CONSENT DECREE 

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UNITED STATES DISTRICT COURT 

WESTERN DISTRICT OF WASHINGTON 

AT SEATTLE 

EQUAL EMPLOYMENT OPPORTUNITY 

COMMISSION 

 Plaintiff, 

v. 

LES SCHWAB TIRE CENTERS OF 

WASHINGTON, et al.,

Defendants.

CASE NO. 2:06-cv-0045-RSM 

CONSENT DECREE 

I. INTRODUCTION

 1. This action originated with discrimination charges brought by Magen Morris and 

Jennifer Strange, filed with the Equal Employment Opportunity Commission (“EEOC”) on 

October 20, 2004. The charging parties alleged that Les Schwab: (a) failed to train and promote 

them to management positions; (b) retaliated against and constructively discharged them; and (c) 

failed to hire females for Sales & Service positions. The charging parties alleged that these acts 

violated Title VII. 

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 2. Based on these charges, the Commission filed this lawsuit on May 31, 2006, in 

the United States District Court for the Western District of Washington. The complaint alleges 

that Les Schwab Tire Centers of Boise, Inc., Les Schwab Tire Centers of California, Inc., Les 

Schwab Tire Centers of Idaho, Inc., Les Schwab Tire Centers of Montana, Inc., Les Schwab Tire 

Centers of Oregon, Inc., Les Schwab Tire Centers of Portland, Inc., Les Schwab Tire Centers of 

Nevada, Inc., Les Schwab Tire Centers of Utah, Inc., Les Schwab Tire Centers of Washington, 

Inc., and Les Schwab Warehouse, Inc. (the “Les Schwab Companies” or “Les Schwab”) failed to 

hire females for Sales & Service positions, failed to train females, and failed to promote females 

to management positions. Les Schwab denied the EEOC’s claims. Subsequently, the Court 

dismissed the training and promotion claims asserted in the charges and in the complaint. The 

remaining individual claims of Ms. Morris and Ms. Strange were resolved in a separate 

proceeding; thus the two charging parties are no longer part of the litigation to be resolved by 

this Consent Decree ("Decree" herein). 

 3. The EEOC and Les Schwab want to conclude all claims arising out of the above 

charges without expending further resources in contested litigation and therefore agree to entry 

by the Court of this Decree. This Decree resolves all claims for attorneys fees and costs by all 

parties. 

II. NONADMISSION OF LIABILITY

 4. This Decree is not an admission of wrongdoing or an adjudication or finding on 

the merits of the case. Les Schwab expressly denies any wrongdoing or violation of Title VII. 

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CONSENT DECREE 

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Equal Employment Opportunity Commission 

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III. SETTLEMENT SCOPE

 5. This Decree resolves all issues and claims arising out of the EEOC’s complaint. 

This Decree does not affect the EEOC’s right to process, in accordance with standard 

Commission procedures, other charges, if any, filed by individuals against the Les Schwab 

Companies alleging violations of Title VII or any other statute enforced by the EEOC. 

IV. CLASS MONETARY RELIEF

6. Class Settlement Fund Amount 

 Les Schwab shall pay the gross sum of $2,000,000.00 (“Class Fund”) in resolution of the 

EEOC’s claims of hiring discrimination based on sex. This Class Fund amount shall constitute 

the total payment by Les Schwab, including, without limitation, any and all costs of 

administration, and any tax withholding such as FICA or FUTA. The EEOC shall reasonably 

allocate a portion of the Class Fund to back pay consistent with federal law. 

 7. Class Fund Account 

The Class Fund shall be deposited and maintained in a segregated account in the manner 

described herein: 

a. Within thirty (30) days after the Effective Date (which shall be the date of 

entry of the Decree by the Court), Les Schwab shall establish and maintain a 

segregated account, which shall be known as the “Class Fund Account.” Les 

Schwab shall fund the Class Fund Account with the full amount of the Class Fund 

within thirty (30) days of the Effective Date. 

b. The Class Fund Account shall be an interest-bearing account in an established 

financial institution selected by Les Schwab. 

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c. The Class Fund will be distributed by Les Schwab as determined by the 

EEOC, including any distribution approved by the EEOC and necessary for 

payment of administration costs. Under no circumstances may Les Schwab make 

withdrawals or expenditures from the principal or interest of the Class Fund, 

except as provided in this paragraph c and paragraph d below. Under no 

circumstances shall commitments for payments from the principal or interest of 

the Class Fund, for purposes allowed by this Consent Decree, exceed the amount 

of funds available in the Class Fund. 

d. Any remaining interest not necessary for the administration of the Class Fund 

after all payments from the Fund have been made shall be retained by Les 

Schwab. Any unclaimed principal of the Class Fund shall be donated to 

Apprenticeship and Nontraditional Employment for Women. 

 8. Administration 

The parties will agree on an Administrator to administer the class claim process. All fees 

of the Administrator and any other expenses of the administration will be paid from the Class 

Fund, except that Les Schwab will be responsible for issuing tax reporting forms at its own 

expense. Pursuant to agreement between the EEOC and the Administrator, only reasonable fees 

authorized by the EEOC can be incurred against the fund account. 

 9. Claim Process 

a. Within thirty (30) days after entry of the Decree, Les Schwab will provide 

EEOC with a Unicru spreadsheet identifying all females who submitted 

applications for Sales & Service positions during the period from December 1, 

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2007 to entry of the Decree, and were not hired for a Sales & Service position. 

The Unicru spreadsheet will include the following data fields for each such 

applicant for periods prior to July 2009: name, address, social security number, 

date of application, store number, whether interviewed, interview date, whether 

offer extended, offer extended date, remove reason code value, removed date, 

score, and ApplicationID. For periods from July 2009 through the Effective Date, 

the Unicru spreadsheet will include the comparable data fields available in Unicru 

Version 8. In addition, Les Schwab will produce phone number information for 

applicants from Unicru if the added cost of doing so is de minimus. Les Schwab 

will also provide an Infinium spreadsheet identifying all males hired into Sales & 

Service positions during the period from December 1, 2007 to entry of the 

Decree. The Infinium spreadsheet will include the following data for each such 

hire: name, social security number, date of hire, and store number.

b. Based on the data provided under paragraph a above, and the dataset provided 

previously in discovery, EEOC will determine potential class members. 

c. Notice of settlement will only be sent to individuals EEOC has determined to 

be potential class members under paragraph b. The description of the case as 

reflected in the first paragraph of the attached draft Notice (Attachment A) will be 

the description used in the final notice and in any other communications with 

class members. The EEOC will provide a copy of the final Notice to Les Schwab. 

The EEOC will make best efforts to ensure the Administrator will not reference 

this case in its advertising or marketing materials. If any information about the 

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claims process is posted online, EEOC will determine the cost of ensuring that the 

case name is not publicly available and afford Les Schwab the option to pay that 

additional cost. 

d. Determination of eligibility and claim share amount is entirely at the discretion 

of the EEOC. 

e. Les Schwab will issue final payment checks based on a single spreadsheet 

identifying eligible class members and claim share amount. 

V. INJUNCTIVE RELIEF

10. The terms of this Decree are an injunction and operate as an injunction as to Les 

Schwab, its officers, agents, managers, assistant managers and other supervisors and all human 

resource professionals who provide advice and assistance to the foregoing individuals. In 

ongoing recognition of its obligations under Title VII, Les Schwab agrees to continue the 

policies and practices set forth below. 

A. TRAINING AND AWARENESS PROGRAM

 11. For the duration of this Decree Les Schwab will continue to provide training to all 

employees in all company-owned stores as set forth below. 

12. The objectives of this training are to: (1) convey Les Schwab’s commitment to 

providing equal employment opportunities under laws against discrimination to all applicants 

and employees, without regard to the gender of the applicant or employee; (2) provide 

information and guidance to managers and employees on complying with laws against 

discrimination, including Title VII; and (3) provide instruction on equal employment opportunity 

issues, including preventing sex discrimination in hiring and promotion.

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13. It is the intention of Les Schwab to continue to provide EEO awareness to 

management employees and its general workforce. 

a. Les Schwab acknowledges that the effectiveness of its implementation of the 

terms of this Decree is dependent on its workforce understanding that its efforts to 

provide equal employment opportunities to all persons have the full commitment 

of Les Schwab’s upper-management, including the Board of Directors, Chief 

Executive Officer, and top Company officials. Within thirty (30) days after the 

Court approves this Decree, Les Schwab will reaffirm to its workforce its 

commitment to equal employment opportunity, to achieving a diverse workforce, 

and to the furtherance of the Decree’s purpose. Within ten (10) days after Les 

Schwab communicates its commitment to its workforce, it will certify to the 

Commission its compliance with this paragraph, including the manner in which 

the communication occurred. 

b. During the term of this Decree, Les Schwab shall continue to provide training 

on equal employment opportunity to all Regional Managers, Area Managers, 

Store Managers, Assistant Managers, and other personnel, if any, who make store 

hiring decisions, and human resources employees who support that process. The 

training shall include the following topics: (1) federal, state and Company 

prohibitions against unlawful discrimination, including sex discrimination, and 

retaliation; (2) topics that will encourage equal employment in recruiting, hiring, 

and promotion without engaging in sex discrimination and sex stereotyping; and 

(3) Les Schwab’s efforts to recruit, hire, and maintain a diverse workforce. No 

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CONSENT DECREE 

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less than two (2) hours shall be devoted to training on these topics for each 

participant within ninety (90) days following: (a) the date the Court approves this 

Decree, and (b) on an annual basis thereafter throughout the term of the Decree. 

c. Les Schwab shall continue to incorporate diversity training into its training for 

executives, managers, and human resource associates. 

14. Les Schwab understands that in order to carry out the objectives of this 

 Decree it must be recognized in local communities as an employer that supports and practices 

equal employment opportunity. Therefore, within ninety (90) days after the Court approves this 

Decree, Les Schwab will review its existing internal and external recruiting and hiring 

documents (including materials on its external and internal websites) to confirm that they reflect 

diverse images, including the presence of females in Sales & Service positions, and Les 

Schwab's commitment to equal employment opportunity. Les Schwab will include the current 

introductory statement (Attachment B) affixed to the book Les Schwab – Pride in Performance

whenever it is distributed by Les Schwab for any purpose. Within ten (10) days after Les 

Schwab’s review has been completed, it will certify to the Commission its compliance with this 

paragraph. 

B. RECRUITMENT EFFORTS 

15. Les Schwab will continue its recruitment efforts to increase the flow of female 

applicants for Sales & Service positions. Those efforts will include the following: 

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a. In all recruiting and hiring materials, including but not limited to employment 

applications, brochures, newspaper, radio, television, and internet advertisements, 

and on its website, Les Schwab will state that “Les Schwab is an Equal 

Opportunity Employer,” and will instruct store managers accordingly. 

 b. Les Schwab will continue to contact entities such as technical schools and 

community colleges that may be sources of qualified female applicants for Sales 

& Service positions. In connection with this, Les Schwab will select at least one 

organization in each state in which it operates that promotes the employment of 

women in non-traditional fields and will invite such organizations to link to Les 

Schwab’s Web site. 

c. Les Schwab will continue to participate in relevant job fairs in states where it 

operates. One purpose of attending the job fairs will be to encourage qualified 

females to apply for Sales & Service positions. Les Schwab will communicate its 

commitment to developing and maintaining a diverse workforce and to its status 

as an equal opportunity employer. 

C. HIRING 

 16. During the term of this Decree, Les Schwab will make best efforts to hire females 

into Sales & Service positions in proportion to their availability in the qualified applicant pool. 

 17. Les Schwab agrees to continue (1) the use of standard application materials for all 

Sales & Service applicants through the electronic hiring process known as “Unicru”; and (2) 

periodic review of all hiring procedures by Les Schwab’s Human Resources Department. Les 

Schwab further agrees to notify and consult with the EEOC if the Unicru system is to be 

Case 2:06-cv-00045-RSM Document 449 Filed 03/09/10 Page 9 of 16
CONSENT DECREE 

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discontinued or materially modified. 

D. REPORTING, RECORD KEEPING AND COMPLIANCE REVIEW 

18. Les Schwab shall maintain the following records for the term of this Decree or as 

required by state or federal law, whichever is longer: 

a. Applications for Sales & Service positions, including hard copies bearing 

handwritten notes as well as electronic files maintained by third party vendor 

(Kronos, Inc.); 

b. A list of job fairs attended by Les Schwab pursuant to paragraph 15(c), and all 

recruiting materials as referenced in Paragraph 15(a) above, including job 

advertisements; 

c. Copies of Les Schwab's hiring policies and procedures; 

d. Copies of notifications to the organizations referenced in Paragraph 15(b); 

e. Copies of centralized marketing campaign materials; 

f. Documentation of employee training undertaken pursuant to paragraph 13b 

including, but not limited to, materials used during the training and employee 

participation records. 

g. At any point during the term of this Decree, with reasonable notice, the 

Commission may inspect and copy such documents and records required to be 

maintained or created by the express terms of this Decree, or referred to by Les 

Schwab to prepare its reports to the Commission. 

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CONSENT DECREE 

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19. Les Schwab will submit an initial report to the Commission concerning the 

implementation of this Decree no later than 15 days after the expiration of the first six-month 

period after the Court approves this Decree. Thereafter, reports will be submitted to the 

Commission annually. Each report shall contain the information set forth below: 

a. A list of the organizations Les Schwab has contacted pursuant to paragraph 

15b, during the preceding reporting period. 

b. A listing of all job fairs attended, in accordance with paragraph 15c including 

the location held, during the preceding reporting period. 

c. A spreadsheet containing all applicants for Sales & Service positions during 

the preceding reporting period, including Unicru data fields for date of 

application, sex, store number, and social security number. 

d. A list of all hires into Sales & Service during the preceding reporting period, 

including name, sex, date of hire, store number and social security number. 

e. A listing of all training undertaken during the preceding reporting period in 

accordance with paragraphs 11 and 13b, and a roster of participating employees. 

E. NOTICE POSTING 

 20. For the pendency of the consent decree Les Schwab shall post a notice to 

employees in each Les Schwab facility, attached hereto as Attachment C, informing them of this 

settlement, its terms, and the company's commitment to compliance with federal laws relating to 

equal employment opportunity. 

VI. DISPUTE RESOLUTION PROCEDURES 

 21. The Commission shall have the right to initiate an action pursuant to the Court’s 

Case 2:06-cv-00045-RSM Document 449 Filed 03/09/10 Page 11 of 16
CONSENT DECREE 

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continuing jurisdiction for an unresolved dispute or for non-compliance with any provision of the 

Decree, as follows: 

a. If the EEOC believes that there is an issue to resolve, it shall promptly give 

notice, in writing, to the company. 

b. The parties shall promptly undertake efforts to resolve the areas of dispute or 

alleged non-compliance. 

c. If after 30 days the EEOC determines that efforts to resolve the matter have 

failed, it shall notify Les Schwab in writing of such failure to resolve the matter 

and may commence an action in the United States District Court to enforce the 

terms of this Decree. 

VII. DURATION OF THE CONSENT DECREE

 22. This Consent Decree will become effective on the date approved and entered by 

the United States District Court for the Western District of Washington, and it will remain in 

effect for a period of four years. If the EEOC petitions the Court for violation of terms of the 

Consent Decree, and the Court finds a violation, the Court may extend the duration of the 

Decree. 

 VIII. RETENTION OF JURISDICTION

 23. The United States District Court for the Western District of Washington shall 

retain jurisdiction over this matter for the duration of the Consent Decree. 

DATED this ___day of ____ 

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CONSENT DECREE 

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WILLIAM R. TAMAYO JAMES L. LEE 

Regional Attorney Acting General Counsel 

JOHN F. STANLEY GWENDOLYN Y. REAMS 

Supervisory Trial Attorney Associate General Counsel 

DAMIEN A. LEE JEFFREY C. BANNON 

Senior Trial Attorney Assistant General Counsel 

TERI L. HEALY 

Senior Trial Attorney 

MAY CHE 

Trial Attorney 

BY: 

EQUAL EMPLOYMENT OPPORTUNITY 

COMMISSION 

Seattle Field Office Office of the General Counsel 

909 First Avenue, Suite 400 131 M Street NE 

Seattle, Washington 98104 Washington, D.C. 20507 

Attorneys for Plaintiff EEOC 

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CONSENT DECREE 

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BY: 

Jeffrey A. Hollingsworth 

JHollingsworth perkinscoie.com

Charles N. Eberhardt 

CEberhardt@perkinscoie.com 

Chelsea D. Petersen 

CDPetersen@perkinscoie.com 

William B. Stafford 

WStafford@perkinscoie.com 

Perkins Coie LLP 

1201 Third Avenue, Suite 4800 

Seattle, WA 98101-3099 

Telephone (206) 359-8000 

Facsimile (206) 359-9000 

BY: /s/ Kenneth J. Diamond 

Kenneth J. Diamond 

WINTERBAUER & DIAMOND PLLC 

1200 Fifth Avenue, Suite 1910 

Seattle, WA 98101 

Telephone (206) 676-8444 

ken@winterbauer.com

 Attorneys for Defendants 

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WILLIAM R. TAMAYO 


Regional Attorney 


2 


JOHN F. STANLEY 


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 Supervisory Trial Attorney 


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DAMIEN A. LEE 

Senior Trial Attorney 

6 	 TERI L. HEALY 

Senior Trial Attorney 7 


MAYCHE
 8 


Trial Attorney 


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BY: 


1 1 
 EQUAL EMPLOYM 

COMMISSION 


Seattle Field Office 
 12 


909 First Avenue, Suite 400 


13 Seattle, Washington 98104 


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 Attorneys for Plaintiff EEOC 

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 CONSENT DECREE 


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JAMES L. LEE 

Acting General Counsel 

GWENDOLYN Y. REAMS 

Associate General Counsel 

JEFFREY C. BANNON 

Assistant General Counsel 

Office of the General Counsel 


l31 M Street NE 


Washington, D.C. 20507 


Equal Employment Opportunity Commission 


909 First Avenue, Suite 400 


Seattle, WA 98104-1061 


(206) 220-6885 


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