Handbooks – Important?
• 10/20/09 10th
Circuit Court of Appeals in
Compton v. Rent-a-Center
$1.5 Million More Reasons
to Love Hotlink HR
• EEOC and Colorado auto dealer settled
case alleging dealership subjected
female employees to sex discrimination
and sexual harassment and fired older
male employees because of their age.
(EEOC v. Arapahoe Motors, Inc. d/b/a
Ralph Schomp Auto. 1/6/10)
• Company defense: Female owner,
couldn’t discriminate against females.
EEOC didn’t buy it.
• Remedy other than $$: provide training
Dealer Pays $85,000 to Settle EEOC
Suite for Racial Discrimination and
• Racial epithets – using the N-word and making
sales teams based on race.
• Retaliation for complaining about unlawful
– Revise policy on non-discrimination and non-
– Yearly anti-discrimination training
Dealer Pays $500,000 to Settle
EEOC Harassment Suit
• Need I say more?
Mathis v. Phillips Chevrolet
• GM with hiring authority at dealership,
often noted ages of employment
applicants by hand on their applications!
• GM testified he was not aware that it was
illegal to discriminate on the basis of age!
• Court: Leaving managers with hiring
authority in ignorance of the basic
features of the discrimination laws is an
“extraordinary mistake”: reckless
U.S. Department of Labor
• Handles claims for overtime and minimum
• Secretary of Labor Hilda Solis
VERY pro union/employee
• Hired 250 new investigators
Fiscal Year 2008 FLSA Violations:
• $185.3 million collected for
violations of the Fair Labor
Standards Act’s overtime and
minimum wage rules.
• This does not include private
• From 2001 to 2005 there was a
100% increase in cases filed.
James F. Hendricks Jr.
Partner, Chicago Office
New York Orlando
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