For Nike Inc., workplace discrimination has a price to the tune of at least $7.5 million in punitive damages.
An eight member jury comprised of one women and eight men in an Oregon federal district court on Wednesday found that Nike discriminated against former engineer Heather Hender when it paid her less than her male colleagues and that they also promoted her more slowly when she worked there from 2015 to 2020 because of her sex.
The trial lasted six days, but took just over a day for the jurors to reach their verdict on pay and promotion discrimination claims.
Hender’s attorney, Laura Salerno Owens of Markowitz Herbold PC in Portland, told The Oregonian, “We are grateful to the jury for holding Nike accountable. Justice has prevailed, not just for our client, but for all women at Nike.” She also said that the victory “sends a message that workplace discrimination is unacceptable and has a price, the boy’s club culture has to go, and corporations will be held accountable for their discriminatory practices.”
The jury awarded Hender $19,739.52 in damages. It also determined that Nike must pay at least $7.5 million in punitive damages.
“We are disappointed by the verdict and respectfully disagree with the conclusions,” a Nike spokesperson told Footwear News.
“Nike is committed to providing a workplace where employees are treated fairly, compensated competitively, and given opportunities to grow and succeed. When concerns are raised, we take them seriously. We investigate them thoroughly, address issues where appropriate, and continually review our policies and practices to strengthen our workplace,” the spokesperson said. “We are grateful for the service of the jurors and court staff and we respect the legal process as we evaluate our next steps. Our focus remains on supporting our employees and continuing to build a culture grounded in respect, accountability, and opportunity for all.”
Although the jurors have made their determination, Nike retains the right to file an appeal with the Ninth Circuit appellate court.
The case initially began in 2018 when four employees at the time sued the sports apparel and footwear giant for sex discrimination. They each alleged that they were being paid less than their male colleagues for substantially similar work. Allegedly women were paid an average of $11,000 less than male counterparts. The plaintiffs also charged that they purportedly had fewer promotion opportunities. Court documents in the case cited to Nike’s “job architecture” and how its “job groupings” were the tools used to achieve the disparity alleged.
The plaintiffs also alleged that Nike’s HR department failed to adequately address their grievances after they raised their complaints internally. At one point, the plaintiffs tried to obtain class-action certification, but that was denied in 2022. Hender became the sole plaintiff after the other three settled their claims.
The lawsuit was filed less than four months after an exposé in The New York Times in April 2018 described a “toxic” boys club culture at the sportswear firm, allegedly promoted by an anonymous internal survey conducted by a group of female employees. The survey addressed sexual harassment, demeaning comments, unfair treatment and other purported misconduct that was provided to then chief executive officer Mark Parker.
In April 2018, Nike admitted that it had fallen short in promoting women and people of color. And in July, it announced a plan to raise salaries for 10 percent of its workforce. It was a move to help correct the pay inequality.
