Fired by text – what a $400K termination mistake looks like

As an HR pro, you’ve probably accepted that letting employees go is tough – but it’s part of the job. And you’ve likely figured out strategies for handling termination meetings.  

But what if a supervisor goes rogue – and fires employees over text messages?  

That’s not a good look, as an employer in Nevada recently learned the hard way. And when the EEOC got involved, it found even bigger problems.  

New employees face harassment  

Two Black employees, a married couple, were hired to work at a repair facility in Nevada in January of 2020. They were supervised by two white supervisors who were siblings.  

The employees said they were subjected to constant harassment from the two supervisors. Specifically, they said they endured racial taunts and slurs, including the N-word. They also said the supervisors regularly denigrated other Black workers on the basis of their race.  

Moreover, they said the alleged conduct happened openly, in front of co-workers and managers.  

Fired by text

The two employees said they complained to senior leaders, but the problems continued. At that point, they said they escalated their complaint to a vice president, who also “failed to take adequate steps to end the harassment.”  

Shortly after they complained to the C-suite, the two employees were fired via text by one of the white supervisors accused of harassment.  

EEOC issues warning: ‘Leaders set company culture’  

The EEOC filed a lawsuit on behalf of the fired employees, alleging racial harassment and retaliation.  

In the EEOC’s view, this alleged conduct amounted to a violation of Title VII, which prohibits race-based harassment and requires employers to investigate allegations of misconduct and promptly take action to end the harassment when necessary.  

“Leaders set company culture by the language and conduct they choose to tolerate as well as the behavior they model,” EEOC San Francisco District Director Nancy Sienko said in a press release. “Federal civil rights laws mandate that employers act promptly and effectively to stop race-based harassment, and the EEOC will hold employers accountable if they fail to meet their obligations.”  

Ultimately, the company agreed to pay $400,000 to the two employees. Under a three-year consent decree, it also agreed to:

• Retain a consultant to improve and implement policies and procedures prohibiting racial harassment and retaliation.
• Establish a comprehensive and effective complaint process.
• Hold supervisors and managers accountable for their compliance with these measures.
• Train its employees, supervisors and managers on anti-discrimination laws and PRC’s revised EEO policies and procedures.
• Ensure that employees designated to conduct racial discrimination and harassment investigations also receive investigative training.

Info: PRC Industries pays $400K to settle EEOC racial harassment, retaliation lawsuit, 10/26/23.