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November 14, 2013
Tennessee company settles claims of failing to pay Hispanic employees overtime pay

Tennessee tree-trimming service settles complaints of national origin discrimination, wage discrimination

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A Tennessee tree-trimming service company has agreed to settle a national origin discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC) on behalf of 19 Hispanic former employees, the agency announced. According to the EEOC's suit, the company violated federal law by maintaining a policy and practice of failing to pay Hispanic employees overtime pay while paying non-Hispanic American workers such wage premiums.

The EEOC also charged that the company further violated the law when it threatened to fire employees after they complained about the wage discrimination.

Such alleged conduct violates Title VII of the Civil Rights Act of 1964. The EEOC filed suit (Civil No. 3:13-cv-00570) in U.S. District Court for the Eastern District of Tennessee, Knoxville Division, on September 26, 2013 after first attempting to reach a pre-litigation settlement through its conciliation process.

In the two-year consent decree, the company agreed to pay $19,000 in compensatory damages to the claimants for the discrimination. Back pay damages for the claimants' lost overtime wages had previously been settled by the company in separate litigation.

In addition to the award of compensatory damages, the decree enjoins the company from engaging in future unlawful national origin discrimination and retaliation against any employee. Further, the decree requires the company to provide training on wage discrimination for its senior management officials and regularly submit copies of its overtime payroll records to the EEOC.

Finally, the company agreed to EEOC inspection and copying of records regarding any employee complaints related to national origin, wage discrimination or retaliation during the decree's term.

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