunity Commission (EEOC) agreed with the Appeals Court decision. In 2003, however, the EEOC determined that the ruling would incentivize employers to not offer benefits to retirees for fear of running afoul of age discrimination laws. With this concern in mind, the EEOC proposed an exception to the ADEA, allowing employers to reduce health benefits when former employees became eligible for Medicare.

In June 2008, the Appeals Court essentially reversed itself and upheld the EEOC’s new policy. For more information, please visit the Los Angeles Times article entitled, Supreme Court allows retiree benefit cuts

Job Discrimination Complaints Jump 9%

Workplace discrimination complaints by employees against private employers to the Equal Employment Opportunity Commission (EEOC) rose by 9% last year, signifying the largest annual increase since the early 1990s. The EEOC reported that complaints increased to 75,768 during the 2006 budget year, up from 75,428 in the previous year. Discrimination complaints based on race, retaliation, and sex were the most common. Below is an overview:

Race discrimination complaints totaled 27,238; about 35.9% of all EEOC filings

Sex discrimination complaints totaled 23,247; about 30.7% of all EEOC filings

Retaliation complaints totaled 22,555; about 29.8% of all EEOC filings

Handicap discrimination complaints totaled 15,625; about 20.6% of all EEOC filings

Age discrimination complaints totaled 13,569; about 17.9% of all EEOC filings

Sexual harassment complaints totaled 12,025; about 15% of all EEOC filings

National origin discrimination complaints totaled 8,327; about 11% of all EEOC filings

Religious discrimination complaints totaled 2,541; about 3.4% of all EEOC filings

(It is not uncommon for employees to suffer more than one type of discrimination, which is why the total exceeds 100%)

Age discrimination and handicap discrimination complaints recorded double-digit percentage increases. Complaints about discrimination based on pregnancy also rose by 14% to 5,587. In 2006, the EEOC was successful in recovering $274 million in compensation for employees reporting discrimination. The Washington Post reported on these figures in an article entitled, Job Discrimination Filings Rise in 2006

Race Discrimination Reports to the Equal Employment Opportunity Commission (EEOC) rose in 2007

Reports of race discrimination rose in 2007. The Equal Employment Opportunity Commission (EEOC) registered an increase of 24% from 2006. Complaints rose from 5,646 in 2006 to 6,977 in 2007. In an article entitled, Racial harassment cases rise sharply, USA Today reveals the changing face of race discrimination:

“Nooses are more prevalent,” says EEOC chair Naomi Earp. “The noose has replaced the N-word … as the choice if you want to threaten or intimidate someone.”

As race discrimination continues to rise, so will lawsuits. Last week, Judge Thelton Henderson of the U.S. District Court for the Northern District of California preliminarily approved Morgan Stanley’s $16 million proposed settlement for a racial-bias class action filed on behalf of 1,200 African-American and Latino brokers. In an article entitled Morgan Stanley $16 Million Race Bias Settlement Gets Prelim OK, CNN Money reported on some of the non-monetary aspects of the settlement:

Morgan Stanley agreed to settle alleged discrimination claims by setting up a $16 million settlement fund and establishing programs to boost diversity in its work force. The firm has agreed to work with industrial psychologists to develop hiring, retention and development initiatives for African-American and Latino financial advisers and broker trainees.

Merrill Lynch & Co., the largest retail brokerage house in the United States, is also facing a similar race discrimination suit from African-American brokers.

Settlement in Race Discrimination Finalized After 37 Years

Judge Robert L. Carter of the Manhattan Federal District Court recently approved a $6.2 million settlement against Local 28 of the Sheet Metal Workers Union. The Equal Employment Opportunity Commission (EEOC) filed the lawsuit 37 years ago in 1971, charging the union with race discrimination for failing to provide equal employment opportunities to nonwhite members. The final settlement compensates 156 Black and Hispanic sheet metal workers for lost wages for the years 1984 to 1991.

Until the late 1940s, the union’s constitution contained a provision excluding nonwhites from its membership. According to the EEOC, the union continued to discriminate. In order to prove discrimination, the EEOC relied, in part, on circumstantial evidence, which appeared powerful in this case. In 1974, for example, minority workers comprised only 3 percent of the union’s membership.

More can be read about the settlement in the New York Times article entitled, Settlement in Bias Suite that Stalled for 37 Years.

The settlement could not come at a better time. Today is Martin Luther King, Jr. Day — a day when we can reflect on the progress we have made as a nation while being mindful of the challenges ahead. Below is Dr. King’s I Have a Dream speech:https://www.youtube.com/watch?v=iEMXaTktUfA

Equal Employment Opportunity Commission (EEOC) Settles Race Discrimination Suits Against Ford & Lockheed Martin

The U.S. Equal Employment Opportunity Commission (EEOC) recorded a significant win in 2007, securing a settlement of about $1.6 million on behalf of a class of nearly 700 African Americans nationwide who suffered race discrimination.

At issue was a written test used by Ford Motor Corp., Visteon Corp., Automotive Components Holdings, and the United Auto Workers of America (UAW) to select job candidates for Ford’s skilled trades apprenticeship program. The test had a disproportionately negative impact on African-Americans.

As part of the settlement, the EEOC was also successful in securing non-monetary relief which, among other things, placed 55 African American test takers into the apprentice program. The settlement complements an earlier suit in 2005 brought by the EEOC against both Ford and the UAW, which was settled for $8.55 million. The most recent suit covers additional job candidates not covered in the 2005 settlement.

On December 3, 2007, the EEOC issued a new Employment Testing Fact Sheet, citing the Ford case.

The EEOC has already experienced similar success in 2008, receiving a landmark settlement of $2.5 million against Lockheed Martin in a race discrimination suit. In that case, a Black aviation electrician was persistently subjected to racial epithets and threatened with bodily harm by his White co-workers during his employment with Lockheed Martin. Click here to read more about the settlement.