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

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.

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.

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.

Weekly QuizOct 16, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
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.

ja_fall_2024_by_headshot_stories_6824.jpg
Brought to you by
JA New York Fall Is Right Around the Corner

The upcoming show provides savvy retailers with the opportunity to stock their cases with best sellers in advance of the holiday season.

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.

Jeffrey Zimmer Reeds Jewelers
IndependentsOct 16, 2025
Retailer Hall of Fame 2025: Jeffrey Zimmer

Jeffrey Zimmer's decades of leadership at Reeds Jewelers are defined by integrity, a love of sourcing gemstones, and a heart for community.

Sothebys salon new bond street
AuctionsOct 16, 2025
Sotheby’s Introduces Custom Jewelry Service

The new high jewelry design and production process takes 30 days or less from concept to completion, the auction house said.

Foundrae United in Love Campaign Imagery
CollectionsOct 16, 2025
Foundrae Adds To ‘United in Love’ Collection

The brand has released a second installment of its collection of traditional and non-traditional commitment heirlooms.

Kathy Corey
IndependentsOct 15, 2025
Retailer Hall of Fame 2025: Kathy Corey

Corey rescued New England chain Day’s Jewelers, preserving its legacy with strong people skills, pragmatism, and a “get-it-done” attitude.

Colorado jeweler Peter Damian Arguello
CrimeOct 15, 2025
Men Receive Lengthy Prison Sentences for 2023 Murder of Colorado Jeweler

Charles Robinson Shay was sentenced to life in prison plus 120 years while his accomplice, Michael James McCormack, got 75 years.

Logo for Timepieces at Luxury
Events & AwardsOct 15, 2025
JCK, Luxury to Debut New Watch Section in Vegas Next Year

Timepieces at Luxury will take place at The Venetian and, like Luxury, will be invitation-only for the first two days.

Max Fawcett Claibourne Poindexter
AuctionsOct 15, 2025
Christie's Announces New Jewelry Department Leadership

The auction house named a new global head of jewelry, as well as a new head of the jewelry department for the Americas.

Schwanke-Kasten Jewelers, Tom Dixon
IndependentsOct 14, 2025
Retailer Hall of Fame 2025: Tom Dixon

As chairman of Schwanke-Kasten Jewelers, Tom Dixon has been tasked with honoring the past and shaping the future of the family-run store.

Katty Villapando Lyte and Mica Rencher of Shimmer LLC
Events & AwardsOct 14, 2025
Here Are the Winners of the BIJC, JA ‘Emerging Jewelers’ Grant

Katty Villapando Lyte and Mica Rencher received a $10,000 grant for their business, Shimmer Culture LLC.

Cooper Flagg family at Day’s Jewelers
IndependentsOct 14, 2025
Day’s Jewelers Crafts Custom Jewelry for No.1 NBA Draft Pick Cooper Flagg

The parents of the Dallas Mavericks rookie bought their engagement ring at a Day’s store in Bangor, Maine, in 1997.

Pragnell Kitulo Garnet collection
SourcingOct 14, 2025
Pragnell Debuts Kitulo Garnet Jewelry

The UK-based brand sourced the gemstones, which are fully traceable, from an artisanal mining community in Tanzania.

Astrid & Miyu 2025 12-Day, 24-Day, Solid Gold Advent Calendars
CollectionsOct 10, 2025
Count Down to the Holidays With Astrid & Miyu’s Advent Calendars

The trio of Advent calendars include a version with 18-karat gold and lab-grown diamond jewelry in a red lacquer jewelry box.

Front of Marla Aaron porcelain Nymphenburg Lock
CollectionsOct 10, 2025
Piece of the Week: Marla Aaron’s ‘Nymphenburg Lock’

Created in collaboration with Nymphenburg Porcelain, the lock is part of a four-piece collection that took two years to bring to fruition.

Alisa Bunger Frederick Goldman
MajorsOct 10, 2025
Frederick Goldman Names New VP of Sales

Jewelry industry veteran Alisa Bunger has taken on the role.

Feriel Zerouki, De Beers Chief Trade and Industry Officer
SourcingOct 09, 2025
Feriel Zerouki Is Leaving De Beers

The company and industry leader’s two-decade tenure with De Beers will come to a close at the end of the month.

×

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