Jewelry Chains Face Class Action Arbitration Over Alleged Sex Discrimination

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Sterling Jewelers Inc., the parent company of popular jewelry chains such as Kay Jewelers and Jared The Galleria of Jewelry, is facing class action arbitration over allegations it discriminated against female employees.

According to the Kay Jewelers class action complaint, which names more than a dozen women as plaintiffs, Sterling engages in a pattern of sex discrimination in the promotion and compensation of female employees. Sterling reportedly operates more than 1,300 stores throughout the United States.

The plaintiffs assert that female employees of Sterling’s jewelry stores are discriminated against due to company policies and practices that cause women to be denied promotional opportunities for which they are qualified. The lawsuit also claims that women are paid less than men for the same work. They assert that this practice of sex discrimination has had “a disparate impact adverse to women.”

Because Sterling requires its employees to arbitrate their disputes, the plaintiffs have filed a class action arbitration complaint against the company. Six plaintiffs filed complaints against the company in 2006. They assert violations of Title VII of the Civil Right act of 1964, the Civil Rights Act of 1991 and the Equal Pay Act.

The first stage of the ADR process has concluded and the second stage, which allows employees to appeal and engage in mediation, has also concluded. The plaintiffs filed this class action arbitration complaint in order to invoke the third stage of the alternative dispute resolution program.

Many of the plaintiffs had filed discrimination charges with the Equal Employment Opportunity Commission, which found in 2008 that there was reasonable cause to believe Sterling engaged in discrimination and violated Title VII and the Equal Pay Act.

“Sterling knew or should have known that its promotion and compensation practices were being used with the purpose and having the effect of denying qualified women employees equal opportunities to obtain promotions and to be paid at the same levels as similarly-situated male employees,” the sex bias class action arbitration complaint states.

In addition to being passed over for promotions and receiving less pay than their male counterparts, several plaintiffs also allege they experienced sexual harassment in the workplace.

Despite reporting the sexual harassment to management, these complaints were allegedly not investigated and no corrective action was taken against the individuals committing the harassment, according to the Sterling class action arbitration complaint.

Approximately 69,000 current and former employees of Sterling jewelry stores may qualify as Class Members of this Sterling sex bias class action arbitration.

Sterling denies the allegations and asserts that the company creates many opportunities for women to advance. A spokesman for the company states that the claims in the class action arbitration complaint involve “unintentional gender pay and promotions discrimination,” and don’t involve the sexual harassment claims.

The jewelry store employees are represented by Joseph Sellers, Shaylyn Cochran, Kalpana Kotagal and Aniko R. Schwartz of Cohen Milstein Sellers & Toll PLLC; Loren B. Donnell and Sam J. Smith of Burr & Smith LLP; Thomas Warren and Barry Goldstein.

The Jewelry Store Sex Discrimination Class Action Arbitration Case is Laryssa Jock, et al. v. Sterling Jewelers Inc., Case No. 11-160-00655-08, before the American Arbitration Association.