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Home Depot Settles Discrimination Allegations for $5.5 Million

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Case ID: 3641 | Employment | 08/31/2004

The parties have reached a $5.5 million settlement in an administrative proceeding filed by the US Equal Employment Opportunity Commission against The Home Depot, on behalf of current and former employees who allege that they were discriminated against in violation of their civil rights. The EEOC complaint alleged that female and minority employees were paid less and disciplined more severely than white males, and promoted less often. Persons eligible to take part in the settlement should contact the prosecuting attorneys for more information.

The lawsuit also alleged that women and minorities were passed over for promotions and that some women were required to work in lower-paying jobs than their male counterparts. Colorado Home Depot managers allegedly allowed "a hostile work environment based on gender, race and national origin" to exist. The action also accused the company of retaliation against staff who complained of discrimination. Managers failed to investigate complaints, and some employees who reported discrimination allegedly suffered retaliation.

Among the former employees who said they would cooperate with an EEOC investigation was Skip Clancy, who was fired from a Longmont, Colorado, store almost five weeks before he was due to receive a bonus for his fifth anniversary. As he approached bonus time, Clancy alleged, he was assigned impossible tasks such as staffing a department alone that formerly had three employees. This led to disciplinary notices from management. Debra Rhodus stated that she was fired after complaining that a suburban Denver store was too cold in the winter. Joe Hernandez, from Denver, said the only reason he was given for his firing in 2001 was that he "wasn't a team player." James Bustamante said he was named Employee of the Month at the Golden, Colorado, store, then discovered he had write-ups in his personnel file. He later quit.

The settlement provides $3 million to cover complaints brought by 38 staff in Colorado stores and creates a $2.5 million relief fund for others who were harmed.


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