A regional attorney for the U.S. Equal Employment Opportunity Commission reminded employers May 14 that managers are responsible for ensuring workplaces are compliant with the Civil Rights Act. “Employers must ensure that the supervisors they empower to enforce anti-employment discrimination policies actually do so. Failing to comply with equal employment opportunity laws can be costly,” EEOC Regional Attorney Roberta Steele, who works in the San Francisco district office, said in a statement.
Steele’s statement referenced a recent settlement and consent decree entered into by the EEOC, in which Insurance Auto Auctions, Inc., a vehicle auctioneer, must pay a Black worker $175,000 to settle a racial harassment violation of Title VII of the Civil Rights Act. Part of the sum is compensatory damages, which is $171,100 for emotional distress, pain and suffering. An additional $3,900 must be paid as additional wages.
Per the complaint in EEOC v. Insurance Auto Auctions, Inc., the employee plaintiff, who worked at IAAI’s Fremont, California, location, was continually called the N-word by a co-worker, despite the worker’s opposition to it. His co-worker would allegedly call him the N-word up to 15 times a day; other colleagues would gang up on the charging party and join in, EEOC alleged. The general manager was allegedly aware of this conduct.
The EEOC filed a complaint on Sept. 30, 2024, alleging that the employer subjected the worker to “racial harassment resulting in constructive discharge,” according to the consent decree.
Not only does the consent decree enjoin IAAIfrom discriminating against workers based on race or creating a similarly hostile work environment, but it must “appoint, identify and retain” an equal employment opportunity consultant to help the company comply with Title VII and the decree.
The consultant must assist the employer in reviewing and revising compliance policies, training employees on Title VII, and creating policies for better investigation of racial discrimination complaints, among other requirements.
Christopher Green, district director for the EEOC’s San Francisco office, said EEOC “commends Auto Auctions’ new ownership for its cooperation in resolving this case early in the lawsuit even though the harassment predated its involvement,” and added that the settlement provides fair compensation for the worker but also, “long-awaited closure for both the worker and the company.”
IAAI did not respond to comment by the time of publication.