Guzman, Judge Ronald A.

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Consent Decrees Labor and Employment Law Program 
1-11-2007 
EEOC. v. Compact Industries, Inc. 
Judge Ronald A. Guzman 
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EEOC. v. Compact Industries, Inc. 
Keywords 
EEOC, Compact Industries Inc., Consent Decree, 06 C 5172, Disparate Treatment, Hostile Work 
Environment, Sexual Harassment, Constructive Discharge, Hostile Work Environment, Sexual Harassment, 
Sex, Female, Manufacturing, Employment Law, Title VII 
This article is available at DigitalCommons@ILR: https://digitalcommons.ilr.cornell.edu/condec/75 
Case 1:06-cv~05172 Document 23-2 Filed 01/09/2007 Page 2 of 11 
IN THE UNITED STATES DISTRICT COURT 
FOR THE NORTHERN DISTRICT OF ILLINOIS 
EASTERN DIVISION 
EQUALEMPLOYMENT 
OPPORTUNITY COMMISSION, 
Plaintiff, 
v. 
COMPACT INDUSTRIES, INC, 
Defendant. 
CONSENT D 
ThcLitiga 
No. 06 C 5172 
Hon. ludge Guzman 
Magistrate Judge Denlow 
SCREE 
ion 
1. Plaintiff Equal Employment Opportunity Commission (hereafter the "EEOC"), filed 
this action on September 25, 2006, alleging thai Defendant Compact Industries, Inc. ("Compact" 
or "Defendant") discriminated against six (6) Charging Parties and a class of employees who did 
not file charges (collectively, ltthe claimants"), in violation of Title VII of the Civil Rights Act of 
1964, as amended, 42 U.S.C. § 2000e et seq. ("Title VII"), and § 102 of the Civil Rights Act of 
1991, 42 U.S.C. § 198IA, by subjecting them to harassment, a hostile work environment, and 
constructive discharge because of their sex. Compact expressly denies the allegations in the 
lawsuit and further denies that it discriminated against any of its current or former employees 
under Title V1L 
2. All of the parties to this action desire to avoid the additional expense, delay and 
uncertainty which would result from the continuance of this litigation and desire to formulate a 
plan to be embodied in a Consent Decree which will promote and effectuate the purposes of 
Title VII. 
ChicueD 80311.1 
Case 1:06-cv-05172 Document 23-2 Filed 01/09/2007 Page 3 of 11 
3. The parties agree that this Consent Decree fully and finally resolves any and all 
claims arising out of the underlying Complaint, including any and all claims asserted or that 
could have been asserted in the following Charges: 
• 440-2006-05028 (Villasenor v. Compact Industries); 
• 440-2006-04288 (Garcia-Macias v. Compact Industries); 
• 210-2005-06661 (Garcia-Macias v. Compact Industries); 
• 210-2006-00411 (Gallardo v. Compact Industries); 
• 210-2005-00485 (Perez v. Compact Industries); 
• 210-2005-00483 (Vargas v. Compact Industries); 
• 210-2005-00524 (Montano v. Compact Industries); 
• 210-2005 -00482 (Fernandez v. Compact Industries); 
• 440-2007-01194 (Bejarano v. Compact Industries); 
• 440-2006-08338 (Gallardo v. Compact Industries); and 
• 440-2006-04300 (Gallarzo v. Compact Industries), 
This Consent Decree additionally finally and fully resolves any and all claims of sexual 
harassment that were asserted or could have been asserted by any other individuals who receive 
monetary relief under this Consent Decree. 
FINDINGS 
4, Having examined the terms and provisions of this Consent Decree and based on 
the pleadings, records, and stipulations of the parties, this Court finds the following; 
A. This Court has jurisdiction over the subject matter of this action and over the 
p allies. 
B. The terms and provisions of this Consent Decree are fair, adequate, reasonable, 
equitable and just. The rights of the parties, the claimants and the public arc adequately 
protected by this Consent Decrce. 
C. This Consent Decree is in conformity with the Federal Rules of Civil Procedure 
and Title VII. The entry of this Consent Decree will further the objectives of Title VII and will 
be in the best interests of the parties, the claimants and the public, 
oicaftoaOJ]].] 2 
Case 1:06-cv-05172 Document 23-2 Filed 01/09/2007 Page 4 of 11 
D. Nothing in this Consent Decree constitutes an admission nor shall it be construed 
as an admission by either parly as to the elaims or defenses of the other, 
NOW THEREFORE, IT IS ORDERED, ADJUDGED AND DECREED THAT: 
NON-DISCRIMINATION 
5. Compact is enjoined from discriminating against employees on the basis of sex 
and shall comply with Title VII. 
NON-RETALIATION 
6. Compact, its officers, agents, employees, successors, and assigns shall not 
retaliate against, penalize or otherwise prejudice any employee, former employee or applicant for 
employment because such person has opposed any practice made unlawful by Title VII; filed a 
Complaint or Charge of Discrimination; testified, assisted, or otherwise participated in any 
manner in any investigation, proceeding, hearing or litigation under Title VII; asserted any right 
under this Consent Decree; or otherwise exercised his or her rights under Title VII. 
MONETARY RELIEF 
7. a) Compact shall pay the gross sum of three hundred and twenty five 
thousand dollars ($325,000), to resolve the claims of the claimants. This sum shall be distributed 
in the amounts indicated in the Release Agreements signed by the claimants and provided to 
Compact by the EEOC, and equal in the aggregate to three hundred and twenty five thousand 
dollars ($325,000), 
b) Within ten (10) days of the entry of this Decree, the EEOC shall mail to 
each claimant a blank release (Exhibit B, attached). 
c) Within ten (10) days after receipt by Compact of a Release Agreement in 
the format of Exhibit B from an EEOC claimant, Compact shall issue and mail by certified mail 
to each such claimant, a check in the amount indicated on the release, payable to the order of 
Case 1:06-cv-05172 Document 23-2 Filed 01/09/2007 Page 5 of 11 
such claimant to the address indicated on the release, as settlement of this case by the EEOC, 
with a copy to the EEOC. 
d) Payment to the claimants shall not be deemed to be for lost wages. 
Defendant shall not make witliholdings and shall issue 1099 forms to the Charging Parties and 
claimants no later than January 30, 2008. The 1099 forms shall bear the Social Security Number 
and be mailed to the address shown on the release agreements signed by the claimants. Each 
claimant will IK responsible for paying income taxes, if any. 
NOTICE POSTING 
8. Within ten (10) days after the Court's entry of this Consent Decree and for the 
duration of this Decree, Compact shall continuously post the notice annexed hereto as Exhibit A, 
along with a Spanish translation to be provided by EEOC (the notice and its translation shall, 
hereinafter, be referred to collectively as "the Notice"), in a location prominently visible to 
Compact employees. Within ten (10) days after the Consent Decree is entered, Compact shall 
certify in writing to the Chicago District Office of the EEOC that the Notice has been posted, and 
shall inform the EEOC of the location where it has been posted. Compact shall permit a 
representative of EEOC to enter Compact's premises for purposes of verifying compliance with 
this paragraph at any time during normal business hours. 
RECORDKEEPING AND REPORTING 
9. Compact shall maintain records of any complaints, formal or informal, oral or in 
writing, that it receives relating to harassment based on sex, or for alleged retaliation for making 
complaints of sexual harassment, including the name, address and telephone number of the 
complainant; the allegations made by the complainant; the nature of Compact's investigation of 
such allegations; and any action taken by Compact in response to such complaints, for the 
Chichi 80311.1 4 
Case 1 :Q6-cv-05172 Document 23-2 Filed 01/09/2007 Page 6 of 11 
duration of this Consent Decree;. 
10. Beginning six (6) months after entry of this Consent Decree and every six (6) 
months thereafter for the duration of this Consent Decree, Compact shall furnish the EEOC with 
reports reflecting the information detailed in the records described in Paragraph 9 of this Consent 
Decree. Compact's last report will be submitted to the EEOC two (2) weeks prior to the date on 
which the Decree is to expire. 
11. For the term of this Consent Decree and upon five (5) business days' notice to 
Compact, the EEOC, when it has reasonable cause to believe that Compact is not in compliance 
with the terms of this Consent Decree, shall have access to Compact's facility during normal 
business hours lo review and copy any documents related to determining compliance at its 
facility and to interview any personnel employed by Compact for the purpose of determining 
Compact's compliance with the terms of this Consent Decree. Compact's attorney will be 
allowed to be present during any such examination of records and/or during interviews of any 
supervisory employee(s). 
TRAINTNG 
12. During each of the two (2) years covered by this Consent Decree, Compact shall 
arrange for annual training of all employees, including supervisors and managers, regarding the 
requirements of Title VII and Compact's policies prohibiting discrimination under Title VII. 
Compact shall submit to the EEOC for its approval the credentials of the trainer and proposed 
training program, including all materials to be used or distributed to employees prior to any such 
training. Within five (5) days after the completion of the training described above, Compact will 
certify to the EEOC that the training has been completed, the name(s) of the person(s) 
conducting the training, the time(s), duration and date(s) the training were held and a list 
Chicago 80311.1 5 
Case 1:06-cv-05172 Document 23-2 Filed 01/09/2007 Page 7 of 11 
identifying by name and position all individuals who received the training. The first training 
shall take place within forty-five (45) days after entry of this Consent Decree. Compact will also 
provide the EEOC with all materials used or distributed at such training, if those materials are 
different from that previously produced to the EEOC. 
DURATION OF DECREE/RETENTION OF JURISDICTION 
13. The terms of this Consent Decree shall be in effect (and the Court will retain 
jurisdiction of this matter to enforce this Decree) for a period of two (2) years from the date on 
which this Consent Decree is entered, provided, however, that if, at the end of the two (2) year 
period there are disputes that remain unresolved, and written notice is given by the party 
claiming that such dispute(s) remain unresolved, the term of this Decree shall be automatically 
extended until such time as all such disputes have been resolved. Thereafter, this Court shall 
dissolve this Consent Decree and shall dismiss this cause with prejudice. 
COSTS AND ATTORNEYS' FEES 
14. Each party to this action shall bear its own attorneys' fees, costs, and expenses, 
DISPUTE RESOLUTION 
15. If the EEOC has reasonable cause to believe that Compact has violated any of the 
tenns of this Consent Decree, the EEOC shall notify Compact in writing, and Compact will then 
have ten (10) business days in which to satisfy the EEOC that there has not been a violation or 
that a violation has been corrected. If, at the expiration of such time period, EEOC has not been 
so satisfied, then the EEOC may immediately apply to the Court for appropriate relief. 
MISCELLANEOUS PROVISIONS 
16. The terms of this Consent Decree shall be binding upon the present and future 
directors, officers, managers, agents, successors, and assigns of Compact. Compact, and any 
Chicago 8WU.1 6 
Case 1:06-cv-05172 Document 23-2 Filed 01/09/2007 Page 8 of 11 
successor of Compact, will provide a copy of this Decree to any organization which proposes to 
acquire or merge with Compact, or any successor of Compact, prior to the effectiveness of any 
such acquisition or merger. This paragraph shall not be deemed a limit to any remedies available 
in the event of any contempt finding by the Court for a violation of this Decree. 
17. When this Consent Decree requires the submission by Compact of reports, 
notices, or other materials to the EEOC, Such materials shall be mailed to: Compact Settlement, 
Equal Rmploymcnl Opportunity Commission, Chicago District Office, Legal Division, 500 West 
Madison, Suite 2800, Chicago, Illinois, 60661, 
IS, Tins Consent Decree shall expire by its own terms at the end of two (2) years 
after entry, without further action by the parties, subject to the provisions in paragraph 13. 
Chicago umi.l 7 
Case 1:06-cv-05172 Document 23-2 Filed 01/09/2007 Page 9 of 11 
ENTERED AND APPROVED FOR; 
For the EQUAL EMPLOYMENT 
OPPORTUNITY COMMISSION 
1801 L Street, N.W. 
Washington, D.C. 20507 
RONALD COOPER 
General Counsel 
JAMES LEE 
Deputy General Counsel 
For the EQUAL EMPLOYMENT 
OPPORTUNITY COMMISSION 
500 W. Madison St., Ste, 2800 
Chicago, JL 60661 
(312)353-8558 
EQUAL EMPLOYMENT 
OPPORTUNITY COMMISSION 
500 West Madison Street 
Suite 2800 
Chicago, IL 60661 
(312)353-7568 
t3oJhn C. Hendrickson Date 
Regional Attomc 
Diane I. Smasoti 
Supervisory Trial Attorney 
For COMPACT INDUSTRIES, INC. 
: C. Abrahams 
'Fisher & Phillips, LLP 
140 South Dearborn St. 
Suite 1000 
Chicago, IL 60603 
Kristine Aubin 
Connelly Sheehan Harris LLP 
150 S, Wacker Drive, Suite 1600 
Chicago, IL 60606 
Date 
• * ii = = • - f c l " U . \ -I r 
The Honorable Ronald A. A 
United States District Court Ji 
tK 07 
Date 
Je&ineB. Szromba 
Trial Attorney 
ilsloi 
Date 
Chisago B03M.I 8 
Case 1:06-cv-05172 Document 23-2 Filed 01/09/2007 Page 10 of 11 
EXHIBIT A 
NOTICE TO ALL COMPACT INDUSTRIES. INC. EMPLOYEES 
This Notice is being posted pursuant to a Consent Decree entered by the federal court in EEOC v. 
Compact Industries, Inc., No. 06 C 5172 (N.D, ILL), resolving a lawsuit filed by the Equal Employment 
Opportunity Commission ("EEOC") against Compact Industries, Inc. ("Compact"). 
In its suit, the EEOC alleged that Compact discriminated against a class of employees in violation 
oi'Title VII of the Civil Rights Act ofiy64, as amended, 42 US.C. § 2000c et seq. ('Title V1P)> and § 
102 of the Civil Rights Act ofl99l , 42 U-S.C. § 1981 a, by subjecting them to harassment and a hostile 
work environment because of their sex. Compact denies all the allegations in the lawsuit and denies that 
it discriminated against any of its current or former employees under Title VII. 
"1 o resolve the case, Compact and the EEOC have entered into a Consent Decree which provided, 
among other things, that: 
1. Compact pay monetary damages to a class of employees; 
2. Compact will not discriminate on the basis of sex; 
3. Compact will not retaliate against any person because he or she opposed any 
practice made unlawful by Title VII, Filed a Title VII charge of discrimination, 
participated in any Title VII proceeding* or asserted any rights under the Consent 
Decree; 
4. Compact will train all employees, including management and supervisory 
employees, regarding their duties and obligations under Title VII. 
The EEOC enforces the federal laws against discrimination in employment on the basis of"sex, 
race, color, religion, national origin, age or disability. If you believe you have been discriminated 
against based on sex or retaliated against, you should report this to Compact's Director of Human 
Resource and you may also contact the EEOC at (312) 353-8195. The EEOC charges no fees and 
has employees who speak languages other than English. 
THIS IS AN OFFICIAL NOTICE AND MUST NOT BE DEFACED BY ANYONE 
This Notice must remain posted for two years from the date below and must not be altered, 
defaced or covered by any other material. Any questions about this Notice or compliance 
with its terms may he directed to: Compact Settlement, EEOC S^uQ West Madison Stj "^ 
Suite 2800, Chicago, Illinois 60661. 
Hon. Ronald A. Guzman 
United States District Court Judgt" 
cnicugosMJi.i 9 
Case 1:06-CV-05172 Document 23-2 Filed 01/09/2007 Page 11 of 11 
EXHIBIT B 
RELEASE AGREEMENT 
I,
 m , in consideration for $ __ paid to me by Compact 
Industries, Inc., in connection with the resolution of EEQC v. Compact Industries. Inc. No, 06 C 
5172 (NJD. II!-), waive my right to recover for any claims of sex discrimination arising under 
Title VII of the Civil Rights Act of 1964, as amended, 42 U.S,C § 2000c et sea, that I had or 
could have brought against Compact Industries, Inc., prior to the date of this release and that 
were included in the claims alleged in the EEOC's complaint in EEOC v, Compact Industries. 
Inc., No. 06 C 5172 (N.D. Ill,), [I also dismiss with prejudice my Charge of Discrimination 
L which I filed with the EEOC [, which includes a claim of retaliation],] 
Date Address 
City, State, Zip Code 
Chicago &031U 10 


EEOC. v. Compact Industries, Inc.

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EEOC. v. Compact Industries, Inc.

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