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EEOC Charges Labor Ready with Racial Discrimination

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Case ID: 2577 | Employment | 08/30/2004

A class action has been filed against Labor Ready, Inc. on behalf of current and former employees in Labor Ready's Memphis and Jackson, Tennessee, offices, alleging that the company not only discriminated against black employees in violation of their civil rights, but punished white employees who tried to do something about the discrimination. The action seeks back pay for the employees, compensatory and punitive damages, and an order from the court that will prohibit Labor Ready from discriminating against its employees.

The EEOC office in Memphis, Tennessee, filed the action for discrimination that has allegedly been occurring since July 1999. Eight individuals are named in the suit: six black employees and two white employees. Five of the black employees named in the action worked in the Memphis office. All five allege they were passed over for promotions for white employees who were not as deserving. Labor Ready managers allegedly retaliated against three of the black employees and the two white employees for voicing their opposition to the discrimination.

The allegations made by Robert Herron are typical of the others. He was hired as a customer service representative in February 1998. From the day he was hired, the action alleges that he informed the branch manager he wanted to be promoted to manager in training. In 1999, two white females were promoted to managers in training, while another white female was promoted to branch manager.

Allegedly, Herron was as, or more, qualified for the positions. After he complained about racial discrimination, the action alleges that he was terminated.

One of the white managers who was allegedly retaliated against for complaining about his black co-workers' treatment, Raymond Terry, alleges Labor Ready's top management only wanted whites in management at the store level. Allegedly, after he made the complaints in compliance with company policy, Mr. Terry's work was closely scrutinized so his bosses could find a reason to fire him. The action alleges that he was initially suspended with pay, but was eventually fired without being given reasons for the termination.


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