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8/18/2008 – DENVER -- The U.S. Equal Employment Opportunity Commission (EEOC) today announced it has settled its class sexual harassment lawsuit against the Dillard's department store chain for $500,000 and substantial remedial relief on behalf of a class of 12 female former employees who were sexually harassed by an assistant store manager in two states.

The EEOC maintained in its suit that assistant store manager Scot McGinness sexually harassed women at two Dillard's stores. The EEOC said that Dillard's knew that McGinness was sexually harassing young female subordinates at the Palmdale, Calif., store, but failed to take appropriate action to stop the misconduct. Instead, Dillard's transferred him to a managerial position in its Westminster, Colo., store, and failed to notify the new store about McGinness' history of sexual harassment.

Moreover, after a Colorado female associate complained to her store manager that McGinness inappropriately touched her, McGinness was given only a verbal warning regarding his conduct. Only 10 months later, when McGinness physically and verbally sexually harassed an 18-year-old high school senior and the Westminster police were contacted, did Dillard's finally fire McGinness.

Sandra Padegimas, the EEOC trial attorney who prosecuted this case, said, with his mantle of authority, Mr. McGinness used his power over his female subordinate employees as a way to reward or punish his victims. By failing to notify the Colorado store about this man's sexual harassment in California at the time of his transfer to Colorado, Dillard's permitted its Westminster employees to go in harms way.

In addition to paying $500,000 to the 12 women, the consent decree settling the suit (EEOC v. Joslin Dry Goods, d/b/a Dillard's, Civil Action No. 05-CV-00177-WDM-KLM) provides an injunction prohibiting the company from discriminating based on sex or retaliation. The company will provide significant sexual harassment training to employees and management officials, including training for managers on how to properly investigate sexual harassment allegations. Dillard's further agreed that, henceforth, if it transfers an employee from one store to another after it receives a sexual harassment complaint about the employee, the new store will be advised of the complaint. The company also agreed that, unless its investigation of such complaints demonstrates that the complaint has no merit, the alleged harasser will receive two hours of additional anti-harassment training. During the decree's three-year term, Dillard's will provide reports to the EEOC about any sexual harassment complaints it receives.