Facts

Plaintiffs Karen Rodriguez, in her thirties, Jocelyn Reed, 54, and Debra Eggerman, 53, were three women who worked for the city of Modesto. Rodriguez and Reed were integrated waste specialists, whereas Eggerman worked as a finance specialist.

In August 2001, Rodriguez complained about harassment after allegedly hearing an independent male garbage contractor state that women should be referred to as "bitches." Later on, she was investigated for an e-mail she had written on her computer at work to an employee of that independent garbage contractor, in which she called that male employee a derogatory name and referred to the garbage contractor in a derogatory manner. Rodriguez received a written reprimand for this e-mail. Then, in August 2002, Rodriguez filed a complaint that male employees were stalking her after several alleged incidents. Then, after other alleged incidents, she filed a complaint under the federal Fair Employment and Housing Act (FEHA). She later filed a second FEHA complaint after the alleged harassment continued.

In May 1997, Reed was promoted to acting solid waste manager. She claimed that due to her acting status, she didn't receive a pay raise until October 1999. She then tested for deputy director, ranking among the highest of applicants on the oral exam, but a man who scored lower was offered the job. He accepted and stayed in the position for six months, at which time the city changed the requirement for that position, requiring an engineering degree. Reed therefore was unable to apply, even though she possessed a master's degree.

Eggerman alleged that in July 1999, she was given additional responsibilities in the finance department without receiving a pay increase. In January 2003, she was promoted to acting budget manager, again without receiving a pay raise. A male applicant was then hired as budget manager instead of her. She had also complained of a supervisor who would call female workers "stupid and incompetent," forcing an internal investigation, confirming Eggerman's allegations.

PLAINTIFF'S CONTENTIONS:
The plaintiffs argued there was a gender-based discrimination in the city of Modesto's government, that women in acting class status were working without equal pay compared to male counterparts, and that women faced retaliation from upper management if and when they complained.

The plaintiffs claimed that Rodriguez, Reed, and Eggerman had nearly flawless performance records while working for the city.

DEFENDANT'S CONTENTIONS:
The city disputed the claims, claiming the plaintiffs were not qualified for certain promotions due to factors other than testing. The city also denied allowing systemic, gender-based discrimination and denied women in acting class status were being paid less than their male counterparts.

The city disputed Reed's claims with respect to the deputy director position, stating that the city had undergone reorganization, calling for a new, different skill set for the deputy director position. The city claimed this reorganization was not an attempt to thwart Reed's attempt at becoming deputy director, since it applied to hundreds of employees, not just Reed. In addition, the city claims she did receive a pay raise commensurate with her acting status and received a second pay raise in October 1999, as well.

The city similarly denied that Eggerman performed budget manager duties without receiving acting pay. The city added that with regard to the budget manager position, she ranked number three after the oral exam for the budget manager position, whereas the person who ranked number one eventually got the job. The city added that Eggerman had a well-documented history of absenteeism.

The city denied that these women were faced with retaliation, stating that its personnel decisions and practices were applied to men and women equally and uniformly. The city claimed the plaintiffs were just disgruntled employees.

Settlement Discussions

The plaintiffs demanded $3.25 million; the defendant offered $1,088,132.

Damages

The plaintiffs sought unspecified demand for back pay, forward pay, attorney fees, lost benefits, and emotional distress.

Result

Twelve days before trial, the case settled for $3.25 million. This recovery includes the attorney fees and costs with the balance divided up and the three women vowing to use some of the money to found the Stanislaus Women's Employment Equity Project, a foundation dedicated to helping women with gender bias issues in the workplace.