Schuff Steel, headquartered in Phoenix, recently settled a lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC) regarding allegations of racial harassment and retaliation against Black and Latino employees. The company agreed to pay $500,000 without admitting any wrongdoing. The allegations centred on the behaviour of a plant manager at the company’s Eloy, Arizona facility, who was accused of using racial slurs, mocking Latino employees’ English proficiency, and making racially charged declarations.
The EEOC’s media release stated that the manager’s conduct included using racial epithets, openly declaring “White power” in the presence of Black employees, and taking retaliatory actions against those who raised complaints by either terminating them or shifting them to night shifts. Following failed conciliation attempts, the EEOC sued Schuff Steel under Title VII of the Civil Rights Act of 1964 for race and national origin harassment, and retaliation.
The consent decree, lasting three years, mandates significant changes within the company. These include implementing new companywide policies, establishing a hotline for complaints, and undergoing external review and revision of EEO policies. Additionally, the decree necessitates anti-discrimination training for employees, managers, and HR personnel at both the Eloy facility and the Phoenix headquarters.
Regional Attorney Mary Jo O’Neill emphasized the fundamental right of employees to work in an environment free from discrimination and harassment, expressing particular concern that such behaviour was exhibited by a manager.
The settlement underscores the EEOC’s commitment to eradicating discrimination, especially within industries, as stated by acting director Nancy Sienko. It aligns with the agency’s strategic enforcement plan, focusing on preventing systemic harassment.
The settlement serves as a guideline for employers, outlining anti-harassment and anti-discrimination policies, investigation protocols for complaints, and training requirements. For HR professionals, the decree emphasizes their crucial role in preventing and addressing harassment, outlining specific training hours and areas of focus. It emphasizes HR’s responsibility to avoid discrimination, be attentive to perceptions of their actions, and refrain from retaliation against employees raising complaints.
