Union opposes Activision Blizzard settlement with EEOC

A labor union has opposed a deal Activision Blizzard reached with the U.S. Equal Employment Opportunity Commission to pay $18 million to resolve claims made mostly by women who said they were harassed at work and didn't receive equal pay.

The objection filed Tuesday by the Communications Workers of America said the proposed consent decree reached on Sept. 27 is riddled with deficiencies. The union asked U.S. District Judge Dale S. Fischer of the Central District of California to schedule a fairness hearing.

In a letter to the EEOC, union lawyer David A. Rosenfeld of Weinberg Rosen & Rosenfeld questioned why employees were not consulted about what he described as a "woefully inadequate" deal and how the EEOC intends to limit any waiver to retaliation under Title VII of the Civil Rights Act.

"We are concerned that they may be limited to the narrow allegations of the complaint and do not affect any private right of action or claim under state law, or other federal laws or other laws or regulations," Rosenfeld wrote. He said the union wants to see any release or waiver included in the deal to ensure it wouldn't waive any other claims under federal or state laws.

EEOC spokesman Victor Chen declined to comment. A representative for Activision Blizzard did not respond Wednesday to a request for comment.

The union's objection was filed a day after Fischer declined to expedite a request by the California Department of Fair Employment and Housing to intervene in the case. The state agency also claims the EEOC deal with Activision Blizzard is inadequate to remedy systemic sexism and discrimination that has been alleged to occur in the gaming giant's workplace. The proposed settlement would destroy stronger state civil rights claims and reduce compensation to aggrieved employees, the Department of Fair Employment and Housing said.

The proposed EEOC settlement covers all former and current employees who worked at the company's U.S. locations from Sept. 1, 2016 to the effective date. U.S. EEOC v. Activision Blizzard, 21-cv-7682 (C.D. Cal., filed Sept. 27, 2021).

In July, the Department of Fair Employment and Housing initiated its own enforcement action against Activision Blizzard in Los Angeles County Superior Court. DFEH v. Activision Blizzard Inc., 21STCV26571 (L.A. Super. Ct., filed July 20, 2021)

"DFEH does not agree with the representations made in the EEOC's earlier filings," Fahizah Alim, a spokeswoman for the state's fair employment agency said in a news release Wednesday. "Pursuant to the court's order on October 11, DFEH will meet and confer with the EEOC on a briefing schedule for DFEH's motion to intervene."

The EEOC has accused the state agency of conflict of interest, pointing out in court papers that two of its lawyers working on the state court action worked at the EEOC, and were part of the team that investigated the company.

Although Activision Blizzard's employees never unionized, organizations like the Commercial Workers of America can represent members with respect to workplace issues in a court proceeding and any discrimination cases involving the EEOC, Rosenfeld said Wednesday.

"A union has the standing to raise these issues," Rosenfeld said, citing Social Services Union Local 535 v. County of Santa Clara, 609 F. 2d 944 (9th Cir. 1970). Whether the employees plan to formally unionize or not remains to be seen, Rosenfeld said, but "we're representing the interests of these employees who came to us and asked for help."

Rosenfeld said the Department of Fair Employment and Housing is a much more aggressive organization than the EEOC.

"We're concerned that Activision is trying to preempt state law claims by getting people to give away their rights and undermining the ability of the DFEH," he added.

The union in September initiated an action against Activision Blizzard with the National Labor Relations Board, accusing the company of intimidating employees from discussing workplace investigations. Rosenfeld represents the union in that action as well.