We are back after summer recess to give you the latest updates in the world of employment law for September, 2024. In this month’s iteration, Penn State has to reckon with the Department of Labor on equal pay, free speech is implicated in a federal “preferred pronoun” case, and UPS suffers a major verdict for racial harassment. Read all the latest below.
Penn State Agrees to $703K Settlement in DOL Wage Discrimination Case
Penn State University has agreed to pay over $703,700 to settle allegations from the U.S. Department of Labor (DOL) that it paid 65 women less than their male counterparts in similar roles. These women, employed in maintenance, research, teaching, and administrative positions, were found to have been underpaid since at least July 2020, according to a review by the DOL’s Office of Federal Contract Compliance Programs (OFCCP).
The settlement includes $682,419 in back pay and $21,323 in interest. Penn State has also committed to reviewing and adjusting its pay policies to prevent future disparities. The university stressed that the pay inequities were unintentional, but emphasized its commitment to addressing the issue fairly.
This case arose as part of a routine compliance review, which uncovered wage gaps at Penn State’s main University Park campus, impacting various departments including the College of Engineering and the College of Agricultural Sciences. The university receives significant federal funding, exceeding $178 million in 2024, and is required to ensure equitable employment practices under Executive Order 11246.
In its announcement relating to the settlement, Penn State has pledged to ensure pay equity for all employees.
Eleventh Circuit Transgender Pronoun Case Could Have Implications for Free Speech
The Eleventh Circuit Court recently heard oral arguments in a case brought by transgender and nonbinary Florida public school teachers challenging the state’s law, H.B. 1069, which restricts the use of preferred pronouns that do not match biological sex. The case focuses on Katie Wood, a transgender teacher, who was granted a preliminary injunction allowing her to continue using her preferred pronouns at work while pursuing a First Amendment claim.
During the hearing, the panel of judges asked numerous hypothetical questions to explore the limits of free speech protections for teachers, addressing scenarios such as teachers using titles like “Mr. MAGA” or “Captain Woke” and whether the state could enforce specific honorifics. Wood’s attorney argued that her pronoun usage is protected speech under the First Amendment, referencing the U.S. Supreme Court’s decision in Kennedy v. Bremerton, which upheld private expression rights for public school employees.
The state’s defense maintained that regulating how teachers refer to themselves falls within the state’s authority to manage its workforce. The court’s decision in this case could have significant implications for free speech rights of public employees across various sectors.
The case is Wood et al. v. Florida Department of Education et al., case number 24-11239, in the U.S. Court of Appeals for the Eleventh Circuit.
UPS Hit with $238 Million Verdict for Hostile Work Environment
A federal jury in Washington awarded $237.6 million to Tahvio Gratton, a former UPS driver, in a racial discrimination lawsuit. Gratton, who is Black, alleged that he faced racial harassment from his supervisors and was wrongfully terminated after complaining about the mistreatment. The jury awarded him $39.6 million for emotional distress and $198 million in punitive damages.
Gratton claimed he experienced discrimination after transferring to Yakima in 2018, where he was treated differently than his white coworkers. A white manager repeatedly referred to him as “boy,” a term with deep racist connotations, even in front of customers. When Gratton complained, his supervisors dismissed his concerns, exacerbating his distress. After raising further complaints, Gratton said he was overloaded with work and targeted for minor issues.
UPS, however, argued that Gratton was fired for allegedly assaulting a female coworker, a claim he denied. The company has expressed disappointment with the verdict and plans to appeal, citing legal errors during the trial.
Gratton’s attorney praised the jury’s decision, viewing it as a victory for workers facing similar discrimination across the country. UPS plans to challenge the ruling.
The case is Gratton v. United Parcel Service Inc., case number 22-03149, in the U.S. District Court for the Eastern District of Washington.
Jeff Burke is an attorney at MacElree Harvey, Ltd., working in the firm’s Employment and Litigation practice groups. Jeff counsels businesses and individuals on employment practices and policies, executive compensation, employee hiring and separation issues, non-competition and other restrictive covenants, wage and hour disputes, and other employment-related matters. Jeff represents businesses and individuals in employment litigation such as employment contract disputes, workforce classification audits, and discrimination claims based upon age, sex, race, religion, disability, sexual harassment, and hostile work environment. Jeff also practices in commercial litigation as well as counsels business on commercial contract matters.
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