$70,000 Settlement in Sexual Harassment Lawsuit Against Patient Transportation Company, Training Ordered

Thursday, October 13, 2011

Question:  Would sexual harassment training have prevented this case?  See our trainings at http://www.hrclassroom.com.Jay Medicar Transportation, LLC will pay $70,000 to resolve a sex discrimination  lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC). The EEOC sued  Jay Medicar in March 2010 on behalf of female employees who alleged they were  sexually harassed by a senior manager.

Jay Medicar  provides patient transportation services in the city of Chicago.  The EEOC’s lawsuit alleged that Jay Medicar’s former director of  operations harassed several women under his supervision. The alleged harassment included quid pro quo advances where the director  of operations demanded sex in exchange for pay raises, scheduling changes or  continued employment. One of the discrimination  victims in the lawsuit alleged that Jay Medicar terminated her on pretextual  grounds, rehired her, and then subjected her to adverse terms and conditions of  employment as retaliation for her prior complaints.

Jay Medicar  moved to dismiss EEOC’s lawsuit (EEOC v.  Jay Medicar Transportation, LLCa/k/a  Jay Transportation, f/k/a Jay Medi-Car, Inc., No. 10 CV 01477 [N.D. Ill.]) in  April 2010 on the ground that Jay Medicar Transportation, LLC is not the  successor in liability to Jay Medi-Car, Inc. for the employment discrimination  violations alleged in EEOC’s complaint.  On Sept. 2, 2010, U.S. District Judge William J. Hibbler denied Jay  Medicar’s motion to dismiss, concluding that “[t]he EEOC…pleaded facts that  make it plausible to infer that Jay Medicar LLC may be liable for Jay Medi-Car  Inc.’s obligations. It need do nothing  more.”

Judge  Hibbler entered a consent decree resolving this litigation on October 4,  2011. The decree provides $70,000 of  monetary relief to five women. Two of  the women who alleged egregious harassment will receive $25,000 each. Under the terms of the decree, Jay Medicar is  also enjoined from further subjecting any employee to a hostile work  environment or retaliating against any employee who opposes  discrimination. Jay Medicar must post a  notice about the EEOC’s lawsuit in a conspicuous location for two years and  train its managers on employment discrimination laws.

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