![[US] Former FedEx employee awarded $366m in discrimination and retaliation suit](http://globalpayrollassociation.com/cdn/shop/articles/bigstock-------New-york-Manhattan--462274683_1200x.jpg?v=1669002622)
In Texas, a federal jury has awarded a former FedEx Corp. employee $1.24 million in compensatory damages and a massive $365 million in punitive damages following a trial accusing Federal Express of discrimination and retaliation, Richmond Times-Dispatch reports.
Jennifer Harris - a Black woman who has worked for FedEx since 2007 - began as an account executive and received multiple promotions and awards over the years until her employment was terminated in January 2020.
In her most recent position, Ms Harris led a sales team and her performance was measured by the team’s production.
In June 2017, Ms Harris began reporting to a new supervisor who was reportedly not pleased with her performance; at one point suggesting that Ms Harris voluntarily take a demotion away from management and return to being an account executive, where she had previously excelled.
Following her rejection of this suggestion, Ms Harris received a letter of counselling and then a letter of warning. During this time, Ms reportedly Harris filed several internal complaints alleging discrimination. Her complaints were investigated and found to be unsubstantiated. Ms Harris was terminated shortly thereafter.
Ms Harris sued under federal law 42 USC 1981; a federal law prohibiting race discrimination in contracts, including employment, and Title VII of the Civil Rights Act.
In denying summary judgment for FedEx, the judge acknowledged that Ms Harris did not fully meet her sales goals, but pointed out that at least one of her white peers did so too and was not similarly disciplined.
The court held that “The statistics relied upon by the defendant to establish the plaintiff’s failing are direct evidence of disparity in treatment.”
For example, while Ms Harris’ sales reportedly fell .11 per cent below the average, her white peer was 9.79 per cent below the average.
The court held, “Because the plaintiff’s termination was based solely on her failure to meet the defendant’s revenue goal when others not of her race but in similar positions were not terminated when they did not meet their revenue goals, raises the inference that race could have been a favor in the plaintiff’s termination.”
The case went to a jury trial because the court denied summary judgment.
Following a trial on the evidence, the jury took only two days to determine that Ms Harris suffered retaliation warranting compensatory damages.
The jury also concluded that $365 million should be awarded to Harris for “any reprehensible conduct of the defendant” that the jury found as punitive damages.
In the lawsuit, Ms Harris acknowledged that FedEx published policies promising that employees will not suffer discrimination or retaliation, but identified three major defects on the part of FedEx:
- “FedEx hires HR personnel who are not qualified to follow policies prohibiting discrimination and retaliation.”
- “FedEx fails to adequately train its managers to follow policies prohibiting discrimination and retaliation.”
- “FedEx fails to supervise its managers to ensure they follow policies prohibiting discrimination and retaliation.”
FedEx reportedly intends to appeal and has stated that the verdict is excessive.
Source: Richmond Times-Dispatch
(Quotes via original reporting)
In Texas, a federal jury has awarded a former FedEx Corp. employee $1.24 million in compensatory damages and a massive $365 million in punitive damages following a trial accusing Federal Express of discrimination and retaliation, Richmond Times-Dispatch reports.
Jennifer Harris - a Black woman who has worked for FedEx since 2007 - began as an account executive and received multiple promotions and awards over the years until her employment was terminated in January 2020.
In her most recent position, Ms Harris led a sales team and her performance was measured by the team’s production.
In June 2017, Ms Harris began reporting to a new supervisor who was reportedly not pleased with her performance; at one point suggesting that Ms Harris voluntarily take a demotion away from management and return to being an account executive, where she had previously excelled.
Following her rejection of this suggestion, Ms Harris received a letter of counselling and then a letter of warning. During this time, Ms reportedly Harris filed several internal complaints alleging discrimination. Her complaints were investigated and found to be unsubstantiated. Ms Harris was terminated shortly thereafter.
Ms Harris sued under federal law 42 USC 1981; a federal law prohibiting race discrimination in contracts, including employment, and Title VII of the Civil Rights Act.
In denying summary judgment for FedEx, the judge acknowledged that Ms Harris did not fully meet her sales goals, but pointed out that at least one of her white peers did so too and was not similarly disciplined.
The court held that “The statistics relied upon by the defendant to establish the plaintiff’s failing are direct evidence of disparity in treatment.”
For example, while Ms Harris’ sales reportedly fell .11 per cent below the average, her white peer was 9.79 per cent below the average.
The court held, “Because the plaintiff’s termination was based solely on her failure to meet the defendant’s revenue goal when others not of her race but in similar positions were not terminated when they did not meet their revenue goals, raises the inference that race could have been a favor in the plaintiff’s termination.”
The case went to a jury trial because the court denied summary judgment.
Following a trial on the evidence, the jury took only two days to determine that Ms Harris suffered retaliation warranting compensatory damages.
The jury also concluded that $365 million should be awarded to Harris for “any reprehensible conduct of the defendant” that the jury found as punitive damages.
In the lawsuit, Ms Harris acknowledged that FedEx published policies promising that employees will not suffer discrimination or retaliation, but identified three major defects on the part of FedEx:
- “FedEx hires HR personnel who are not qualified to follow policies prohibiting discrimination and retaliation.”
- “FedEx fails to adequately train its managers to follow policies prohibiting discrimination and retaliation.”
- “FedEx fails to supervise its managers to ensure they follow policies prohibiting discrimination and retaliation.”
FedEx reportedly intends to appeal and has stated that the verdict is excessive.
Source: Richmond Times-Dispatch
(Quotes via original reporting)