DEHS Successfully Defends Racial Discrimination Lawsuit

March 3, 2009

Sandra Hoglund Hanson last week successfully defended a racial discrimination claim brought against a local family-owned and operated business.

The lawsuit, tried to a jury in U.S. District Court in Sioux Falls, alleged that a nearly 50-year-old small business in Sioux Falls discriminated against two employees on the basis of race. The business, which employs 10 people, denied it engaged in any discriminatory practices or activity.

At the conclusion of the week-long trial, the jury returned a verdict in favor of the business on the racial discrimination claims. Although the jury awarded one plaintiff approximately $1,400 on an overtime pay claim, it also decided he had to repay the employer nearly $3,300 in wage advances. The jury awarded the other plaintiff about $250 on an overtime pay claim but decided he had to repay the employer for an expense he charged to the employer after quitting his employment.

Before trial, Judge Karen Schreier rejected claims that the employer racially harassed the plaintiffs and violated the Employee Retirement Income Security Act. She also dismissed the plaintiffs’ contention that they were forced to quit their jobs, amounting to the employer constructively discharging them.

Hanson is one of several lawyers in the firm who represent and advise both public and private employers in all areas of labor and employment law.