EMPLOYMENT DISCRIMINATION: Wal-Mart to Pay $12 Million Settlement over Gender Discrimination Suit

March 2, 2010

Louisville - As part of the settlement in gender-discrimination lawsuit, Wal-Mart Stores has agreed on Monday to pay nearly $12 million to women who accuse the retail giant of committing discriminatory practices in its distribution center in Kentucky.

While Wal-Mart denied the charges, the company has also agreed to change its hiring practices to prevent gender discrimination.

In 2001, the US Equal Employment Opportunity Commission (EEOC) has filed a class-action lawsuit against the retail giant over the alleged hiring practices that were not favorable to women.

According to the class-action suit, the company has “told applicants that order-filling positions were not for women.”

The complaint has also accused Wal-Mart of “preferring to hire men aged between 18 and 25 over women.”

Meanwhile, EEOC Senior Trail Attorney Aimee McFerren said the settlement, will “allow women in eastern Kentucky who were affected by the company’s discriminatory practices to better themselves and their families.”

The settlement, which was approved by US District Judge Karen Caldwell, will cover the $8.4 million back pay and $3.2 million compensatory damages to women who are included in the suit. The EEOC will determine the exact amount of settlement each individual will receive.

The company will also pay $250,000 administration costs related to the settlement and hire claimants who will receive not more than $100,000.

In addition, Wal-Mart has promised to fill the first 50 order-filing positions with women. These eligible applicants will be chosen by EEOC.