Landmark settlement in case alleging bias based on sexual orientation
We’re betting we’ll be seeing a lot more of this new type of bias case — the EEOC just announced a settlement in one of its first lawsuits alleging discrimination based on sexual orientation.
Pallet Companies, doing business as IFCO Systems, will pay $202,200 and provide other relief to settle the case of a lesbian employee at IFCO’s Baltimore facility who claimed she was repeatedly harassed by her supervisor because of her sexual orientation, the agency announced.
Her supervisor made numerous comments to her regarding her sexual orientation and appearance, such as “I want to turn you back into a woman” and “You would look good in a dress,” according to the suit.
EEOC charged that the supervisor also made sexually suggestive gestures to her. IFCO retaliated against the female employee by firing her just days after she complained to management and called the employee hotline to report the harassment, the agency said.
Simultaneous suits
EEOC filed suit against IFCO in U.S. Court for the District of Maryland, Baltimore Division. On the same day, EEOC also filed another suit against Scott Medical Health Center in U.S. District Court for the Western District of Pennsylvania, also alleging discrimination based on sexual orientation. That case is still pending.
The two-year consent decree requires IFCO to pay $182,200 in monetary relief to the female employee and donate $20,000 to the Human Rights Campaign Foundation to support the Human Rights Campaign’s Workplace Equality Program.
IFO will also:
- retain an expert on sexual orientation, gender identity, and transgender training to assist in developing a training program for IFCO’s top managers, supervisors and employees on LGBT workplace issues
- distribute its equal employment opportunity policies and toll-free employee hotline number and Web address to all employees in its north region
- provide the female employee with a letter of reference, and
- also post a notice about the settlement and report to EEOC on its compliance with the decree, including how it handled any complaints of sexual orientation discrimination.
