South-Western - Management  
Judge Certifies Suit Accusing Wal-Mart of Sex Discrimination
Topic Equal Employment Opportunity
Key Words Class action suit, gender stereotyping
News Story

Judge Martin Jenkins, of the U.S. District Court in Northern California, granted class-action status in a sex discrimination lawsuit against Wal-Mart. He stated that the plaintiffs had shown that there were "significant legal and factual issues concerning Wal-mart's alleged discriminatory practices, including gender stereotyping and a culture of corporate uniformity."

Lawyers for Wal-Mart urged the judge to deny class certification because the class would be too large to handle in a single case. Wal-Mart employs more women and more workers than any other American company. They strongly disagree with the decision and will seek an appeal.

Lawyers for the plaintiffs hired Richard Drogin, a statistics professor, who found that the full-time female hourly workers who have worked at least 45 weeks at Wal-Mart made $1,150 less per year than men in similar jobs. Female store managers made $16,400 less than men store managers.

In making his decision Judge Jenkins wrote that "pay disparities exist in most job categories, that the salary gap widens over time, that women take longer to enter management positions, and the higher one looks in the organization the lower the percentage on women." This includes almost all women who have worked in Wal-Mart since December 1998.

On June 4 Wal-Mart's Chief executive; H. Lee Scott Jr., announced a new job classification and pay structure which is designed to ensure fairness in pay and promotions.

Questions
1.

Read in your text about how a discrimination charge is filed with the EEOC. What is the length of time that a charge may be filed with the federal EEOC agency and what is the process that the EEOC takes to notify the employer of the receipt of the complaint?

2.

Who conducts EEOC investigations and how are they conducted?

3.

Read the section in your text on Adverse Impact. This article discusses that the employer did not promote women to higher levels of management. Can there be a claim of adverse impact? Why or why not?

4.

In his ruling Judge Jenkins states that there have been pay disparities against women. What does the term comparable worth mean, and how does it relate to this case?

Source "Judge Certifies Suit Accusing Wal-Mart of Sex Discrimination," The New York Times, June 22, 2004.
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