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

Bergman Jewelers family
IndependentsApr 01, 2025
Bergman Jewelers in Omaha Closing After 137 Years

The independent jeweler first opened its doors in 1888.

Coconut Grove Jewelry & Watch Show
Events & AwardsApr 01, 2025
U.S. Antique Shows Adds Fall Show in Florida

The debut event will take place in Miami’s Coconut Grove neighborhood this fall.

The Jewelry Symposium (TJS)
Events & AwardsApr 01, 2025
TJS to Host Discussion on Jewelry Industry’s Labor Shortage

The roundtable will take place May 17 ahead of the trade show’s welcome dinner.

bench jeweler 1872x1052.png
Brought to you by
The Heart of the Industry: Giving Bench Jewelers the Recognition They Deserve

Bench jewelers spend years honing their skills, Jewelers of America’s Certification validates their talents.

Peanuts x Monica Rich Kosann Collection Bracelets
CollectionsApr 01, 2025
Monica Rich Kosann Says ‘Good Grief’ in Peanuts Jewelry Collection

The “Peanuts x Monica Rich Kosann” collection features the comic strip’s classic vocabulary across 10 bracelet designs.

Weekly QuizMar 27, 2025
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
Graphic for What Do We Mean When We Say “Recycled” Gold webinar
Recorded WebinarsMar 31, 2025
Watch: What Do We Mean When We Say ‘Recycled’ Gold?

Three industry experts dive into the complexities of the material often marketed as an “ethical” alternative for metal in jewelry.

Mindi Mond Clarity Earrings
TrendsMar 31, 2025
Amanda’s Style File: Dripping in Diamonds

Diamonds are not only one of the most prominent gemstones, but the birthstone for those born in April.

Facets-of-Fire-Difference-You-Can-See.jpg
Brought to you by
Natural Diamonds Should Mean More

Natural diamonds mean more than lab-grown, but when every cut is ideal, they all look the same. Customers want more—Facets of Fire delivers.

Bulgari and LVMH Watches CEO Jean-Christophe Babin
WatchesMar 31, 2025
Bulgari CEO Jean-Christophe Babin Will Also Head LVMH Watches

The longtime luxury executive led one of LVMH’s watch brands, TAG Heuer, for 12 years before taking over Bulgari in 2013.

Surveillance footage of robbery
CrimeMar 28, 2025
2 Suspects Arrested in $1.7M Smash-and-Grab Robbery of NY Jewelry Store

Authorities said the robbers fled with jewelry and 70 Rolex watches, later taking pictures of themselves posing with big stacks of cash.

Nephrite and Jadeite by Heinrich Fischer, Richard W. Hughes
SourcingMar 28, 2025
19th-Century Jade Book Now Available in English

Lotus Gemology founder Richard W. Hughes has translated Heinrich Fischer’s 1880 book “Nephrit und Jadeit” from its original German.

LÖF The Valentine Ring
CollectionsMar 28, 2025
Piece of the Week: Löf’s ‘The Valentine’ Ring

The ring's design features contrasting lines influenced by work from architecture-inspired photographer Nikola Olic.

Eggs on a shelf
SurveysMar 27, 2025
Consumer Confidence Falls in March Amid ‘Gloomy’ Outlook

The Conference Board’s index fell as consumers continued to worry about the impact of tariffs, the labor market, and the price of eggs.

Richard Rainsford memorial ring
AuctionsMar 27, 2025
300-Year-Old Ring Linked to Witch Trial Judge Goes Unsold at Auction

However, two medieval jewels surpassed estimates at Noonans Mayfair’s recent jewelry auction in London.

Austin Butler
WatchesMar 27, 2025
Austin Butler Joins Breitling as Brand Ambassador

The Oscar-nominated actor debuted in the campaign for the new “Top Time B31” collection, which introduced Breitling’s Caliber B31.

ICA Congress Brazil 2025
SourcingMar 27, 2025
Susan Jacques, Gaetano Cavalieri to Headline 2025 ICA Congress

The Congress is scheduled to take place May 19-22 in Brasilia, Brazil.

Bailey’s Fine Jewelry storefront
IndependentsMar 26, 2025
Bailey’s Fine Jewelry Acquires Fellow NC Independent Jeweler

The family-owned retailer is the new owner of Morrison Smith Jewelers in Charlotte, North Carolina.

Bulova 150 Art Deco Miss America Watch, 150 Art Deco Pocket Watch
WatchesMar 26, 2025
Bulova Celebrates 150th Anniversary With Art Deco Watches

The “150 Art Deco” collection features a Miss America timepiece and a pocket watch from the brand’s Archive Series.

Alex Wellen
MajorsMar 26, 2025
QVC Group Appoints New President

Alex Wellen, formerly CEO and president of MotorTrend Group, has taken on the role.

Jewelers of America’s new logo
Events & AwardsMar 26, 2025
Jewelers of America Announces New Funding Initiative

The Impact Initiative is part of the nonprofit association’s new three-year strategic plan.

Christies regent kashmir sapphire and regal Burmese ruby
AuctionsMar 25, 2025
Christie’s To Auction 35-Carat Sapphire, 13-Carat Ruby

The ruby and the sapphire, which Christie’s calls a “once-in-a-generation masterpiece,” are part of the upcoming Hong Kong jewelry auction.

Diamond earrings held in gloved hand
CrimeMar 25, 2025
Tiffany & Co. Earrings Swallowed Following Grab-and-Run Theft Recovered

The two pairs of earrings, snatched from a Tiffany & Co. store in Orlando, Florida, are valued at a combined $769,500.

Emmanuel Raheb CEO of Smart Age Solutions
ColumnistsMar 25, 2025
The Smart Lab: Using Short-Form Videos to Sell More Jewelry

The time to start experimenting with video content is now, writes columnist Emmanuel Raheb.

Pomellato Nudo High Jewelry Campaign
CollectionsMar 24, 2025
Pomellato’s Latest ‘Nudo’ Collections Revamp its Classic Design

From striking high jewelry to miniature fine jewelry, the new chapter continues to highlight gemstones featuring its signature 57-facet cut.

Jamie Singleton, Bill Brace, Rebecca Wooters, Bill Luth
MajorsMar 24, 2025
4 Top Executives to Depart Signet Jewelers Amid Turnaround

The jewelry giant is reducing its senior leadership by 30 percent as part of its new turnaround strategy.

Sothebys Watchcheck
WatchesMar 24, 2025
Sotheby's Now Offers Watch Repair Services

The auction house's partnership with online watch servicing platform WatchCheck makes repairs convenient and accessible, it said.

Swarovski lab-grown diamond Galaxy earrings
FinancialsMar 21, 2025
Swarovski Says Its Lab-Grown Diamond Sales Doubled in 2024

The company also noted record sales in the United States and a strong performance in its jewelry category.

×

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