Jewel-Osco Pays $400,000 to EEOC for its Fees and Costs in Contempt Action

by hr4u.
Apr 17 16

The EEOC filed notice in U.S. District Court that the Jewel-Osco chain of grocery stores has agreed to pay the EEOC $400,000 in attorneys' fees and costs.

 

The payment comes as the result of a Dec. 2, 2014 court order requiring the company to cover such costs. The award was part of the relief granted to the EEOC when it prevailed in a contempt proceeding brought against the com­pany for violations of a previously agreed upon consent decree.

 

That decree was entered to resolve prior EEOC litigation against the company under the ADA, in which the agency charged that the company routinely failed to provide reasonable accommodations to employees seeking to return to work from a disability leave. 

 

After a three-day contempt hearing, the Magistrate found that the company failed to comply with the decree's requirement that Jewel-Osco reasonably accommodate employees seeking to return to work from a disability leave, and the Judge affirmed his findings in his December 2014 decision.  The $400,000 payment comes on top of more than $82,000 that Jewel-Osco was ordered to pay to three affected employees who were not returned to work. 

 

Because the federal laws against employment discrimination generally do not permit the EEOC to recover fees even where the agency prevails on a substantive claim of discrimination, it is rare for the agency to obtain fees for its work. 

 

"These circumstances were unique," explained the EEOC Attorney.  "The contempt proceeding occurred only after Jewel-Osco accepted certain obligations to resolve serious discrimination claims brought by our office; memorialized the company's agreement in a consent decree, which was entered by the court; and then failed to comply with its obligations under that decree.  Obviously, it is a situation that we hope will not be repeated – either by this employer or by any other.  By reaching an agreement on the amount of fees and costs, we are hopeful that the EEOC and Jewel have now entered a new era of cooperation whereby Jewel will indeed fulfill its consent decree obligations.  We appreciate that Jewel has communicated a renewed commitment to ADA compliance and we look forward to a productive partnership going forward."