Judge Gives Green Light to Class-Action Suit against Costco

By Nathan Abbott

Published on January 15, 2007

Three female Costco managers have been given the green light to proceed with a class-action discrimination lawsuit against the retailer. Based on the evidence presented by the woman, Judge Marilyn Hall Patel decided that there was enough indication of a common culture at Costco that placed women at a disadvantage for a class-action suit to be permissible.

Shirley Ellis, a Costco assistant manager and the first to file suit, claimed that women were essentially prevented from top jobs at Costco, as the company did not post openings or explain promotion procedures or criteria. Instead, argues Ellis, lucrative store management positions were filled through hand-selection by a largely male group of senior executives. The lawsuit notes that despite the fact that 45 percent of Costco’s employee population was female, under 13 percent of their store managers were women, and less than 17 percent of assistant managers.

In a statement released by CEO Jim Sinegal, Costco denied any wrongdoing or discrimination, and stated that statistics taken out of context do not tell the whole story. The company plans to appeal the ruling.

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