Case Alleging that Female Workers Were Discriminated Against in Pay and Promotions Settles for $15 Million

A Minnesota-based freight delivery company recently agreed to settle a case that alleged that female workers were discriminated against in pay and promotions. (Carlson v. C.H. Robinson Worldwide Inc., D. Minn.) The company, which denied any wrongdoing, agreed to pay more than $7.1 million to female employees and $6.9 million for plaintiffs' attorney fees and costs. The plaintiffs alleged that women were paid less than their male counterparts and that men were given preferential treatment in promotions to branch management positions.

According to the settlement agreement, several policy changes will also be made by the company, including blocking access to inappropriate Web sites, adopting a policy that company-related business can not be conducted in lingerie bars and strip clubs, and implementing an online training program that addresses eliminating sexual discrimination in the workplace.

Employer Notes: When you read about a case like this, it makes you wonder where HR was. As the company denied any wrongdoing, maybe HR was on top of things and none of the alleged activity occurred. But where there is smoke there is usually fire, even if it's just kindling igniting. Nevertheless, HR has its work cut out for it now as the settlement makes all sorts of demands on HR. HR will now be developing policies not only to ensure that women receive equal pay and promotion opportunities, but also to eliminate other workplace practices that have a discriminatory or harassing effect.

Council's Employment Law Certificate Program for HR Professionals is a 4½-day event that will provide you with a comprehensive overview of all aspects of employment law, including compensation discrimination. For more information on this program, including a detailed agenda, dates, and locations, click on the link above.


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