Case . 1 Filed 03/18/08 Page xgw? i . UNITED STATES DISTRIC SOUTHERN DISTRICT LARYSSA JOCK, JACQUELYN - CHADWICK, LISA FOLLETT, MARIA HOUSE, DENISE MADDOX, LISA GLORIA PAGAN, JUDY REED, LINDA RHODES, KHRISTINA RODRIGUES, NINA SHAHMIRZADI, LEIGHLA SMITH DAWN and MARIE WOLF, CLASS A a; 3.1 Plaintiffs, JURY TRIAL DEMANDED gm a as veri?We'd ~against? STERLING JEWELERS, INC., Defendant. . - Plaintiffs Laryssa Jock, Jacquelyn Boyle, Christy Chadwick, Lisa Follett, Maria House, Denise Maddox, Lisa McConnell, Gloria Pagan, Judy Reed, Linda Rhodes, Khristina Rodrigues, Nina Shahmirzadi, Leighla Smith, Dawn SoutO-Coons and Marie Wolf, (collectively referred to as ?Plaintiffs?j on behalf of themselves and all similarly situated persons, by their attorneys, Cohen, Milstein, Hausfeld Toll, P.L.L.C., Thomas A. Warren Law Of?ces, P.L., and Burr Smith LLP allege as follows: INTRODUCTION 1. Plaintiffs bring this action to challenge a pattern and practice of sex discrimination in promotion and compensation committed against current and former female employees by Sterling Jewelers, Inc. Sterling Jewelers, Inc. operates more than 1300 stores in all 50 states under at least 12 retail brand names, including but not limited to, Jared The Galleria of Jewelry (?Jared?), Kay Jewelers Belden Jewelers (?Belden?), JB Robinson Case Document 1 Filed 03/18/08 Page 2 of 35 Jewelers Robinson?), Marks Morgan Jewelers, Weisfield Jewelers, Osterman Jewelers, Shaw?s Jewelers, Rogers Jewelers, LeRoy?s Jewelers, Goodman Jewelers and Friedlanders Jewelers (collectively referred to as ?Sterling?). 2. Sterling?s promotion and compensation policies and practices caused female employees with retail sales responsibilities, which includes store?based employees up to and including district managers, (collectively referred to as ?Retail Sales Employees?) to be denied promotional opportunities for which they were quali?ed, and paid less than men performing the same work. The employment policies and practices of Sterling have had the effect and have been undertaken with the purpose of denying promotional opportunities and equal compensation to quali?ed female employees because of their gender. 3. This action is brought by current and former female Sterling Retail Sales Employees on behalf of themselves and all- other similarly situated women as a class action challenging pay and promotion discrimination under Title VII of the Civil Right Act of 1964, 42 U.S.C. 2000(e) et seq. Plaintiffs also bring this action on their own behalf and pursuant to 29 U.S.C. 216(b) as representatives of a proposed collective action of similarly situated employees who have been willfully denied equal pay for equal work under the Equal Pay Act, 29 U.S.C. 206. JURISDICTION. VENUE AND EXHAUSTION 0F REMEDIES 4. Plaintiffs? class claims arise under Title VII of the Civil Right Act of 1964, 42 U.S.C. 2000(e), et seq. and the Civil Rights Act of 1991, 42 U.S.C. 1981a and the Equal Pay Act, 29 U.S.C. 206(d)i This Court has jurisdiction over Plaintiffs" class claims pursuant to 42 U.S.C. 2000e5(i), 28 U.S.C. ??1331 and 1343(a)(4), and supplemental jurisdiction over Plaintiffs Dennis Maddox?s and Nina Shahmirzadi?s individual claims; 5. Venue is proper in this district pursuant to 28 U.S.C. 1391(1)) and 42 -2- Case Document 1 Filed 03/18/08 Page 3 of 35 U.S.C. The claims of four of the named Plaintiffs Laryssa Jock, Christy Chadwick, Lisa Follett, and Linda Rhodes arose in the state of New York, and a substantial part of the unlawful acts set forth below occurred within the State of New York. Sterling operates approximately 67 stores within New York. Sterling operates at least nine stores within the Southern District of New York. 6. Plaintiffs have exhausted administrative remedies pursuant to 42 U.S.C. Each of the Plaintiffs has ?led a charge of discrimination with the Equal Employment Opportunity Commission, on behalf of themselves and all other similarly-situated current and former female employees of Sterling. On January 3, 2008, the EEOC issued a Determination Letter ?nding there was reasonable cause to believe Sterling has engaged in a pattern or practice of discrimination as alleged in the charges, in violation of Title VII and the Equal Pay Act. A copy of this Determination is attached hereto as Exhibit 1. All Plaintiffs named in the complaint have timely exhausted any administrative prerequisites to ?ling this action. Plaintiffs also received notices of their right to sue dated March 18, 2008. 7. Sterling maintains a three stage alternative dispute resolution program in which it compels its employees to participate. Employees are required to ?le an administrative complaint in order to initiate the ?rst stage of the ADR program. The ?rst administrative complaints, each of which alleges a pattern or practice of sex discrimination in promotions and pay on behalf of the complainant and others similarly situated, were ?led on February 27, 2006, by Laryssa Jock, Jacquelyn Boyle, Lisa Follet, Judy Reed, Dawn Souto? Coons, and Maria Wolf. The ?rst stage of the AER process has concluded. 8. The second stage, which provides an opportunity for the parties to engage in mediation, has also been completed. Case Document 1 Filed 03/18/08 Page 4 of 35 9. The third stage of the ADR program provides that unresolved claims be submitted to arbitration pursuant to rules prescribed by the American Arbitration Association. As termsof the arbitration program impose excessive expenses as a condition of arbitration and restrict the discretion of the arbitrator to award relief expressly permitted by Title VII the agreement is unenforceable. 10. Written consent to join this Equal Pay Act collective actioo are attached hereto for Plaintiffs Laryssa Jock, Jacquelyn Boyle, Christy Chadwick, Maria House, Denise Maddox, Lisa McConnell, Judy Reed, Liada Rhodes, Nina Shahmirzadi, Dawn SoutomCocns, and Marie Wolf, as Exhibit 2. PARTIES Plaintiffs 11. Plaintiff Laryssa Jock is a female resident of Bombay, New York in Franklin County and has been employed by Sterling from approximately May. 15, 1995 to the present as a sales associate in the Kay Jewelers and Belden stores in Massena, New York. I 12. Jacquelyn Boyle is a female resident of Tampa, Florida in Hillsborough County and was employed by Sterling from September 2004 to June 1, 2005 as a sales associate in the Jared store in Brandon, Florida. 13. Christy Chadwick (formerly Christy Davies) is a female resident of Massena, New York in St. Lawrence County and was employed by Sterling from approximately November 2005 until approximately March 2006 as a sales associate at the Belden store in Massena, New York. 14. Lisa Follett is a female resident of Massena, New York in St. Lawrence County and was employed by Sterling from approximately October 2004 until approximately June 2005 as a sales associate at the Belden store in Massena, New York. Case Document 1 Filed 03/18/08 Page 5 of 35 15. Maria House is a female resident of Bakers?eld, California in Kern County and was employed by Sterling as a sales associate at a Kay Jewelers store in Bakers?eld, California from approximately June 2005 through August 2006. 16. Denise Maddox is a female resident of Plano, Texas in Collin County and was employed with Sterling from approximately 1997 through January of 2007. During her employment with Sterling at various Jared stores, Maddox was a sales associate and diamond department manager in Westminster, Colorado, an assistant manager in Roseville, California, a sales associate in Englewood, Colorado, and a store manager in Dallas, Texas. 17. Lisa McCOnnell is a female resident of Elkhart, Indiana in Elkhart County and was employed by Sterling at a Kay Jewelers store from July 2001 until August 30, 2006 in Elkhart, Indiana. During her employment with Sterling, McConnell was a sales associate, assistant manager, and store manager in Elkhart, Indiana. 18. Gloria Pagan (formerly Gloria Hu?) is a female resident of Lake St. Louis, Missouri in St. Charles County and was employed by Sterling as a sales associate at the Robinson Jewelers store in Saint Peters, Missouri from approximately August 2005 until December 26, 2005. 19. Judy Reed is a female resident of Palm Harbor, Florida in Pinellas County and has been employed by Sterling from October 2000 until the present. During her employment with Sterling, Reed was an assistant manager in Appleton, Wisconsin, a diamond department manager and assistant manager in Tampa, Florida at Jared. 20. Linda Rhodes is a female resident of Massena, New York in St. Lawrence County and was employed by Sterling from approximately November 2005 until November 14, 2006 as sales associate at the Belden store in Massena, New York. Case Document 1 Filed 03/18/08 Page 6 of 35 21. Khristina Rodrigues is a female resident of Fall River, Massachusetts in Bristol County and was employed by Sterling from 2001 to 2003. Rodrigues was rehired by Sterling in June 2004 and is currently employed by Sterling. During her employment with Sterling, Rodrigues was a sales associate and assistant manager at Kay stores in Swansey, Massachusetts and Taunton, Massachusetts. 22. Nina Shahmirzadi is a female resident of Henderson, Nevada in Clark County and was employed by Sterling as a sales associate from approximately October 10, 1997 until November 1, 2006 at a Kay store and Jared store in Henderson, Nevada. 23. Leighla Smith is a female resident of Mt. Holly, New Jersey in Burlington County and was employed by Sterling as a sales associate from approximately August 2004 until April 2005 at Kay stores in Burlington, New Jersey and Cupertino, California. 24. Dawn Souto?Coons is a female resident of Witnaurna, Florida in Hillsborough County and was employed with Sterling from approximately September 1991 until approximately May 27, 2005. During her employment with Sterling, Souto-Coons was a sales associate, assistant manager, and stOre manager in the Robinson store in Waldorf, Maryland, store manager in Gaithersburg, Maryland, and assistant manager in Brandon, Florida. 25. Marie Wolf is a female resident of Riverview, Florida in Hillsborough County and has been employed by Sterling as a sales associate at a Jared store in Brandon, Florida from approximately 2002 until the present. Defendant 26. Defendant Sterling is the largest specialty jeweler in the United States, with at least 1,300 stores doing business under various brands in all 50 states. Sterling is a nationwide company, with its headquarters in Akron, Ohio. Case Document 1 Filed 03/18/08 Page 7 of 35 COMPANY WIDE PRACTICES CHALLENGED 27. Sterling has subjected female Retail Sales Employees to a pattern or practice of sex discrimination in its promotion and compensation decisions. These practices re?ect that discrimination is the standard operating procedure - the regular, rather than the unusual practice at Sterling. 28. Sterling?s pattern or practice of sex discrimination in its promotion and compensation decisions have had a disparate impact adverse to women. 29. Pannant to the investigation of Plaintiffs? charges, the EEOC issued a determination that Sterling ?subjected charging parties-and a class of female employees with retail sales responsibilities nationwide to a pattern or practice of sex discrimination in regard to promotion and compensation. Statistical analysis of pay and promotion data provided by Respondent reveals that Respondent promoted male employees at a statistically signi?cant, higher rate than similarly situated female employees and that Respondent compensated male employees at a statistically signi?cant, higher rate than similarly situated female employees. Witness testimony further corroborates the allegations.? EEOC Determination Letter, Ex. 1. 30. Sterling?s promotion and compensation policies, centrally issued, apply to all stores throughout the company, regardless of brand and are substantially similar, if not identical, throughout the Sterling stores. 31. Discrimination in Promotions: The Plaintiffs challenge the following practices, and any others with similar pnrpose or effect, which have encouraged, permitted or had the effect of discriminating against female Retail Sales Employees by denying them equal access to promotions: a. Throughout the period covered by this action, Sterling has refused to publicize jobs when they become vacant. Nor does Sterling provide a -7- Case Document 1 Filed 03/18/08 Page 8 of 35 system by which employees can apply for particular vacancies or be assured of consideration for selection. Absent a system for announcing vacancies and for permitting applications for particular positions from interested candidates, Sterling has allowed managers tonotify and recruit for selection employees whom they personally favor in What has historically been known as a ?tap on the shoulder? system. Nor has Sterling provided its managers with merit-based guidance about who should be selected to ?ll the vacant positions. Accordingly, Sterling has granted its managers virtually unfettered discretion to identify and select candidates using personal preferences and stereotypes,without any assurance the criteria used to make promotion selectiOns are based on - merit. b. Prior to April 2007, Sterling even lacked a system by which employees could express an interest in promotions generally. Only after Plaintiffs ?led charges with the EEOC in 2006 did Sterling announce a process permitting its employees to register their interest in promotion opportunities generally. Still Sterling has refused to publicize job vacancies, nor does it provide employees with the opportunity to apply for particular vacancies. c. As a consequence of these policies and practices, women working in store- based jobs and as district managers at Sterling have been denied equal opportunity to obtain promotions into and within management jobs. 32. . Discrimination in Compensation: The Plaintiffs challenge the following Case Document 1 Filed 03/18/08 Page 9 of 35 practices, and any others with similar purpose or effect, which have encouraged, permitted or had the effect of discriminating against Retail Sales Employees by causing them to be paid less than male employees performing the same work, at the same levels, in the same area, and at the same time period. a. Sterling?s compensation policy offers little or no guidance on setting wage rates. Pursuant to these policies, Sterling provides its managers with broad discretion to set compensation pursuant to personal biases and stereotypes rather than merit-based criteria. b; As a result, women are paid less than men performing the same work, at the same levels, in the same area, and at the same time period. 33. Sterling has a policy barring employees from discussing their wages with other employees. This policy has prevented some Plaintiffs and some members of the preposed class and collective action from making a fully~informed comparison of their compensation with the pay of similarly-situated male employees. 34. Sterling has permitted or encouraged other workplace conduct that may exacerbate the discrimination in promotions and compensation alleged above. a. Sterling managers have subjected female employees to sexual harassment and other discriminatory comments based open their sex". b. Sterling has failed to take prompt and effective remedial action in response to complaints of discrimination and to comments demeaningto women made in the workplace. 35. Sterling has its supervisors with broad discretion that is unguided in its exercise, affording them opportunities to apply personal preferences and biases in making Case Document 1 Filed 03/18/08 Page 10 of 35 promotion and compensation decisions. Sterling knew or should have known that its promotion and compensation practices were being used with the purpose and having the effect . of denying quali?ed women employees equal opportunities to obtain promotions and to be paid at the same levels as similarly-situated male employees. Accordingly, the practices identi?ed above are being challenged under systemic disparate treatment and disparate impact theories of discrimination. 36. Sterling?s pay and promotion policiesand practices applicable to Retail Sales Employees have adversely affected women employees throughout the company. 37. Similarly, the structure of the workforce comprised of employees with retail responsibilities and the work performed in those positions are similar throughout the more than 1,300 Sterling stores at which members of the proposed class have worked. Sterling?s stores have three primary job positions, and each position involves performance of the same or similar duties. The entry level sales job is the sales associate position, above which is the entry level management position known as assistant manager and the highest level position in management within Sterling stores is designated as the store or general manager. Management of sales and personnel actions with Sterling stores are overseen by district managers, who supervise operations at several stores within a district, and by regional vice presidents, who oversee the operations of stores located in multiple districts. 38. The essential duties of each in~store position are the same throughout the Sterling stores, regardless of store brand. 39. As the duties for each position are nearly identical throughout the Sterling stores, employees may and frequently do transfer between Sterling stores with different brand names, and across geographic areas within and between states. -10- Case Document 1 Filed 03/18/08 Page 11 of 35 COLLECTIVE ACTION ALLEGATIONS 40. With reSpect to their Equal Pay Act claim, Plaintiffs bring this action pursuant to 29 U.S.C. 206(d), et seq, on behalf of themselves and all other women similarly situated. The members of the class are all female Retail Sales Employees employed in the United States by Sterling on or any time after February 27, 2003 until the end of the period provided by law. 41. Sterling?s policy, pattern, or practice of discrimination in pay and promotion operated within 300 days of the ?rst charge of discrimination and unlawfully denied promotions to one or more named plaintiffs and caused one or inore named plaintiffs to be paid less than similarly situated men. 42. Plaintiffs have satis?ed the requirements of a collective action pursuant to 29 U.S.C. 216(b). CLASS ACTION ALLEGATIONS 43. With respect to the claims arising under Title VII of the Civil Rights Act of 1964, as amended, the Plaintiffs bring this action pursuant to 42 U.S.C. 2000(e), et seq. and - seek certification of a class pursuant to Rule 23, Fed. R. Civ. P, comprised of all female Retail Sales Employees who worked in the United States from the beginning of the illegal practice challenged here through the ?rst day of trial in this action. Plaintiffs are members of the class they seek to represent. 44. Sterling?s policy, pattern, or practice of discrimination in pay and promotion operated within. 300 days of the first charge of discrimination and unlawfully denied promotions to one or more named plaintiffs and caused one or more named plaintiffs to be paid less than similarly situated men. 45. This action is properly maintainable as a class action because the requirements of Rule 23(a) and Rule 23 are met. -11.. Case Document 1 Filed 03/18/08 Page 12 of 35 46. The class members are sufficiently numerous to make joinder of all members impracticable. Upon infomation. and belief, more than 20,000 current and former employees would qualify as members of the proposed class. 47. The claims alleged on behalf of the Plaintiffs raise questions of law or fact common to the class. These common questions include, but are not limited to: a. whether Sterling?s common operating practices and procedures discriminate against its female employees; b. whether Sterling?s policies have had an adverse impact upon the class, and if so, whether such impact can be justi?ed by business necessity; c. whether Sterling has acted intentionally to deny equal opportunities to female employees to obtain promotions into and within management jobs and to compensate female employees less than similarly situated male employees in violation of Title d. . whether Sterling invests its managers with excessive discretion in making - promotion and compensation decisions; e. whether the class may obtain an award of damages and obtain injunctive and other equitable remedies. 48. The claims of the class representatives are typical of the class they seek to represent. 49. The class representatives and counsel will adequately and fairly protect the interest of the class. 50. This action is properly maintainable as a class action under Rule Fed. R. Civ. P., because the party opposing the class has acted or refused to act on grounds generally -12- Case Document 1 Filed 03/18/08 Page 13 of 35 applicable to the class, thereby making appropriate ?nal iajunctive relief 01'. corresponding declaratory relief with respect to the class as a whole. 51. The class action is also properly maintainable pursuant to Rule 23(b)(3) because the questions of law and fact common to members of the class predominate over questions affecting only individual members and a class action is superior to other available methods for the fair and ef?cient resolution of this controversy. ALLEGATIONS 0F NAMED PLAINTIFFS Lagssa Jock 52. Laryssa Jock has been employed by Sterling from approximately May 15, 1995 to the present for a total of nearly 13 years. She began her employment with Sterling as a part- time sales associate at the Kay store located in Massena, New York. Within approximately ?ve months, Jock was promoted to full-tirne sales associate in approximately October 1995. She also held an Assistant Manager position from the fall of 1996 through February 1997, and as a sales associate was appointed the third key position between the summer of 1997 and fall of 1998 in the Massena, New York Kay store. The third key position is responsible for assisting management employees in opening and closing the store and is placed in charge of the store when the assistant manager and store manager are absent. This position is typically a gateway position to higher management positions. 53. On approximately December 18, 1998, Jock transferred to the Massena, New York Belden?s store as a sales associate. In approximately 2002, a Sterling manager again asked her to hold the third key position; however, Jock stepped down from this position because Sterling re?rsed to compensate her for performing these additional duties. Jock continues to be employed in the Belden store located in Massena, New York as a full-time sales associate. -13- Case Document 1 Filed 03/18/08 Page 14 of 35 54. During her tenure at Sterling, Jock has received numerous merit awards and gifts from Sterling in recognition of her superior sales performance. 55. During ock?s employment at Sterling, male employees were paid higher wages than female employees for equal work in jobs requiring equal skill, effort, and responsibility that were performed under similar working conditions. For example, in approximately March 2005, Troy Lawler, a male, was hired as a part-time sales associate in the Belden?s store located in Massena, New York and paid $8.75 per hour. At the time Lawler was hired, Jock was paid only approximately $8.65 per hour as a full-time sales associate in the same store. Jock was paid less than Lawler in spite of the fact that Lawler had no prior retail jewelry industry experience, and she had approximately ten years of experience at Sterling, including working as an assistant manager and in the third key position. Although Jock received a raise to $8.85 per hour shortly after Lawler was hired, several other female employees who were employed in the same store in the same position as Lawler continued to be paid less than Lawler. ock?s store manager explained to the female employees including Jock that Lawler needed to be paid more than the females because he had a child to support. 56. But for Sterling?s policy prohibiting employees from discussing their wages, Jock would likely be able to identify additional male employees who were paid higher wages than her for equal work in jobs requiring equal skill, effort, and responsibility that were performed under similar working conditions. 57. On May 18, 2005, Jock filed a timely charge of discrimination with the Equal Employment Opportunity Commission. Jock received notice of her right to sue from the EEOC on March 18, 2008. Jacguelyn Boyle -14- Case Document 1 Filed 03/18/08 Page 15 of 35 58. Jacquelyn Boyle worked for Sterling from September, 2004 to June 1, 2005 as a sales associate in the Jared store in Brandon, Florida. 59. Prior to working for Sterling, Boyle obtained a B.A. degree in Legal Studies and obtained jewelry sales experience working for service merchandise. 60. Boyle started at Sterling as a seasonal sales associate, making $9.50 per hour. She excelled in this job such that she generated a large volume of jewelry sales in December 2004. In February 2005, she became a full-time employee making $10.25 per hour. At that time, her store manager, Eric Wolff told her she was an excellent sales associate and an asset to ared?s. 61. During Boyle?s employment at Sterling, male employees were paid higher wages than female employees for equal work in jobs requiring equal skill, effort, and responsibility that were performed under similar working conditions. For example, Sterling paid similarly-situated male employees including Grant ?Billy? Laing, Alan Mong, and Michael Duggan more than Boyle for performing equal work. Laing, who was hired in August 2004 was paid $14.50 per hour as a full-time sales associate; Mong, who was hired in July 2004, was paid $13.50 per hour as a full-time sales associate; and Dug-gen, who was hired in May 2005, was paid $11.50 per hour as a full?time sales associate. 62. But for Sterling?s policy prohibiting employees from discussing their Wages, - Boyle would likely be able to identify additional male employees who were paid higher wages than her for equal work in jobs requiring equal skill, effort, and reSponsibility that were - performed under similar working conditions. 63. In addition to the pay discrimination described above, Boyle also experienced sexual harassment while employed at Sterling. Jason May, a male Manager-in~Training, -15- Case Document 1 Filed 03/18/08 Page 16 of 35 repeatedly called her and sent her text messages expressing the desire to be alone with her. May made unwelcome overtures to Boyle, such as telling her he wanted to kiss her, which caused her discomfort and distress at work. Boyle complained to her managers, Eric Wolf and Erin Scott, about this harassment but to her knowledge her complaints were not investigated nor was any corrective action taken against May. In fact, shortly after her complaint, May was promoted to a general manager position. 64. On September 15, 2005, Boyle ?led a timely charge of discrimination with the EEOC. 65. Boyle received notice of her right-to-sue from the EEOC on March 18, 2008. Christv Chadwick 66. Christy Chadwick (formerly Christy Davies) was employed by Sterling from approximately November 2005 until approximately March 2006. Throughout her employment with Sterling she was employed as a seasonal part?time sales associate at the Belden store located in Massena, New York. Chadwick excelled in this position and was recognized for her outstanding sales volume. 67. In approximately March 2005, Sterling hired Troy Lawler, a male, to be a part- time sales associate in the Belden?s store located in Massena, New York. When Lawler was hired by Sterling in March 2005, he was paid $8.75 per hour as a part-time sales associate. When Chadwick was hired approximately six months later, she was paid only approximately $7.00 per hour as a part?time sales associate in the same store. Chadwick was paid less than Lawler in spite of the fact that she had three years of retail customer service and commission sales experience when she was hired by Sterling and Lawler only had approximately three months of sales experience at the time he was hired. -16- Case Document 1 Filed 03/18/08 Page 17 of 35 68. Sterling failed to correct the inequities in Lawler?s and Chadwick?s pay in spite of the fact that Chadwick was recognized by Sterling as an outstanding sales producer. 69. But for Sterling?s policy prohibiting employees from discussing their wages, Chadwick would likely be able to identify additional male employees who were paid higher wages than her for equal work in jobs requiring equal skill, effort, and responsibility that were performed under similar working conditions. 70. On April 24, 2006, Chadwick ?led a timely charge of discrimination with the Equal Employment Opportunity Commission. 71. Chadwick received notice of her right to see from the EEOC on March 18, 2008. Lisa ollett 72. Lisa Follett was employed by Sterling from approximately November 2004 until approximately May or June 2005. Throughout her employment with Sterling she was employed as a part-time sales associate at the Belden store located in Massena, New York. Follett excelled in this position. I 73. In approximately March 2005, Sterling hired Troy Lawler, a male, to be a part- tinte sales associate in the Belden?s store located in Massena, New York. On approximately May 5, 2005, Lawler was promoted to a full-time sales associate position. Sterling failed to post the availability of this position and did not conduct interviews of Follett or other female part?time sales associates who were interested in full-time positions. Follett was more quali?ed thanLawler for the full-time sales associate position because she had seven months of jewelry sales experience with Sterling and had produced substantial sales for Sterling. Lawler had no prior jewelry experience and had no record of past performance to support his promotion. 74. During Follett?s employment with Sterling, Sterling failed to post additional -17.. Case Document 1 Filed 03/18/08 Page 18 of 35 full?time positions and did not provide any formal way for employees to express an interest in promotions. Instead, Sterling relied on a ?tap on the shoulder? promotion system. Follett was interested in being promoted to full-time positions, but was unaware of promotional opportunities for which she was quali?ed, that may have been provided to less quali?ed? male employees at Sterling due to these practices. 75. When Lawler was hired by Sterling in March 2005, he was paid $8.75 per hour as a part-time sales associate. At the time Lawler was hired, Follett was paid only approximately $7.50 per hour as a part-time sales associate in the" same store. Follett was paid less than Lawler in spite of the fact that she had approximately seven months of proven sales experience at Sterling and Lawler had no prior retail jewelry industry experience. 76. But for Sterling?s policy prohibiting employees from discussing their wages, Follett would likely be able to identify additional male employees who were paid higher wages than her for equal work in jobs requiring equal skill, effort, and responsibility that were performed under similar working conditions. 77. On February 8, 2006, Follett ?led a timely charge of discrimination with the Equal Employment Opportunity Commission. 78. Follett received notice of her right to sue from the EEOC on March 18, 2008. Maria House 79. Maria House worked for Sterling at a Kay Jewelers store in Bakers?eld, California from approximately June 2005 through August 2006. 80. Sterling hired House as a full-time sales associate-and was paid $12.50 per hour. 81. Prior to working for Sterling, House had obtained approximately 20 years of jewelry sales and management experience working for Macy?s, Zales, and Michaels Jewelers. -13- Case Document 1 Filed 03/18/08 Page 19 of 35 82. Shortly after starting with Sterling; House was selected for the third key position. The third key is reSponsible for assisting management employees in opening and closing the store and is placed in charge of the store when the assistant manager and store manager are absent. I This position is typically a gateway position to higher management positions. 83. Despite House having performed the third key duties exceptionally well, she was not selected for an assistant manager position in approximately late 2005. Instead. Shaun McCullough, a less quali?ed male was selected. Sterling was aware that House was interested and quali?ed for this position and had discussed the possibility of being promoted into this position with her store manager and district manager. McCullough?s lack of quali?cations was con?rmed in 2006 when Sterling terminated him. 84. House?s exceptional job performance continued into 2006 when she became the highest sales producer in her district. Sterling rewarded her for this accomplishment by granting her membership in Sterling?s President Club. The President Club is an organization Sterling created to recognize and reward outstanding performance of its top sales associates throughout the country. 85. In approximately May 2006 the store manager of the Bakers?eld, California Kay?s Jeweler store was terminated. Because there was no assistant manager as a result of McCullough?s termination, House was required to take over acting manager duties. House performed the store manager?s duties for several weeks. Although House was interested in the store manager position and had competently performed the store manager duties, Sterling selected Ben Fox, a less quali?ed male, sales associate from a different store, as the new store manager. -19- Case Document 1 Filed 03/18/08 Page 20 of 35 86. During House?s employment with Sterling, Sterling did not post open management positions or provide any formal way for employees to express an interest in promotions. Instead, Sterling relied on a ?tap on the shoulder? promotion system. House was interested in being promoted, but was unaware of many other promotional opportunities for which she was quali?ed, that may have been provided to less quali?ed male employees at Sterling due to these practices. 87. During the time McCullough was House?s assistant manager, McCullough sexually harassed House. He made inappropriate and unwelcome comments about her chest on several occasions. For example, he told her would like to suck on your boobs.? House immediately reported this to her district manager, who told House to stop overreacting and get back to work. House then made a formal complaint through Sterling?s internal complaint process, yet still no disciplinary action was taken against McCullough. House later made yet another follow?up complaint to Sterling?s Employee Relations Department, but to her knowledge, no action was taken. 88. On October 10, 2006, House ?led a timely charge of discrimination with the Equal Employment Opportunity Commission. 89. House received her Right to Sue notice from the EEOC on March 18, 2008. Denise Maddox 90. Denise Maddox was employed with Sterling from 1997 through January of 2007. She was hired as a sales associate at a Jared store in Westminster, Colorado. She excelled in this job and was the number one salesperson in her store. She also worked as a diamond department manager at this store. In 2000, Maddox was transferred to a Jared store in" Englewood, Colorado. Around 2001 or 2002, Maddox brie?y transferred to a Sterling store in -20- Case Document 1 Filed 03/18/08 Page 21 of 35 Roseville, California, where she was an assistant manager. After a short period of time in California, Maddox transferred back to Colorado, in a sales associate position. Shortly thereafter, in 2002, she was promoted to assistant manager at a Jared store in Lakewood, Colorado. In August of 2005', Maddox was transferred to Dallas, Texas and was promoted to store manager of a Jared store there. On October 31, 2006, Sterling informed her that she was being demoted to diamond department manager. Rather than take the demotion and stay in Texas, she transferred back to Colorado where she worked as a sales associate until she left the company in January 2007. 91. In 2003, the store manager position at the Lakewood, Colorado store became vacant. Maddox informed her district manager that she was interested in the position, however, Sterling instead selected a less-quali?ed male who had no prior experience with Sterling. In June or July of 2006, a store manager position at a higher volume store in the Dallas, Texas area became vacant. Maddox was also interested in a promotion to this store, and informed her district manager of her interest. However, again the position was given to a male, John - Costello, who had no previous experience at Sterling. 92. During Maddox?s tenure, Sterling did not post job vacancies nor provide any formal way for employees to express an interest in promotions. The only way employees were aware of openings was Via word of mouth. Accordingly, there are likely numerous other promotional opportunities that Maddox was interested in and quali?ed for which she was not given the opportunity to apply for, that were awarded to less quali?ed male employees. 93. During Maddox?s employment at Sterling, male employees were paid higher wages than female employees for equal work in jobs requiring equal skill, effort, and responsibility that were performed under similar working conditions. For example, when -21- Case Document 1 Filed 03/18/08 Page 22 of 35 Maddox began at Sterling, she made $8.00 an hour. Although she was the number one salesperson in her store, male employees were being hired at rates several dollars an hour more than she. When her store manager, Melinda Small, requested a raise for Maddox from the district manager, the request was denied. 94. As a store manager, Maddox observed Sterling pay male employees in her store more than their similarly situated female counterparts. Upon information and belief, these pay discrepancies were implemented by the district manager and Vice president or company of?cials above them. 95. Based on information and belief, Maddox believes she was also paid less than her similarly situated male counterparts employed in assistant manager and store manager positions. But for Sterling?s policy prohibiting employees from discussing their wages, Maddox would likely be able to identify male employees who were paid higher wages in these positions than her for equal work in jobs requiring equal skill, effort, and responsibility that were performed under similar working conditions. 96. Sterling has a policy or practice of preventing its employees from discussing their wages with other employees. Sterling?s policy preventing the discussion of wages has prevented Maddox from identifying male employees who were paid higher wages than she was for equal work in jobs requiring equal skill, effort, and responsibility that were performed under similar working conditions. 97. Maddox was also subjected to comments and other treatment that were demeaning and disparaging of women. For example, in approximately 2000, when Maddox first became a diamond department manager, she was demoted back to a sales position because her district manager told her he wanted to place a male in the position who had ?the Jared -22.. Case Document 1 Filed 03/18/08 Page 23 of 35 look.? 98. Maddox also was demoted from the store manager position she held in Dallas, Texas due to her age and sex. She was demoted from her position as store manager in October 2006 because a male district manager needed to be placed in a store manager position in her area. There were several stores that could have been chosen. However, the store managers in each of these stores were younger than Maddox, who was 51 at the time. Maddox was demoted to diamond department manager iastead of one of the younger store managers in Spite of the fact that sales for her store were better than the stores run by the younger store managers. 99. On November 8, 2006, Maddox ?led a timely charge of discrimination with the Equal Employment Opportunity Commission. 100. Maddox received her Right to Sue notice from the EEOC on March 18, 2008. Lisa McConnell . 101. Lisa McConnell worked for Sterling at a Kay Jewelers store from approximately July, 2001 until August 30, 2006 in Elkhart, Indiana. 102. McConnell was hired as a para-time sales associate for Sterling and was paid $8.50 per hour. Within a year, she became a full-time sales associate and was paid $10.00 per hour. McConnell was an outstanding employee. Her high sales record earned her membership in the President?s Club from January 2003 until she became store manager in 2005. 103. In October, 2002, she became assistant manager at a salary of $12.00 per hour. Brad Bartli, her store manager at the time, informed her that she was earning approximately $2.00 to $3.00 less per hour than similarly?situated male assistant managers and that her salary was also less than male managers~in~trair1ing 104. McConnell served as assistant manager for approximately two and one-half r23- Case Document 1 Filed 03/18/08 Page 24 of 35 years during which her personal average annual sales ranged from approximately $400,000 to $600,000, one of the highest in her district. She received the highest bonus in her district in 2005. 105. Despite McConnell?s exceptional performance and strong personal sales record, she received only a $1 per hour raise each year that she served as assistant manager. This resulted in her earning approximately $14.00 per hour inunediately before she became store manager. In stark contrast, Richard Swiental became assistant manager of the Elkhart, Indiana Kay?s store in April 2006 at a starting salary of $15.33 per hour, $3.33 per hour more than her starting salary three years prior despite the fact that Swiental was less quali?ed for the position than McConnell had been when she became assistant manager. 106. In early 2005, McConnell was promoted to store manager with an annual salary of approximately $34,000. Brad Bart], her former store manager who had worked for Sterling Jewelers for at least a decade, again informed McConnell that she was receiving a signi?cantly lower salary than other male store managers employed by Sterling Jewelers, especially given her training experience and sales record. Bartl informed her that her situation was not unique because he was aware of many other women that were paid less than men in the same job positions. For instance, Bartl?s wife, Donna Bartl, had been a store manager with Sterling, and she too had been paid less than similarly-situated male store managers according to Bartl. 107. Although McConnell earned the highest bonus in her district in 2-005, she did not receive an annual salaryincrease in 2006. 108. But for Sterling?s policy prohibiting employees from discussing their wages, McConnell would likely be able to identify additional male employees who were paid higher wages than her for equal work in jobs requiring equal skill, effort, and responsibility that were -24- Case Document 1 Filed 03/18/08 Page 25 of 35 performed under similar working conditions, 109. McConnell?s career goal was to obtain at least a district manager position. In 2005, during a meeting for managers in her district, the then district manager Tim Chmiel asked each store manager in attendance (approximately14 managers) about their future goals. When Chmiel asked McConnell about her professional goals, she responded that she wanted to be a district manager. However, despite her strong quali?cations and interest, Sterling never offered her that position. 110. During McConnell?s tenure at Sterling, Sterling did not advertise or post job vacancies or have a formal application process for these jobs. Instead, Sterling used a ?tap on the shoulder? system for promotion to management positions. Even though McConnell was interested in obtaining a district manager position, due to Sterling?s failure to post openings, McConnell was not made aware of any district manager opportunities available to her during her employment. She believes there have been district manager job vacancies ?lled by males who were less quali?ed'or no more quali?ed than she. She would have pursued and applied for any such positions, but the jobs were not offered to her nor was she made aware of such vacancies. 111. McConnell also experienced sexual harassment while employed by Sterling. On April 8, 2006, district manager John Braunsdorf placed manager-in-training Richard Swiental' in her store as assistant manager. Swiental was rude and disruptive. He made inappropriate sexual comments about women. He commented on the anatomy of females who walked by the store and even asked McConnell, the store manager, if she would find out if a young woman who walked by the store in a short skirt was wearing underwear. He commented on female co? workers ?PMSing? and bragged about affairs he had on his Wife. When helping sales associate, -25- Case Document 1 Filed 03/18/08 Page 26 of 35 Stephanie Reinhardt, change a store sign, he said can always get it up? when he saw she was having trouble reaching the letters on the sign. He addressed McConnell as ?sweetheart? and refused to show her respect or treat her in a professional manner because she was a female manager. 112. Shortly after Swiental was transferred to her store, McConnell made verbal and written complaints about his behavior to her district manager Braunsdorf. "No corrective action was taken against Swiental. 113. In response to McConnell?s complaints about Swiental?s inappropriate sexual comments against women, inappropriate treatment of women and poor managerial performance, Swiental ?led an internal complaint against her accusing her of gender discrimination. Even though Swiental?s claim had no merit, Sterling took his side and McConnell was written?up for discriminatory ?comments? she never made. She informed the human resource of?ce about Swiental?s inappropriate treatment towards women and his disruptive behavior. Hewever, this information was ignored, and on August 31, 2006, McConnell was terminated from Sterling even though she had received the largest bonus in her district that same year and was an effective manager who sought to protect her employees and customers from a male employee?s discriminatory behavior. 114. On or about July 25, 2006 McConnell timely tiled a charge of discrimination with the EEOC. 115. On or about May 12, 2007, McConnell ?led an amended charge of discrimination with the EEOC asserting her claims on behalf of herself and female employees of Sterling who are similarly situated. 1 16. McConnell received a notice of right to sue from the EEOC dated March - 1 8, s26. Case Document 1 Filed 03/18/08 Page 27 of 35 2008. - 91mm 117. Gloria Pagan was employed With Sterling from approximately August 2005 until December 26, 2005. During this time period, Pagan worked as a full-time sales associate at the Robinson Jewelers store located in Saint Peters, Missouri. 118. When Pagan was hired by Sterling, she had prior experience working in the jewelry industry. She excelled in her sales associate position and in October 2005, she was promised the third key position, which is the title given to a sales associate who assists the assistant manager and general manager in the performance of their duties, including opening and closing the store and supervising the store in their absence, and which provides training for promotional opportunities. In approximately November 2005, Sterling hired Christopher Sutmoler as a sales associate in the Saint Peters, Missouri JB Robinson Jewelers store. Satrnoler was given the third key position that had been promised to Pagan in spite of the fact that Pagan had more tenure with Sterling and similar jewelry industry experience. 119. During Pagan?s employment with Sterling, Sterling failed to post open management positions and did not provide any formal way for employees to express an interest in promotions. Instead, Sterling relied on a ?tap on the shoulder? promotion system. Pagan was interested in being promoted, but was unaware of promotional opportunities for which she was quali?ed, which may have been provided to less qualified male employees at Sterling due to these practices. 120. During Pagan?s employment at Sterling, male employees were paid higher wages than female employees for equal work in jobs requiring equal skill, effort, and responsibility that were performed under similar working conditions. For example, Sutmoler, a - -27- Case Document 1 Filed 03/18/08 Page 28 of 35 male with similar jewelry experience as Pagan, was hired at approximately the same time frame in the same sales associate job, and in the same store as Pagan; however, he was paid $11.50 per hour and Pagan was paid only $8.50 per boar. 12l. But for Sterling?s policy prohibiting employees from discussing their wages, Pagan would likely be able to identify additional male employees who were paid higher wages than her for equal work in jobs requiring equal skill, effort, and responsibility that were performed under similar working conditions. 122. On or about July 16, 2006, Pagan timely ?led a charge of discrimination with the EEOC. I 123. Pagan received a notice of right to sue from the EEOC on March 18, 2008. Judy Reed 124. udy Reed began working at Sterling in October 2000 as an assistant manager at a Jared store in Appleton, Wisconsin. In July 2001 Reed transferred to Sterling?s Jared Citrus Park store in Tampa, FlOrida and took a diamond department manager position. In July 2002, she was promoted to assistant manager of the Citrus Park store. Reed is currently a sales associate at the Citrus Park Store in Tampa, Florida. 125. Reed has over 30 years experience in the jewelry industry, more than ?ve of which was as an assistant manager for Sterling. 126. Reed was denied promotions on at least three separate occasions in favor of males who were less quali?ed or no more quali?ed than she. In 2003, the general manager position at Sterling?s Clearwater, Florida Jared store came open. Despite being well?quali?ed for the position, Reed was not granted an interview. The position was given to David Dion, a less-quali?ed male with only three years? tenure at Sterling and less jewelry industry -2 g- Case Document 1 Filed 03/18/08 Page 29 of 35 experience than Reed. In January 2-005, the general manager position at Sterling?s Brandon, Florida Jared store became Open. Again, Reed was not interviewed for the position. Instead, the position was given to a less-qoali?ed male, Eric Wolff, who had only two years tenure at Sterling. Finally, in March 2005', the general manager position at Sterling?s Citrus Park Jared store became open. Reed had been assistant manager at this location for approximately four years, and during the course of her tenure had on several occasions performed the duties of general manager for the store when the general manager was unavailable. Although she was interviewed for the position, Sterling gave the position to a less-quali?ed male, Avind Mohip, who had only two years of ewelry industry experience. 127. During Reed?s employment at Sterling, which is ongoing, Sterling has not posted job vacancies or provided any formal way for employees to express an interest in promotions. The only way employees have become aware of openings has been via word of mouth. Accordingly, there are likely numerous other promotional opportunities that Reed was interested in and quali?ed for, which she was not given the opportunity to apply for, that. were awarded to less quali?ed male employees. 128. During Reed?s employment at Sterling, which is ongoing, male employees have been paid higher wages than female employees for equal work in jobs requiring equal skill, effort, and responsibility that were performed under similar working conditions. For example, when Reed was promoted to assistant manager of the Citrus Park store, she was paid a salary of $32,600. In the summer of 2005, a male, JasOn May, obtained a position as an assistant manager at Sterling?s Jacksonville, Florida store deSpite having only two years? experience at Sterling and no prior jewelry industry experience. On information and belief, Reed believes that May was paid a salary of more than $36,000 per year. -29.. Case Document 1 Filed 03/18/08 Page 30 of 35 129. But for Sterling?s policy prohibiting employees from discussing their wages, Reed would likely be able to identify additional male employees who were paid higher wages than her for equal work in jobs requiring equal skill, effort, and responsibility that were performed under-similar working conditions. 130. On November 23, 2005, Reed ?led a timely charge of discrimination with the EEOC. 131. Reed received notice of her right?to-sue from the EEOC dated March 18, 2008. Linda Rhodes 132. Linda Rhodes was employed by Sterling from approximately November 2005 until approximately November 14, 2006. Rhodes was hired as a seasonal part?time sales associate at the Belden store located in Massena, New York. Shortly after being hired, Sterling modi?ed Rhodes? employment and classi?ed her as a part-time sales associate, but did not increase her pay. Rhodes excelled in the part~time sales associate position. 133. In approXimately March 2005, Sterling hired Troy Lawler, a male, to be a part? time sales associate in the Belden?s store located in Massena, New York. When Lawler was hired by Sterling in March 2005, he was paid $8.75 per hour as a part~time sales associate. When Rhodes was hired approximately six months later, she was paid only approximately $7.00 per hour as a seasonal and regular part?time sales associate in the same stere. Rhodes was paid less than Lawler in spite of the fact that she had approximately 15 years of customer service and sales experience in the testament industry when she was hired by Sterling, and Lawler had approximately three months of sales experience. In addition, Rhodes had substantial prior management experience while Lawler had no management experience. Rhodes? store manager explained to the female employees including Rhodes that Lawler -30- Case Document 1 Filed 03/18/08 Page 31 of 35 needed to be paid more than the females because he had a child to support. 134. Sterling failed to correct the inequities in Lawler?s and Rhodes? pay in spite of the fact that Rhodes was recognized by Sterling as an outstanding sales producer. Even after Rhodes was designated third key in the store, she still did not receive a raise. 135. But for Sterling?s policy prohibiting employees from discussing their wages, Rhodes would likely be able to identify additional male employees who were paid higher wages than her for equal work in jobs requiring equal skill, effort, and responsibility that were performed under similar working conditions. 136. On April 6, 2006, Rhodes ?led a timely charge of discrimination with the Equal Employment Opportunity Commission. 137. Rhodes received notice of her right to sue from the EEOC on March 18, 2008. Khristina Rodrigues 138. I Khristina Rodrigues began working for Sterling in 2001 as a sales associate. She left Sterling as an employee in good standing in 2003, and was rehjred by Sterling in June 2004. In July 2005, she was promoted to assistant manager. In March 2006, she stepped down to a sales associate position. She currently works as a part?time sales associate at a Kay Jewelers in Swansey, Massachusetts. 139. When Rodrigues was rehired by Sterling in 2004', her rate of pay was $10.00 per hour. At the time of her rehire, she had three years? jewelry industry experience, including approximately one year of experience working as an assistant manager. 140. During Rodriques? employment at Sterling, male employees were paid higher wages than female employees for equal work in jobs requiring equal skill, effort, and reSponsibility that were performed under similar working conditions. For example, in -31- Case Document 1 Filed 03/18/08 Page 32 of 35 approximately April 2005, Luis Cortes, a male with no prior jewelry experience was hired at a rate of $10.50 per hour. Rodrigues was making $10.00 per hour at the time. 141. When Rodrigues was promoted to assistant manager in July 2005, her rate of pay was increased to $11.00 per hour. When she stepped down from the assistant manager position, her rate of pay was reduced to $10.00 per hour. In approximately November 2005, Endhir ?Andy? Bonilla, a male with no previous jewelry experience, was hired as a sales associate at a rate of $14.00 per hour. This was considerably more than Rodrigues was making as an assistant manager, yet Sterling still reduced her pay even further when she stepped down to a sales position in 2006. 142. But for Sterling?s policy prohibiting employees from discussing their wages, Rodriques would likely be able to identify additional male employees who were paid higher wages than her for equal work in jobs requiring equal skill, effort, and responsibility that were performed under similar working conditions. 143. In additiOn to the pay discrimination described above, Rodrigues also experienced sexual harassment while employed at Sterling. On or about January 31, 2006," while working at a Kay store in Taunton, Massachusetts, a male store manager from another store made a sexually suggestive comment to her while visiting her store. She immediately reported this to her store manager and then to her district manager. The district manager defended the actions of the store manager and acted as if Rodrigues misunderstood him. When she asked him who else she should contact about this, he suggested she call Sterling?s TIPS Line, which she did. No one from the TIPS Line ever noti?ed her as to the results of the investigation into her complaint, even though she was told she would be noti?ed of the outcome of the investigation. -32- Case Document 1 Filed 03/18/08 Page 33 of 35 144. On July 18, 2006, Rodrigues filed a timely charge of discrimination with the EEOC. 145. Rodrigues received notice of her right-to-sue from the EEOC dated March 18, 2008. Nina Shahmirzadi 146. Nina Shahmirzadi was employed with Sterling from approximately October 10, 1997 until November 1998 at a Kay Jewelers? store in Henderson, Nevada. In 1998, she transferred to the Kay store in Las Vegas, Nevada. In approximately 2001, Shahmirzadi transferred to the Jared store in Henderson, Nevada as a part-time sales associate. In approximately the beginning of 2002, Shahmirzadi became a full-time sales associate in that store. Shahmirzadi terminated her employment with Sterling on approximately November 1, 2006. When she resigned her employment with Sterling, Shahmirzadi was 56 years old. 147. When she joined Sterling, Shahmirzadi had significant prior experience managing a jewelry store from approximately 1994 to 1997. During her employment at I Sterling, Shahmirzadi was a signi?cant sales producer. In fact, Shahmirzadi was recognized by Sterling as atop sales producer by being designated as a member of the President?s Club for years 2003, 2004, and 2005. 148. During her tenure at Sterling, Shahmirzadi was interested in being promoted to management positions and informed her district manager that she was willing to transfer to obtain a promotion. 149. In spite of her signi?cant quali?cations, Shahmirzadi was passed over for promotional opportunities that were provided to less quali?ed and younger male employees. For example, in 2005, Darren Desylvia, a male sales associate in his late teens or early twenties -33- Case Document 1 Filed 03/18/08 Page 34 of 35 was promoted to watch department manager in the Jared store in Henderson, Nevada where Shahmirzadi was employed. In August 2006, Desylvia was promoted to diamond department manager. Prior to receiving these promotions, Desylvia had very little experience in the jewelry industry and had mostly worked on a part-time basis for Sterling. Unlike Desylvia, Shahmirzadi had several years of management experience and approximately nine years of sales experience with Sterling when these promotions Shahmirzadi was quali?ed for and interested in both of these promotions. 150. Shahmirzadi was also passed over for promotions in September and November 2006. In September 2006, Andy Goldslarn, an approximately 20-year?old male, was given the third key position in the Henderson, Nevada Jared store. When he was promoted to the third key position, Goldslarn had no prior management experience. Shahmirzadi had years of management experience and had been a tOp sales performer for years. 151. During Shahmirzadi?s employment with Sterling, Sterling failed to post open management positions and did not provide any formal way for employees to express an interest in promotions. Instead, Sterling relied on a ?tap on the shoulder? promotion system. Because promotions were made pursuant to this tap on the shoulder system, Shahmirzadi is unable to identify all of the promotional opportunities that she was denied access to during her tenure at Sterling in spite of her interest in advancement. 152. On or about January 18, 2007, Shahmirzadi timely filed a charge of discrimination with the EEOC. 153. Shahmirzadi received a notice of right to sue from the EEOC on March 18, 2008. Leighla Smith 154. Leighla Smith began working for Sterling in Burlington, New Jersey at a Kay -34- Case Document 1 Filed 03/18/08 Page 35 of 35 Jewelers store as a part-time sales associate starting and was paid $8.75 per hour beginning in approximately August, 2004. 155. In approximately April, 2005 Smith transferred to a Kay store in Cupertino, California, as a full?time sales associate. Sterling had agreed to pay her $10.75 an hour at the California Kay?s, but once she arrived there, Sterling would only pay her $9.75 per hour. 156. During Smith?s employment at Sterling, male employees were paid higher wages than female employees for equal work in jobs requiring equal skill, effort, and responsibility that were performed under similar working conditions. For example, male sales associates with equal or less experience and responsibility in the Cupertino, California Kay store, including Cesar Navero and .P. (last name unknown) were paid more than Smith. 157. But for Sterling?s policy prohibiting employees from discussing their wages, Smith would likely be able to identify additional male employees who were paid higher wages than her for equal work in jobs requiring equal skill, effort, and responsibility that were performed under similar working conditions. 158. Smith was also interested in obtaining higher paying jobs at Sterling, however her opportunity was limited because Sterling did not post promotional opportunities nor did it provide any formal means for employees, like Smith, to apply for promotional opportunities. Smith, upon information and belief, believes there were promotional opportunities at Sterling that she was quali?ed for and interested in that males received who were less quali?ed or no more quali?ed than she, but because of Sterling?s illegal selection system she was not considered for them. 159. On June 7, 2006 Smith ?led a timely charge of discrimination with the EEOC. 160. Smith received her right?to-sue noticeon March 18, 2008. . -3 5-