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What Will Discrimination Cost Georgia?

Wednesday, March 23rd, 2016

Terrance Heath

Fifty-two years after Lester Maddox famously chased African-Americans out of his restaurant with an ax handle, the phrase “We don’t serve your kind here” may be heard once again in Georgia.

On Wednesday, the Republican-controlled Georgia General Assembly overwhelmingly approved a law that says the state may not “substantial burden a person’s exercise of religion even if the burden results from a law, rule, regulation, ordinance or resolution of general applicability.” Essentially, the law says that businesses may discriminate against LGBT people on the basis of religious beliefs, and the state can’t do anything about it — even it violates local ordinances protecting LGBT people from discrimination.

Last spring, when conservatives legislators in Indiana and Arkansas pushed through “religious freedom” laws designed to legalize anti-LGBT discrimination, Georgia lawmakers were working on their own bill. It didn’t pass, due to strong opposition from businesses in the state.

But Georgia Republican lawmakers didn’t learn anything from their defeat, or the backlash against Indiana and Arkansas last year. Georgia’s zombie “religious freedom” bill was defeated last year, but it didn’t die. It was resurrected in the Senate in January, and passed only after it was forced through while Democrats were in the bathroom, along with another bill that would allow public officials to refuse to issue marriage licenses to same-sex couples, and might even allow public employees to refuse to recognize a same-sex marriage on a death certificate.

The bill launched a “civil war” in the state GOP. Moderate Republicans (who somehow still exist in Georgia) wanted little to do with it, and tried to add provisions to make it less awful. Republican Rep. Mike Jacobs proposed an amendment clarifying that the bill must not be interpreted as legalizing discrimination, but conservatives declared that the amendment would defeat the purpose of the bill, and tabled it when the amendment narrowly passed.

Even Georgia’s Republican governor Nathan Deal spoke out against the bill. Deal said that Jesus’ outreach to the outcasts of his time ran counter to the standards of the “religious freedom” bill saying, “If you were to apply those standards to the teaching of Jesus, I don’t think they fit.” Deal invoked the New Testament Gospel of John to emphasize, “that we have a belief in forgiveness and that we do not have to discriminate unduly against anyone on the basis of our own religious beliefs.”

In response, Georgia’s conservative lawmakers made the bill worse, adding language that could undermine local ordinances protecting LGBT people from discrimination and “permit hospitals to refuse to provide medically necessary care, or allow a taxpayer-funded service provider to discriminate by denying a job because of the applicant’s religion, sexual orientation, or gender identity.” Sen. Emanuel Jones even got Republican Sen. Greg Kirg to admit that the GOP’s “religious freedom” law would also protect the Ku Klux Klan.

Businesses backlash was strong and swift. The Decatur-based telecom company 373K announced via Twitter that it would be leaving the state.


“I’m gay, our CFO is gay, we have people from every walk of life working here” co-founder Kevin Williams said. “I’ve got Muslims, Buddhists, atheists here. We’ve got great Christians working for us. They’ve never thought of not serving anyone – that’s not the message of Christ.” 373K Client Relations Manager Brian Greene said the company no longer feels comfortable paying taxes in the state.

Salesforce, one of the nation’s largest tech marketing firms has threatened to pull its 15,000-person convention out of Georgia — along with the revenue it brings into the state — and proceed with moving business out of the state if the governor signs the bill, which “creates an environment of discrimination and makes the state of Georgia seem unwelcoming to same-sex couples and the LGBTQ community.”

“If HB 757 is not vetoed and instead becomes law, Salesforce will have to reduce investments in Georgia, including moving the Salesforce Connections conference to a state that provides a more welcoming environment for the LGBTQ community,” the company said in a statement. The statement is consistent with Salesforce’s actions last year when the company cancelled “all programs that require our customers/employees to travel to Indiana to face discrimination.”

The NFL issued statement suggesting that the bill could ruin the state’s chances of hosting a Super Bowl. The Atlanta Falcon’s new stadium is set to open next year, and the city had hoped to host a Super Bowl in either 2019 or 2020.

A group of 480 businesses called Georgia Prospers have come out against the bill. The group includes Google, Marriott, Delta, Home Depot, Coca-Cola as well as many small businesses.

Already, events in Georgia are shaping up to resemble last years’ backlash against Indiana.Indiana’s law cost the state $40 million in cancelled deals and cancelled contracts. Discrimination could cost Georgia a lot more, if the state’s Republican lawmakers have their way.

This blog originally appeared in ourfuture.org on March 21, 2016. Reprinted with permission.

Terrance Heath is the Online Producer at Campaign for America’s Future. He has consulted on blogging and social media consultant for a number of organizations and agencies. He is a prominent activist on LGBT and HIV/AIDS issues.

The Commonwealth Court of Pennsylvania Unanimously Strikes Down Lifetime Employment Ban for Those with Prior Criminal Convictions

Friday, January 29th, 2016

Levan, TadOn December 30, 2015, the unanimous Commonwealth Court of Pennsylvania, sitting en banc, declared the lifetime employment ban contained in The Older Adults Protective Services Act (OAPSA) to be facially unconstitutional and enjoined Pennsylvania from further enforcement of the law (See Peake v. Commonwealth).  OAPSA is a Pennsylvania law that, among other things, prohibits anyone who has ever been convicted of any disqualifying crime at any time in his or her life from ever holding any job at any covered residential health care facility.  In essence, the Act imposes a lifetime employment ban, forever disqualifying individuals from work due to often long-past actions for which the offender’s debt to society has since been repaid.  Even if the owner or operator of a covered facility, based upon his or her years of experience in the industry, believes that an applicant or employee with a prior conviction is the best qualified for the job, the criminal history of the applicant or employee is the only factor the employer may consider and employment is barred.  Employers have no discretion to make individualized hiring decisions.

Writing for the 7-0 Commonwealth Court, Judge Leavitt ruled that the ban “is unconstitutional on its face” because “it goes beyond the necessities of the case and is not substantially related to the Act’s stated objective of protecting older adults.”  The Court also found that OAPSA’s employment ban unconstitutionally imposes an irrebuttable presumption of unfitness for employment that is not universally true and that reasonable alternative means exist for ascertaining an individual’s fitness.  The Court therefore granted the Petition for Summary Relief, declared OAPSA’s employment ban unconstitutional on its face, and enjoined the Commonwealth of Pennsylvania from future enforcement of the law.

Barring all individuals with prior criminal convictions from employment is antithetical to any concerns for rehabilitation and reintegration with society.  An individual who has successfully completed his or her punishment after a criminal act should not be further stigmatized by being unable to get a job.  Not surprisingly, recidivism rates are substantially lower for individuals with steady employment opportunities; thus, public safety is actually harmed by statutory employment bars like OAPSA or hiring practices that automatically exclude individuals with criminal records.  Allowing those with prior criminal convictions to reenter the work force also saves public tax dollars by avoiding the high costs of corrections and other social service benefits to which an unemployed individual may be entitled.  To successfully reintegrate an individual with a record back into society is the very epitome of a win-win situation.

In addition to making for bad public policy, lifetime employment bans such as that in OAPSA are based on a faulty premise: namely, that a past criminal act is indicative of an increased risk of future criminal behavior.  Rigorous social science studies have now confirmed that after a limited number of years – four to seven years for a single conviction and no more than ten years for multiple convictions – an individual with a prior criminal conviction is no more likely to commit a criminal offense than any member of the general public.  Lifetime employment bans like OAPSA, which are based on an irrebuttable presumption of “once a criminal, always a criminal,” simply are not supported by social science results.

A more thoughtful and balanced approach is required:  Yes, under certain circumstances, a prior conviction may be relevant to the fitness of a specific candidate or employee for the requirements of a specific job; but those determinations must be made on a individualized basis with due consideration of all relevant factors, including the nature and severity of the prior criminal conduct, the time elapsed since the conviction, the efforts at rehabilitation and reintegration the individual has made in the interim, and the specific job requirements of the position for which he or she would be hired.  The decision whether to hire an individual with a past criminal conviction is not amenable to a one-size-fits-all solution.  And a lifetime ban, which completely precludes an employer from hiring an individual with a record (often from decades past), even if the employer thinks that he or she is well-qualified for the position, is irrational and counterproductive.

It’s time to bring some common sense back to this issue: Individuals with a prior criminal conviction already have plenty of barriers to overcome in becoming reemployed.  Their reintegration into society should not be made impossible through misguided efforts that are premised upon faulty assumptions and actually result in increased safety risks.

A version of this article was originally published on the LeVan Law Group website.  Printed with Permission.

Peter H. (“Tad”) LeVan, the lead attorney working pro bono on Peake and it predecessor case, Nixon v. Commonwealth of Pennsylvania, is a seasoned trial and appellate attorney who has tried a number of high-stakes cases against national banks, Wall Street financial institutions and a Madoff investment firm, securing settlements on behalf of injured plan participants that have exceeded $700 million

Woman sues Walmart after being told to 'choose between her career and her kids,' then fired

Monday, January 18th, 2016

Women filing discrimination lawsuits against Walmart are nothing new. Walmart firing people for questionable and controversial reasons is also nothing new. Now a woman is suing the low-wage retail giant, saying she was fired after complaining about discriminatory treatment. Specifically, Rebecca Wolfinger says her boss told her she had to “choose between her career and her kids.”

Wolfinger’s suit focuses on what she claims was her mistreatment while working as a shift manager. She was being required to work seven days a week when she received the “career or kids” threat, she contends.

Other male shift managers weren’t on a seven-day work schedule, Wolfinger claims. Her February 2012 firing occurred after she reported her boss’ comment to a company human resource officer, the suit states.

Wolfinger was officially fired, she says, for selling Pampered Chef outside of work—but coworkers who engaged in similar activities weren’t fired. And of course a sophisticated company like Walmart doesn’t admit to having fired someone for complaining about illegal discrimination.

Several years ago, 1.5 million women who worked or had worked at Walmart attempted a class action lawsuit against the company, only to have the Supreme Court say that “[e]ven if every single one of these accounts is true, that would not demonstrate that the entire company operate[s] under a general policy of discrimination.” That’s despite evidence like this:

Many female Walmart employees have been paid less than male coworkers. In 2001, female workers earned $5,200 less per year on average than male workers. The company paid those who had hourly jobs, where the average yearly earnings were $18,000, $1.16 less per hour ($1,100 less per year) than men in the same position. Female employees who held salaried positions with average yearly earnings of $50,000 were paid $14,500 less per year than men in the same position. Despite this gap in wages, female Walmart employees on average have longer tenure and higher performance ratings.

Doubtless all just a coincidence, though. Just like Rebecca Wolfinger was coincidentally fired for something that other workers did after she reported being discriminated against.

This blog originally appeared in dailykos.com/blog/labor on January 13, 2016. Reprinted with permission.

Laura Clawson is the Daily Kos contributing editor and has been since December 2006.  She has also been the labor editor since 2011.

An Economy That Works For Everyone Starts With Women

Saturday, November 21st, 2015

Terrance HeathAccording to a new report from the Economic Policy Institute, creating an economy that works for everyone starts with creating an economy that works for women.

There’s good news and bad news. The good news is that the gap between women’s earnings and men’s earnings has closed a little. The bad news is the narrowing of the gender wage gap is not due to women’s gains in the workplace, but to declining wages for men and growing inequality overall.


According to a recent report from the Economic Policy Institute (EPI), eliminating the gap between men’s and women’s wages would amount to a 70% raise for women.


Consider economic impact of eliminating the gender pay gap. Women are the primary breadwinners in at least 40 percent of American households. Consider what eliminating the gender pay gap would mean for these women.

  • Nearly 60 percent of women would earn more if working women were paid the same as men the same age doing similar work.
  • The poverty rate for working women would be cut in half; the poverty rate for working single mothers would fall by nearly half.
  • The US Economy would produce an extra $447.6 billion, if women received equal pay.

Like a “rising tide,” lifting these women lifts the households that depend upon their earnings, and boosts the economy. An economy that works for women, then, works for American families, too, bringing us closer to an economy that works for all. To that end EPI has introduced the “Women’s Economic Agenda,” a 12-point policy agenda that will “give low- and moderate-wage workers more economic leverage, change the rules so that a growing economy benefits hardworking Americans, and maximize women’s economic security.”

The benefits for women are clear. As I wrote in, “We Must Fight Poverty With Justice,” it’s no coincidence that women’s risk of poverty jumps drastically between the ages of  25 and 34, when their poverty rate is 6.9 times higher than men’s, or that their poverty risk doesn’t begin to come down until age 40. Women are at a higher risk of poverty during their peak reproductive years, when they begin juggling the responsibilities of work and family, and lose out on pay that’s already less than what men earn.

However, the benefits of the agenda aren’t exclusive to women. In fact, none of its 12 points are applied exclusively to women. Men, women, and children would benefit from increased wages, guaranteed family leave and paid sick leave, accessible child care, and all of the other agenda items. When the economy works for women on these 12 issues, it’s more likely to work for us all.

This blog was originally posted on Our Future on November 18, 2015. Reprinted with permission.

About the Author: Terrance Heath is the Online Producer at Campaign for America’s Future. He has consulted on blogging and social media consultant for a number of organizations and agencies. He is a prominent activist on LGBT and HIV/AIDS issues.

Is Pregnancy Discrimination On The Rise?

Saturday, November 14th, 2015

BraniganRobertsonA woman’s pregnancy is supposed to be a reason to celebrate – baby showers, nursery decorating, and 3D ultrasounds. When you’re pregnant the last thing you should have to worry about is your job. Unfortunately, pregnancy discrimination seems to be on the rise in American workplaces. Employment lawyers like me seem to be getting more and more phone calls from women claiming that they were fired because of their pregnancy.

What is Pregnancy Discrimination?

In 2013 I got a phone call from a woman who said that she got fired after she delivered a stillborn baby. I almost fell out of my chair. The company fired her the day she returned from maternity leave. After filing the case we discovered that the company made the decision to terminate her after she informed the owners that her baby had passed. We also found out that after making the decision to terminate her, the company hired an auditor to come in and “audit” her department to find that she was performing poorly. However, documentary evidence showed that she was a great employee. The case failed to settle and proceeded to trial. The jury found that the company discriminated against her because of her pregnancy and awarded her substantial punitive damages.

While this was an unusual case, it highlights the opposite of how a company should act. A company should never make a decision to fire a woman because she is pregnant, because she is having complications, or because she is planning on taking a maternity leave. While that may seem like common sense in today litigious environment, I am continuously surprised how often expecting women are fired for suspicious reasons.

A Rise in Pregnancy Related Lawsuits

My firm receives hundreds of phone calls each year from prospective clients. Over the last year or so, we’ve noticed a lot more calls from women who believe they were fired or passed over for a promotion because of they became pregnant or had a pregnancy related disability. We’re not the only ones who have noticed this. More and more lawsuits are being filed and federal and state legislatures are enacting or trying to enact more laws to protect women.

Why are their more lawsuits? It may be because more women are career driven today than in the past. Human Resources MBA has a great info graphic discussing this. Inevitably, this topic also leads lawyers to talk more about gender discrimination (which is also unlawful under Federal and State law). Regardless of the reason, lawyers are trying to help their clients in whatever situation they happen to find themselves in.

What Should You Do If You Are a Victim of Pregnancy Discrimination

A lot of pregnant women who are still employed call my firm because they are starting to sense that their manager is upset with them. “What should I do?” “Should I go to HR?” “Should I complain?” “Can I go on maternity leave early?” All of these questions are valid but each and every situation is different. Further complicating the issue is that each state has different laws on point. For example, in California there are a multitude of laws that could apply to a woman’s situation: Pregnancy Disability Leave, the Fair Employment & Housing Act, the Family Medical Leave Act, the California Family Rights Act, the Labor Code, State Disability Insurance, etc.

I first recommend that you spend some time doing basic online research. Look up your respective state’s labor department and see if there are any online resources. You should also speak with HR if your company has competent HR professionals. If you feel like the situation is worsening I recommend that you call a lawyer. Many employment lawyers like me who represent individuals will do a free consultation over the phone.

Hopefully you are never in this situation. A woman’s pregnancy should be celebrated and a time of great excitement. Although pregnancy discrimination seems to be on the rise, collectively we can fight against it by informing each other of the laws that protect women. So please do your research and don’t be afraid to call a lawyer!

If you have additional questions concerning pregnancy discrimination, visit WorkplaceFairness and see their pages on parental leave and pregnancy discrimination. If you need help finding a lawyer, visit their attorney database here.

About the Author: Branigan Robertson is an employment attorney in Irvine, California. He is a member of the California Bar and the California Employment Lawyers Association. He exclusively represents CA employees in lawsuits against employers and focuses his practice on pregnancy discrimination and wrongful termination. Visit his law firm’s website for more information.

Disabled Workers Face Discrimination, but it's not Inevitable

Friday, November 13th, 2015

LauraClawsonGosh, why are people with disabilities so much less likely to be employed than people without disabilities (34 percent to 74 percent in 2013)? One reason is what researchers from Rutgers and Syracuse universities discovered when they sent out resumes for fake job applicants who either had a spinal cord injury, Asperger’s syndrome, or did not mention a disability: applicants who mentioned a disability heard back from employers 26 percent less often than applicants who didn’t mention a disability, and it was actually worse for more experienced applicants.

You know how Republicans are always railing against laws that would prohibit employers from discriminating and the like? Maybe that’s because such laws work:

The study showed that the Americans With Disabilities Act, the 1990 federal law banning discrimination against those with disabilities, appeared to reduce bias. The lack of interest in disabled workers — and especially in the rate at which they were called back for an interview — was most pronounced in workplaces with fewer than 15 employees, the study found. Businesses that small are not covered by the federal law. At publicly traded companies, which may be more concerned about their reputations and more sensitive to charges of discrimination, evidence of discrimination on the basis of disability seemed largely to disappear. The same was true at firms that receive federal contracts, which are required by the government to make a special effort to hire disabled workers.

This is why we need stronger laws and more enforcement, not Republicans blocking progress because hey, we already have laws that kinda sorta cover that.

This blog was originally posted on Daily Kos on November 7, 2015. Reprinted with permission.

About the Author: Laura Clawson has been a Daily Kos contributing editor since December 2006  and Labor editor since 2011.

John Kasich explains the gender pay gap: 'Do you not have the skills to be able to compete?'

Sunday, October 11th, 2015

Laura ClawsonRest easy, women, and especially women of color: If you’re being paid less than your male coworkers, it’s only because you’re worth less. Ohio governor and lower-second-tier Republican presidential candidate John Kasich got a question about his state’s gender pay gap during his appearance at the U.S. Hispanic Chamber of Commerce, and …

“Well, a lot of it is based on experience,” Kasich replied. “A lot of different factors go into it. It’s all tied up in skills. Do you not have the skills to be able to compete?”Seeming somewhat shocked at this response, Palomarez asked, “Are you saying women workers are less skilled than men?”

“No, no, of course not,” Kasich said. “I mean, a woman is now running my campaign, and she’s doing a fantastic job. The head of our welfare reform office is a woman. I understand that if you exclude women, you’re not as effective.”

No, no, of course I didn’t mean what I said. That kind of answer must be contagious, as much as we’re hearing it from Republicans lately. Alice Ollstein helpfully offers some context on just how much Kasich didn’t mean that women deserve lower pay:

In Kasich’s own governor’s office, women workers earn nearly $10 an hour less than male workers, according to an Associated Press investigation published in 2014. That gap was just $3.99 an hour under Kasich’s predecessor, Democrat Ted Strickland.

So apparently Kasich understands that if you exclude women, you’re not as effective—but he’s also happy to underpay them. Gee, there’s a giant step toward equality.

This blog was originally posted on Daily Kos on October 7, 2015. Reprinted with permission.

About the Author: The author’s name is Laura Clawson. Laura has been a Daily Kos contributing editor since December 2006  and Labor editor since 2011.

Woman Fired For Being Transgender Scores A Victory

Saturday, September 12th, 2015

Bryce CovertJessi Dye was excited about her new job at the Summerford Nursing Home in Alabama. Her experience watching her grandmother be put in a nursing home when she was younger made her want to help others who end up in the same situation. “She felt alone a lot of the time,” the 28-year-old said. “I wanted to be there for people, make it a little brighter place for these people who might not have somebody to visit them.”

She had also been working in fast food, but this job would come with better pay, better hours, and the possibility of fast advancement.

Yet she would only spend four hours actually doing her new job. After going through half a day of training, she says she was told to report to the manager’s office after lunch. “And the first thing the manager said to me when I stepped into his office is, ‘What are you?’” she said. “That’s not a question you ask me as a person, it’s a question you ask some little knickknack… It’s honestly not even a question for a pet.”

As a transgender woman, she had changed the photo on her driver’s license to match her gender expression, but her gender marker was wrong. That was what the manager was looking at as he asked her blunt questions about her gender. Getting a driver’s license updated can be difficult; more than 40 percent of transgender people across the country go without an ID that matches their gender identity, and 11 percent say they were denied in an attempt to update it. But having an ID that doesn’t reflect someone’s gender identity is correlated with much higher rates of discrimination and harassment.

“I can’t describe easily how that felt,” she said of that first question the manager asked her. “The closest thing I can say is that it felt like somebody punched me in the stomach.” She says that the manager not only told her he was letting her go just hours after she started, but that he confirmed it was because she is transgender.

“I walked out the door of the nursing home, said my goodbyes to the ladies I’d been working with, and made the hardest phone call of my life to my wife to say I couldn’t support us the way I’d planned on,” she said. “It was the worst feeling I’ve ever had.”

She has since received some good news: On Thursday, the Southern Poverty Law Center, which represented her in her lawsuit against Summerford, announced that the nursing home has agreed to pay her a financial settlement, as well as to implement a workplace nondiscrimination policy for sexual orientation and gender and to provide LGBT training for human resource employees, including the manager who fired Dye. A representative of the nursing home declined to comment on the settlement.

The policy change is the most important part for Dye. “That was more of a victory for me than any money could have ever been. Making sure the world’s a little bit safer for the next person who comes along,” she said. “I don’t want anybody to ever have to make that phone call I made that day.”

The loss of a job can be catastrophic, and losing her job at the nursing home was a blow for Dye and her wife. “Our financial stability was completely taken out from under us,” she said. She was able to rescind her two weeks notice at the fast food job, but her entire shift was laid off just a couple of months later. After that, she spent six months looking for work until she found the retail job she has now. “It’s hard to find a job in Alabama anyway, but one that’s openly accepting and easy to work with, not so much,” she noted.

The hope is also that such a case, which is likely the first of its kind won against a private Alabama employer, resonates beyond Dye. “There still seems to be a misperception among many employers that they can fire employees at will for any reason or no reason at all,” said Sam Wolfe, an attorney with the Southern Poverty Law Center. “But there are federal protections against individuals because they are transgender, and we’re hopeful this lawsuit will raise awareness.”

Federal law doesn’t explicitly enumerate gender identity as a protected class against workplace discrimination. But the Equal Employment Opportunity Commission has ruled that employer discrimination on that basis violates Title VII of the Civil Rights Act, which bans discrimination based on sex. Just in April, it ruled that the Army illegally discriminated against a transgender civilian employee by forcing her to use a single bathroom. Yet just 19 states and Washington, D.C.have laws prohibiting employment discrimination that include gender identity. The Equality Act, introduced in Congress in July, would explicitly ban employment discrimination against all LGBT people, but has not yet been passed and doesn’t have any Republican sponsors.

This is part of what motivated Dye to take action in the first place. “It was never about money,” she said. “It was about doing what’s right, standing up and and letting it be known you can’t do this to people, you can’t treat people like objects.”

This blog originally appeared at ThinkProgress.org on September 11th, 2015. Reprinted with permission.

About the Author: Bryce Covert is the Economic Policy Editor for ThinkProgress. She was previously editor of the Roosevelt Institute’s Next New Deal blog and a senior communications officer. She is also a contributor for The Nation and was previously a contributor for ForbesWoman. Her writing has appeared on The New York Times, The New York Daily News, The Nation, The Atlantic, The American Prospect, and others. She is also a board member of WAM!NYC, the New York Chapter of Women, Action & the Media.

Why the Fed Isn't Close to Achieving Full Employment and Shouldn’t Be Discussing Raising Interest Rates—the Case of Black Workers

Thursday, August 27th, 2015

William SpriggsThe recently released minutes of the last meeting of the Federal Reserve Board’s Open Market Committee revealed there was serious discussion of the fact the labor market still showed signs of weakness. A primary issue was the lack of evidence of strong wage growth, which would be a clear signal the labor market was tightening. This has unleashed the Wall Street bettors, who want a jump on the Fed’s changing monetary policy, giving them more active play on the bond market, where interest rate movements can fuel their gambling addiction. The voices being raised to have the Fed raise interest rates march out lots of theory to predict uncontrolled inflation, despite a global slowdown, falling oil and natural resource prices, and flat real wages. We must hope that the Fed makes policy based on what is good for the economy, not what is good for the reckless gamblers on Wall Street.

The current directive to the Fed comes from the Humphrey-Hawkins Act, which in 1978 established that the nation’s primary economic policy is to achieve full employment, within reason—not by creating unsustainable budget deficits or igniting uncontrollable inflation. Unfortunately, many have twisted the legislation’s purpose to their own ends, changing the act’s intent to balance budgets and maintain low inflation in hopes those policies don’t increase unemployment. The act does not place full employment on equal footing with fighting inflation; it merely constrains full-employment policy to a measure of prudence.

With that in mind, the Fed should understand it is not at full employment. In addition to wages rising with productivity, a main tenant of evidence of full employment, the Fed needs to embrace some additional senses of full employment. One is that discrimination would disappear, since it would become prohibitively costly in a full-employment economy.

A problem for the Fed is that there is little diversity in its staffing, which reflects the low level of diversity among economists. Economists have convinced themselves there is little to explain about the persistence of the disparity in black and white unemployment rates, the ratio of which remains stubbornly at 2-to-1. It is enough to assume there are lower skill levels among African Americans and societal structural issues that permanently disadvantage African Americans, and that these circumstances will persist no matter what the level of unemployment.

Of course, many economists do appreciate that this pat answer is hard to reconcile with the great sensitivity that the black unemployment rate has to the economy—a tightening labor market brings down the black unemployment rate at twice the rate for whites. That makes the structural argument difficult to maintain.

There is another key element. The unemployment rate gaps between blacks and whites are stubborn at every education level, and the gaps are glaring. In fact, what the unemployment rate gaps for blacks suggest is the old adage that blacks must be twice as good to compete in the labor market with whites. The unemployment rate for blacks with more education is similar to that of whites with less education. This is true for blacks at all education levels, from college graduates to associate degree holders to high school graduates. And it is very difficult to argue that those huge gaps do not reflect discrimination.

When the labor market tanks, and the number of unemployed workers per job opening goes up, the gaps faced by better educated blacks to less educated whites get wider. Black college graduates find themselves with unemployment rates closer to white high school graduates, and blacks with associate degrees find themselves with unemployment rates worse than white high school dropouts.

When the labor market tightens, unemployment rates for blacks with more education improve such that they are better than those of less educated whites, though still off the mark compared with equally educated whites. When employers are faced with two unemployed working people for each job opening, many stop seeing color and start seeing qualifications. Employers faced with a growing economy and smaller applicant pools find it would now cost to discriminate by passing over the qualified African American applicant. We don’t know what would happen if the nation maintained its commitment to full employment, because just as the black unemployment rates near parity with whites, our economic policy switches all reverse to slow the economy, increase unemployment and push blacks off the path to equality.

The Fed needs to see that its policies are part of that problem. Slowing the economy before we reach full employment means employers never have to raise wages nor understand the costs of their discriminatory practices.

This blog originally appeared in AFL-CIO on August 21 ,2015. Reprinted with permission.

About the Author: William E. Spriggs is the Chief Economist for AFL-CIO. His is also a Professor at Howard University. Follow Spriggs on Twitter: @WSpriggs.

Surprise! Zara, The Brand That Brought You Swastika-Stamped Handbags, Faces $40 Million Anti-Semitism Lawsuit

Tuesday, June 9th, 2015

Jessica_GoldsteinZara, the fast-fashion retailer that brought you a children’s t-shirt that looks like a concentration camp uniform and a handbag decorated with swastikas, is facing a $40 million discrimination lawsuit. Three employees are alleging nine causes of action: according to Women’s Wear Daily, the lawsuit makes “claims on racial discrimination, in particular anti-Semitism. It is also alleging pay discrimination and retaliation.”

The lawsuit was filed Wednesday by Zara’s former general counsel, Ian Jack Miller, and lists the U.S. country manager, and Zara USA’s director of expansion for North and South American, Moises Costas Rodriguez, as the other defendants. Miller started working at Zara in January 2008 and was fired in March of this year.

Miller is Jewish and alleges the discrimination he experienced was particularly harsh as a result. Though upper management didn’t know about Miller’s faith until he’d been at Zara for five years, they routinely called Jewish landlords and real estate developers with whom they worked “los judios” (Spanish for “the Jews”), whined that it was trying to work with “those people,” and generally mocked them. Once Miller’s religion came to light, he found himself cut out of crucial meetings and email chains; his annual pay raises were cut from over 15 percent to three percent.

Miller alleges that employees are favored if they are “straight, Spanish and Christian.” Spanish employees allegedly enjoyed greater job security and higher pay raises, he claims. He also alleges that he was fired the day after his legal counsel sent a letter to Zara detailing his complaints.

From Fashionista:

The lawsuits claims are specific, lewd and no doubt embarrassing to many current and former employees. The lawsuit describes a corporate culture where visits to prostitutes are a normal part of business trips and a heterosexual lifestyle is endorsed. Miller says that former Zara USA CEO Moises Costas Rodriguez bragged about the size of his penis and having sexual relations with five female subordinates, including a director of human resources, and that he sent an email to Miller highlighting language that marriage is an institution “sanctified between a man and a woman.” The suit claims that another Zara executive, Francesc Fernandez Claramunt, sent Miller’s partner, Michael Mayberry, a pornographic image of an erect and tattooed penis and that Fernandez had been trying to persuade Miller to get such a tattoo.

It wasn’t just Miller who was the alleged target of Zara’s prejudice: emails that regularly circulated among senior management reportedly contained pictures of Michelle and Barack Obama, the former serving fried chicken, the latter on an Aunt Jemima box shining shoes and in a Ku Klux Klan hood holding a Confederate flag.


In response to the lawsuit, a Zara representative told WWD, “We do not tolerate any behavior that is discriminatory or disrespectful, but value each individual’s contributions to our dynamic organization.”


Revelations like this are always a bit shocking, not because it’s so stunning that someone could still harbor such antiquated prejudices in a modern time, but really that someone could be stupid enough to document them in a work email. As no one at Zara would be encouraged to say, dayenu.


And yet, for the consumer paying attention to Zara’s practices — and really, the practices of all these fast fashion retailers — there is no real reason to be taken aback by this news. This is a store that not only has stocked its shelves with easily identifiable signifiers of the Holocaust (twice!) but has also shilled blackface necklaces.

So Zara’s corporate culture shouldn’t be all that shocking, just like there is nothing particularly jaw-dropping about Abercrombie & Fitch, purveyor of all things white, blonde and preppy, would be found guilty of religious discrimination against a potential employee who wore a hijab at her job interview; just like there is nothing especially mind-blowing about Urban Outfitters, which navigates cultural landmines with all the grace of a drunk hipster, would sell a “Vintage Kent State Sweatshirt” that appears to be splattered with blood. We’ve reached a point where shopping at any of these places is, at best, a passive acceptance of the values they openly, eagerly uphold.


Still, would-be responsible shoppers are in a bind: it is practically impossible to know that you’re buying clothing that is not only inoffensive on its face (can’t really say enough times how easy it is to make sure Nazi regalia isn’t all over your fine fake-leather goods) but ethical in its supply chain. Stores like Forever 21, H&M and Topshop keep prices low by exploiting and endangering the lives of impoverished people, mostly women, in developing countries. Even Patagonia, probably the most high-profile advocate in the retail space for fair labor practices, can’t weed human trafficking out of its factories.

One more thing to consider: Zara founder Armancio Ortega is the second-richest man on Earth. He has a net work of $71.5 billion.

This blog was originally posted on Think Progress on June 5, 2015. Reprinted with permission.

About the Author: The author’s name is Jessica Goldstein. Jessica Goldstein is the Culture Editor for ThinkProgress. She also writes recaps for Vulture, New York Magazine’s culture blog. Before coming to ThinkProgress, Jessica was a feature writer and theater columnist at the Washington Post. Jessica holds a B.A. in English and Creative Writing from the University of Pennsylvania. While at Penn, she wrote for Seventeen and Her Campus. Jessica is originally from New Jersey.

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