Construction Workers Receive $1.65 Million Harassment Settlement

A general contractor and three subcontractors have agreed to pay a total of $1,650,000 to settle a U.S. Equal Employment Opportunity Commission (EEOC) lawsuit accusing the companies of subjecting black workers to racial harassment at a construction site in Bethlehem, Pennsylvania.

The agency had filed a racial harassment lawsuit against Conectiv; A.C. Dellovade, Inc.; Steel Suppliers Erectors, Inc.; and Matrix Services Industrial Contractors (doing business as Bogan, Inc. /Hake Group) on behalf of black employees who said they were subjected to egregious racial harassment. The EEOC claimed that African American employees faced racial slurs and graffiti as well as threats by hangman's nooses, and that the companies acted as joint employers.

According to the lawsuit, the workers faced comments such as "black men can't read or write" and "I think everyone should own one." Derogatory graffiti was written in portable toilets on the site that included "I love the Ku Klux Klan" and "if u not white u not right," and was not promptly removed. The lawsuit also alleged that a noose was hung from a beam above one of the men's work areas and was not removed for at least 10 days.

In settling the lawsuit, Conectiv agreed to pay $750,000 to the four class members, Matrix Services Industrial Contractors (doing business as Bogan, Inc./Hake Group) agreed to pay $450,000 to two class members, Steel Suppliers Erectors agreed to pay $250,000 to one class member, and A.C. Dellovade agreed to pay $200,000 to one class member. None of the employers admitted liability in the settlement.

Racial harassment cases at the EEOC have surged since the early 1990s from 3,075 in fiscal year 1991 to nearly 7,000 in fiscal year 2007. In addition to investigating and voluntarily resolving tens of thousands of race discrimination cases out of court, the EEOC has sued more than three dozen employers this decade in racial harassment cases involving nooses.

COUNSEL TO MANAGEMENT:

Employers who share employees or work sites must all have effective anti-harassment and anti-discrimination polices that include effective complaint mechanisms. Further, where there is joint control of a worksite, each employer must act aggressively to remove inappropriate posters, graffiti, or displays. Each employer must take action to prevent harassment, and must respond appropriately to harassment when it occurs.

A vital key in such a scenario is a contract that clearly delineates each employer’s responsibility, and establishes terms for shared investigative responsibilities. As harassment and discrimination cases continue to increase in frequency, employers must be vigilant to protect themselves from allegations such as these.

The goal of this article is to provide employers with current labor and employment law information. The contents should not be interpreted or construed as legal advice or opinion. For individual responses to questions or concerns regarding any given situation, the reader should consult with Saqui & Raimondo at (831) 443-7100 in Salinas, or (916) 782-8555 in Sacramento.