The EEOC has resolved one of its first lawsuits alleging sex discrimination based on sexual orientation. While the defendant company, Pallet Companies, dba IFCO Systems NA, Inc., agreed to settle the case outside of court, the resulting consent decree could have major implications for employers across the county.
In March, 2016, the EEOC filed a complaint against IFCO in the U.S. District Court for the District of Maryland, “… under Title VII of the Civil Rights Act of 1964 and Title I of the Civil Rights Act of 1991 to correct unlawful employment practices on the bases of sex and retaliation.” The Complaint alleges that a lesbian employee, Yolanda Boone, was repeatedly harassed by her supervisor because of her sexual orientation. After weeks of enduring her supervisor’s inappropriate comments and behavior, Ms. Boone complained to upper level management, but no action was taken. Ms. Boone then contacted the company’s human resources hotline to file a complaint about the harassment. The following day, Ms. Boone was asked to resign. When she refused, the company discharged Ms. Boone and called the police to escort her off of the property.
The EEOC alleges the harassment was motivated by Ms. Boone’s sex, in that sexual orientation discrimination necessarily entails treating an employee less favorably because of her sex. Accordingly, the EEOC asserts that Ms. Boone’s supervisor discriminated against her because, by virtue of her sexual orientation, she did not conform to sex stereotypes and norms about females. Further, by discharging Ms. Boone for complaining about the harassment, IFCO retaliated against a person who engaged in protected activity.
On June 28, 2016, the EEOC issued a press release announcing that IFCO agreed to a two-year consent decree in which it will pay $182,200 in monetary relief to Ms. Boone and donate $20,000 to the Human Rights Campaign Foundation to support a workplace equality program. IFCO will also provide other equitable relief, including the retention of an expert on sexual orientation, gender identity, and transgender training in order to develop a program for IFCO’s top managers.
Several federal courts currently recognize sexual orientation discrimination as sex discrimination under Title VII of the Civil Rights Act of 1964; however, it is a priority of the EEOC to broaden this recognition to all federal courts. As such, employers should be aware of the potential consequences of their treatment of employees based on both sex and sexual orientation. For more information, feel free to contact to contact the attorneys at FHKA.