In a landmark award, a Tennessee jury has awarded more than $1.5 million to three women in a sexual harassment and retaliation case against Mid-American Specialties, a Memphis-based distributor of office supplies and promotional products. $1.1 million of that was in punitive damages for what the EEOC calls "egregious sexual harassment" and the subsequent wrongful termination of two of the women.

The EEOC brought the lawsuit on behalf of the three women after the company's stubborn refusal to address the sexual harassment in any way or to settle the complaint.

"We hope for amicable resolutions but are prepared to try cases to vindicate legal violations," said EEOC General Counsel P. David Lopez.

The jury found that two male managers were guilty of severe sexual harassment of female subordinates at Mid-American, which included making unwanted sexual advances and engaging in inappropriate sexual touching, creating an extremely hostile work environment.

According to testimony in the case:

  • One manager exposed his genitals and forced one of the plaintiffs to touch them
  • Another manager conditioned the women's receipt of sales leads and accounts on their participating in a "kissing" or "smooching" club, which is a form of quid pro quo sexual harassment
  • During the two years in which the harassment took place, Mid-American had no sexual harassment policy, no anti-sexual harassment training, and no reporting procedures
  • Company officials testified they did not think sexual harassment policies or procedures were necessary
  • The human resources manager did not even know the definition of sexual harassment
  • Company officials ignored the women's sexual harassment complaints
  • In retaliation for their sexual harassment complaints, two of the women were fired

"This jury verdict sends the strongest possible message to employers that sexual harassment and retaliation should never be tolerated in the workplace," said EEOC Memphis regional attorney Faye A. Williams.

"The jury award further shows that employers without sexual harassment policies and procedures for handling complaints promptly and effectively are taking major risks."

The jury awarded more than $400,000 in back pay and other compensatory damages to the women and slapped Mid-America with $1.1 million in punitive damages, which are intended to punish the defendants for their outrageous behavior.

"Three women displayed tremendous courage in confronting egregious sexual harassment by their supervisors. The jury's verdict vindicates their courage and sends a message to the defendant that complaints about sexual harassment should never result in termination," said Kenneth Anderson, the EEOC's lead trial attorney in the case.

Source: EEOC press release, "Jury Awards over $1.5 Million in EEOC Sexual Harassment and Retaliation Case Against Mid-American Specialties," March 4, 2011