Finding reprehensible conduct in employer’s gender and pregnancy discrimination

ROSARIO Juarez, a former female employee of AutoZone, Inc., the auto-parts retailer, sued her employer for discriminating against her because she was a woman, for demoting her after learning she was pregnant, and for firing her when she filed a discrimination claim. The case was tried before a jury of three women and five men. After two weeks of hearing testimonies from witnesses, the jury ordered AutoZone to pay Juarez $185,870,000 in damages.
Various major media outlets report the following: In 2000, Juarez started work at Autozone in San Diego as a customer services representative. She was promoted to parts sales manager in 2001. She later asked to be promoted to store manager but was refused.  In her lawsuit, Juarez said there was a “glass ceiling” that prevented women from rising in the ranks. AutoZone’s district managers were instructed to stop promoting women and to start getting rid of women already holding managerial positions. AutoZone’s vice president for western operations, while visiting a store staffed by a female manager and other women, allegedly told the district manager: “What are we running here, a boutique? Get rid of these women.”
In 2004, after complaining to Human Resources, Juarez was finally promoted to store manager. In 2005, she became pregnant and informed her district manager about it. Her manager’s response was “Congratulations … I guess,” and then he added “I feel sorry for you.”  Shortly thereafter, her boss kept suggesting that she step down because she couldn’t handle the responsibilities of the job while pregnant. She refused to step down. The harassment continued even after she gave birth.
AutoZone then started complaining about her performance and then demoted her. While demoted, Juarez was asked to work extra-long hours, micromanaged, and was humiliated and yelled at in front of co-workers. Her complaints about her situation were not addressed. In 2008, she filed the lawsuit against AutoZone. One month later, she was fired, allegedly for a missing $400 from the cash register.
During trial, the jury heard testimony from an AutoZone district manager who testified that he was offered a promotion if he fired all the women in his stores.
Additionally, AutoZone’s loss prevention officer who handled the investigation into the missing cash testified that she never suspected Juarez of wrongdoing and that the company was targeting her.
After two-weeks of testimony, the jury unanimously held AutoZone liable on all counts, including gender and pregnancy discrimination, retaliation and failure to prevent harassment. The jury awarded the employee $872,000 in compensatory damages, for lost wages and emotional stress, and $185 million in punitive damages.
The jury award will likely be reduced because there is a law that limits the amount of punitive damages in relation to the compensatory damages. However, the jury gave the award to call the attention of AutoZone’s board of directors to discontinue the company’s discriminatory practices.
The law prohibits sex discrimination against employees in connection with hiring, firing, compensation, and all conditions and privileges of employment. To avoid running afoul of these provisions, employers must keep in mind their legal obligations throughout the employment relationship.
Employers are generally required to provide equal opportunities to all employees for upward mobility, promotion, and entrance into all jobs for which they are qualified. Furthermore, employers must not restrict information on promotion and transfer opportunities based on gender.
Discrimination of an employee based on pregnancy, childbirth, or related medical conditions is a form of unlawful sex discrimination under the law. Furthermore, in California, covered employers are required to 1) provide reasonable accommodation to women with pregnancy-related conditions who request such accommodation; 2) grant leaves of absence and reinstatement rights to employees who are disabled by pregnancy-related condition, and 3) honor transfer request of pregnant women that are based on the advice of their health care providers.

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The Law Offices of C. Joe Sayas, Jr. welcomes inquiries about this topic. All inquiries are confidential and at no-cost.  Atty. Sayas’ Law Office is located at 500 N. Brand Blvd. Suite 980, Glendale, CA 91203. You can contact the office at (818) 291-0088 or visit  www.joesayaslaw.com. 

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C. Joe Sayas, Jr., Esq. is trial attorney who has obtained several million dollar recoveries for his clients against employers and insurance companies. He has been selected as a Super Lawyer by the Los Angeles Magazine, featured in the cover of Los Angeles Daily Journal’s Verdicts and Settlements, and is a member of the Million Dollar-Advocates Forum.