Small and midsize business owners take heed of a recent legal victory that highlights the severe penalties for racial discrimination in the workplace. In a case brought by the U.S. Equal Employment Opportunity Commission (EEOC), two coastal drilling companies were found guilty of racial harassment and forced resignation, resulting in a substantial financial penalty.
Understanding the Consequences of Workplace Discrimination for Small and Midsize Businesses
The EEOC’s case against a Pennsylvania-based company operating in the oil and natural gas industry, began on September 13, 2021. The lawsuit alleged that a Black employee at a site endured severe racial harassment from coworkers, including incidents involving a noose and persistent use of racial epithets such as racial slurs. Shockingly, a direct supervisor not only tolerated but participated in some of the racial harassment.
Despite being aware of the racial harassment taking place within its workplace, the company failed to take any action to prevent or address it. As a result, the Black employee was eventually forced to resign from his employment, a clear violation of Title VII of the Civil Rights Act of 1964, which prohibits racial harassment and forced resignations due to race.
The EEOC originally filed the lawsuit against the company in the U.S. District Court for the Western District of Pennsylvania. Subsequently, the company was added as a defendant, given its status as a successor-in-interest to the well services division of another company.
On December 5, 2022, a unanimous federal jury ruled in favor of the EEOC, finding the companies guilty of violating Title VII by subjecting the Black employee to racial harassment and forced resignation based on his race. The jury awarded the employee $24,375 in compensatory damages for emotional distress.
Additional Ramifications
Furthermore, on August 16, 2023, Senior U.S. District Judge Joy Flowers Conti issued an order mandating that the defendants pay the Black employee an additional $56,093.62 in back pay and other relief for the Title VII violations. The court also imposed a permanent injunction for a two-year period, preventing the defendants from tolerating racial harassment and requiring them to implement measures to prevent future violations of federal law.
EEOC Chair Charlotte A. Burrows emphasized that racial harassment has no place in the workplace and noted that racial harassment remains a significant obstacle for people of color in various industries, including construction. She highlighted the EEOC’s commitment to ensuring that all workers can thrive in the construction industry.
EEOC Philadelphia Regional Attorney Debra M. Lawrence emphasized that this verdict should serve as a stark warning to all employers. The EEOC and the American people will not tolerate racial harassment and discrimination in the workplace. Employers must take proactive measures to prevent and address such behavior, or they may face substantial legal and financial consequences.
EEOC District Director Jamie R. Williamson underscored that every employee has the right to a workplace free from racial harassment and slurs. Employers have a responsibility to address such harassment promptly, and failure to do so may prompt the EEOC to take strong action to enforce federal laws against workplace discrimination.
Conclusion
This case serves as a powerful reminder to small and midsize business owners that discrimination of any kind in the workplace can lead to significant legal and financial repercussions. Employers must prioritize creating inclusive and harassment-free environments to avoid costly lawsuits and protect their businesses’ reputations. Compliance with federal anti-discrimination laws is not only a legal requirement but also a fundamental step toward fostering a fair and equitable workplace for all employees.