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EMPLOYMENT LAW — 8/24/06

Wall Street securities firm settles disability bias case for $500,000

The US Equal Employment Opportunity Commission (EEOC) announced on August 11, 2006, the settlement of a disability discrimination lawsuit against Wall Street securities firm LaBranche & Co, Inc for $500,000 and significant remedial relief on behalf of an employee with a mental impairment.

The lawsuit alleged that long-time employee Peter Servidio, a LaBranche trading assistant on the floor of the New York Stock Exchange, had been harassed because of his disability, bipolar disorder/manic-depression, and retaliated against when he complained about the hostile work environment. LaBranche is a leading specialist and market maker in equities, options and exchange traded funds on major securities exchanges, and it serves as a specialist for more than 670 companies in more than 500 classes of equity and index options.

The suit (EEOC v LaBranche & Co, Inc, SDNY, 05-CV-8304) asserted that the firm's supervisors and coworkers on the Exchange floor frequently targeted Servidio about his disability, his use of medication, and frequently made comments that he was crazy, in and out of mental institutions, and ready to "go postal" -- meaning that he could potentially hurt or kill people. The lawsuit also alleged that the firm's top officers retaliated against Servidio when he complained to the company's human resources department about the ongoing harassment by employees and managers, and that its top officers threatened Servidio with termination of his employment and harming his future career. The suit was filed under the Americans with Disabilities Act.

The EEOC's New York district director, Spencer H. Lewis, Jr. said, "Employees with disabilities must be permitted to function in the workplace without being subjected to stigma, ridicule and hostility because they have a mental impairment and seek treatment that can require a medication regimen or a visit to the hospital."

As part of the remedial relief contained in the consent decree resolving the case, submitted on August 10 to Federal District Court Judge Shira A. Scheindlin for approval, LaBranche agreed to take a number of steps to prevent future discrimination and retaliation, including providing training to its employees and modification of relevant policies.

Elizabeth Grossman, the EEOC's New York district regional attorney, said, "No one should be forced to endure a hostile work environment where his or her disability is treated as a joke. Many individuals with disabilities have enjoyed long and successful careers in a variety of jobs where there are pressured work situations such as the stock exchange trading floor."

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

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