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Ford Settles $10.5 Million Discrimination Suit

In a nationally covered case, Ford Motor Company has agreed to pay $10.5 million to settle a class action brought by employees who alleged race, gender, and age discrimination. The suit challenged Ford Motor Company’s employee evaluation system that required managers to rank their subordinates as A, B or C players. The A’s represented the top 10% of the performers; the B’s represented the middle 80% of the performers; and the C players were considered to be in the lowest 10% regarding performance. The consequences of receiving a C designation was that an employee would receive no raise, no bonus and a ticket out of the company if they received a C two years in a row.

The employees asserted that Ford Motor Company instituted the evaluation system to target certain employees based on race and age for termination. The suit also featured statistical evidence demonstrating that older and male employees were much more likely to be targeted for a C rating than younger and female employees.

Six months after we initiated suit, Ford Motor Company scrapped its ABC evaluation system. As part of the settlement, Ford agreed to contribute $110,000.00 toward the costs incurred by the Plaintiffs.

You can read more about the case at Ford Settles Two Class-Action Lawsuits | Fox News, COMPANY NEWS; AUTOMAKER IS SET TO PAY $10.5 MILLION IN SUIT – The New York Times (nytimes.com), Ford Settles Employee Evaluation Suit – CBS News.