Netflix negotiating strategy cleared path for comedienne Mo’Nique to sue, judge says

Netflix Inc. would have continued negotiating compensation for comedienne Mo'Nique's stand-up special, had she not spoken out against its low-ball offer of $500,000 compared to millions of dollars paid to other white and/or male comics, a U.S. judge has found.

In his ruling issued Wednesday, U.S. District Judge Andre Birotte Jr. of the Central District of California refused to throw out the comedienne's pay discrimination lawsuit, finding that Netflix's refusal to proceed with negotiations in good faith was retaliatory.

Mo'Nique's lawyers argued that she was retaliated against after she objected to the company's allegedly discriminatory low-ball offer of $500,000, compared to millions of dollars paid to Dave Chapelle, Eddie Murphy, Ricky Gervais, Chris Rock, Ellen DeGeneres and Amy Schumer. Mo'Nique Hicks v. Netflix Inc. 2:19CV10452 (C.D. Cal., filed Dec. 10, 2019)

"Here, the factual allegations set forth in Mo'nique's first amended complaint viewed in the light most favorable to her at this early stage of the litigation, plausibly allege an adverse employment action sufficient to survive a motion to dismiss," Birotte wrote. "With that in mind, the court determines that the denial of a detail position could possibly have affected plaintiff's potential pay, thereby causing a 'direct, measurable and immediate' effect on plaintiff's compensation, a term of her employment."

Birotte also found the comedienne sufficiently alleged Netflix's failure to negotiate her opening offer, citing the allegations that the company reportedly stopped negotiations and presents its offer to Mo'Nique on 'take-it-or-leave-it' terms. Had she not made these allegations and challenged Netflix, the company would've continued negotiations and essentially increased its offer, Birotte reasoned.

David M. deRubertis, who represents the comedienne, celebrated the ruling.

The decision, he said, "is an important victory for Hollywood talent who, just like all other workers, need protections against retaliation if they raise concerns about pay discrimination during the hiring process."

"Employers in the entertainment industry need to take pay discrimination concerns seriously, fix them if the concerns have merit and never retaliate against those who have the courage to speak up about equal pay."

Birotte granted Netflix's motion to dismiss Mo'Nique's claims in March but granted leave to amend. Back then, Birotte found there was no adverse employment action by Netflix, as it offered the comedienne $500,000 before and after she spoke out against its offer.

Media representatives nor counsel for Netflix could be reached for comment Thursday.