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Fire black employees { August 14 2003 } Original Source Link: (May no longer be active)
http://www.sun-sentinel.com/business/local/sfl-zeeoc14aug14,1,5397083.story?coll=sfla-business-fronthttp://www.sun-sentinel.com/business/local/sfl-zeeoc14aug14,1,5397083.story?coll=sfla-business-front
Supercuts settles racial bias lawsuit for $3.5 million
By Joan Fleischer Tamen
Business Writer
August 14, 2003
Richard Quick said "no" when he says upper management at Supercuts told him to fire employees because they are black.
When the former regional manager, who is white, found himself fired for refusing to go along with a plan to "balance the platform," he took his complaints to federal regulators in Miami. Quick had managed 76 stores in Florida, Georgia, Tennessee and Puerto Rico.
"He told us he could not work in such an environment of racial discrimination," said Michael Farrell, supervisory trial attorney with the U.S. Equal Employment Opportunity Commission.
On Wednesday, the EEOC announced a $3.5 million class-action settlement with Regis Corp., the parent company of the nationwide chain of hair salons. It will include cash awards to employees, former employees and job candidates who were discriminated against because of their race.
Regis denied any wrongdoing but said it chose a voluntary settlement prior to the government filing a lawsuit that was expected to cost $2 million to defend.
"It was only in the last couple of months that we were presented with specific findings by the EEOC. While we disagree with the allegations, the amount of time that lapsed between the original complaint and today made it prohibitive to defend our position," Regis Chief Executive Officer Paul Finkelstein said in a statement. "We felt it was in the best interest of the company and shareholders to settle."
Regis said the settlement will reduce fiscal fourth-quarter net income by $2.1 million, or almost 5 cents per share.
The Miami office of the EEOC in 1998 launched an investigation into Quick's complaint of widespread racial discrimination. The charge included claims that Supercuts failed to hire and promote African-Americans and fired them due to their race.
"People should not be deterred from getting or keeping a job because of the color of their skin," Quick said. "I am proud to have made a difference in this case."
While Quick, 52, who now runs his own hair salon in Melbourne, will be awarded $225,000, the bulk of the settlement is being set aside for an undetermined number of affected persons.
As part of the settlement, Regis agreed to place newspaper advertisements seeking potential claimants. African-Americans who applied for jobs, were fired or denied promotions at Supercuts Eastern U.S. Region locations between November 1996 and December 2001 are eligible to seek a claim.
Supercuts also agreed to provide additional training to store managers.
The Eastern Region covers Florida, Georgia, Kentucky, New Jersey, New York, Ohio, Rhode Island, Tennessee, Virginia, Wisconsin and Puerto Rico.
Farrell of the EEOC said Quick's original complaint was expanded to other states when regulators determined that discrimination was occurring elsewhere.
Regis, which also operates the Regis Hairstylists, Vidal Sassoon, Trade Secret and Cost Cutters salons, reported sales of $1.68 billion for the year ended June 30. It has 45,000 workers at 9,700 salons.
Copyright © 2003, South Florida Sun-Sentinel
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