AutoZone manager awarded $186M in gender discrimination suit

Last week, a California federal jury awarded a record $185M in punitive damages to the plaintiff in Juarez v. AutoZone, a single-employee gender discrimination suit. Rosario Juarez was also awarded $872k in economic damages for back and front pay, and emotional distress.

Juarez filed the suit in 2008, and alleged that AutoZone created and implemented an intentionally discriminatory promotion system, citing the gender gap in managers in the San Diego area.

AutoZone sells automotive parts and accessories and has more than 5,000 locations in the US, Mexico and Brazil, and more than 500 stores in California alone. The defendant reported $9.5 billion in revenue in the last 12 months.

The plaintiff was hired in 2000 and promoted to store manager in 2004. Juarez had a child in 2005, was demoted in 2006, and terminated after she filed a lawsuit challenging the demotion. She alleged that AutoZone created a plan to terminate her that included verbal abuse by her manager, and her being blamed for misplaced $400 from the cash register.

AutoZone hoped to avoid paying punitive damages, but on November 18 Judge Gallo denied the defendant’s application for judgment. On November 20, AutoZone claimed at a bid for mistrial that the legal counsel for the plaintiff “consorted with a member of the California Jury” and “invited the entire jury out for drinks afterward.”

The Wall Street Journal says is expected that the damages amount is likely to be significantly reduced upon appeal.

Relevant reading:

‘Sex-Based Discrimination‘, U.S. Equal Employment Opportunity Commission (EEOC)

‘Pregnancy Discrimination‘, EEOC

‘The human side of employment discrimination: Why people are paid differently for the same job‘ from EmployStats