February 2012

• Pepsi to pay $3.13 million, to settle EEOC finding of nationwide hiring discrimination against African Americans
• United Insurance Company of America pays $37,500 to settle EEOC Disability discrimination lawsuit
• EEOC reports private sector bias charges hit all-time high
• EEOC wins jury award for pregnancy discrimination

Pepsi to pay $3.13 million, to settle EEOC finding of nationwide hiring discrimination against African Americans

The Pepsi Beverage Company has come under fire by the EEOC, they have agreed to pay $3.13 million and also provide job offers and training to resolve a dispute of race discrimination.  The charge was filed by the Minneapolis Area Office of the U.S. EEOC. The monetary settlement is being divided among black applicants for positions at Pepsi and a portion descending to the administration of the claims process.

The cause of this backlash to Pepsi is the criminal background check policy that Pepsi formerly used, discriminating against African Americans in the violation of Title VII of the Civil Rights Act of 1964. EEOC’s investigation reveals the number of African Americans that were affected by Pepsi’s criminal background check is more than 300. The former policy held job applicants who had been arrested pending prosecution negligible and unable to hire even though they had never been convicted of any offense.

Due to the investigation, Pepsi has adopted a new criminal background check policy. In addition, Pepsi will propose to those that were previously victims of the former background check policy and who still want to work for Pepsi, the offer of employment opportunities. In the end the EEOC is pleased with the efforts Pepsi went through on working together and to obtain equal rights for those they are hiring and for employees.

Source: U.S. Equal Employment Opportunity Commission. 1/11/12. 1/30/12. http://www.eeoc.gov/eeoc/newsroom/release/1-11-12a.cfm

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United Insurance Company of America pays $37,500 to resolve EEOC Disability discrimination lawsuit

The insurance company opposed employment for Craig Burns, who is a recovering drug addict that has been enrolled in a methadone treatment program since 2004. The company advised Burns that he would have a position if he passed his drug test. Due to Burn’s methadone treatment, he was unable to pass his drug test. Burn’s then submitted to United Insurance a letter from his treatment provider that he is partaking in a supervised methadone treatment program, the medication in his system is legally provided for the treatment.

When the United Insurance received this information they notified Burns that he was no longer eligible for hire and withdrew their offer of employment. This conduct violates the Americans with Disabilities Act (ADA) that protects employees and applicants from discrimination based on their disabilities. This led to the EEOC filing suit against the United Insurance Company for $37,500.

Source: U.S. Equal Employment Opportunity Commission. 1/23/12. 1/30/12. http://www.eeoc.gov/eeoc/newsroom/release/1-23-12.cfm

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EEOC reports private sector bias charges hit all-time high

The U.S. Equal Employment Opportunity Commission reported that they received a record number of charges of employment discrimination. This record number hit a high of 99,947 where they obtained $455.6 million in relief through the administrative program and litigation in the Fiscal year of 2011.

The 2011 fiscal year also presents data pertaining to the EEOC’s enforcement programs in the private and federal sectors that 5.4 million individuals benefitted from the modification in employment policies or practices in workplaces during the past fiscal year.

Their mediation program attained record levels, both in number of resolutions pertaining to 9,831 which is 5 percent more than in the fiscal year of 2010 as well as benefits of $170,053,021; this is an increase of $28 million than fiscal year 2010.
For a positive outlook, the number of charges with race and sex discrimination accusations decreased from the previous year. But the two other frequently-cited accusations increased, disability discrimination taking an increase of 25,742 and age discrimination with its increase of 23,465.

But we end with a quote from the EEOC Chair Jacqueline Berrien on the stability for this year, “For the second year in a row, the EEOC received a record number of new charges of discrimination. Nevertheless, the hard work of our employees, combined with increased investments in training, technology and staffing in 2009 and 2010, and strategic management of existing resources made 2011 a year of extraordinary achievements for the EEOC.”

Source: U.S. Equal Employment Opportunity Commission. 1/24/12. 1/30/12. http://www.eeoc.gov/eeoc/newsroom/release/1-24-12a.cfm

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EEOC wins jury award for pregnancy discrimination

The Phoenix Subway Franchisee refused to hire an applicant based upon her pregnancy. This was a victory for the EEOC in Arizona, because the discrimination victim Brenda Murillo was able “to tell my story at the trial to the jury and they believed me.”

The Arizona federal jury returned their verdict with disciplinary damages against High Speed Enterprise, Inc., the corporation that owns the five Phoenix-area Subway fast-food restaurant chains. Brenda Murillo was awarded by the jury $7,280 in retaliatory damages.

The Pregnancy Discrimination Act (PDA) establishes the clarity that it is against federal anti-discrimination laws for employers to refuse to hire pregnant women, or to fire them. Subway did engage in the intentional discrimination against women and pregnant women.

For Brenda Murillo her story was heard, she stood up for her rights, for the rights of all pregnant women and justice prevailed. This is a victory for EEOC and a victory for those who have been discriminated against due to being pregnant.

Source: U.S. Equal Employment Opportunity Commission. 1/24/12. 1/30/12. http://www.eeoc.gov/eeoc/newsroom/release/1-30-12b.cfm

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