At the end of last month, the U.S. Equal Employment Opportunity Commission (EEOC) reported that IFCO Systems, a pallet supply company, is to pay more than $200,000 to settle charges that the company discriminated against a lesbian employee at its Baltimore facility. The EEOC alleged that the employee was repeatedly harassed by her superior because of her sexual orientation. Some of the numerous comments included statements such as, "I want to turn you back into a woman" and "You would look good in a dress". This is one of the EEOC’s first lawsuits alleging sex bias based on sexual orientation.
David Lopez, EEOC General Counsel, stated that "This consent decree marks EEOC's first resolution of a suit challenging discrimination based on sexual orientation under Title VII.” He went on to say, "EEOC is committed to ensuring that individuals are not subjected to discriminatory treatment in workplaces based on their sexual orientation and looks forward to the day that this fundamental right is widely recognized."
The settlement will distributed between two separate entities: $182,200 will go to the female employee and $20,000 will be donated to the Human Rights Campaign Foundation to support the Human Rights Campaign's Workplace Equality Program. The EEOC also reported that “the company will retain an expert on sexual orientation, gender identity, and transgender training to assist in developing a training program for IFCO's top managers, supervisors and employees on LGBT workplace issues.”
The EEOC appears to be using this case as an example to set a precedent on the protections afforded to employees’ sexual preferences. Debra Lawrence, the EEOC Regional Attorney stated that "We commend IFCO for working with us to resolve this case amicably and without engaging in protracted litigation. In addition to the monetary relief, this landmark settlement ensures that all IFCO employees and applicants are protected against discrimination because of sexual orientation. We encourage other employers to follow IFCO's example and implement similarly comprehensive policies and training programs to prevent workplace discrimination against members of the LGBT community.”
Employers should, yet again, review their anti-harassment policies and ensure that employees receive proper training on these policies. This might be one of EEOC’s first lawsuits alleging sex bias based on sexual orientation but, unfortunately, most likely not it’s last.
