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EMPLOYMENT LAW — 2/1/07

Nation origin bias suit settlement gives $2.8 million to Latino employees

Judge Lee Rosenthal, sitting in the US District Court for the Southern District of Texas, granted final approval on January 23, 2006, to the settlement of discrimination claims against Quietflex Manufacturing Company, LP, according to the US Equal Employment Opportunity Commission (EEOC). Under the terms of the settlement, Quietflex's insurer will pay $2.8 million to 78 current and former Latino employees. In addition, the company has agreed to implement policies and practices to advance equal employment opportunity.

The lawsuit was filed in October 2001 when 78 Latino employees, represented by the Mexican American Legal Defense And Educational Fund, Inc sued Quietflex, claiming that it discriminated against them based on their national origin in its transfer and compensation policies. The suit alleged that Latinos were denied entry into a department with jobs which were higher-paying and had better working conditions than the departments in which Latinos worked. They further alleged retaliation based on their terminations stemming from a work stoppage in January 2000. All employees were rehired shortly thereafter. Based on an assertion that the case raised issues of general public importance, the EEOC intervened as an additional plaintiff shortly after the suit was filed.

Quietflex, which produces flexible air conditioning ducts and component products, denies all of the allegations in the lawsuit. In reaching a settlement, the parties avoided the inconvenience, cost and inherent uncertainty of trial. Since the case settled without trial, the court made no findings of liability.

"Our office investigated the claims that gave rise to the lawsuit," said James Sacher, the EEOC's regional attorney for the Houston district. "The improvement in promotional and transfer prospects for Hispanic workers and the payment of compensation to settlement group members is gratifying, as it shows the efficacy of our civil rights enforcement program."

Gerald L. Maatman, Jr., trial counsel at Seyfarth Shaw LLP, said: "While we were fully prepared to present this case at trial, and stand by our position that our client has always followed the laws and regulations related to equal opportunity employment, we are very pleased with this result for our client. This settlement is a fair conclusion for all involved."

For more information on this and other topics, consult CCH Employment Practices Guide or CCH Labor Relations.

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