1. Home
  2. Newsroom
  3. Rainbow USA, Inc., to Pay $11,000 to Settle EEOC Pregnancy Discrimination Lawsuit
Press Release 01-10-2020

Rainbow USA, Inc., to Pay $11,000 to Settle EEOC Pregnancy Discrimination Lawsuit

Specialty Apparel Chain Fired Manager After Learning She Was Pregnant, Agency Charged

NEW ORLEANS-Rainbow USA, Inc. (Rainbow), a specialty apparel chain doing business in the Chalmette, Louisiana area, agreed to pay $11,000 in back pay to settle a federal pregnancy discrimination lawsuit, the U.S. Equal Employment Opportunity Commission (EEOC) announced today.

According to the EEOC's lawsuit, a junior assistant manager in her first trimester of pregnancy, was indefinitely suspended and two days later was fired after the company learned of her pregnancy-related restrictions.

Such alleged conduct violates Title VII of the Civil Rights Act of 1964and the Pregnancy Discrimination Act of 1978 (PDA). The EEOC filed suit (Civil Action No.  2:18-cv-09007) in the U.S. District Court for the Eastern District of Louisiana after first attempting to reach a pre-litigation settlement through its voluntary conciliation process,.

In addition to backpay, the consent decree provides non-monetary relief, including an injunction prohibiting any future discrimination. Rainbow also agreed to maintain an effective anti-discrimination policy to protect all employees from any form of discrimination and requires that Rainbow provide training on its policy and Title VII's prohibitions, particularly pregnancy discrimination. Rainbow also will report to the EEOC on its compliance with the consent decree and post a notice for the employees and/or applicants to be aware of their rights.              

"No one should have to decide between having a family and having a job, " said Rudy Sustaita, regional attorney for EEOC's New Orleans and Houston offices. "The non-monetary provisions of the decree are intended to protect pregnant employees, especially those who have medical conditions related to their pregnancy."

The EEOC advances opportunity in the workplace by enforcing federal laws prohibiting employment discrimination. More information is available at including specific resources about pregnancy discrimination.  Stay connected with the latest EEOC news by subscribing to our email updates.