Kroger Settles Race Discrimination Claims for $16 Million
The Kroger Co. has agreed to settle a class action race discrimination lawsuit for $16 million.
The lawsuit alleged that Kroger discriminated against African-American employees in Alabama, Georgia, Kentucky, Ohio, Tennessee and Texas in promotions and pay. The plaintiffs also alleged that they were subjected to racial harassment.
In addition to the $16 million, a proposed consent decree would require Kroger to:
- establish minimum qualifications for all management positions
- create a pay rate monitoring system that would allow store manager decisions to be overturned if unfair
- provide an annual report, including salary and promotion data, to the plaintiffs’ law firm
Kroger sent a letter to its employees that said: “The plaintiffs who initiated this lawsuit seven years ago obviously felt strongly that the company was not treating them fairly or respectfully. No one in our company should feel this way.” The company added: “We have taken steps over the past several years to build an inclusive culture that demonstrates our commitment to all associates.” Among other things, the company said it has hired a chief diversity officer and created cultural councils to help promote inclusiveness.
