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LABOR & EMPLOYMENT LAW — 03/18/10

Minnesota cleaners to pay $42,250 to settle EEOC pregnancy bias suit

Chief Judge Michael J. Davis of the US District Court in Minneapolis has approved a consent decree settling a pregnancy discrimination lawsuit filed by the US Equal Employment Opportunity Commission (EEOC) against White Way Cleaners for $42,250 and other relief, according to an EEOC on March 16, 2010. White Way is a dry cleaning company located in St. Paul, with store locations in Minneapolis and St. Paul as well as pick-up and delivery service to the Twin Cities suburbs.

White Way violated Title VII, as amended by the Pregnancy Discrimination Act (PDA), by taking adverse action against a pregnant employee, according to the EEOC's lawsuit (EEOC et al v White Way Cleaners, DMinn, No 09-cv-02048-MJD-JJG). Under the PDA, an employer is prohibited from taking action against women who are pregnant by refusing to hire them, transferring them, denying them a benefit of employment or firing them due to their pregnancy.

White Way maintained a policy of transferring pregnant women from the dry cleaning plant to store positions, the EEOC alleged. Michelle Johnson worked as a presser at White Way, and was transferred to a counter position in a store when she became pregnant. She was denied a raise while working in the counter position as a result of her transfer, the EEOC asserted. Johnson became pregnant again, and within days of notifying White Way of her pregnancy, she was terminated, the federal agency said.

Under the decree approved on March 15, White Way will pay Johnson monetary damages of $42,250. The decree also contains an injunction prohibiting the company from engaging in further discrimination on the basis of pregnancy, as well as prohibiting retaliation against employees who exercise their rights under the federal civil rights laws relating to employment. White Way will be required to provide training to managers and employees and to report to the EEOC for the next two years.

The linchpin evidence in the agency's case was the fact that White Way maintained a policy that discriminated against pregnant employees, according to Associate Regional Attorney Jean Kamp, who supervised the EEOC's litigation effort. Kamp explained that the evidence clearly showed White Way had applied its discriminatory policy to Johnson. “Such policies, even if well-intentioned, can't justify discrimination," Kamp said.

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

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