On January 16, 2014, the EEOC issued a press release advising the public that J.C. Penney had agreed to pay $40,000 to settle a pregnancy discrimination lawsuit brought by the EEOC. In the lawsuit, the EEOC charged J.C. Penney refused to hire a female applicant for a salon position after she told the manager she was pregnant. Such actions are in violation of the Pregnancy Discrimination Act ("PDA"). The EEOC tried to resolve the matter without litigation, but was unsuccessful. The settlement also requires J.C. Penney to implement an equal employment opportunity training and reporting program including posting of anti-discrimination notices.
The EEOC reports 4,901 pregnancy discrimination charges were filed in FY2006, up approximately 1,000 cases over FY 1997. However, there was a jump in cases beginning FY2007 that has remained high. In FY2011, 5,797 complaints were filed with the EEOC. Importantly, in FY 2011, employers paid out $17.2 million in monetary benefits, excluding amounts awarded in litigated cases, arising out of pregnancy discrimination claims. Such cases are costly not just in terms of cash outlay, but also in terms of employee morale, workplace environment and employer reputation.
Are you next? The PDA was passed in 1978 as an amendment to Title VII of the Civil Rights Act of 1964. Unfortunately, after such an extended period of time, employers become lured into a false sense of security that everyone understands what they can and cannot do in the workplace. That simply is not true and employers who want to avoid costly claims such as that experienced by J.C. Penney must be proactive.
Construction companies are not immune to PDA claims. There are ways for all employers to reduce the risks to such claims. If you do not have a plan in place to address discrimination in the workplace, contact an attorney experienced in employment law to assist you in developing a program.