Family Dollar agreed to pay $45 million to a class of female store managers who sued the company claiming they had been paid less than male store managers. Earlier this week, a federal court approved the class action settlement. The pay discrimination claims arose under Title VII of the 1964 Civil Rights Act as well as the Equal Pay Act.
The plaintiffs are represented by Wiggins, Childs, Pantazis, Fisher & Goldfarb.
The defendant is represented by Robinson Bradshaw & Hinson PA and Gibson Dunn & Crutcher LLP.
In 2002, nearly 50 female Family Dollar store managers filed charges of discrimination with the Equal Employment Opportunity Commission (EEOC). These charges alleged that the company had paid them less than similarly situated male store managers.
Plaintiffs then filed their lawsuit in federal court where it was “vigorously litigated” over the next ten years. Among the issues contested were whether the class action could proceed in light of the Supreme Court’s watershed ruling on class action issues in the Walmart v. Dukes case in 2011.
Eventually, the parties reached a settlement agreement in 2017 and the court held a fairness hearing after which it decided to approve the settlement on March 14, 2018.
Under the settlement terms, the class of female Family Dollar store managers will receive a total of $45 million dollars. The money will be distributed among the class members through the court-appointed settlement administrator. The attorneys for the class will receive 1/3 of this amount ($15 million) as well as approximately $1 million in litigation expenses.
In addition, Family Dollar is required to, among other things, review its compensation practices related to store managers and to consult with labor economists in doing so.
Two of the main federal laws that help ensure female employees are paid the same as their male counterparts are Title VII of the 1964 Civil Rights Act and the Equal Pay Act (EPA). Although both statutes cover pay discrimination issues, some significant differences exist that you need to know about since these differences can have a big impact on your case. These variances come into play in traditional gender pay discrimination claims, as well as in glass ceiling discrimination cases.
Although Title VII and the EPA have many similarities, they also have notable distinctions that may affect your potential lawsuit (all of the points below assume the claim is against a private employer):
Hiring a proven and effective advocate is critical to obtaining the maximum recovery in an employment discrimination case. Eric Bachman, Chair of the Firm’s Discrimination Practice, has substantial experience litigating precedent-setting individual and class action discrimination cases. His wins include a $100 million settlement in a disparate impact Title VII class action and a $16 million class action settlement against a major grocery chain. Having served as Special Litigation Counsel in the Civil Rights Division of the Department of Justice and as lead or co-counsel in numerous jury trials, Bachman is trial-tested and ready to fight for you to obtain the relief that you deserve.
Bachman writes frequently on topics related to promotion discrimination, harassment, and other employment discrimination issues at the Glass Ceiling Discrimination Blog, which the ABA Journal recently named a top legal blog.
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