Jury Awards $2.17M to Ex-Employee

A federal jury in Texas has awarded $2.17 million to a female parts clerk to resolve a sex discrimination lawsuit filed by the EEOC.

The verdict, based on a finding that the employer subjected the woman to a hostile work environment, is the largest jury trial award ever obtained by the EEOC in the Northern District of Texas, the agency recently announced.

Here’s what happened – and what you can do to help prevent a similar mistake at your company.

Do Crude Remarks Prove Hostile Work Environment?

Sarah Budd worked for SkyWest Airlines at Dallas-Fort Worth International Airport. She was a female parts clerk in a mostly male department. 

According to the EEOC’s lawsuit, several co-workers and at least one male manager made crude sexual comments to Budd that amounted to a hostile work environment.

How bad were these allegedly crude comments? According to Budd:

• A co-worker asked if she “liked whips and chains” on her first day.
• Co-workers suggested she could make money through prostitution.
• They asked her to perform sex acts.
• They made jokes and remarks about rape and rape victims, including saying that women who reported rape did so to get attention.

“They didn’t seem to care if I was uncomfortable,” Budd later told the jury. “In fact, it only spurred them on more. … It’s like they enjoyed my discomfort.”

Questions About Company’s Response

Budd said she reported the sexual harassment to her supervisor, but no response was taken to address the hostile work environment she endured.

She then escalated the complaint to the employee relations department. But the employee relations manager didn’t interview several of the employees who were identified as witnesses to and participants in the harassment, Budd claimed. 

Nor did the manager “ask obvious follow-up questions.” In Budd’s view, the manager’s failure to ask the right follow-up questions meant the investigation didn’t uncover the full extent of the harassment and the hostile work environment she worked in.

According to the EEOC’s lawsuit, SkyWest promised to discipline participating co-workers and provide department-wide training, but it canceled the training after Budd left the company, deciding it was no longer necessary. 

SkyWest eventually conducted training three years later, and only in response to litigation, the EEOC asserted.

EEOC Sues Over Hostile Work Environment

In the EEOC’s view, the alleged conduct violated Title VII, which prohibits sex-based discrimination and harassment and also prohibits retaliation for reporting a hostile work environment. 

The agency filed a lawsuit on Budd’s behalf, and the case reached a jury.

The jury returned a unanimous verdict in Budd’s favor, finding SkyWest subjected Budd to a hostile work environment based on her sex and that the company knew or should have known of the harassment but failed to take prompt remedial action.

All told, the jury awarded $2.17 million to Budd – $2 million in punitive damages and $170,000 for emotional harm. The award was reduced to $300,000 based on Title VII’s caps on damages.

“Ms. Budd had over a decade of experience at SkyWest and before the sexual harassment occurred and had intended to retire there,” said Alexa Lang, a trial attorney in the EEOC’s Dallas District Office. “All Ms. Budd wanted was to be heard and to stop this from happening to other women. The jury heard her. We hope the verdict sends a message to SkyWest and other employers that they must take responsibility for making sure their workplaces are free from sexually hostile conduct. Everyone deserves to feel safe at work.”

4 Key Takeaways for Finance Pros

On the surface, this case provides 2.17 million reasons to push for a harassment-free workplace. 

But by digging deeper, finance pros can uncover valuable lessons – and action steps to help their companies avoid similar mistakes. 

1. Understand the Cost of Non-Compliance

In this case, the $2.17 million verdict, even reduced to $300,000 under Title VII caps, shows the financial risks companies face when harassment claims are not handled promptly and effectively.

Moreover, it’s crucial to recognize that the costs don’t end with payouts for damages – no matter the size of the verdict or settlement. Companies also spend significant amounts for legal fees while defending against such lawsuits.

What you can do: 

• Recognize that prevention is far more cost-effective than litigation, and
• Allocate funds in the budget for compliance programs, employee training and investigation processes that can help prevent expensive legal headaches.

2. Conduct Risk Assessments

SkyWest’s alleged failures to respond to the employee’s complaints and act decisively highlight the importance of assessing vulnerabilities – because, according to the employee, she endured this allegedly hostile work environment for some time.

The reality is, some departments may pose higher risks for harassment. And because of that, it’s important to collaborate with HR and perform regular workplace culture audits to identify vulnerable employees who may be enduring hostile work environments.

What you can do: 

• Budget for workplace culture audits, and
• Invest in proactive prevention measures like leadership development and team-building efforts.

3. Commit to Workplace Training

Here, SkyWest’s decision to delay training until the EEOC filed suit didn’t go over well with the jury.

This shows that inadequate (or delayed) training can turn into an expensive mistake. 

What you can do: 

• Prioritize support for regular harassment prevention and compliance training, and
• Advocate for training tailored to departments with the potential for higher risks, such as heavily male-dominated teams like the one in the SkyWest case.

4. Learn From High-Profile Cases

Use real-life examples to learn from other companies’ mistakes.

For example, in the SkyWest case, the EEOC’s lawsuit – paired with the jury’s unanimous verdict – should serve as a stern warning that such harassment cannot be tolerated in the workplace. 

What you can do: 

• Educate leadership teams on the importance of accountability and ethical operations, and
• Use these real-life examples as case studies to benchmark and improve your company’s policies and training programs.