EMPLOYMENT HARASSMENT: Walmart Reaches $440,000 Settlement for Harassment against Latino Employees

April 14, 2011

Fresno – Walmart’s wholesale chain store Sam’s Club will pay $440,000 and other relief to settle a national origin harassment lawsuit filed by the US Equal Employment Opportunity Commission (EEOC), according to the agency.

The lawsuit contends that at least nine female employees who are of Mexican descent and another one who was married to a Mexican from the store’s Fresno branch endured ethnic slurs and derogatory remarks made by a female worker who is Mexican-American. All employees concerned are with the demonstration department, serving food samples to customers.

The harassment started back in 2005, when the harasser everyday insulted the victims concerning Mexicans, such as and references to them only being good in cleaning homes. Another employee also ridiculed one of the victims for being bad in English. The harasser even threatened to report three of the victims to immigration authorities even if they are staying in the country legally.

Hostile work conditions were reported to the management as early as April 2006 to no avail. The complaints even aggravated the harassment and also led to intimidation, EEOC said. In October 2006, an EEOC official filed discrimination charges against Sam’s Club, resulting to the discharge of the harasser later in December.

In May 2009, the EEOC filed a lawsuit against the Arkansas-based Walmart with the US District Court, Eastern California District, claiming that the harassment and the failure to appropriately address it violated Title VII of the 1964 Civil Rights Act.

Aside from monetary relief, Walmart and Sam’s Club branches in Fresno and/or Bakersfield have to comply with the details of the three-year consent decree which the parties agreed upon.