In Case You Missed It: AutoZone Slapped With $185 Million Fine For Discrimination (And It Won’t Appeal)

Where there’s smoke, people say, there’s fire. And in the case of corporations, where there’s one kind of discrimination, there’s probably more.

As proof, look no further than AutoZone, which scores a dismal 15 out of 100 points on HRC’s Corporate Equality Index. The company prohibits discrimination on the basis of sexual orientation but not gender identity, and as of the most recent CEI, it didn’t offer married gay couples the same benefits as married straight couples.

So, it shouldn’t come as any surprise that AutoZone has been found guilty of sex discrimination — specifically, discrimination against its female employees. Thankfully, one of them, Rosario Juarez, sued. And plenty of unpleasantness came up during the trial:

Juarez’s complaint also claimed that the company has a “glass ceiling” that keeps women from getting promoted. Just 10 of the 98 stores in the San Diego area where she worked had female managers. And at trial, a former district manager testified that a vice president reprimanded him for having so many women in management positions, telling him, “What are we running here, a boutique? Get rid of those women.” Another former district manager testified that at a meeting, executives rejoiced that a previous settlement requiring it to promote women and track it had expired, offering a district manager a promotion if he fired all the women in his stores.

AutoZone was found guilty of discrimination and ordered to pay $185 million in damages. Ordinarily in a case like this, the company would appeal, but clearly AutoZone knows that the cards are stacked against it. Even if it could convince a jury that it hadn’t engaged in discrimination — which seems like a long shot — AutoZone would risk a tidal wave of awful publicity. Better to bite its tongue, write the check, and hope that people forget about this incident quickly.

Sadly, while many automakers have come to understand the importance of treating all employees fairly, regardless of sex, race, sexual orientation, gender identity, nationality, or disability, many dealers, suppliers, and other companies involved in the auto industry lag far, far behind. Let’s hope that Juarez’s $185 million settlement causes AutoZone to rethink its HR policies.

In the meantime, I suggest doing business with more forward-thinking companies. Your best bet is to stick with larger outfits like Sears (which scores 100 on the CEI) and Walmart (which scores 90). Even Pep Boys earns a respectable 65. Skip O’Reilly, though — like AutoZone, it’s got a long way to go.