Now the good news bad news...
Rent A Center also announced an "agreement in principle" to settle ALL of the gender discrimination lawsuits. Under the terms of the agreement, RAC will not admit liability, but will pay a total of $47 million to the 5,300 + female employees and applicants. The $47 million includes settlement of the Bunch case pending in Kansas City.

CEO Mark (the sheriff) Speese, made it clear that RAC does not tolerate discrimination of any kind. "However, because of the uncertainty of this type of litigation, like most companies facing this situation, it was in our best interest" to settle these matters"

This settlement will allow Rent A Center to, in the words of Mr. Speese, "Continue to focus on realizing the profitability plan that we began when I returned to the Company in October of 2001".

As Martha Stewart would say...that is a VERY good thing!

According to Donna Harper, attorney for the EEOC, the settlement includes the following provisions...

• Rent-A-Center agrees to fill ten percent of job vacancies in the first 15 months following the settlement with women who were fired because of their sex since the 1998 acquisition of Rent-A-Center, or who were rejected as job applicants because of their sex.
• Rent-A-Center will set up, publicize and pay for a toll-free number to be used by women job applicants or employees to report discrimination. Human resources professionals hired by Rent-A-Center will answer and respond to these calls. These individuals will be trained in legal and practical requirements of equal employment opportunity and nondiscrimination.
• Rent-A-Center will provide quarterly reports for four years that include: descriptions of new employment policies and training programs the company implements; descriptions of any sex discrimination complaints for job applicants or employees; and statistical information by gender regarding hiring, promotion and termination of employees. 
• Rent-A-Center will create a Human Resources department with an experienced human resources vice president who will report directly to Rent-A-Center CEO Mark Speese or President Mitch Fadel. The vice president will enjoy the full support of the company, including senior corporate management, and will be given the resources necessary to develop, implement and monitor policies that ensure equal employment opportunity for women job applicants and employees.
• Rent-A-Center will publicize its desire to recruit qualified and interested women for jobs in its stores and for promotion into all jobs at all levels. 
• Rent-A-Center will hire and retain a neutral, agreed-upon, qualified, third-party consultant who will serve as a resource the human resources department and an ombudsman to employees and will consult on Rent-A-Center's new employment policies, which will include written qualifications for hiring and promotion.
• Rent-A-Center will produce and show a videotape featuring CEO Mark Speese and President Mitch Fadel that spells out the company's commitment to nondiscrimination and includes messages that the company welcomes women, values their contributions and will ensure that women are on a level playing field for jobs and promotions. Speese and Fadel will indicate that they recognize that there have been allegations of sex discrimination at Rent-A-Center, that they do not approve of discriminatory conduct based on sex, and that the company will not tolerate such conduct. They will also encourage employees to report sex discrimination. A court-appointed Special Master, who is compensated by the company, will decide disputes regarding sex discrimination.
• Rent-A-Center will seek qualified women to serve on its currently all-male Board of Directors. 
• Rent-A-Center will develop effective equal employment opportunity training programs for all employees at all levels. These trainings will include, but not be limited to, presentations at annual meetings.
• Rent-A-Center will notify in writing all women job applicants who were rejected since August 2000 of the settlement of the case, encouraging them to respond if they wish to work for the company.

Home