UPDATED Details of the Abercrombie & Fitch Settlement: Wondering How Much Class Counsel Was Awarded?

Apparently, the judge agreed to the proposed settlement for the discrimination charges against Abercrombie & Fitch. . (See earlier posts here and here.)

I have now located a copy of the actual decree; it is about 70 pages long; there is a brief summary from the company website as well. Here are some of the details, including how much class counsel will be paid (try to guess first!):


1. The creation of an Office of Diversity, headed by a Vice President of Diversity. There is much detail provided in the agreement as to how the VP of Diversity is to be selected (e.g., the Lead Counsel and EEOC have an opportunity to review the selected candidate’s credentials prior to the final hiring decision). The VP of Diversity will be reporting to the CEO or COO.

2. Additional EEOC, diversity and inclusion training programs. The agreement stipulates that managers will receive training on compliance with the agreement, EEO issues, laws about discrimination, and diversity issues. This training is to take “no less than two hours” for each participant. During the term of the agreement, ongoing training is ordered.

3. Internal Complaint Procedures (they are modified their present system)

4. Enhanced compliance and oversight processes - This will include revising its manager performance evaluation forms to include diversity-related indicators and increasing its reporting, record keeping and compliance meetings. The performance evaluation forms for managers will be revised to include ratings on compliance with Abercrombie’s EEO policies; attainment and management of diversity; and efforts to meet the goals of the agreement.

5. Job analyses and selection criteria will be created for the in-store positions, using an industrial psychologist. Structured interviews are one of the new tools to be used in hiring. Abercrombie agreed to NOT include a number of criteria in hiring for store positions, such as enrollment in a target college, participation in frat or sorority activities, and related factors.

5. Benchmarks for achieving a diverse workforce - Abercrombie & Fitch has agreed to use its best efforts to increase its current numbers of minority employees in hourly sales and store management positions. Among other things, the company will hire recruiters charged with recruiting minority applicants, will use a diversity consultant for training, and will attend minority job fairs and recruiting events.

6. Abercrombie agrees to establish a fund of $40,000,000 (that’s 40 million) plus interest, to provide monetary awards to “Class representatives, charging parties, etc.

7. Last but not least, how much do you think Class Counsel is awarded? Can you guess? The agreement stipulates that class counsel will be paid: $7,250,000 (that’s 7 and ¼ million dollars) to cover all expenses (except for future expenses, for which another 600,000 will be paid.


Go here for more details!