There’s a new benchmark for the cost of racial harassment and discrimination in the workplace: $10 million.
A federal judge in Chicago recently approved that payment — and ordered the adoption of a five-year program to prevent future harassment — to end an Equal Employment Opportunity Commission lawsuit against Roadway Express and YRC, Inc.
In its suit, EEOC officials alleged that black employees were subjected to multiple incidents of hangman’s nooses, racist graffiti and racist comments, and racist cartoons.
In addition, the EEOC said the employer subjected black employees to harsher discipline and scrutiny than their white counterparts and gave more difficult and time-consuming work assignments to black employees than white employees.
Roadway Express operated the facilities until its merger with Yellow Transportation, when the two companies combined operations to form YRC, Inc. two years ago.
The case was set to go before a federal district court in October. It involved over 300 African-American employees, the EEOC said.
In addition to the $10 million settlement, the consent decree requires the company to develop revised anti-harassment policies, revamp its system of recording and reporting complaints, and hold annual anti-harassment training.
The decree also requires YRC to retain consultants to examine the company’s discipline and work assignment procedures and recommend changes to prevent racial disparities.
Finally, the decree requires the appointment of a monitor to oversee the company’s response to complaints and to report on the company’s compliance with the decree. The monitor will report back to the court and the EEOC.
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