The Wet Seal Inc. (Foothill Ranch, Calif.) has agreed to settle a class action lawsuit for $7.5 million, which claimed managers were told to hire white workers who “fit the Wet Seal brand image” and terminate African-American employees, Women’s Wear Daily reports.
The women’s apparel brand states that it is committed to exemplifying diversity in its marketing efforts. However, the Equal Employment Opportunity Commission (EEOC) affirms that the company’s managers communicated that they wanted employees who had, “the Armani look, were white, had blue eyes, thin and blonde in order to be profitable,” WWD reports.
African-American store manager Nicole Cogdell first filed a complaint with the EEOC in 2009 and brought her case to federal court in 2012. She claimed the company discriminated against nonwhite employees, which included restrictive promotion opportunities; lower pay rates and firing store managers due to their race.
The brand reportedly began a diversity program last year, working with the EEOC. According to WWD, John D. Goodman, ceo of Wet Seal, said, “From the moment I became ceo of Wet Seal in January, I made clear that we value a diverse workforce and believe that a dynamic and representative employee base allows us to best serve all of our customers. We are pleased to put this matter behind us.”
As many as 1600 people who have worked at Wet Seal may receive the settlement money, WWD reports.