5 Big Companies Sued for Racial Discrimination

Racial discrimination lawsuits against big-name companies such as Wal-Mart Stores Inc., Abercrombie & Fitch and General Electric have focused national attention on the indignities that minority employees suffer on the job. Not only have such lawsuits pointed out common forms of discrimination that workers of color face, they also serve as cautionary tales to companies that seek to foster diversity and eradicate racism in the workplace.

Although a black man landed the nation’s top job in 2008, many workers of color aren’t so lucky. Because of racial discrimination in the workplace, they earn less pay than their white counterparts, miss out on promotions and even lose their jobs.

Racial Slurs and Harassment at General Electric

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General Electric came under fire in 2010 when 60 African American workers filed suit against the company for racial discrimination. The black workers say GE supervisor Lynn Dyer called them racial slurs such as the N-word, “monkey” and “lazy blacks.”

The suit also alleged that Dyer denied bathroom breaks and medical attention to black workers and fired black workers because of their race. In addition, the suit alleged that higher-ups knew about the supervisor’s inappropriate behavior but delayed investigating the matter.

In 2005, GE faced a lawsuit for discriminating against black managers. The suit accused the company of paying black managers less than whites, denying them promotions and using offensive terms to describe blacks. It settled in 2006.

Southern California Edison's History of Discrimination Lawsuits

Southern California Edison is no stranger to racial discrimination lawsuits. In 2010, a group of black workers sued the company for discrimination. The workers accused the company of consistently denying them promotions, not paying them fairly, biased job assignments and not upholding two consent decrees stemming from class action discrimination suits filed against Southern California Edison in 1974 and 1994.

The suit also pointed out that the number of black employees at the company had dropped by 40 percent since the last discrimination lawsuit was filed. The 1994 suit included a settlement for more than $11 million and a mandate for diversity training.

Wal-Mart Stores vs. Black Truck Drivers

Approximately 4,500 black truck drivers who applied to work for Wal-Mart Stores Inc. between 2001 and 2008 filed a class action suit against the corporation for racial discrimination. They said Wal-Mart turned them away in disproportionate numbers.

The company denied any wrongdoing but agreed to settle for $17.5 million. Wal-Mart Stores have been subject to a several dozen discrimination lawsuits since the 1990s. In 2010, a group of the company’s West African employees in Colorado sued Wal-Mart because they say they were fired by supervisors who sought to give their jobs to locals.

Workers at an Avon, Colo., store allege a new manager told them, “I don’t like some of the faces I see here. There are people in Eagle County who need jobs.”

Abercrombie's Classic American Look

Clothing retailer Abercrombie & Fitch made headlines in 2003 after it was sued for discriminating against African Americans, Asian Americans and Latinos. In particular, Latinos and Asians accused the company of steering them to jobs in the stock room rather than on the sales floor because Abercrombie & Fitch wanted to be represented by workers who looked “classically American.”

Minority employees also complained that they’d been fired and replaced by white workers. A&F ended up settling the lawsuit for $50 million.

“The retail industry and other industries need to know that businesses cannot discriminate against individuals under the auspice of a marketing strategy or a particular ‘look.’ Race and sex discrimination in employment are unlawful,” Equal Employment Opportunity Commission lawyer Eric Drieband stated upon the lawsuit’s resolution.

Black Diners Sue Denny's

In 1994, Denny’s restaurants settled a $54.4-million suit for allegedly discriminating against black diners at its then 1,400 eateries across the United States. Black customers said that they were singled out at Denny’s—asked to prepay for meals or charged a cover before dining.

Then, a group of black Secret Service agents said they waited for more than an hour to be served as they watched whites be waited on several times during that same time period. In addition, a former restaurant manager said supervisors told him to shut down his restaurant if it attracted too many black diners.

A decade later, the Cracker Barrel restaurant chain faced a discrimination lawsuit for allegedly delaying to wait on black customers, following them around and racially segregating customers in different sections of restaurants.