Human Resource Blog

Race Discrimination in Indiana

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

For Indiana companies, as well as companies throughout the United States, this type of situation is a description of discrimination.  Although it might seem rational to assume that an African-American manager would have a better rapport with consumers in an essentially black neighborhood, it is still a discriminatory practice.

A recent suit was settled with the EEOC regarding Walgreen’s, which is the country’s largest drugstore chain.  Some of the black pharmacists and managers at the stores claimed that they were being promoted to positions at stores that were only in predominantly black neighborhoods.  The charge included a great deal of under performing stores, which could have potentially limited their earning potential.  These actions also limited the employees’ opportunities, particularly when compared to the employees of other races.

The EEOC complaints originally involved stores in Kansas City, Tampa, Detroit, and St. Louis.  The suit, however, rapidly expanded to cover the nation and developed into a class action suit.

Walgreen’s chose to settle out of court, rather than admit to any wrongdoing.  They also decided to settle to avoid enduring a lengthy or expensive trial.  The out of court settlement was for $20 million.  More than 10,000 current and former Walgreen’s employees received a portion of the award nationwide.

These types of practices raise numerous concerns under Title VII of the Civil Rights Act of 1964.  This act prohibits discrimination in promotion and hiring based upon religion, color, race, national origin, or sex.

Limiting opportunities for employees based on their color or race means that employers are committing illegal discrimination.  The law states that all qualified applicants have to be considered for all positions.  The most qualified candidate should then be chosen regardless of his or her skin color.

The Equal Employment Opportunity Commission, or the EEOC enforces Title VII of the Civil Rights Act of 1964.

Similar protections are extended to contractors and sub-contractors on federal projects, under Executive Order 11246.  This order also requires affirmative action to ensure equal opportunity in employment. JH