An eight-person San Diego federal court jury awarded Rosario Juarez $185 million against AutoZone after finding the company discriminated against women in stores and in management positions.
According to the suit, a Vice President for Western Operations visited a store staffed by a female manager and other women and allegedly told the district manager, “What are we running here, a boutique? Get rid of these women.”
Ms. Juarez was reportedly demoted after becoming pregnant, and the company later alleged she was responsible for a $400 cash shortage to justify the action.
Even the investigating loss-prevention officer testified there was no reason to suspect Ms. Juarez; that officer has also sued AutoZone. Additional testimony in the trial highlighted how such conduct can persist despite legal protections for employees.
For related case examples, see Employment discrimination case roundup.
AutoZone is likely to appeal. Under federal rules, appeals can be costly and courts may require a bond to secure payment while the appeal proceeds, sometimes requiring a substantial amount unless the court orders otherwise.
The plaintiffs’ attorneys on this case have previously won multi-million dollar suits against AutoZone, and the evidence presented suggests similar filings may follow.
Lessons to be learned: for AutoZone, perhaps none; reports indicate at least one responsible manager remained employed and corporate stock remained strong. Without pressure from officers, board members, or major shareholders, institutional change may be limited.
For other employers, train managers on discrimination law and pregnancy-related protections, hire based on talent rather than stereotypes, and document employment decisions to reduce the risk of substantial verdicts. Employers should also review Employment discrimination risks and key cases to understand common pitfalls and preventive steps.
Don Phin, Esq., is VP of Strategic Business Solutions at ThinkHR, which helps companies resolve urgent workforce issues, mitigate risk, and ensure HR compliance. For more information, contact ThinkHR.
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Frequently Asked Questions
What employer actions commonly lead to discrimination verdicts?
Actions such as demoting or disciplining employees because of pregnancy, sex, or other protected characteristics, or applying policies inconsistently, frequently lead to successful claims.
Can a company appeal a jury verdict like this?
Yes. Verdicts can be appealed and appellate courts may reduce awards or remand for a new trial, but appeals can be costly and may require bonds to secure payment while the appeal proceeds.
What practical steps can employers take to reduce discrimination risk?
Provide manager training on discrimination and bias, document employment decisions, apply policies consistently, and promptly investigate complaints.