Company To Pay $5 Million in Nationwide Sex Discrimination Lawsuit

The U.S. Equal Employment Opportunity Commission (EEOC) announced on February 2nd, 2022, that American Freight Management Company, LLC (the Defendant) will pay $5 million in a federal nationwide sex discrimination lawsuit brought by the EEOC. In addition, the Defendant is ordered to provide job opportunities that were previously denied to women who had applied. According to the lawsuit, the Defendant allegedly held a pattern of discrimination against female applicants since 2013. Previously, on January 27, the EEOC successfully sued a delivery company for $50,000 in a religious discrimination case.

Brief Overview of the Case

In its 2019 lawsuit in the U.S. District Court for the Northern District of Alabama, Southern Division (the Court), the EEOC alleged that the Defendant engaged in a nationwide practice of sex discrimination since 2013. Specifically, the Defendant allegedly discarded job applications submitted by qualified women applying for sales and warehouse positions with the company. According to the suit, managers indicated verbally that their hiring decisions were biased and influenced by sex stereotypes. For example, the managers had allegedly stated that “women can’t lift,” that women would "complain and make trouble,” and would be “a distraction” to male employees. Consequently, the EEOC sought monetary relief in the form of back pay, as well as compensatory and punitive damages.

Title VII of the Civil Rights Act of 1964

Unquestionably, Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on race, color, religion, sex, and national origin. Indeed, the law makes it clear that is in unlawful for an employer to fail or refuse to hire or to discharge any individual, or otherwise to discriminate against any individual with respect to his compensation, terms, conditions, or privileges of employment, because of such individual's race, color, religion, sex, or national origin.

$5 Million Settlement in Sex Discrimination Lawsuit

Subsequently, in EEOC v. American Freight Management Company, LLC d/b/a American Freight Furniture and Mattress, the Court ordered the Defendant to pay $5 million. In brief, a three-year consent decree that settles the suit prohibits the Defendant from engaging in sex discrimination or retaliation. Additionally, the Defendant will:

• appoint a Title VII coordinator to implement and oversee an equal employment opportunity policy and procedure,
• develop a recruitment plan for women in sales and warehouse positions,
• provide training on employment discrimination and retaliation, and
• report periodically to the EEOC about its application and hiring statistics for women in sales and warehouse positions.

Finally, the Defendant will offer sales and warehouse jobs to those qualified female applicants who were previously denied those positions.

All-On-One EEO Anti-Discrimination Policy Poster

Under federal, state, and local laws, employers are prohibited from discriminating against employees or applicants on the basis of specific protected characteristics. Indeed, among these protected characteristics is gender. Employers of 15 or more employees must comply with federal anti-discrimination laws, including Title VII of the Civil Rights Act. Meanwhile, employers with less than 15 employees must comply with state and local anti-discrimination laws. To help demonstrate compliance with federal, state, and local laws, Personnel Concepts has created the attorney-reviewed All-On-One EEO Anti-Discrimination Policy Poster. Chiefly, this poster notifies your employees of their rights and obligations and describes a complaint process as required by law.