Majors

Judge Drops Thousands from Sterling Discrimination Case

MajorsJan 23, 2018

Judge Drops Thousands from Sterling Discrimination Case

Federal judge Jed S. Rakoff ruled that an arbitrator overstepped her bounds in including women who did not opt into the class.

New York--A federal judge ruled last week that the arbitrator in charge of the sex discrimination case against Sterling Jewelers overstepped her bounds in including women who did not opt into the class, and he cut thousands of women from the case.

Arbitrator Kathleen A. Roberts ruled in February 2015 that women could pursue claims of pay and promotion discrimination against the retailer as a class, and certified a class of approximately 70,000 individuals that included all women who had worked for Sterling within a specific range of dates, regardless of whether or not they had said they wanted to be part of the case.

Sterling appealed the decision twice and in July 2017, the U.S. Second Circuit Court of Appeals sided with the retailer, ruling that the issue of whether or not an arbitrator has the power to include people who do not opt into the class had never been “squarely addressed,” and remanded the issue to the U.S. District Court in Manhattan.

On Jan. 16, federal Judge Jed S. Rakoff ruled that the arbitrator does not have this power, writing in his decision, “Arbitrators are not judges. Nowhere in the Federal Arbitration Act does Congress confer upon these private citizens the power to bind individuals and businesses except in so far as the relevant individuals and businesses have bound themselves.”

“The court finds that the arbitrator here had no authority to decide whether the RESOLVE agreement permitted class-action procedures for anyone other than the named parties who chose to present her with that question and those other individuals who chose to opt in to the proceeding before her.”

RESOLVE is the name for Sterling’s internal dispute resolution system; upon hire, all employees agree to settle any workplace disputes in private arbitration, a practice some lawmakers are looking to force companies to change because, they say, it can discourage women who have been discriminated against or sexually harassed from speaking up.

The judge’s ruling cuts the size of the class down from 70,000 to the approximately 250 women who either filed the original arbitration claim under Title VII--which covers claims of promotion discrimination--or were part of the claim before the 2015 class certification that Rakoff just overturned.

There are, however, 10,000 other women who opted into a separate class in 2016 under claims brought under the Equal Pay Act (EPA).

Washington, D.C.-based attorney Joseph Sellers, who represents the women who filed

the case against Sterling, said he “respectfully disagrees” with Judge Rakoff’s decision and already has filed an appeal.

“At the very least, we think we should proceed to trial on behalf of the claims of more than 9,000 women. We hope the Second Circuit (Court of Appeals) will allow the balance of the women’s claims,” he said, referring to the 60,000 women excluded by Rakoff’s decision.

David Bouffard, the vice president of corporate affairs for Sterling parent company Signet Jewelers Ltd., said the company will be challenging the certification of the EPA class as well.
RELATED CONTENT: EEOC, Signet Reach Settlement in Discrimination Case
The ruling, and subsequent appeal, is the latest in a convoluted case that has stretched on for nearly a decade and has included numerous rulings and appeals on the issue of allowing the women to pursue their claims as a class even though their case has to be heard in arbitration.

The sex discrimination case against Sterling began back in 2008 when a group of 12 women who used to work at the retailer’s stores accused it of paying women less than men and passing them over for promotions.

Filed as part of that case but not released until this past spring were more 1,000 pages of sworn statements obtained by The Washington Post that went beyond allegations of pay and promotion discrimination, painting a portrait of Sterling in the late ‘90s and early 2000s as a boys’ club where the sexist culture started at the top with now-departed CEO Mark Light.

These claims are not part of the class arbitration, and Sterling has repeatedly disputed them, saying they give a distorted and inaccurate picture of the company’s culture.
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Fabergé egg pendant near gloved hand
CrimeDec 17, 2025
Man Pleads Not Guilty to Swallowing Fabergé Pendant

The special-edition egg pendant ingested in a New Zealand jewelry store was recovered after a six-day wait.

Ashley Zhang Jewelry Snake Necklace, Renato Cipullo Hematite Blaze Necklace, Vanessa Fernandez Studio Curva Wrap Hoops, Hernsdorf Tears of Aphrodite Necklace, Robinson Pelham Tsar Star Earrings, Marla Aaron Nymphenburg Lock, Lof The Valentine Ring
EditorsDec 17, 2025
2025 Jewelry Rewind: The Best Piece of the Week Picks

Associate Editor Natalie Francisco plays favorites with Piece of the Week, selecting a standout piece of jewelry from each month of 2025.

Lucy Hale in Jacquie Aiche’s Love and Desire Campaign
CollectionsDec 17, 2025
Lucy Hale Stars in Jacquie Aiche’s Holiday Campaign

The “Love and Desire” campaign is inspired by the magic that follows when one’s heart leads the way, said the brand.

Recipients Collage 2025 - NJ (1872 x 1050 px) (1872 x 1052 px).png
Brought to you by
Impacting Tomorrow Today

How Jewelers of America’s 20 Under 40 are leading to ensure a brighter future for the jewelry industry.

SSEF logo
GradingDec 17, 2025
SSEF Announces 2025 Scholarship Winners

Two awardees will receive free tuition for an educational course at the Swiss lab, with flights and lodging included.

Weekly QuizDec 11, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
JAR pendant brooch, fancy intense blue diamond
AuctionsDec 16, 2025
Suzanne Belperron, JAR Shine in Sotheby’s First Auctions at New HQ

Sotheby’s held its first two jewelry sales at the Breuer building last week, and they totaled nearly $44 million.

The Jewelry Symposium logo
Events & AwardsDec 16, 2025
TJS Now Accepting Scholarship Applications for 2026

Winners will receive free registration and lodging for its fourth annual event in Detroit.

roseco-catalog.png
Brought to you by
Roseco Releases New Full-Line Catalog

Roseco’s 704-page catalog showcases new lab-grown diamonds, findings, tools & more—available in print or interactive digital editions.

National Jeweler columnists and PR professionals Duvall O’Steen and Jen Cullen Williams
ColumnistsDec 16, 2025
Beyond Unboxing: Creative Reveals to Drive Reach and Engagement

Here are six ideas for making more engaging content for Instagram Reels and TikTok, courtesy of Duvall O’Steen and Jen Cullen Williams.

Tiffany & Co. logo, Anna Martin, CD Peacock logo
Events & AwardsDec 16, 2025
Diamonds Do Good Names 2026 Award Recipients

The honorees include a notable jewelry brand, an industry veteran, and an independent retailer.

Stock image of gavel
CrimeDec 15, 2025
Men Receive Life Sentences in Home Invasion Murder of Jeweler

Carlos Jose Hernandez and Joshua Zuazo were sentenced to life without the possibility of parole in the 2024 murder of Hussein “Sam” Murray.

Eduard Stefanescu, left, and Sara Yood, right
Policies & IssuesDec 15, 2025
Sara Yood Named Co-Chair of RJC Standards Committee

Yood will serve alongside Eduard Stefanescu, the sustainability manager for C.Hafner, a precious metals refiner in Germany.

MS Rau Aspen rendering
IndependentsDec 15, 2025
M.S. Rau to Open Store in Aspen

The New Orleans jeweler is also hosting pop-up jewelry boutiques in New York City and Dallas.

Tiffany & Co. Paraíba tourmaline jewelry
AuctionsDec 12, 2025
13.54-Carat Paraíba Tourmaline Sets Records at Christie’s

Set in a Tiffany & Co. necklace, it sold for $4.2 million, the highest price and price per carat paid for a Paraíba tourmaline at auction.

Oscar Heyman Yellow Green Sphene and Diamond Ring
CollectionsDec 12, 2025
Piece of the Week: Oscar Heyman’s Sphene Ring

Take luxury gifting to new heights this holiday season with the jeweler’s showstopping 12-carat sphene ring.

IGI Design Contest Graphic
Events & AwardsDec 12, 2025
IGI Jewelry Design Contest Now Accepting Submissions

This year's theme is “Unveiling the Depths of the Ocean.”

Jacquie Aiche Alien Heart Eye Inlay Necklace, Cicada Dragonfly Brooch, Harkness After the Rain Earrings
TrendsDec 11, 2025
Pinterest 2026 Trend Report: Brooches, Bold Gold, Cool Blue

In its annual report, Pinterest noted an increase in searches for brooches, heirloom jewelry, and ‘80s luxury.

GIA new colored stone report
GradingDec 11, 2025
GIA to Offer Origin Determination for 3 More Gemstones

Starting Jan. 1, customers can request the service for opal, peridot, and demantoid garnet.

Day’s Jewelers Salem New Hampshire store exterior
IndependentsDec 11, 2025
Look Inside Day’s Jewelers’ Ninth Store

The 111-year-old retailer celebrated the opening of its new location in Salem, New Hampshire, which is its third store in the state.

Americas Gold Chain Catalog Volume 3
MajorsDec 11, 2025
Americas Gold Releases New Gold Chain Catalog

The new catalog features its most popular chains as well as new styles.

F.P. Journe FFC prototype
AuctionsDec 10, 2025
Francis Ford Coppola’s Watch Sells for $10.8M

The filmmaker’s personal F.P. Journe “FFC” prototype was the star of Phillips’ recent record-setting watch auction in New York.

Rolex Miami store
WatchesDec 10, 2025
There’s A New Rolex Boutique in Miami

The new location in the Design District pays homage to Miami’s Art Deco heritage and its connection to the ocean.

Stock image of consumers shopping in the winter
SurveysDec 10, 2025
Consumer Confidence Drops in November

Inflations, tariffs, and politics—including the government shutdown—were among consumers’ top concerns last month.

National Association of Jewelry Appraisers logo
SourcingDec 10, 2025
NAJA Announces Details for 2026 ‘Ace It’ Winter Conference

“Longtime favorite” presenters, as well as first-time speakers, will lead talks and workshops at the annual event in Tucson next year.

Silas Smith and his Responsible Design Challenge Winning Pendant
Events & AwardsDec 10, 2025
MJSA Names 2025 Responsible Design Challenge Winner

Silas Smith of Meridian Metalworks won the challenge with his pendant that blends Australian and American landscapes.

Sothebys orangy pink The Desert Rose diamond
AuctionsDec 09, 2025
‘Desert Rose’ Diamond Sells for $8.8M in Abu Dhabi

The sale of the 31.68-carat, sunset-hued stone was part of Sotheby’s first series of events and auctions in Abu Dhabi.

National Jeweler columnist and Smart Age Solutions CEO Emmanuel Raheb
ColumnistsDec 09, 2025
Holiday Sales Happen in December, Most Decisions Don’t

Most customers who walk into your store this month have made up their minds. Your job is to validate their choice, Emmanuel Raheb writes.

×

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