Client Alert - Employment Law Update
Federal Appeals Court Rejects Defense in Racial Discrimination Case
The U.S. Court of Appeals for the Seventh Circuit recently ruled that an employer cannot escape liability under Title VII for racial discrimination by pointing to evidence that it treated other minority employees favorably.
The case of Diaz, et al. v. Kraft Foods Global, Inc., No. 10-3073 (Aug. 8, 2011) began when five former employees of Kraft filed suit, claiming that they had been the subject of racial discrimination. Each were Hispanic, and worked in Kraft's sanitation department as janitorial employees. They claimed that a supervisor assigned them disfavored tasks, and repeatedly made anti-Hispanic slurs.
They also alleged irregularities in Kraft's hiring process. For instance, after Kraft restructured its operations, two plaintiffs applied for promotions, but their names were scratched off of a sign-up sheet. Kraft later suspended the hiring process; the supervisor drew up his own list, and hired two white employees. Three other plaintiffs applied for open sanitation positions. Only one was selected, but she was given the least desirable night shift.
The trial court granted summary judgment in favor of Kraft on four of the five claims. It reasoned that although some of the supervisor's actions suggested bias against Hispanics, because one Hispanic employee faced no discrimination, the evidence did not support the plaintiffs. Three of the remaining plaintiffs appealed.
The Appellate Court's Decision
The Seventh Circuit found that the trial court had analyzed the case incorrectly. It wrote, "Title VII would have little force if an employer could defeat a claim of discrimination by treating a single member of the protected class in accordance with the law." The Court relied, in part, on a prior U.S. Supreme Court case, which made clear that "the principal focus of the statute is the protection of the individual employee, rather than the protection of the minority group as a whole."
What to Do
This decision makes clear that employers will have no success arguing that they treated non-complaining members of protected classes fairly. As always, employers are best served by maintaining effective policies that prohibit discrimination of any type, and implementing training programs for managers and supervisors.
If you would like more information about this decision, or have questions about your employment policies and practices in general, please contact Mr. Gonzalez at 312-558-9779 or at egonzalez@elvisgonzalezltd.com.
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