I explained to the last Caucasian dude we axed that he had benefited from "white privilege" which meant I had the privilege of sending him "out"!
I have since hired Lizzo as our new DEI and Fitness Dept head.
You Can’t Fire Only the White Guys
Juries get called once corporate diversity turns to discrimination.
By The Editorial Board, WSJ
March 31, 2024
Illegal discrimination is still illegal discrimination even if a corporate HR department wraps it in the language of equity and inclusion. As a reminder of this legal reality, the C-Suite might want to review a recent opinion by a federal appeals court, upholding a jury verdict for a hospital executive who says he was fired merely for being a white male amid a workforce diversity push.
David Duvall spent five years as a senior vice president at Novant Health, a multibillion-dollar medical group based in North Carolina. His firing in July 2018 shocked his colleagues, the Fourth Circuit U.S. Court of Appeals says in its ruling. Strangely, Novant “had no record of any documented criticism of Duvall’s performance or reasons for his termination.” His duties were given to two women, one black and one white. When a permanent replacement was hired, all three finalists were black women.
The record shows Novant was deeply interested in the demographic makeup of its workforce. At a May 2018 meeting, its Diversity and Inclusion Executive Council saw data showing a decline in women leaders. A report in February 2019 “recommended a ‘3-4 percentage point increase’ in black leaders over the next three years.” Novant also wanted to recruit Hispanics and Asians, going as far as to adopt “a long-term financial incentive plan that tied executive bonuses to closing those gaps.”
Mr. Duvall was given a terse explanation for his firing: Novant was “going in a different direction.” Yet months later, his old boss spoke to a corporate recruiter and said he’d be happy to hire Mr. Duvall again. The recruiter’s contemporaneous notes say Mr. Duvall was let go because Novant wanted “a different point of view,” a different “flair.” It wasn’t only him: Mr. Duvall’s supervisor, the ruling says, went from having “seven white male direct reports in 2018, to two in 2019, to one in 2020, to zero at the time of trial in 2021.”
After hearing from 10 witnesses and seeing 100 exhibits, a jury found that Novant had discriminated against Mr. Duvall owing to his race or sex. He was awarded $300,000 in punitive damages, plus $2.3 million as back pay and $1.1 million as “front pay in lieu of reinstatement.” The Fourth Circuit reversed the punitive part, saying such damages are permitted only if an employer knowingly breaks the law or is recklessly indifferent.
But the appeals court affirmed the award of compensation, as well as the jury’s finding of discrimination. “There was more than sufficient evidence for a reasonable jury to determine that Duvall’s race, sex, or both motivated Novant Health’s decision to fire him,” the panel writes. “Novant Health’s arguments to the contrary, which largely seek a reweighing of the evidence, are unconvincing.”
The company told us it disagrees with the finding of liability but is pleased that the appeals court noted “no evidence that Novant Health perceived any risk of violating federal law.” Its statement continues: “We continue to believe having a workforce that reflects the communities we serve allows us to provide the personalized care our patients need to reach their best possible health.”
Agree or disagree with this sentiment, but it isn’t what matters in court. What other CEOs should keep front of mind, during their own equity councils, is Mr. Duvall’s verdict.