Compliance November 28, 2006

Chicago-Area Trucking Co. Hit with $2.3M Sex Harassment Award

November 28, 2006 (PLANSPONSOR.com) - A federal court jury in Chicago has hit an Illinois trucking company with a $2.3 million damage award in a sexual harassment suit filed by the government for three saleswomen.
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The Chicago Tribune reported that the US Equal Employment Opportunity Commission (EEOC) charged that the Northlake, Illinois-based Custom Companies had subjected the three women to groping, lewd language, sexual propositions and pornography, and expected them to entertain customers at a strip club.

According to a report on HR.BLR.com, the EEOC also charged that the chief executive of Custom Companies had an ownership interest in and was the chief executive of the club.

The EEOC filed the suit against the company in 2002.

An attorney for the company told the Tribune that “many of the incidents alleged by the plaintiffs simply never happened” and the company would appeal.

According to the HR.BLR.com report, the jury’s award included punitive damages of $2.05 million and compensatory damages of $245,000. In addition, one woman was awarded $60,000 for her expenses in defending a lawsuit filed against her by Custom Companies.

The EEOC noted that the maximum amount which may be recovered on any particular claim in such cases is $300,000 and that certain parts of the jury verdict may be reduced in subsequent proceedings, according to HR.BLR.com.

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