Facts

Kaiser Permanente is one of the nation's largest not-for-profit health plans, serving 12.4 million members and employing over 200,000 individuals. Plaintiffs Shelby Stewart, Charleta Dabrowsky, Benedict Johnson, and Kenya Mayfield are Black individuals who are long term employees of Kaiser. Plaintiffs brought a class action alleging Black employees have been underpaid, underpromoted, and undervalued.

PLAINTIFFS' CONTENTIONS: The plaintiffs contended that Kaiser failed to pay Black employees equally based on common policies, practices, and procedures. The plaintiffs also contended Kaiser failed to promote Black employees based on common policies, practices, and procedures. Plaintiffs contended they were subjected to pay and promotion discrimination.

DEFENDANTS' CONTENTIONS: The defendants denied all of the contentions.

Settlement Discussions

Kaiser agreed to institute comprehensive workplace programs to ensure that African American employees' compensation and opportunities for advancement are fair and equitable. All the parties also agreed Kaiser Permanente will retain an independent consultant to develop and mange a thorough job analysis review to be completed within one year. Kaiser also agreed to conduct an annual pay analysis for employees in the defined job classifications and to appoint a Compliance officer.

Result

The case settled for $11.5 million and Kaiser is required to institute comprehensive workplace programs to benefit the class.

Other Information

The class action was filed and resolved on the same day.