In a closely watched discrimination case, a federal jury has ruled against a foreign employer and in favor of an employee who identified himself as ethnically American. He was awarded more than $6 million for what he argued was his Israeli employer’s anti-American cultural bias. He also alleged age discrimination.
Stephen, who is now over age 60, began working in 2001 for Teva Pharmaceuticals USA. When Teva created a global facilities management group in 2013, it chose Nir, a 53-year-old Israeli, to lead the group. Nir was based in Israel.
By 2014, Stephen had become the senior director for the company’s newly formed North American facilities management group. Before approving the promotion, Nir asked Stephen his age and inquired about his retirement plans.
Following a meeting with Israeli staff members who were visiting Teva USA, Stephen complained to HR about age bias and perceived cultural bias in favor of Israeli workers. HR investigated and found the Israelis had, in fact, asked some Americans about their ages.
HR recommended “cultural and sensitivity training” for Israelis working in the U.S. Nir got a copy of the HR report. He then gave Stephen a negative review. Shortly after, Stephen was fired and replaced with a 38-year-old.
Stephen sued, alleging age and national origin discrimination.
After a week-long trial, the jury unanimously found that Teva had discriminated on the basis of both age and national origin. It awarded Stephen $6.134 million, including $5 million in punitive damages.
Note: Score one for the home team! Title VII of the Civil Rights Act doesn’t specify who may bring claims of national-origin discrimination. It merely states that discrimination on the basis of national origin is unlawful.
Final note: Because the Age Discrimination in Employment Act does not cap punitive damages, claims under the ADEA may not be subject to the $300,000 cap stipulated by Title VII for national origin discrimination.
ONLINE RESOURCE: Learn more about what constitutes national origin discrimination under federal law at the EEOC website.
