An eight person San Diego federal court jury recently awarded Rosario Juarez $185 million dollars against AutoZone because the corporation didn’t like women working at stores, especially in management positions.
According to the lawsuit, the corporate philosophy was summed up by the Vice President for Western Operations during a visit to a store staffed by a female manager and other women. He allegedly took the district manager aside and said: “What are we running here, a boutique? Get rid of these women.”
This is exactly what was done with Ms. Juarez, who was demoted after becoming pregnant. To cover their tracks, the company alleged she was responsible for a $400 cash shortage. Even the investigating loss prevention officer said there was no reason to suspect Ms. Juarez. She too has sued AutoZone. Additional testimony would cause any decent person to wonder how such conduct can still occur in today’s hyper-legal work environment.
For related case examples, see Employment discrimination case roundup.
AutoZone will no doubt file an appeal. Under federal rules, a significant bond may be required to secure payment of costs on appeal, and that bond requirement can be the entire verdict amount unless a court orders otherwise.
The attorneys on the case have already won multi-million dollar lawsuits against AutoZone. You can expect to see several similar filings given the testimony offered and the sizable verdict.
Lessons to be learned: for AutoZone, perhaps none. Apparently one of the responsible managers still has his job and AutoZone stock has hit a record high. Unless corporate officers, board members or major shareholders press for change, chances are little will change.
For everyone else, train your managers on discrimination, including promotion barriers and pregnancy-related protections. Hire people for their talent and do not stereotype them, or you too will risk a substantial verdict. 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.
If you need to review your insurance or HR practices, talk to an agent.
Frequently Asked Questions
What employer actions commonly lead to discrimination verdicts?
Actions like demoting or disciplining employees based on pregnancy, sex, or other protected characteristics, or applying policies inconsistently, are frequent causes of 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.
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.