James Scherr Represents Disabled Levi Strauss Employees in $10 Million Case

PRESS RELEASE – LEVI STRAUSS MALICIOUSLY DISCRIMINATED AGAINST DISABLED WORKERS

Levi Strauss’ human rights image was shattered when an El Paso, Texas jury found that Levi Strauss discriminated against its disabled workers. The jury found that Levi Strauss acted willfully and maliciously in discriminating against its disabled workers.

The jury awarded over $10,000,000 in actual and punitive damages to
5 long-time loyal employees. These 5 are the first of a group of 109 disabled workers who have sued Levi for discriminating against them for receiving workers’ compensation benefits. The employees proved that Levi had discriminated against them because they were receiving modest workers’ compensation benefits of approximately $200.00 a week to support their family and household while off work because of injuries received at Levi Strauss.

Contrary to customary workers’ compensation insurance policies which have no deductible, Levi Strauss set up a ·cost savings• insurance program with a $200,000 deductible, making Levi Strauss responsible for all costs of the injured worker. This arrangement removed the insurance buffer and pitted Levi Strauss’ profit with the cost of convalescence of its injured worker.

When Levi Strauss’ workers’ compensation costs escalated, Levi Strauss set up a “reentry program” to provide classroom training to try to integrate its injured workers back into the workplace. Levi Strauss went behind the back of its injured workers to their doctors and obtained medical authorization from the doctor to move the convalescing disabled workers from their beds at home to return to the factory. After getting the doctors’ authorization, Levi Strauss sent a written “Bona Fide Job Offer• letter to their long-time employees threatening if they didn’t return to work, they would •voluntarily resign• and lose their workers’ compensation and unemployment benefits. This forced the disabled workers back to the factory or lose their livelihood. The reentry program was a sham. Levi Strauss used trailers with electrical, heating, and cooling problems. There was no classroom training, and no qualified instructors or material provided.

When the disabled workers returned, they were segregated and separated into trailers, where they were left with no direction, teaching, or guidance. Injured workers were sleeping on the floor while on medication for their injuries. The disabled workers were subjected to ridicule, harassment, and foul language. They were called “walking mummies” and “lazy.” Levi Strauss’ plant management told other workers that the disabled workers were going to cause them to lose their bonus and close the plant to go to Mexico. One 56-year-old female disabled worker was asked to publicly discuss her first sexual encounter. Other injured

workers were blindfolded and paraded around the parking lot in a “Blind Chicken” exercise, with their canes. Disabled workers were told they could take breaks as needed. One victim was reprimanded for theft of company time and threatened to be fired for taking a break because her wrists hurt from Cumulative Trauma Disorder when Levi Strauss had her working beyond medical restrictions. Wages were slashed. Maria Elena Gomez, a 21-year veteran sewing machine operator made $6.30/hour before her injury. Levi Strauss put her in the trailer at minimum wage, claiming she was worth no more than a newly hired employee. Maria Elena Gomez had never made minimum wage since she started working for the company at age 17.

By use of the reentry program, Levi Strauss saved approximately $17,100,000 on workers’ compensation costs in 1 year in El Paso alone, $85,900,000 in savings that year overall.

Jim Scherr, attorney for 2 of the 5 Plaintiffs said, “Follow the law, don’t violate the law. Don’t come up with schemes to get around the law. Treat your injured employees fairly.”

Sam Legate, attorney for 2 of the 5 Plaintiffs said, “Levi Strauss had the resources to do a first-rate program, they did a fourth-rate job.”

A.B. Bernal, attorney for 2 of the 5 Plaintiffs said, “They count their profits, we count our stitches.”

Roberto Oaxaca, attorney for 2 of the 5 Plaintiffs said, “They stole their souls.”

Lark Fogel, attorney for 1 of the 5 Plaintiffs said, “Levi Strauss is not above the law.”