Beverage Distributor to pay $825K in Racial Discrimination Lawsuit

In the case of U.S. Equal Employment Opportunity Commission v. Birmingham Beverage Company, the company, operating under the name AlaBev, settled a race discrimination lawsuit brought by the EEOC. As part of the settlement, AlaBev will pay $825,000 and take corrective actions to address the allegations. The lawsuit, initiated in 2017, claimed that the company violated federal law by not promoting or considering African American employees, including Ronnie Johnson, for open route sales positions.

Despite Johnson’s six years of outstanding job performance and previous experience in route sales, the company chose to promote a white delivery driver with only nine months of experience, whom Johnson was supervising at the time. Additionally, the EEOC alleged a pattern of discrimination against Black employees in hiring and promotions, with no African American employees hired over the four years leading up to the lawsuit.

Lessons learned from the case:
  • Ensuring Equal Opportunity Compliance: This case highlights the importance of strict enforcement of equal employment opportunity laws. Employers must be held responsible for discriminatory actions.
  • Fair Hiring and Promotion Practices: Employers must have impartial and non-discriminatory policies in place for hiring and promoting employees.
  • Emphasizing Diversity and Inclusion: Companies must actively cultivate diverse and inclusive work environments where employees are assessed based on their qualifications and capabilities rather than being excluded due to their racial or ethnic background.

If you want to know more about salaried employee rights, read our guide on What are my rights as a salaried employee in Alabama?

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