$185 Million in Punitive Damages in AutoZone Gender Bias Suit

 
Monday, December 29, 2014
 
A record $185 million punitive damages verdict was decided last month after a former store manager brought a lawsuit alleging she was fired after giving birth and in retaliation for having complained about discrimination.

The plaintiff, Rosario Juarez, joined AutoZone in 2000 and, in 2001, was promoted to parts sales manager. Upon being promoted, Juarez noticed a gender disparity within upper management at AutoZone. She alleged as much in her lawsuit, which claimed AutoZone had a “glass-ceiling” policy that effectively barred female promotions in the company. At the time of her promotion, only 10 of the 98 stores in the San Diego-area had female store managers.

Juarez filed a charge with the California Department of Fair Employment and Housing in 2007. Juarez claimed the company then retaliated against her for filing the complaint by concocting a scheme to terminate her in 2008, blaming Juarez when a customer service representative misplaced $400 in cash from the register. At trial, the company’s loss prevention officer – who has since filed a gender discrimination suit of her own - testified that she never suspected Juarez of any wrongdoing and that the company was indeed targeting her. Another district manager testified that he was at one point offered a promotion if he fired all the women in his stores.

The jury found AutoZone liable for gender and pregnancy discrimination, retaliation, and failure to prevent harassment and awarded Juarez a total of $872,719 in compensatory damages for lost earnings and emotional distress. The jury also awarded Juarez $185 million in punitive damages. 
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