Reprinted from the October 15, 2007, issue of MANAGER'S LEGAL BULLETIN, a widely read employment law newsletter that communicates legal guidelines to managers through scenarios based on real-life cases. Click here to view a sample issue, get more information, or sign up for a risk-free subscription.

Protect Your Customers From Employee Bias

A manager’s duties under anti-discrimination laws extend past your staff members; you are also responsible for protecting your customers, clients, and other third parties from discrimination by employees. Shirking this duty can cost your company legal grief, plus customer loyalty and profits.

CHIP ON EMPLOYEE’S SHOULDER…

Sales clerk Giselle Dormer stood behind the checkout counter, flipping through a magazine. An African-American woman approached the counter with merchandise in hand, and waited for the employee to notice her. Finally, the customer spoke up.

“Excuse me, Miss. Can you please help me?"

“No,” Dormer said defiantly.

The customer was shocked by the sales clerk’s brusque response, especially because she was obviously not busy. Another sales clerk piped up from her counter, “Ma’am, I can help you over here.”

The woman proceeded to the other counter to make her purchases. Dormer soon followed, eyeing the merchandise. She asked her co-worker not so subtly, “Does she actually have the money to pay for all that?”

“I don’t deserve to be treated this way!” the visibly offended woman exclaimed.

Dormer mumbled the N-word and walked away. Even more angry now, the customer told the clerk to void her purchases and that she wanted to speak to a manager.

“I am so sorry. She’s been talked to before for acting like this,” the clerk said

“She’s done this to others? And she’s only been ‘talked to’? That’s all? I can’t believe she still has a job here!” the woman responded. “Where is your manager?”

The clerk paged her boss and when she arrived, the customer gave her an earful.

“I am deeply sorry for the treatment you received today,” Nina Franklin told her. “Please accept this gift card for your troubles, with my sincerest apologies. Is there anything else I can do for you today?”

“Fire that racist sales clerk,” the woman responded.

...BECOMES A BONE OF CONTENTION

The customer also fired off a race discrimination lawsuit against the store under Section 1981 of the Civil Rights Act of 1866. A court allowed the case to go to trial, based on Franklin’s mishandling of the situation: She knew of Dormer’s racially hostile propensities; failed to take reasonable action to stop it; and continued to place her on the sales floor and allow her to interact with customers.

The court also faulted the company for lacking procedures to remedy discrimination against customers and for failing to keep track of customer complaints.

CONSUMER ALERT

Learn from Franklin’s mistakes in handling Dormer. Take these steps to protect your company’s customers from discrimination.

• Train employees on proper customer service behaviors. While it may seem obvious to the rest of us, it doesn’t hurt to point out to employees that it is improper — and potentially illegal — to make assumptions that a customer of a particular race or national origin doesn’t have money or might steal..

On the opposite end of the spectrum from Dormer was a manager who paid so much attention to a black customer that the manager continually pestered her and falsely accused her of stealing. A jury awarded the customer over $488,000.

• Address discriminatory conduct immediately. An employee who exhibits racial hostility toward a customer should be subject to progressive discipline, termination, demotion, or reassignment to a non-customer service position.

• Keep accurate records of customer complaints to spot repeat offenders, and to make certain each complaint is taken care of properly.

Putting customers’ discrimination complaints in writing may seem like you’d be handing evidence to a customer’s lawyer on a silver platter, but as this case shows, the lack of documentation didn’t do the company any good.

• Avoid hiring problem employees. Franklin had not followed up on certain anomalies in Dormer’s employment history, including that she had previously worked at a high-paying job but then moved to a low-wage, unskilled position with another store, and was laid off from that position during the busy holiday shopping season. The court considered this fact in making its decision.

You need to question such anomalies and ask behavior-related questions during interviews, and check references.

More information about this publication/Order a subscription