Leading Furniture Company to Pay $465,000 for Racial Harassment, Hangman’s Nooses

Source: U.S. Equal Employment Opportunity Commission (EEOC)

The U.S. Equal Employment Opportunity Commission (EEOC) today announced the settlement of a racial harassment lawsuit for $465,000 and significant remedial relief against a leading furniture corporation on behalf of African American employees who were subjected to a persistent racially hostile work environment at a furniture plant.

According to the EEOC, from approximately 1998 through January 2006, African American employees at the company’s High Point manufacturing plant were subjected to racial slurs and name calling -- including the “N-word” -- as well as threats by hangman’s nooses that were displayed at the plant. The suit alleged that the harassment occurred almost daily. The company operated a furniture plant in High Point, N.C., until January 2006. The company is a subsidiary of a larger company, which is America’s largest home furnishings manufacturer.

“This case is the latest indicator that racial harassment in general, and nooses in particular, remain persistent problems at some job sites nationwide,” said EEOC Chair Naomi C. Earp. “It’s time for corporate America to be more proactive in preventing and eliminating racist behavior in the workplace. The EEOC intends to make clear that race and color discrimination in the workplace, whether verbal or behavioral, is unacceptable and will not be tolerated.”

In addition to the $465,000 in compensatory damages to be divided among the seven class members, the three year consent decree resolving the case, filed in the U.S. District Court for the Middle District of North Carolina, includes injunctive relief enjoining the company from engaging in racial harassment or retaliation; requires anti-discrimination training; requires the posting of a notice about the settlement; and requires the company to report complaints of racial harassment to the EEOC for monitoring.

EEOC Charlotte District Director Reuben Daniels, Jr. said, “This settlement should remind employers of the potentially serious consequences of failing to take effective action to prevent and remedy racial harassment. It is in the best interest of all employers to create inclusive, discrimination-free work environments in accordance with the law.”

Lynette A. Barnes, regional attorney for the federal agency’s Charlotte District, which oversees North Carolina, Virginia, and most of South Carolina, added: “The EEOC is committed to the elimination of racial discrimination in the workplace as evidenced by the prosecution and resolution of this case, in addition to many others nationwide. We will not hesitate to take action against companies that allow employees of any race to be subjected to ongoing harassment.”

The Commission has observed a surge of racial harassment cases over the past two decades, some of which involve hangman’s nooses and verbal threats of lynching. Racial harassment charge filings with EEOC offices across the country have more than doubled from 3,075 in Fiscal Year 1991 to approximately 7,000 in FY 2007 (based on preliminary year-end data).

In addition to investigating and resolving charge filings brought to the EEOC, the agency has sued more than three dozen employers this decade in noose cases and reached several major settlements. In one recent case, the EEOC obtained more than $1 million for a black worker who was racially harassed and choked with a noose by his coworkers in a company bathroom.

On Feb. 28, 2007, Chair Earp launched the Commission’s E-RACE Initiative (Eradicating Racism And Colorism from Employment), a national outreach, education, and enforcement campaign focusing on new and emerging race and color issues in the 21st century workplace. Further information about the E-RACE Initiative is available on the EEOC’s web site at http://www.eeoc.gov/initatives/e-race/index.html.

For more information on anti-harassment training and awareness, or how to protect your company against potential liability, please contact Berkshire Associates Inc. at 800.882.8904 or email bai@berkshireassociates.com.