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Thelen LLP
Foster
Wheeler Constructors, Inc., a New Jersey-based construction
firm, has agreed to pay $1.3 million to settle litigation
brought by the Equal Employment Opportunity Commission.
The EEOC brought the suit on behalf of 100 African American
and female construction workers who claimed they were victims
of racial or sexual harassment while working at a one of
the company's construction sites. Under the terms of the
consent decree, Foster Wheeler will pay 40 current or former
direct employees $15,000 each and 60 workers employed by
subcontractors $11,000 each. The consent decree also requires
Foster Wheeler to implement an anti-harassment policy and
employee training, and to report any incidents involving
sexual or racial harassment to the EEOC for a two-year period.
Foster Wheeler was the primary contractor on a site located
in the Chicago suburbs during 1995 and 1996. While work
on the site was proceeding, the EEOC became aware of the
existence of offensive graffiti on portable toilets featuring
racial epithets and sexual images. Accordingly, the EEOC
went to court in September 1996 to seek an injunction compelling
Foster Wheeler to clean the portable toilets and take other
corrective actions to limit further incidents of racial
and sexual harassment. Eventually, the EEOC filed suit in
1998 against both Foster Wheeler and another defendant.
A significant factor in the EEOC's suit against Foster Wheeler
was the company's failure to react to the offensive graffiti
and their maintenance of a racially and sexually hostile
workplace.
Construction industry employers can expect increased enforcement
efforts by the EEOC in the coming year. EPL insurers should
consequently be aware of the increased risk associated with
underwriting in this industry.
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For more information about the issues covered in this report, please contact Linda S. Husar in our Los Angeles office at 213-576-8017 or at lshusar@thelen.com or contact your Thelen attorney. For more information about Thelen's Construction and Government Contracts Department, click here.
©2000
Thelen LLP
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