Cost of Workplace Misconduct

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There is a tendency for organizations to underestimate the all-in cost of workplace misconduct.
Cost of Workplace Misconduct
Cost of Workplace Misconduct - Litigation
Cost of Workplace Misconduct - Fines
SELECTED PUBLICLY-ANNOUNCED SETTLEMENTS & AWARDS

This table below reflects publicly-available data relating to announced settlement amounts and awards. It is critical to understand that these costs typically reflect a small portion of the overall costs these organizations incur when workplace misconduct and business ethics issues arise. The market capitalization losses that shareholders suffer can reach billions of dollars.

 

Announcement DateOrganizationDollar AmountTypeCategorySourceComments
11/12/2019Nabors Corporate Services and C&J Well Services$1,200,000DiscriminationWorkplace ConductEEOCDiscriminated against black workers, subjecting them to a hostile work environment, denying them high paying jobs, and retaliating against those who complained.
11/8/2019Breakthru Beverage Group Illinois$950,000DiscriminationWorkplace ConductBloomberg LawDiscriminated against sales employees based on national origin or race.
10/19/2019La Cantera Resort & Spa$2,625,000DiscriminationWorkplace ConductLaw.comDiscriminated against Hispanic banquet staff and subjected them to a hostile work environment by prohibiting them from speaking in their native language, Spanish.
10/15/2019Walmart$5,200,000DiscriminationWorkplace ConductDisability ScoopWalmart failed to accommodate an employee with a developmental disability. 
10/1/2019Ford Motor Company’s Kentucky Truck Plant$540,000DiscriminationWorkplace ConductAuto NewsFailed to hire applicants due to their disabilities.
9/27/2019Barclays$6,000,000FCPA / UKBABusiness EthicsCompliance WeekBarclays hired relatives of government officials in order to influence them.
9/23/2019
Entertainment Benefits Group$925,000Discrimination & Sexual HarassmentWorkplace ConductBloomberg LawClasswide disability bias, sexual harassment.
9/19/2019Mercy General Hospital$570,000DiscriminationWorkplace ConductSacramento BeeFired an employee suffering from vision loss.
9/18/2019Marquez Brothers$2,000,000DiscriminationWorkplace ConductBusiness JournalBlack, white and Asian non-Spanish-speaking job applicants were passed over for less qualified Hispanic applicants.
9/17/2019UPS$2,250,000DiscriminationWorkplace ConductHR DiveRefusal to provide light duty as an accommodation to pregnant workers violated the Pregnancy Discrimination Act (PDA).
9/10/2019Connections CSP$550,000DiscriminationWorkplace ConductEEOCfired employees with disabilities who needed additional unpaid leave beyond the re­quired 12 weeks under the Family and Medical Leave Act (FMLA).
8/29/2019Hudson City Savings Bank$1,000,000RetaliationWorkplace ConductNational Law ReviewWoman was retaliated against after reporting gender discrimination.
8/22/2019Deutsche Bank$16,000,000FCPA / UKBABusiness EthicsWall Street JournalDeutsche Bank hired relatives of government officials in order to influence them.
8/20/2019LA Times$22,000,000DiscriminationWorkplace ConductWashington PostA former L.A. Times sports columnist was awarded $15.4 million ($22mm including interest) in age-related discrimination case.
8/9/2019Juniper Networks$11,700,000FCPA / UKBABusiness EthicsCompliance WeekJuniper Networks' Russian subsidiary secretly funded leisure trips for customers, including government officials.
8/6/2019Dartmouth College$14,000,000Sexual HarassmentWorkplace ConductCNNFemale students were routinely subjected to rape and sexual harassment.
7/22/2019Microsoft$16,000,000FCPA / UKBABusiness EthicsSECMicrosoft subsidiaries improperly handled funds in regards to foreign government officials.
6/20/2019Jack in the Box$15,400,000DiscriminationWorkplace ConductMy News LADiscriminated against and harassed a manager because of her age and a physical disability.
6/20/2019Walmart$282,000,000FCPA / UKBABusiness EthicsReutersWalmart failed to sufficiently investigate corrupt practices by its subsidiaries.
6/13/2019Pogo Mine$975,000Sexual HarassmentWorkplace ConductAlaska Public MediaUnderground miner was discriminated against because she is a woman.
6/10/2019New Mexico Corrections Department$700,000Discrimination and RetaliationWorkplace ConductKRWG Public MediaState prison workers were discriminated against because of their age and faced retaliation after reporting the allegations.
6/5/2019JPMorgan Chase$5,000,000Pay ViolationWorkplace ConductXpert HRChase employee was wrongfully denied equal paid parental leave.
5/14/2019
Pape Material Handling$650,000DiscriminationWorkplace ConductFresno BeeAllowed ongoing harassment of its Latino employees. Harassment included mocking employees’ accents and using derogatory ethnic slurs.
4/29/2019Hologram USA (Alki David)$11,000,000Sexual HarassmentWorkplace ConductLA TimesJury awards Chastity Jones in her claims of sexual impropriety.
2/20/2019IHOP$700,000Sexual Harassment and RetaliationWorkplace ConductBusiness InsuranceEmployees at the Glen Carbon and Alton, Illinois, restaurants were routinely sexually harassed by co-workers and managers, including offensive sexual comments, groping, physical threats and, in one instance, an alleged sexual assault.
2/14/2019Essence Business Group$11,000,000Sexual HarassmentWorkplace ConductWorkplace Litigation ReportSupervisors harassed female employees on multiple occasions. 
2/14/2019Fanatics Retail Group Fulfillment$4,900,000Discrimination and RetaliationWorkplace ConductFlorida Times UnionA black employee was called a racial slur on his first day at work. When he complained later that black employees weren’t treated equally, the suit said, Perkins was told he’d never be promoted.
2/2/2019KFC$1,500,000DiscriminationWorkplace ConductXpert HRSupervisor actions were designed to discriminate against employee needing to breast feed.
1/30/2019Teva Pharmaceutical$6,000,000DiscriminationWorkplace ConductWorkplace Litigation ReportTeva Pharmaceutical discrimination against employee based on age and national origin.
1/30/2019Atlantic Capes Fisheries and
BJ's Service Co.
$675,000Sexual Harassment and RetaliationWorkplace ConductSeafood SourceSexual harassment was perpetrated by managers, line supervisors, and co-workers. Allegations include unwanted touching, solicitations for sex, and crude comments.
1/6/2019Keyways Vinyard$11,000,000Sexual Harassment and RetaliationWorkplace ConductNational Law ReviewTwo former employees claimed they were sexually harassed and retaliated against for complaining about the harassment.
12/31/2018CBS$9,500,000Sexual HarassmentWorkplace ConductNew York TimesSettlement for Eliza Dushku over misconduct on ‘Bull’ set
12/16/2018Polycom$16,000,000FCPA / UKBABusiness EthicsRadical CompliancePolycom subidiaries facilitated improper payments to government officials.
12/10/2018Cato Corporation$3,500,000DiscriminationWorkplace ConductCharlotte ObserverDiscrimination against pregnant employees and workers with disabilities.
12/6/2018Family Healthcare Network$1,750,000DiscriminationWorkplace ConductFresno BeeImplemented “rigid” practices and refused to accommodate the staff with appropriate leave, or failed to rehire them after leave.
11/19/2018Vantage Drilling$5,000,000FCPA / UKBABusiness EthicsGlobe NewswireVantage Drilling lacked sufficient internal accounting controls in relation to the heightened risk of conducting business in Brazil.
11/12/2018United Technologies$13,900,000FCPA / UKBABusiness EthicsSECUnited Technologies subsidiary Otis Elevator Co. made unlawful payments to Azerbaijani officials.
10/16/2018Sherwood Food Distributors$3,600,000DiscriminationWorkplace ConductCleveland Plain DealerDiscriminated against a class of female applicants at its warehouses in Cleveland, Ohio and Detroit, Michigan by refusing to hire them for entry-level positions because of gender.
9/28/2018Stryker$7,800,000FCPA / UKBABusiness EthicsFCPA BlogStryker’s internal accounting controls were not sufficient to detect the risk of improper payments in foreign countries.
7/5/2018Credit Suisse$30,000,000FCPA / UKBABusiness EthicsSECSought to win business by hiring and promoting individuals connected to government officials as part of a quid pro quo arrangement.
4/30/2018Panasonic$280,000,000FCPA / UKBABusiness EthicsCNNOffered a lucrative consulting position to a government official at a state-owned airline to induce the official to help PAC in obtaining and retaining business from the airline.
4/25/2018Fidelity National Financial$2,200,000Sexual Harassment & RetaliationWorkplace ConductMy News LAEmployee alleged during legal team retreat a manager followed her back to her room and attempted to kiss her multiple times without her consent. After reporting the behavior to Fidelity management, she suffered further harassing behavior and had to go on leave under orders from her doctor. The heads of the legal department provided no support to her. She was let go from her job in November of 2015.
4/23/2018Dun & Bradstreet$2,000,000FCPA / UKBABusiness EthicsFCPA BlogTwo Chinese subsidiaries used third-party agents to make unlawful payments to obtain data vital to Dun & Bradstreet’s business.
3/26/2018Kinross Gold$995,000FCPA / UKBABusiness EthicsMarketWatchFound to have awarded a lucrative logistics contract to a company preferred by Mauritanian government officials, despite concerns that the company was a high-cost provider with poor technical capabilities, in contravention of Kinross Gold’s bidding and tendering procedures. Kinross Gold also contracted with a politically-connected consultant to facilitate contacts with high-level Mauritanian government officials without conducting required, heightened due diligence. In addition, the company paid vendors and consultants without ensuring the payments were consistent with policies prohibiting improper payments.
3/21/2018Family Dollar Stores$45,000,000DiscriminationWorkplace ConductNational Law ReviewFifty female managers alleged that the company had paid them less than similarly situated male store managers.
3/19/2018United Airlines$1,500,000DiscriminationWorkplace ConductWestwordUnited Airlines lost a decision after firing two senior flight attendants for a minor infraction to make an example based on their tenure.
3/9/2018Elbit Imaging$500,000FCPA / UKBABusiness EthicsWall Street JournalPaid millions of dollars to third-party offshore consultants and a sales agent purportedly for their services related to a real estate development project in Romania and the sale of a large portfolio of real estate assets in the U.S. Elbit and Plaza made these payments even though they lacked evidence that the consultants and the sales agent had actually provided the contracted for services.
3/8/2018Beverly Fabrics$2,600,000Sexual Harassment & Workplace BullyingWorkplace ConductJury Verdict AlertPlaintiff was subjected to sexual harassment by a male coworker who tormented plaintiff with homosexual slurs, spreading false rumors about plaintiff, making highly inappropriate physical contact and gestures towards plaintiff, and targeting plaintiff's heterosexual identity by using "sex" as a tool of harassment against plaintiff. Plaintiff reported the coworker's actions to his supervisors, whom plaintiff believed already knew of the conduct, ignored it, and allowed it to continue.
3/6/2018Domino Sugar$13,400,000Discrimination & Sexual HarassmentWorkplace ConductNew York Daily NewsEmployee alleged she had endured sexual discrimination and harassment by a supervisor at the sugar refinery.
2/15/2018UCLA$13,000,000DiscriminationWorkplace ConductCBSUCLA oncologist alleged she was forced to take another job after complaining about discriminatory treatment based on her gender.
1/28/2018Sybron / Kavo Kerr / Danaher$31,000,000DiscriminationWorkplace ConductKFI AM 640Employee subjected to comments such as ``you are outdated,'' ``we need younger workers here,'' ``you are part of the old culture'' and ``dumb female.'' In addition to age discrimination, the jury found true causes of action for age harassment, wrongful termination and retaliation.
1/4/2018Asian American Drug Abuse Program$4,500,000DiscriminationWorkplace ConductNational Law ReviewAADAP failed to accommodate her disability, and acted with malice, oppression, and/or fraud.
12/8/2017Washington DC Metropolitan Transit Authority$6,500,000DiscriminationWorkplace ConductLaw 360MTA's Metrorail's criminal background check policy disproportionately discriminated against African Americans.
9/12/2017State of New Jersey$11,800,000DiscriminationWorkplace ConductEmployment Law Firm BlogFailure to accommodate a disability, discrimination based on a disability, and discrimination based on a perception of a disability under the NJLAD. 
7/7/2016Fox News (Roger Ailes)$20,000,000Sexual Harassment, Discrimination & RetaliationWorkplace ConductCNBCEmployee Gretchen Carlson alleged Ailes fired her because she refused to have sex with him. Ailes made comments of a sexual nature towards Carlson, calling her a “man hater” who tried to “show up the boys.” Ailes asked Carlson to turn around in his office so he could view her “posterior,” as well as told her he has “slept” with three former Miss Americas but not with her.
7/5/2017Metropolitan Life$32,500,000DiscriminationWorkplace ConductInsurance BusinessFirm alleged to have maintained “a racially biased corporate culture and stereotypical views about the skills, abilities, and potential of African Americans that affect personnel.”
6/29/2017McWane, Inc.$16,600,000DiscriminationWorkplace ConductThe Press EnterpriseEmployee was discriminated against because of his race and that his employer failed to prevent his mistreatment.
6/15/2017Los Angeles Department of Sanitation$17,400,000Discrimination, Retaliation, andWorkplace Bullying Workplace ConductNew York PostEmployee alleged he endured repeated harassment by supervisors, who falsely perceived that he was gay. He was subjected to verbal abuse, hazing and a bullying campaign in which his portrait was altered to show him in a same-sex relationship with a subordinate.
2/16/2017Bureau of Prisons$20,000,000Sexual Harassment and DiscriminationWorkplace ConductQuartzBureau of Prisons agreed to pay women who were sexually harassed by inmates at prison in Florida.
1/31/2017Lockheed Martin$51,400,000DiscriminationWorkplace ConductNational Law ReviewEmployee alleged he was selected for layoff at 66 while two other employees holding same title, both significantly younger, were allowed to keep their jobs. He also alleged that the company had a practice of giving younger workers better reviews and raises to keep them at the company, while older workers were given lower ratings and raises since they “had nowhere else to go.”
1/18/2017United States Secret Service$24,000,000DiscriminationWorkplace ConductCNNAlleged that the federal agency denied job opportunities because of race.
1/3/2017Wells Fargo Advisors$35,000,000DiscriminationWorkplace ConductAdvisor HubAlleged that African American brokers and trainees were denied business opportunities, excluded from high-producing teams because of their race.
8/28/2013Merrill Lynch$160,000,000DiscriminationWorkplace ConductReutersAlleged to have segregated the workforce, including policies that steered black brokers into clerical positions and reassigned their accounts to white workers.
8/10/2012Washington D.C. Department of Parks & Recreation$3,500,000Sexual Harassment & RetaliationWorkplace ConductWashington PostEmployee alleged her supervisor began to harass her by asking her on dates and whether she “had a man.” When she rebuffed the supervisor’s advances, the harassment intensified, the lifeguard’s attorneys alleged. She reported the behavior to a half-dozen supervisors but the harassment did not stop. Shortly after filing a written complaint in October 2006, she was fired.
6/29/2012Yellow Transportation and YRC, Inc.$11,000,000DiscriminationWorkplace ConductEEOCBased on consent decree. Subjected African-American employees to a racially hostile environment and discriminatory terms of employment.
6/13/2012ArcelorMittal$25,000,000DiscriminationWorkplace ConductIndustry WeekFederal court jury awards $25 million in damages to a steel plant employee.
3/2/2012Mercy General Hospital$168,000,000Sexual HarassmentWorkplace ConductABC NewsFederal court jury awarded former cardiac surgery physician assistant $125 million in punitive damages, $39 million for mental anguish and $3.5 million for lost wages and benefits.
12/8/2011Dr. Pepper$18,300,000DiscriminationWorkplace ConductTwin Cities Pioneer PressJury award based for allowing a manager to discriminate against older delivery drivers and for disability discrimination by failing to accommodate a driver’s disability.
7/6/2011Verizon$20,000,000RetaliationWorkplace ConductEEOCVerizon unlawfully denied reasonable accommodations to hundreds of employees and disciplined and/or fired them pursuant to “no fault” attendance plans.
6/10/2011Aaron's, Inc.$45,000,000Sexual Harassment & RetaliationWorkplace ConductReutersThe plaintiff alleged that a manager sexually harassed and assaulted her during her employment at Aaron's Rents.
5/3/2011UBS Financial$10,600,000Sexual Harassment & RetaliationWorkplace ConductBloomberg LawEmployee complained of harassment in 2008, then UBS fired her. Alleged harassment by her supervisor had been ongoing for six years. Complainant alleged supervisor “repeatedly made inappropriate comments about Ingraham’s breast size”, called her into his office to “view sexually offensive emails on his computer”, repeatedly “talked about the size of his genitals”, and asked her about her sexual fantasies.