San Bernardino, CA: (Apr-04-08) The US Equal Employment Opportunity Commission (EEOC) brought a lawsuit against Walgreens, alleging that the drugstore chain discriminated against thousands of Black employees nationwide. The suit, filed in March 2007, claimed that current and former Black employees were discriminated against and were paid less than similarly situated White counterparts. It stated that Black applicants were not considered for management trainee positions on the basis of their race. They also alleged that the company steered Black managers to low performing stores and denied them promotions. Sources stated that the EEOC's lawsuit also included a private class action suit filed in June 2005 on behalf of 14 African-American current and former Walgreens' employees. Court records show that the two cases were consolidated in April 2007.
As part of a settlement reached in the dispute, Deerfield, IL, based Walgreens agreed to pay $24 million to resolve allegations. Company officials stated the settlement will be shared by approximately 10,000 African-American current and former store-level management employees across the country. The 14 named plaintiffs in the case are said to get more than $300,000 each. Lawyers will receive about $5.5 million. Apart from the cash settlement, the company agreed to not discriminate against employees based on race and won't retaliate against anyone reporting discrimination. The agreement stipulated that the company hire outside consultants to review its employment and promotions practices. [
