Almost one year ago, the Equal Employment Opportunity
Commission
launched an initiative to target systemic discrimination by pursuing
pattern and practice cases and class actions.
In February, the agency indicated that racial discrimination
is
likely to be a primary focus of that effort by introducing a campaign called
“Eradicating Racism and Colorism from Employment.”
On March 7, the two elements were highlighted when the EEOC
filed an
employment discrimination class lawsuit against Walgreen Co., accusing
the drug retailer of racial discrimination.
The EEOC alleges that Walgreens uses race as a factor to
place
managers and pharmacists in low-performing stores and in locations in
African-American communities. The company denies the charges.
Although the racism initiative, which emphasizes public
education
and outreach, is not directly tied to the Walgreens action, the EEOC
is
making an example of the company.
“Certainly it reflects our commitment to looking at race and
color
discrimination on a nationwide basis,” said Elizabeth Bille, EEOC special
assistant and counsel, after addressing a Society for Human Resource
Management
conference in Washington on March 12.
The EEOC has been intensifying its campaign against racial
discrimination for a while, says Lynn Lieber, an employment lawyer and
CEO of
Workplace Answers, a consulting firm.
In April 2006, the EEOC issued guidelines for employers that
warned
against subtle forms of bias, such as a boss not inviting minority
workers to an office lunch or a happy hour. This kind of exclusion
undermines
networking opportunities. It also urges companies to expand
their recruiting
efforts to include nontraditional sources of talent
and not to rely solely on
word-of-mouth referrals.
“They were very, very broad,” Lieber says of the EEOC
guidelines.
“The EEOC is very serious about race and color.”
It also is intent on promoting class-action cases. Lieber
says
courts have become more inclined to certify class actions, a trend that
could cost employers. A national chain, for instance, would want a case
to focus
on bias at individual stores rather than having it include
every
African-American employee nationwide.
The damage awards in a class action can total billions of
dollars.
“It could really force a company to go under,” Lieber
says.
Companies can increase the odds of avoiding such a fate by
developing explicit performance criteria, posting jobs openly,
conducting
structured interviews, training supervisors and establishing
formal pay bands,
says Marc Bendick Jr. of Bendick and Egan Economic
Consultants.
“This is HR 101,” Bendick says. “It’s amazing how many
employers
don’t do the basics. Most of the problems turn out to be greatly
susceptible to race-neutral solutions.”
Racial discrimination accounted for 27,238 charges, or 36
percent of
the EEOC’s private-sector caseload, in fiscal 2006.
A goal of avoiding litigation isn’t enough to underpin a
diversity initiative. But diversity will permeate more workforces if employers
are convinced that it will deliver business results, like increased sales and
improved products, says Diane Seltzer, a Washington attorney at the Seltzer Law
Firm.
“That’s the bottom-line question if you’re a businessperson:
How
does this make my business better?” Seltzer says. “That’s the language they
speak. That’s the language they hear.”
—Mark Schoeff Jr.