Home Employment LawDialAmerica pays $85,000 to settle EEOC discrimination lawsuit

DialAmerica pays $85,000 to settle EEOC discrimination lawsuit

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DialAmerica Marketing will pay $85,000 to settle federal charges that managers at its Ohio call center discriminated against a Black female employee based on her race and sex, then retaliated when she complained.

The U.S. Equal Employment Opportunity Commission filed the lawsuit against the telemarketing company, alleging that a manager at DialAmerica’s former Middleburg Heights location falsely accused the employee of using profanity during customer calls to justify firing her. The EEOC said the manager’s real motivation was the worker’s race and sex.

The federal agency also charged that DialAmerica retaliated against the employee after she called the company’s senior vice president of human resources to report the discrimination.

Court approves two-year consent decree

A federal court in Cleveland approved the settlement on June 24, establishing a two-year consent decree that goes beyond monetary compensation. Under the agreement, DialAmerica cannot discriminate based on race or sex when making firing decisions or conducting performance evaluations and call reviews.

The company must maintain employment policies that prohibit discrimination and retaliation while requiring designated employees to document all discrimination and harassment reports in writing. DialAmerica must also provide mandatory training to human resources staff on investigating and responding to discrimination complaints.

EEOC emphasizes enforcement commitment

“The EEOC is committed to enforcing federal law and holding employers accountable for race discrimination in employment,” said EEOC Regional Attorney Debra Lawrence. “Federal law guarantees the rights of all workers to earn a living free from employment discrimination, and the EEOC will not shrink from its duty to eradicate unlawful racial discrimination in the American workplace.”

Acting EEOC Cleveland Field Office Director Karen McDonough highlighted the importance of thorough investigations when discrimination allegations arise.

“When making employment decisions or investigating workers’ allegations of discrimination, employers cannot uncritically rely on supervisors’ reporting of events — especially when those supervisors themselves are alleged to have engaged in discrimination,” McDonough said. “Before concluding an investigation of a worker’s allegations of discrimination, an employer must gather relevant evidence, apply a clear and reasonable decisional process, and make an informed and considered decision.”

Legal background

The case violated Title VII of the Civil Rights Act of 1964, which prohibits workplace discrimination based on race or sex and protects employees who report such conduct. The EEOC filed the lawsuit in U.S. District Court for the Northern District of Ohio’s Eastern Division.

DialAmerica provides telemarketing and call-center services for third-party clients. The EEOC’s Cleveland Field Office, part of the Philadelphia District Office, handles discrimination cases across eastern Ohio, Pennsylvania, West Virginia, Maryland, Delaware and parts of New Jersey.

The settlement comes as employers face increased scrutiny over workplace discrimination practices, particularly in industries with high employee turnover and customer-facing roles where subjective performance evaluations can mask discriminatory intent.

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