Majors

Gender bias case against Sterling moves forward

MajorsMar 01, 2017

Gender bias case against Sterling moves forward

An arbitrator has issued a mixed ruling in the ongoing gender discrimination case against Kay and Jared parent company Sterling Jewelers.

New York--An arbitrator ruled this week that a group of women can pursue claims challenging Sterling Jeweler Inc.’s pay and promotion practices as a class though she threw out claims that the alleged discrimination was intentional.

In a 118-page decision released Tuesday, arbitrator Kathleen A. Roberts ruled that the 12 claimants could proceed as a class in arbitration to determine if the Akron, Ohio-based retailer’s compensation and promotion practices have a “disparate impact on women.” Sterling has fought for years against having the case certified as a class.

If disparities are found for which there is no justifiable business reason, then the women will be eligible as a class to affect changes in Sterling’s practices and will be able to pursue claims for lost wages individually.  

In terms of alleged pay discrimination specifically, the class covers women who worked at Sterling between July 22, 2004 and the yet-to-be-set date of the trial, which will take place before the same arbitrator. In terms of alleged promotion discrimination, it covers women who worked at Sterling between Dec. 7, 2004 and the trial date.

What the arbitrator denied were the women’s claims of disparate treatment, meaning that the discrimination was intentional and part of an overall corporate culture that demeaned female employees.

In denying the women’s claims of disparate treatment, the arbitrator stated in her ruling that the claimants failed to provide the “significant proof” necessary to pursue claims of intentional discrimination. 

This burden of significant proof Roberts relied upon in this case was the one set in the Wal-Mart gender discrimination case, though she noted that the Wal-Mart decision is one that presents “substantial hurdles” for pursuing claims of intentional discrimination as a large class. 

The arbitrator wrote, “While the evidence in [the Sterling] case”--a case that includes particularly salacious claims that women were groped and grabbed, solicited for sex and expected to undress publicly at often-mandatory company events, as well as internal company memos acknowledging that the company paid women less than men--“may be in some respects stronger than the evidence presented in Wal-Mart, it fails to provide significant proof that Sterling operated under a general policy of discrimination.” 

Roberts called into question specifically the opinion of one expert for the claimants, James Outtz, stating that he cannot answer the “essential question” of what percentage of the employment decisions at Sterling are determined by a “gender-discriminatory

corporate culture,” court papers show.

She also stated that Outtz’s conclusions are not supported by reliable methodology. Among other things, he disregarded about 600 declarations written by the company’s female employees that reflect a very different view of the company’s treatment of women. “His decision to disregard this evidence, without any explanation, at a minimum calls his objectivity into question,” Roberts noted in her ruling.

Both sides are claiming the arbitrator’s ruling as a victory.

Joe Sellers, an attorney representing the women, said it was an “enormous achievement” for his clients and a “very important case” that gives them the opportunity to affect broad changes in a company that’s a leader in its industry. 

Sterling, meanwhile, called the ruling “favorable,” pointing to the fact that the arbitrator rejected claims that Sterling had “systematically and intentionally” discriminated against female employees.  

Regarding the portion of the arbitration that Roberts did allow to move forward, company spokesman David Bouffard said, “Sterling is optimistic that it will be able to demonstrate that the case is without either factual or legal merit in the next phase of the proceedings. We will continue to vigorously defend ourselves.”

Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Bonhams New Bond Street London flagship
AuctionsOct 24, 2025
Bonhams Under New Ownership, Top Executives Replaced

London-based investment firm Pemberton Asset Management acquired the auction house for an undisclosed amount.

De Beers Diamond View Zoom machine with monitor
GradingOct 24, 2025
DMIA to Hold Diamond Testing Instrument Demo

The workshop will give attendees the chance to try out and ask questions about three different diamond verification instruments.

Two brooches stolen in the October 2025 heist at the Louvre Museum in Paris
CrimeOct 24, 2025
Video Emerges of Louvre Jewelry Robbers Fleeing the Scene

The footage shows two of the jewelry heist suspects descending from the second floor of the museum and then escaping via scooter.

BTYB10.25_Header.jpg
Brought to you by
Are Earrings an Overlooked Category? What Retailers Need to Know Now

As the holiday season quickly approaches, consider stocking one category that sometimes gets overlooked: earrings.

Wyld Box Jewelry Ray of Light Large Drop Earrings
CollectionsOct 24, 2025
Piece of the Week: Wyld Box Jewelry’s ‘Ray of Light’ Earrings

Founder and designer Rosanna Fiedler looked to a vintage Cartier clutch when designing the sunlight-inspired drop earrings.

Weekly QuizOct 16, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Tiffany & Co. Bird on a Rock pendant
FinancialsOct 23, 2025
Jewelry Sales Resilient Despite Struggles at LVMH, Kering

The luxury conglomerates faced a challenging Q3 amid geopolitical and economic tensions.

Cullinan Diamond Mine plant
SourcingOct 23, 2025
Petra Diamonds Turns to Shareholders to Raise Capital

The struggling diamond mining company, which owns the historic Cullinan mine, has launched a rights issue to raise about $25 million.

LIM-401 2024 National Jeweler Supplier Bulletin- iD100 Web and Eblast FINAL (2) (1).jpg
Brought to you by
Protect Your Customers and Your Business

You deserve to know what you are selling–to protect your customers as well as your business and your reputation.

Million Dollar Hip Hop Watches by Leon Schäfers, Jeanette Lang, Tobias Kargoll
WatchesOct 23, 2025
‘Million Dollar Hip Hop Watches’ Recounts Watch History

The book details the journey of watches as symbols of hard-earned success in hip-hop for artists like 2Pac, Jay-Z, and more.

Alexis Vourvoulis
AuctionsOct 23, 2025
Freeman’s | Hindman Names New VP, Senior Specialist for Jewelry & Watches

Alexis Vourvoulis, who most recently worked at Tiffany & Co., brings more than two decades of jewelry experience to her new role.

Taylor Swift engagement ring Greenwich St
TrendsOct 22, 2025
The Taylor Swift Effect: Antique Diamonds Edition

The superstar’s August engagement put the stamp of approval on an already hot engagement ring trend.

Rahaminov Diamonds Emerald-Cut Diamond Bracelet
TrendsOct 22, 2025
Don’t Forget These Diamond Jewelry Trends When Stocking for the Holidays

Retailers should offer classic styles with a twist that are a perfect fit for layered looks, experts say.

Fancy vivid purplish pink diamond
AuctionsOct 22, 2025
Pink Diamond, Vanderbilt Jewels to Headline Phillips’ Geneva Auction

The nearly 7-carat fancy vivid purplish pink diamond could sell for around $9 million.

“Storied Diamond Desert Sands of Eternity” engagement ring and wedding band
SourcingOct 22, 2025
In ‘Storied Diamond,’ Jared Jewelers Is Emphasizing the Journey

The retailer’s new collection of engagement rings and fashion jewelry is set with natural diamonds that are traceable via blockchain.

Tiffany & Co. Bird on a Rock by Tiffany High Jewelry Lariat
CollectionsOct 22, 2025
Tiffany & Co.’s ‘Bird on a Rock’ Finds New Perch

Chief Artistic Officer Nathalie Verdeille has reimagined the iconic design in both figurative and abstract creations.

Jewelers for Children Halloween contest
Events & AwardsOct 22, 2025
JFC Kicks Off Halloween Costume Challenge

Five dollars buys one vote toward an industry professional you want to see dressed up as a hero, or a villain, this Halloween.

Hillsborough show
Events & AwardsOct 22, 2025
Hillsborough Antique Show Gets New Owner

Recently acquired by KIL Promotions, the November edition of the public show in San Mateo, California, will be held Nov. 7-9.

Bicolor pink and colorless diamond
GradingOct 21, 2025
GIA Examines Rare Bicolor Pink Diamond

The stone’s two zones, one pink and one colorless, may have formed at two different times, the lab said.

Grown Brilliance NYC Flagship Exterior
Lab-GrownOct 21, 2025
Grown Brilliance Opens First Flagship

The New York City store showcases a chandelier with 1,500 carats of lab-grown diamonds designed by an FIT student.

Douriean Fletcher Messenger Collection
Events & AwardsOct 21, 2025
‘Douriean Fletcher: Jewelry of the Afrofuture’ Opens at MAD

The Museum of Arts and Design's new exhibition features 75 pieces by the designer, best known for her work in the “Black Panther” films.

Sothebys the glowing rose pink diamond
AuctionsOct 20, 2025
Sotheby's To Auction 10-Carat Vivid Pink Diamond

Making its auction debut, "The Glowing Rose" is expected to fetch $20 million at the November jewelry sale in Geneva.

2025_Gemfields logo.jpg
SourcingOct 20, 2025
2 Mozambique Police Officers Killed at Gemfields’ Ruby Mine

They were attacked on Oct. 15, as approximately 40 miners without licenses marched on the mine’s gate.

Empress Eugénie’s pearl and diamond tiara
CrimeOct 20, 2025
See the ‘Priceless’ Jewels Stolen During Daytime Heist at the Louvre

It took the masked thieves less than 10 minutes to steal eight irreplaceable jewels from two display cases in the museum’s Apollo Gallery.

Lauren Gayda
SourcingOct 20, 2025
Pristine Gems Names New Director of European Sales

Gemologist Lauren Gayda has previously worked at The Clear Cut, Taylor & Hart, and Effy Jewelry.

Charles London, Mayer and Fran Udell, Mark and Candy Udell
IndependentsOct 17, 2025
From the Jazz Age to the Information Age: London Jewelers Turns 100

In 2026, the jewelry retailer will celebrate a milestone only a small percentage of family-owned businesses survive to see.

The Edit – A Gallery of Italian Jewelry Masterpieces Graphic
Events & AwardsOct 17, 2025
An Edit of Italian Jewels Is Coming to NYC

The new showcase dedicated to Italian jewelry design is set for Oct. 29-30.

Judi Powers Jewelry Stella Earrings
TrendsOct 17, 2025
Piece of the Week: Judi Powers Jewelry’s ‘Stella’ Earrings

Take a gaze at the sky with this pair of platinum diamond-set star earrings with blue lace agate drops.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy