OXFORD, Miss. – Wise Staffing Services, a prominent staffing agency in the Southeast and part of the Wise Staffing Group, has reached a settlement with the U.S. Equal Employment Opportunity Commission (EEOC) following allegations of pregnancy discrimination. The agreement, announced by the federal agency, involves a payment of $40,000 and mandates other corrective actions to resolve claims of unlawful hiring practices.
The EEOC’s lawsuit asserted that Labor Source, L.L.C., operating as Wise Staffing, headquartered in Tupelo, Mississippi, violated federal law by failing to hire a qualified candidate due to her pregnancy. According to the EEOC, the incident occurred around May 2019 when a Wise Staffing hiring manager interviewed a candidate for a data extraction clerk position for one of their clients. During the interview process, the applicant disclosed her pregnancy. Despite a seemingly positive second interview, the hiring manager subsequently informed the applicant that Wise Staffing would be pursuing other candidates but would contact her in the future. Contrary to this assurance, the EEOC alleges that Wise Staffing instead hired less qualified individuals who were not pregnant and never followed up with the pregnant applicant, even as she continued to inquire about the position.
This alleged conduct constitutes pregnancy discrimination, which is prohibited under Title VII of the Civil Rights Act of 1964, as amended by the Pregnancy Discrimination Act of 1978. The EEOC initiated legal action in the U.S. District Court for the Northern District of Mississippi, Oxford Division (EEOC v. Labor Source, L.L.C. d/b/a Wise Staffing, Case No. 3:21-cv-00187) after an unsuccessful attempt to reach a pre-litigation resolution through its conciliation process.
The two-year consent decree formalizing the settlement requires Wise Staffing Services to provide substantial relief. Beyond the $40,000 payment to the affected individual for back pay and compensatory damages, Wise Staffing is obligated to implement comprehensive anti-discrimination training. This training must specifically cover Title VII of the Civil Rights Act of 1964 and the Pregnancy Discrimination Act. To ensure effective learning, all personnel involved in hiring decisions will be required to take an examination after the training and achieve a minimum passing score of 90%. Wise Staffing will also be required to submit regular reports on the exam performance of hiring officials, as well as reports detailing any discrimination complaints received and the company’s responses. Furthermore, a notice regarding the consent decree must be prominently posted. Crucially, the decree legally prohibits Labor Source and its officers and agents from denying employment to women based on pregnancy in the future.
Faye A. Williams, regional attorney for the EEOC’s Memphis District Office, expressed satisfaction with the swift resolution. “We are pleased the EEOC and Labor Source quickly reached an amicable resolution that will ensure the protection of pregnant applicants in the future,” Williams stated. She emphasized the importance of proactive measures for employers, adding, “We hope this case conveys to employers the importance of regular training for staff on various anti-discrimination laws, including the Pregnancy Discrimination Act.”
Edmond Sims, acting district director of the EEOC’s Memphis District Office, further elaborated on the legal obligations of employers. “The Pregnancy Discrimination Act requires employers to treat qualified pregnant women the same as they would treat other qualified applicants and employees,” Sims explained. “The EEOC will continue to enforce that important law.”
The EEOC is dedicated to promoting equal opportunity in the workplace through the enforcement of federal laws prohibiting employment discrimination. More information about the EEOC and its work is available at www.eeoc.gov. Interested parties can stay informed about EEOC news by subscribing to email updates at email updates.
