Smith v. Nike Retail Services, Inc.

234 F.R.D. 648, 2006 U.S. Dist. LEXIS 12375, 97 Fair Empl. Prac. Cas. (BNA) 1700, 2006 WL 715788
CourtDistrict Court, N.D. Illinois
DecidedMarch 22, 2006
DocketNo. 03 C 9110
StatusPublished
Cited by19 cases

This text of 234 F.R.D. 648 (Smith v. Nike Retail Services, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Nike Retail Services, Inc., 234 F.R.D. 648, 2006 U.S. Dist. LEXIS 12375, 97 Fair Empl. Prac. Cas. (BNA) 1700, 2006 WL 715788 (N.D. Ill. 2006).

Opinion

MEMORANDUM OPINION AND ORDER

SHADUR, Senior District Judge.

Eighteen current and former employees of Nike Retail Services, Inc. (“Nike”) have brought a two-count Complaint against Nike, alleging that both they and similarly situated African-American Nike employees were discriminated against based on their race. In particular plaintiffs allege violations of both Title VII of the Civil Rights Act of 1991 (“Title VII,” 42 U.S.C. §§ 2000e to 2000e-17) and 42 U.S.C.1981 (“Section 1981”). Plaintiffs have now moved for certification of multiple classes (one overall class and four sub[656]*656classes) of African-American Nike employees under Fed.R.Civ.P. (“Rule”) 23. This Court certifies all of the proposed classes for the reasons and on the terms stated in this memorandum opinion and order.

Background

Nike is a “designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories” (N. Mem 3).1 Among other activities, it operates “Nike-town” retail stores, including its flagship “Niketown Chicago” location (“Nike Chicago”). Like many large corporations, Nike has in place a number of corporate-wide policies addressing a wide array of employment and personnel issues, including general discrimination and harassment policies as well as policies governing hiring and promotion, workplace discipline, employee discounts, time and attendance requirements and employment benefits. In practice, however, the actual application and enforcement of those policies are left to the discretion of the store managers at individual stores. Here plaintiffs charge that, supported by that decentralized delegation of discretion to Nike Chicago’s managers, Nike has subjected Nike Chicago’s African-American employees to a variety of discriminatory practices.

Those asserted practices cover a wide and, if the charges are true, appalling range. To avoid the constant repetition of the phrase “plaintiffs claim” or the like, the following litany will simply recite the claims — without of course implying any factual findings either way by this Court:

1. Nike segregated its African-American employees into its lowest level and worst-paid jobs — stockroom and cashier positions — as evidenced by, among other things, a significant disparity between the number of African-Americans and the number of Caucasians employed in those positions.
2. African-American employees were denied equal opportunity for promotions to more attractive positions. Nike allegedly failed to post job openings, discouraged African-American employees from applying for promotions and hired less-qualified Caucasian applicants rather than those African-American employees who did apply.
3. Nike Chicago applied workplace rules and meted out discipline — up to and including termination — in a racially biased manner. For example, both employee discount policies and time and attendance rules were applied more rigorously against African-American than against Caucasian employees (between December 1999 and August 2004 more than 33% of Nike Chicago’s African-American employees were terminated for rules violations, while only 8% of Caucasian employees received such treatment during that time).
4. Nike Chicago “routinely” denied employment benefits to African-American employees by predominantly hiring African-Americans into part-time rather than full-time positions and by denying appropriate benefits to those who, though officially (that is, technically) part-time, worked enough hours to be entitled to such benefits.
5. Plaintiffs and their fellow African-American employees were subjected to a hostile working environment created by a congeries of harassing activity, including the use of racial epithets, accusations and coercive interrogations regarding asserted theft and misuse of employee discounts, their subjection to greater scrutiny and monitoring than their Caucasian co-workers (including extensive “check out” searches upon leaving the store) and — to add to the total mix — greater scrutiny and monitoring of African-American customers than of their Caucasian counterparts.

Proposed Class Definitions

In seeking relief for those alleged discriminatory practices, plaintiffs now offer for certification one overall class and four subclasses of current and former African-American Nike Chicago employees. In the ensuing listing the overall class is referred to [657]*657first, with the subclasses following thereafter (and in each instance the class or subclass designation in quotation marks is plaintiffs’): 2

1. “Hostile Work Environment,” comprising all African-Americans employed by Nike Chicago at any time between December 17, 1999 and the present (P. Mem.24). Class representatives are all of the plaintiffs named in the SAC: Crystal Barbee (“Barbee”), Anthony Barlow (“Barlow”), Anthony Brown (“A.Brown”), Billy Brown (“B.Brown”), Dwight Brown (“D.Brown”), Vernetta Duckworth (“Duckworth”), Mar-quisha Hudson (“Hudson”), Robert Jackson (“Jackson”), John Lewis (“Lewis”), Todd Lindberg (“Lindberg”), Ria MeDou-gal (“MeDougal”), Janise Page (“Page”), Larry Posey (“Posey”), Jason Readus (“Readus”), Shu-Ra Rogers (“Rogers”), Kevin Smith (“Smith”), Jacques Walker (“Walker”) and DaJuana Young (“Young”).
2. “Job Segregation/Wage Disparity” (“Job Segregation”), comprising all current and former African-American Nike Chicago employees during the period between December 17, 1999 and the present who were assigned to lower paid positions in the stockroom or as cashiers because of their race (P. Mem.24). That subclass’ representatives are D. Brown, Hudson, Jackson, MeDougal, Smith, Walker and Young.
3. “Promotion,” comprising all current and former African-American Nike Chicago employees during the period between December 17, 1999 and the present who “were denied promotions or deprived of the ability to pursue promotions because of their race” (P. Mem.24). That subclass’ representatives are Barlow, A. Brown, B. Brown, D. Brown, Duckworth, Hudson, Jackson, Lewis, MeDougal, Posey, Readus, Smith, Walker and Young.3
4. “Discipline,” comprising all current and former African-American Nike Chicago employees during the period between December 17, 1999 and the present who “suffered from racially-biased application workplace rules and regulations, including but not limited to, time and attendance, employee discount, employee checkouts, suspensions, and terminations” (P. Mem.24-25). All 18 named plaintiffs are that subclass’ representatives.
5. “Benefits,” comprising all current and former African-American part-time Nike Chicago employees during the period between December 17, 1999 and the present who applied for, requested and/or were entitled to benefits but were denied those benefits because of their race (P. Mem.25). That subclass’ representatives are Barbee, A. Brown, D. Brown,4 Duckworth, Hudson, Jackson, Readus, Smith and Young.

[658]*658Nike presents two threshold objections to those definitions.

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234 F.R.D. 648, 2006 U.S. Dist. LEXIS 12375, 97 Fair Empl. Prac. Cas. (BNA) 1700, 2006 WL 715788, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-nike-retail-services-inc-ilnd-2006.