300,000 Reasons Why Workplace Investigations Matter

The docket is flush with examples of problematic workplace investigations that lead to heavy penalties for employers. The case of Garcia v. Walmart, Inc., et al., No. 1:23-CV-03116-MKD is just a recent example out of the Eastern District of Washington. 

In that case, Garcia, an overnight stocker at Walmart in Yakima, Washington, reported that a co-worker had sexually harassed more than one of her colleagues. Under Title VII, there is a legal obligation to investigate complaints of harassment and discrimination. Garcia’s supervisor, who heard the complaint, however, responded that the respondent “did not look like the type” and took no action. Garcia then called the Walmart ethics hotline and made her report a second time, also reporting her supervisor’s failure to investigate. At that time she was told that there would be an investigation into both the respondent’s conduct and the supervisor’s failure to investigate. 

Seven days after her report to the ethics hotline, Garcia was fired for purportedly accruing too many absences by the same supervisor who failed to act on her complaint. Garcia made a follow-up complaint of retaliation. Walmart closed her retaliation complaint without investigation. Garcia filed suit.

A federal jury found that Garcia’s termination under the pretext of an attendance policy violation was unlawful retaliation and awarded her $500,000 in compensatory damages plus $22.5 million in punitive damages.

However, there is some comfort for Walmart since under federal law, compensatory and punitive damages are subject to a statutory cap. For an employer with more than 500 employees, such as Walmart, that cap is $300,000. Therefore, the Court applied this cap before entering the judgment. A reduced judgment notwithstanding, Walmart still engaged in years-long litigation and expending significant attorney’s fees because of its failure to adequately address Garcia’s complaint. 

The EEOC reports that retaliation claims are now the most frequently filed charge. Engaging an independent investigator can be a critical step towards ensuring a systemic, consistent, and defensible approach to every workplace complaint. Independent investigators can also manage the confidentiality of your investigation, which actively supports preventing retaliation.