EEOC Secures $14.5 Million Race Bias Settlement

Author: Marta Moakley, XpertHR Legal Editor

April 28, 2015

The Equal Employment Opportunity Commission (EEOC) has reached a settlement with Texas-based multistate oil-drilling company Patterson-UTI in a race and national origin discrimination, harassment and retaliation lawsuit. The allegations involved workplaces throughout the country. Multistate employers should be aware of how the settlement's related claims were processed by the EEOC, which resulted in a nationwide systemic investigation.

Specifically, the EEOC's regional office in Phoenix consolidated various individual charges, filed across the country, into one systemic investigation that alleged a nationwide pattern and practice of national origin and race discrimination. Alleged violations in a complaint filed in Denver's federal district court included hostile environment harassment, assigning minorities to the lowest level jobs, failing to train or promote employees and demoting members of protected classes disproportionately.

In a press release, EEOC General Counsel David Lopez stated that "[w]e are pleased that Patterson-UTI worked with the EEOC to resolve this case and believe the consent decree demonstrates a commitment to fostering a work environment where equal employment opportunities can be realized, regardless of race or national origin."

US District Court Judge Wiley Y. Daniel signed and approved a consent decree that resulted in the lawsuit's settlement. A number of related cases were settled out of court in conjunction with the consent decree. In addition to the monetary relief secured by the EEOC, the employer must satisfy the following:

  • Create a new position that will report directly to the CEO and will have monitoring compliance and EEOC reporting responsibility;
  • Provide anti-discrimination training to all employees, including supervisors and HR;
  • Conduct random interviews of employees and exit interviews of employees in protected classes to ensure a bias-free working environment;
  • Sponsor nationwide outreach activities to attract a diverse workforce;
  • Establish a comprehensive process for receiving, investigating and responding to employee complaints;
  • Report to the EEOC on a semi-annual basis for the decree's four-year duration; and
  • Hire and compensate a claims administrator to distribute the compensation in accordance with the settlement's terms.

Because preventing workplace harassment through systemic litigation and investigation has been one of the EEOC's national priorities identified by its Strategic Enforcement Plan (SEP), employers can expect continued enforcement and consolidation of individual harassment complaints.