Nike Settles Racial Discrimination Suit for $7.6 Million

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August 6th, 2007

"Class Action Lawsuit Against Nike Settled"

Nike will pay $7.6 million to settle a class action lawsuit filed in 2003 over claims of racial discrimination at the company's Niketown store in Chicago.

According to the suit, racial slurs were used by managers to refer to black workers and customers. The suit also claimed that black workers were monitored by security because of their race, were targeted with baseless accusations of theft, and were segregated into lower-paying stockroom and cashier positions.

Even though Nike has rejected the claims, the company has agreed to make a number of changes as part of the settlement. Under the agreement, Nike will:

  • Hire a diversity consultant to ensure compliance
  • Conduct diversity training for management and supervisory staff
  • Review human resources practices and theft-loss policies
  • Develop a mentoring program for black workers
  • Formulate equal opportunity objectives for the store

Black employees of Niketown in Chicago from 1999 until present will be covered under the settlement.

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