Costco Suit Can Proceed As Class Action, Judge Says

A San Francisco federal judge has green-lit a nationwide class action lawsuit against Costco. The suit, according to SFGate.com, is being filed by 700 past and current female employees alleging the discount retail giant of discrimination against women in promotions up the managerial ladder. United States District Judge Edward Chen said in the September 25^th ruling that the women presented more “evidence of systemic bias” than the plaintiffs in a similar, but previously dismissed suit against ever bigger retail mammoth Walmart. The Costco suit was originally filed in 2004 and alleges women have been passed over for promotions to all manner of managerial positions at more than 350 of Costco’s cavernous retail warehouse stores.

The Costco suit was originally filed in 2004 and alleges women have been passed over for promotions to all manner of managerial positions at more than 350 of Costco’s cavernous retail warehouse stores.

In the Walmart case, as many as 1.6 million women had failed to prove a company-wide conspiracy that caused discrepancies in pay and promotions among female workers. Judge Chen said that the Costco women “have provided significant proof that (the company) operates under a general policy of discrimination” and follows “a common direction emanating from Costco’s upper management.” Chen further said the claimants have enough in common to file a single class action suit against the company.

Costco does not participate in posting managerial positions, nor does it accept applications for higher-up jobs. Instead, the company chooses a “tap on the shoulder” approach to bring in prospective managers for interviews, according to the allegations. The plaintiffs in the suit cited testimony from Costco’s former chief executive Jim Sinegal and other executives, claiming the bosses believe women’s roles as “domestic caretakers” make them disinterested in managerial and promotional chances. Chen summarized the suit by stating, “Costco’s culture fosters and reinforces stereotyped thinking, which allows gender bias to infuse the promotional process from the top down.”