Home Depot Settles Complaints To Avoid Legal Costs

Discussion
Aug 26, 2004
George Anderson

By George Anderson


Home Depot has agreed to pay $5.5 million to settle complaints brought against the company by employees in its Colorado stores who accused it of discrimination based on gender, race and national origin.


The chain’s decision to settle was based on its desire to avoid the costs of contesting lengthy legal proceedings. It admitted no guilt in the case and maintained in a company statement, “Home Depot is an equal opportunity employer and has a zero tolerance policy regarding discrimination.”


Moderator’s Comment: Do employees take Home Depot’s
decision to settle this case as a de facto admission of guilt, even though it
admits no wrongdoing? What impact will it have on employee morale? Will the
decision to settle encourage similar claims being made against Home Depot elsewhere?


Five million dollars here, a few million there and next
thing you know Home Depot is spending some real money.

George Anderson – Moderator

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