Department Of Human Rights Announces $78,750 Settlement In Case Of Gay Male Who Alleged Harassment In Employment At Blockbuster Video

Largest Sexual Orientation Settlement in Department History Blockbuster Inc. has agreed to pay $78,750 to settle the case of a former employee who alleged that Blockbuster video managers harassed him because he is gay, the Minnesota Department of Human Rights announced today. The settlement is believed to be the largest the department has ever obtained in a case involving an allegation of discrimination based on sexual orientation.

"This settlement sends a strong message that sexual orientation, like sex, race, religion and other characteristics, is protected under the Minnesota Human Rights Act," said Commissioner of Human Rights Velma Korbel. "Companies that fail to act in a timely manner to deal with harassment of gay employees do so at their own peril."

In two charges of discrimination filed in November 2002, former Blockbuster employee Jeffrey Davis alleged that he was subjected to ongoing harassment while working at two St. Paul Blockbuster video stores, one in the Midway area and one on Grand Avenue. He alleged that he was called "the fag with the rainbow on his car," subjected to numerous other derogatory references to his sexuality, physically assaulted by a Blockbuster co-worker, and faced retaliation when he complained to Blockbuster's management.

"We are all God's children; this settlement shows that all of us must be treated with dignity and respect in the workplace, regardless of sexual orientation or other protected class status," according to Davis's attorney, Elena Ostby. "We are proud to live in a state like Minnesota that so strongly supports the equal rights of all of her citizens," said Chris Crutchfield, co-counsel for Davis.

In investigating the charges, the department found probable cause to believe that Davis was subjected to an ongoing hostile work environment, and that rather than taking timely and appropriate action to stop a store manager's harassing behavior, Blockbuster management retaliated against Davis after he complained.

The department's investigation found evidence to indicate that:

While employed at a Blockbuster store in St. Paul's Midway area, Davis twice complained about sexual harassment by an assistant manager. Although the assistant manager was verbally counseled after Davis' first complaint, nothing was done after the second complaint.

Instead, Davis was asked to transfer to a Blockbuster store on Grand Avenue in St. Paul. He objected to the transfer, but agreed after being intimidated by an angry Blockbuster district manager.

After Davis agreed to transfer to the Grand Avenue store but before his arrival, the assistant manager telephoned that store to inform its employees of Davis's sexual orientation, "thus creating a hostile work environment by openly making fun of him to his new coworkers."

After a Grand Avenue store manager learned that Davis was gay, he began to make derogatory comments, referring to Davis as a "fruit" who was "too soft and weak" and who should "toughen up and be a man."

When the store would obtain a movie with a homosexual theme, the manager would refer to the video as "Jeff's movie."

After Davis complained to a district manager about the harassment at the Grand Avenue location and refused a request to transfer to yet another Blockbuster store, retaliation ensued. The store manager instructed another employee to "Cut that pansy Jeff's hours to less than anyone else" as punishment for not transferring, and attempted unsuccessfully to change Davis' performance review, even though it had already been signed.

In an incident at the Grand Avenue store witnessed by several Blockbuster employees, Davis was struck in the back by a disapproving coworker. Although a district manager reportedly told the store manager to terminate Davis' attacker, she was transferred to another store and in fact received a promotion instead of termination.

Davis filed a charge of discrimination based on sexual orientation in the areas of employment and reprisal against Blockbuster Inc., and a charge of Aiding and Abetting Discrimination and Reprisal against Brian Degnan, a manager at the Grand Avenue store. The Department of Human Rights found probable cause to support both charges.

Although Davis had resigned from his position after the stress became unbearable, the department found that he had, in effect, been fired by Blockbuster. "Evidence showed that the Charging Party was constructively discharged by intolerable working conditions involving illegal discrimination," the department determined. (A constructive discharge occurs when an employer allows working conditions to become so intolerable that it is reasonably foreseeable than an employee will resign to escape such an environment.)

In addition to paying $78,750 to Davis and his attorneys, Blockbuster Inc. has agreed to provide at least four hours of training for all store managers in the Minneapolis-St. Paul area on preventing discrimination and harassment, with a significant emphasis on harassment based on sexual orientation. Blockbuster Inc. denies any wrongdoing.