Nike Accused of Gender Discrimination and Harassment in Class Action Suit

Author: Robert S. Teachout, XpertHR Legal Editor

August 22, 2018

Two female former Nike employees have filed a proposed class action lawsuit against the sportswear manufacturer alleging gender discrimination and a hostile work environment. The lawsuit is the latest development following a New York Times report published in March that Nike fostered a culture of sexual harassment and unfair treatment of female employees.

The lawsuit, filed in federal district court in Oregon claims that Nike violated the Equal Pay Act and state law by maintaining policies that paid women less than their male counterparts and by using a performance system that discriminated against female employees, resulting in lower pay increases and fewer promotions. The women also allege that Nike's HR department disregarded or mishandled numerous sexual harassment complaints. If certified by a judge, the collective action could cover up to 500 women.

In response to the lawsuit, Nike issued a statement saying that it "opposes discrimination of any type and has a long-standing commitment to diversity and inclusion." The company also said it is committed to competitive pay and benefits for all employees. A recent internal memo announced that, following a pay review, more than 7,000 employees will receive pay increases.

The Times investigative report said that Nike had a long history of denying women roles in key positions and subjecting them to sexual harassment. Women at the company had conducted a private survey among female employees about their experiences and presented their findings to Nike CEO Mark Parker. In the months afterward, 11 senior executives - including the president of the Nike brand, the director of diversity and inclusion and the head of sports marketing - left the company because of reports of inappropriate behavior and poor workplace conduct.

Later, Parker issued a company-wide apology for allowing a workplace culture where management didn't take their complaints seriously and some employees felt excluded. Parker said Nike was taking steps to become more collaborative and a workplace where all voices are heard. He also pledged to increase the diversity of Nike's workforce and to make changes to the company's compensation and training programs.