Fourth Circuit case shows that proactive equal employment opportunity policies can help employers avoid punitive damages

In Bryant v. Aiken Reg’l Med. Ctrs. (4th Cir. 06/27/03 – No. 02-2147, 02-2192), the court reversed a jury’s award of $210,000 in punitive damages in a failure to promote action based on racial and retaliatory conduct because the employer had “an extensively implemented organization-wide Equal Employment Opportunity Policy,” “a grievance policy encouraging employees to bring forward claims of harassment, discrimination, or general dissatisfaction, and employees were explicitly informed that they would not be retaliated against for making a complaint. There was also a carefully developed diversity training program that included formal training classes and group exercises.” And the employer “voluntarily monitored departmental demographics as part of an ongoing effort to keep the employee base reflective of the pool of potential employees in the area.”

Despite these efforts, the jury found, and the court upheld the finding, that the plaintiff had been discriminated against. The court let stand a verdict for $90,000 in actual damages.

$210,00 is not bad ROI (return on investment) in progressive HR management!

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