Leading General Merchandise Corporation to Pay $120,000 to Settle EEOC Age Bias Suit

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

HONOLULU – A leading general merchandise corporation will pay $120,000 and furnish other relief to settle an age harassment, constructive discharge and retaliation lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today. The EEOC had charged that the company discriminated against a 70-year-old pharmacist at a Honolulu store.

According to the EEOC’s suit, over the course  of four years, a pharmacy manager openly professed on several occasions that  the pharmacist was “too old,” “should just retire,” and was “greedy” for  continuing to work at age 70. Further,  the EEOC said, the manager continued to humiliate her in writing by stating, “The  pharmacy is no longer your forte” and “You need to retire from pharmacy work  now,” in a communication book open to the entire department.

The manager also purposely scheduled her to work on Sundays – knowing that she attended church those days – to encourage her to quit, according to the EEOC. The agency further contended the victim complained to a district manager, general manager, and human resources manager regarding the age-based harassment, to no avail.

Further, the EEOC charged, the company threatened legal action against the pharmacist using a pretext on an unrelated matter to retaliate against her for her discrimination complaint. Finally, the EEOC said, she had to quit to escape the mistreatment.

In June 2009, the EEOC filed its lawsuit in U.S. District Court, District of Hawaii claiming the company failed to take remedial action, which forced the pharmacist to resign. The EEOC argued the harassment and the company’s failure to adequately address it were in direct violation of the Age Discrimination in Employment Act (ADEA).

“Instead of addressing this pharmacist’s legitimate complaints of age discrimination, (the company) made a bad situation worse by threatening her for complaining,” said EEOC Acting Chairman Stuart J. Ishimaru. “Such retaliation only compounds an employer’s culpability.”

In cooperation with the EEOC, the company  entered into a three-year consent decree which also stipulated the company post  a notice on the matter; hire an EEO trainer; review and revise its existing  anti-discrimination policy; provide annual ADEA training to all staff; and  ensure performance evaluations reflect discriminatory misconduct by management staff.

“Older workers should be valued for their experience, not viewed as a liability,” said Anna Y. Park, regional attorney for the EEOC’s Los Angeles District Office, which includes Hawaii in its jurisdiction. “Under no circumstances will the EEOC tolerate employers pushing out their older workers simply because of age. The EEOC forcefully protects people against this kind of age-based discrimination.”

Timothy Riera, director of the EEOC’s Honolulu Local Office, added, “Employers should handle complaints of discrimination, including harassment, in an expeditious manner. Training on a company's EEO policies should occur periodically, and if someone if found to be in violation, appropriate disciplinary action should immediately be taken.”

According to company information, (the company) operates 1,368 general merchandise stores across the U.S. and its territories.

The EEOC is the federal agency that enforces federal laws prohibiting employment discrimination. Further information about the EEOC is available on the agency’s web site at www.eeoc.gov.

To find out more about employment discrimination laws and how to protect your company from potential liability, please contact Berkshire Associates at 800.882.8904 or email bai@berkshireassociates.com.