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Aug22

Store Assignments and Race Discrimination in Michigan

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Our Michigan Company has the policy of assigning black store managers only to stores in predominantly black neighborhoods. Is this discrimination, or common sense?

According to the law, it’s discrimination.

While it may seem natural to expect that an African-American manager will work better with clients in a neighborhood that is largely black, the law considers it discrimination, and therefore illegal.

It is spelled out in the Civil Rights Act of 1964, Title VII. According to Title VII, discrimination is now allowed, whether in hiring or promotion, based on national origin, color, race, religion, or sex. It applies not only to hiring and promotion but also to discharge, pay, job training, classification, and referral, to mention a few. And that includes transferring managers to another store. 

Title VII also prohibits discrimination in the awards to benefits to works. Those benefits could include discounts, health insurance, time off, and others.

Limiting a worker’s opportunities based on race or color is discrimination. The law says that when hiring, you must choose the qualified applicant, and hire or promote that person, regardless of color.

The Equal Employment Opportunity Commission or EEOC enforces the law.

There is another guarantee of job equality called Executive Order 11245, which applies to the contractors or sub-contractors working on federal projects. This order also requires affirmative action.

Walgreen was recently charged by black managers and pharmacists who accused the company of promoting them only to black neighborhoods, including so-called underperforming stores. They argued that this limited their earning possibilities and their opportunities compared to non-black employees.

Walgreen chose to settle out of court rather than become involved in legal action or admit wrongdoing, and paid $20 million, divided among roughly 10,000 workers nationally, both current and former.

The Walgreen managers’ and pharmacists’ suit was brought by the EEOC and concerned stores in Detroit, St. Louis, Tampa, and Kansas City. But it became a nationwide class action suit.

Walgreen is the national’s largest chain of drugstores.

This entry was posted on Wednesday, August 22nd, 2007 at 12:34 pm and is filed under
Compensation, Employment Training, Hiring and Staffing, Human Resources Management, Labor Laws, Management / Leadership Development, Structural Development, Workplace Management.
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