Fry’s Electronics will pay $2.3 million to settle EEOC suit

Agency cracks down on company for “sexting” and retaliation

Most people would never think of “sexting” their subordinates—but one employee at Fry’s Electronics didn’t seem to think it was inappropriate.

America Rios, a 20-year-old sales associate at one of the national retailer’s Washington stores, told her direct supervisor, Ka Lam, that a male assistant store manager was frequently sending her sexual text messages and inviting her to his house to drink alcohol. Lam reported the harassment to the corporate legal department and was subsequently fired.

The Equal Employment Opportunity Commission (EEOC) filed a lawsuit against Fry’s, claiming the retailer illegally retaliated against Lam and was responsible for Rios’ sexual harassment. The agency announced yesterday that Fry’s agreed to pay $2.3 million and to implement preventive measures to settle the lawsuit.

“This seven-figure settlement, among the highest EEOC settlements ever on a per-claimant basis, follows court-ordered sanctions including a penalty of $100,000 due to Fry’s abusive discovery tactics which included destroying relevant evidence, wrongfully withholding evidence, and filing frivolous motions,” EEOC General Counsel P. David Lopez said in an EEOC press release. “The case should send a clear message that sexual harassment of vulnerable employees remains a serious problem in this country, as is employer retaliation against those who report harassment.”

Read more InsideCounsel stories about the EEOC here:

Court says discrimination suit against EEOC may proceed

Labor: 7 ways to avoid trouble with the EEOC

Labor: No liability for pre-EEOC investigations

EEOC scrutinizes blanket policies for ADA violations

Labor: EEOC decision acknowledges protection under Title VII based on transgender status

Labor: EEOC issues final rule on reasonable factors other than age under the ADEA

Labor: EEOC issues guidance on using criminal records to make employment decisions

Comments

InsideScoop Daily eNewsletter

InsideScoop delivers the latest-breaking news affecting in-house counsel. Get the latest business trends, current corporate litigation, labor developments, technology initiatives and more — FREE. Sign up now!

You have been subscribed! You will receive a confirmation email soon.

See the entire list of InsideCounsel eNewsletters.

Resource Library


Reduce eDiscovery Costs and Risks through Email Disposition

Read this white paper to learn best practices on determining email retention periods with real...

Prepare for the Eventuality of eDiscovery Now and Reap the...

This report presents an overview of eDiscovery implementation challenges organizations may face as well as...

The Fastest and Most Cost-Effective Document Review Available!

Recommind's Predictive Coding is the market's only solution that allows clients the option of reviewing...

Bring the Benefits of Decision Tree Analysis to Your Everyday...

In this on-demand webinar, learn how to counter the challenges of litigation with predictive analytics...

13 Things to do Now to Reduce Risk and Avoid...

We have developed best practices for lowering your e-Discovery costs, shortening the length of your...

7 Simple Strategies for Improving Legal Fee Budgeting Certainty

Understanding the legal fee budgeting paradigm and following seven simple strategies will help you control...

Complimentary White Paper: Best Practices for Meeting Critical eDiscovery Challenges

Packed with practical advice, this white paper discusses best practices for meeting eDiscovery challenges across...

Complimentary White Paper "Key Considerations for Collection Methodologies and Resources"

This white paper addresses the need for companies to reevaluate their current collection policies in...

Moving Matters In-House: How Technology Enables Legal In-Sourcing

Strategically shifting more matters to in-house counsel has proven to be an effective strategy to...

5 Ways to Promote Responsible Content Sharing

Find out five ways that organizations can promote responsible sharing of content among employees by...

View All »

Advertisement. Closing in 15 seconds.