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Alleged discrimination at center of business litigation case

There are countless instances of businesses across this country discriminating against employees. However, there are also times when these types of allegations may involve a misunderstanding or even someone who wants to actively harm a company. It is important that Georgia businesses make the effort to both prevent and defend against these types of allegations as a means of protecting a company. One out-of-state chain retailer for sportswear is dealing with the aftermath of precisely this type of business litigation, and there are numerous lessons that other companies can take from the story.

The company called Palm USA handles a chain of sports apparel stores known as City Sports. It was hit with a discrimination lawsuit from the U.S. Equal Employment Opportunity Commission in 2017 and has since agreed to settle for $420,000. The EEOC claimed that Palm USA discriminated against both Black and Hispanic employees by not hiring or promoting them to management and also by harassing Black employees. The company did not admit any wrongdoing but apparently decided that settling the lawsuit was in its best interest.

The settlement will go to 19 employees, some of whom still work for Palm USA. The company also reports that it will change its standards for hiring managers and strengthen its discrimination policies. It is required to make a report to the EEOC twice a year for the next five years.

Employment discrimination is a serious matter when it happens, but sometimes there may be more to the story. These types of accusations can seriously impact a company, so it is important that it defends against allegations of discrimination whenever they may occur. Here in Georgia, companies may want to consult an attorney who understands the many facets of business litigation to ensure its interests are well-protected.