Cell Phone Refurbishing Company to Pay $435,000 to Settle EEOC Suit for Unequal Wages and Retaliation

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

NEW YORK – A New York-based company that refurbishes cell phones at its factory in Long Island will pay $435,000 to settle a wage discrimination and retaliation suit brought by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today.

The EEOC had charged the company engaged in a pattern or practice of race and/or national origin discrimination against a class of Hispanic workers by paying them less for doing the same job as Asian employees and by firing those who complained about the unlawful pay disparity.

According to the EEOC’s lawsuit (Civil Action No.03-CV-4990) filed in September 2003 in U.S. District Court for the Eastern District of New York, after a group of former Hispanic employees became aware that Asian employees were being paid $1.50 to $2.00 or more per hour for performing the same work, they circulated a petition asking for equal pay. Rather than looking into the employees’ complaints, the EEOC said, the company responded by firing them and others they believed were involved.

The case was resolved pursuant to a four-year consent decree just signed by Judge Joanna Seybert. The settlement requires the company pay $435,000 to a class of victims who came forward and testified about their discriminatory treatment. The company must also take substan­tial steps to prevent future workplace discrimination, including: posting a remedial notice; ensuring it has a compensation system in place that does not discriminate; and training its managers, supervisors, and human resource employees on federal laws that prohibit discrimin­ation. The company also revised its anti-discrimination policy and complaint procedure and will be distributing it to all its employees. The company is also enjoined from discriminating against anyone on the basis of his or her race or national origin and from retaliating against anyone who complains about discrimination.

Federal court will retain jurisdiction over this case for the next four years to ensure all obligations under the consent decree are met.

“The EEOC is particularly concerned when employers retaliate against people who have the courage to speak out against discrimination,” said EEOC Senior Trial Attorney Adela Santos. “This is clearly illegal and we will fight such misconduct.”

EEOC New York District Director Spencer H. Lewis, Jr. said, “We are pleased that everyone who stepped forward to testify will be compensated. The EEOC will protect every worker’s right to a workplace free of unlawful mistreatment by any employer.”

The EEOC is responsible for enforcing federal laws prohibiting discrimination in employment based on race, color, sex (including sexual harassment and pregnancy), religion, national origin, age, disability, and retaliation. Further information about the Commission is available on its web site at http://www.eeoc.gov.

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