Sterling Jewelers agreed to pay over $175 million to resolve class action lawsuit claims it discriminated against women working at its stores.
The settlement benefits women employed as part-time sales associates, full-time sales associates, department managers, assistant managers, assistant general managers, store managers or general managers at Belden, Friedlanders, Goodman, Jared, JB Robinson, Kay, LeRoys, LeVian , Marks & Morgan, Osterman, Rogers, Shaws, Weisfield or Ultra Diamonds (after being acquired by Sterling) retail stores.
These class members are part of the Title VII Settlement Class and/or the EPA Settlement Class.
The Title VII Class includes female workers employed by Sterling between July 22, 2004, and May 2, 2018.
The EPA Class includes women who worked for Sterling and submitted forms consenting to join the EPA case in 2016.
Sterling Jewelers is an American company that sells jewelry through a number of subsidiaries including Kay Jewelers, Zales and more. The company is owned by Signet Jewelers.
According to a class action lawsuit, women employed at Sterling Jewelers stores were routinely discriminated against. The company allegedly paid its female workers less than their male counterparts and denied them promotions despite the women being qualified.
Plaintiffs in the class action lawsuit claim that these practices violate Title VII of the Civil Rights Act and the Equal Pay Act.
Sterling Jewelers denies any wrongdoing but agreed to pay $175.37 million to resolve these allegations. Of that amount, $125 million will be used to fund class member payments.
Under the terms of the Sterling Jewelers lawsuit settlement, class members may receive a cash payment based on the number of years they worked for Sterling Jewelers, their position and their class membership.
Members of the Title VII Class will receive payments based on their position. Store managers and general managers will receive $2,996 per year they worked for Sterling. Assistant managers and assistant general managers will receive $1,928 per year. Department managers will receive $1,196 per year. Full-time sales associates will receive $672 per year, and part-time sales associates will receive $270 per year.
Members of the EPA Class will receive similar payments. Store managers and general managers will receive $2,996 per year they worked for Sterling. Assistant managers and assistant general managers will receive $1,361 per year. Department managers will receive $1,152 per year. Full-time sales associates will receive $500 per year, and part-time sales associates will receive $150 per year.
Class members who are part of both classes will receive both types of payments under the settlement.
Twenty-five percent of each payment will be considered income or interest and result in a 1099 tax form. The remaining 75% of each payment will be considered wages and result in a W-2 tax form.
Funds remaining after the first distribution may be used to fund a second round of checks to consumers who cashed their initial checks.
Any funds remaining after that distribution will be donated to a fund promoting diversity, equity and inclusion (25% of remaining funds) and one or more nonprofits that serve the interests of women in the workplace (75% of remaining funds).
As part of the Sterling Jewelers class action lawsuit settlement, the company agreed to retain a third party expert to evaluate its pay and promotion policies for fairness and, if necessary, help the company revise these practices. The company will also offer mentorship programs for women, improve its parental leave policy and develop its workplace complaint investigation practices.
The deadline for exclusion and objection is Sept. 27, 2022.
The final approval hearing for the Sterling Jewelers lawsuit settlement is scheduled for Nov. 15, 2022.
Class members may update their address on the settlement website to ensure they receive payments.
No claim form is required to benefit from the settlement. Class members who do not exclude themselves will automatically receive a payment settlement in the mail.
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