National Wholesale Li quidators to Pay $255,000 to Settle EEOC National Origin, Religious Bias and Sexual Harassment Lawsuit

Retail Chain Store Abused South Asian Employees, Federal Agency Charged

NEW YORK - A Hempstead, N.Y.-based chain of retail discount stores, National Wholesale Liquidators, Inc., will pay $255,000 and agree to injunctive relief to settle a lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today. The EEOC had charged that the company subjected employees to a hostile work environment based on their race, national origin and religion and sexually harassed an employee.

In its lawsuit, the EEOC said a National Wholesale Liquidators store manager subjected South Asian workers to taunts about their national origin and religion. The EEOC also charged that the store manager sexually harassed a female employee. The woman, a Sikh, was told by the manager to remove her turban because she "would appear sexier without it."

The consent decree resolving the case, submitted for approval to U.S. District Judge Joseph F. Bianco, provides $255,000 to nine victims of the harassment and injunctive relief including anti-discrimination training and monitoring. The lawsuit was filed in U.S. District Court for the Eastern District of New York on June 21, 2007 (Civil Action No. 07 CV 2507), after the agency investigated, found that discrimination had occurred, and first attempted to reach a voluntary settlement.

"The EEOC hopes this settlement encourages employers to take steps to educate their managers and employees: harassing employees based on national origin, sex or religion is unacceptable and will not be tolerated," said Margaret A. Malloy, the EEOC trial attorney assigned to the case.

EEOC New York District Director Spencer H. Lewis said, "This case should remind employers to take seriously allegations of harassment, especially where managers in positions of authority are involved in the misconduct."

The EEOC enforces federal laws prohibiting employment discrimination. Further information about the EEOC is available on its web site at www.eeoc.gov.