Fremont Car Dealership Settles Racial Harassment Case for $400,000

October 19, 2012

Fremont Car Dealership Settles Racial Harassment Case for $400,000

A Bay Area car dealership recently agreed to pay $400,000 to settle a federal discrimination lawsuit brought by several former employees who claim they were subject to racial harassment and discrimination by the dealership's general manager.

In the lawsuit against Fremont Toyota, four Afghan-Americans who were previously employed as salesmen with the dealership say their general manager harassed them and threatened them with violence. According to court documents, the harassment began in October 2007, when the salesmen say the general manager singled them out at a staff meeting by calling them names and threatening to blow them up with a grenade.

Upon reporting the abuse to their superiors, the men claim that they suffered further harassment and discrimination on the basis of their national origin. When the company failed to remedy the situation and the hostility continued, all four salesmen resigned. A fifth employee, an Afghan-American manager, was fired shortly afterward in what he claimed was an act of retaliationfor speaking up against the harassment.

Preventing Future Harassment and Discrimination

In addition to the $400,000 payment, the terms of the settlement also require the dealership to display a notice about the lawsuit at the dealership and report to the U.S. Equal Employment Opportunity Commission for the next three years, as well as provide managers with training about workplace discrimination to prevent similar situations from arising in the future. The general manager accused of perpetrating the harassment is no longer with the company.

State and federal laws prohibit discrimination and harassment of employees on the basis of race or national origin. Not only do these laws protect workers from hostile work environments like the one seen here, but they also protect employees against more subtle forms of discrimination and harassment. For example, it is illegal for an employer to:
-Refuse to hire or promote someone on the basis of his or her race
-Fire or discipline someone because of his or her race
-Pay employees of a certain race less than other employees
-Fail to provide benefits to employees because of their race
-Segregate or classify employees according to race
-Assign work hours or overtime on the basis of race

California employees who have experienced illegal harassment or discrimination in the workplace are encouraged to discuss the situation with an experienced employment lawyer who can explain their rights and discuss the legal options that may be available to help rectify the situation.

Article provided by Patton Wolan Carlise LLP
Visit us at http://www.pwblaw.com/