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Objections to Kodak’s Proposed Race Discrimination Class-Action Settlement

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Image: Marcia McCormickIn 2004, a group of Black workers of Eastman-Kodak filed a class action against the company, alleging widespread discrimination in pay and a failure to promote on the basis of race. A second class action was filed by another group of workers in 2007. The two classes together consist of about 3000 past and current employees. This past July, the company proposed a $21.4 million dollar settlement with the class–with payouts between $1,000 and $75,000 for individual class members. Magistrate Judge Jonathan Feldman (W. D. N.Y.) held a hearing Friday on the fairness of the proposed settlement, and will hold another on November 5. At Friday’s hearing, several class members objected that the payouts were too low, that the attorneys were getting too much of the award, and that class members who left the company before 1999 would be excluded.

Some examples of the unfairness of the award include that one decades-long employee would be awarded $1000 while her daughter, employed for only 11 months, would be awarded $3000. For more details see news reports here and here.

Despite this example, it’s hard to predict without knowing more what the judge will likely rule on whether the settlement is fair overall. In addition to the money, the company promised to improve its diversity training for supervisors and hire an industrial psychologist and two labor statisticians to review its pay and promotion policies and to recommend improvements. As Jason Bent recently suggested, having an external monitor to report to the court and some sort of ongoing supervision would be even better.

This article originally appeared in Workplace Prof Blog on October 24, 2009. Reprinted with permission from the author.

About the Author: Marcia L. McCormick joined the SLU LAW faculty in 2009. Her scholarship explores the areas of employment and labor law, federal courts, and civil rights, broadly defined. She is also a co-editor and contributor to Workplace Prof Blog, which provides daily information on developments in the law of the workplace and scholarship about
it.


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