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$15,000 convinces employee to drop complaint and leave

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in Discrimination and Harassment,Human Resources,Small Business Tax,Small Business Tax Deduction Strategies

A man who landed a job with the Penn-Harris-Madison (P-H-M) School Corp. after fleeing Hurricane Katrina has agreed to drop his race discrimination complaint in exchange for $15,000. As part of the agreement, the man will resign.

Leroy Ray filed a complaint with the EEOC in February, alleging he had been “humiliated and disrespected by the school administration and employees.” The complaint was long on bluster and short on facts. Although Ray claimed he had been called racial epithets, he could not name a perpetrator.

Additionally, the employer documented several deficiencies in Ray’s job performance, including an episode where he was late delivering food orders and did so in a way that violated the health code. Although Ray’s case was weak, P-H-M’s employment practices liability insurance carrier decided to settle. It said paying him in exchange for leaving was more cost effective than keeping him and paying for litigation.

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