More Self-Inflicted Wounds? Fox Hit With Race Discrimination Lawsuits

It was humming along, the major cable news network in America, raking in billions in profits.

Now Fox News  has lost (forced out) its visionary chief executive officer, Roger Ailes, and its top star,  Bill OReilly, both accused of sexual harassing female subordinates for decades.  Fox  paid  Ailes and OReilly tens of millions in severance to leave, not to mention millions in damages to their alleged victims.

And now Fox is reeling from a second wave of discrimination complaints – this time involving race discrimination. A Fox News spokesperson has denied the claims and said the network will “vigorously defend these cases.”

Two black women who worked in the Fox News payroll department, Tichaona Brown and Tabrese Wright, filed a race discrimination lawsuit   in New York state court on March 28 alleging  that Fox Controller Judith Slater, who was fired by Fox on Feb. 28, subjected “dark-skinned employees” to racial animus.

Eleven past and present Fox workers joined the lawsuit Tuesday, complaining that they were  humiliated, paid less than white coworkers and passed over for promotions. [Read more…]

Bill O’Reilly and the Market-Driven Approach to Halting Sexual Harassment

Note: Bill O’Reilly was fired by Fox News on 4/19/17 after an advertiser revolt stemming from pubilcity surrounding his settlement of five sexual harassment lawsuits. “After a thorough and careful review of the allegations, the company and Bill O’Reilly have agreed that Bill O’Reilly will not be returning to the Fox News Channel,” 21st Century Fox, the parent company of Fox News, said in a statement. The departure of O’Reilly, who was Fox’s biggest money-maker, is yet another example of the devastating risk that employers take when they tolerate an abusive workplace.  More than 50 advertisers withdrew from his prime-time show, and 21st Century Fox asked a law firm to investigate a complaint from a woman who said O’Reilly dropped efforts to make her a contributor in 2013 after she turned down his invitation to visit his hotel room

In one sense,  Bill OReilly and Fox News work for the corporations that buy commercial time on”The O’Reilly Factor.” There would be no O’Reilly Factor without commercial advertising.

It is significant that  more than 20 corporate advertisers withdrew their advertising dollars from The O’Reilly Factor after the New York Times reported that Fox and O’Reilly paid $13 million to five women to settle allegations of sexual harassment.  This is evidence of a simple but effective strategy to address human rights abuses in the workplace.  Corporations promise to only purchase products from employers that maintain highly ethical, humane standards in the workplace.

This  “market driven model”  has been surprisingly successful in other contexts.

For example, beginning in 2011, members of the Fair Food Standards Council,  including McDonald’s and Walmart, pledged to only buy tomatoes from farm growers who implement a human rights-based code of conduct that is monitored and enforced by the Council.  Judge Laura Safer Espinoza a retired New York State Supreme Court justice who is director of the Council, told the EEOC in 2015 that the market-driven model had  in “four short years” ended decades of impunity for perpetrators of sexual harassment and sexual violence Florida’s tomato growing industry. [Read more…]

Fox News: The Cost of Sexual Harassment

Fox News has gone from being the stolid and leading voice of conservatism in the United States to a network wracked with turmoil.

This week, it was announced that Fox  is losing it’s leading on-air female personality, Megyn Kelly, 46, who is moving to NBC. Her 9 p.m. show, “Kelly File,” was the second-highest rated in cable news. Kelly reportedly eschewed an offer from Fox for more than $20 million per year to extend her contract and stay.

Fox’s turmoil began last Fall when its parent company, 21st Century Fox, paid $20 million to former Fox News anchor Gretchen Carlson to settle a sexual harassment suit filed against Roger Ailes, 76, who led the Fox News network for 20 years. Since then, more than 20 former and current female employees at Fox News, including Kelly, came forward to complain about sexual harassment by Ailes dating back to the 1960s.

Whether or not sexual harassment spurred Kelly’s departure, it played a role in destabilizing the network and made Fox appear vulnerable to other networks in search of top talent.

Clearly, 21st Century Fox was the major loser in this debacle.

At the end of the day, 21st Century Fox’s losses will be staggering. [Read more…]

Outfoxed: Carlson Settles for $20 Million & Apology

Former Fox News Anchor Gretchen Carlson  has received among the largest payouts in history  – $20 million – to settle a sexual harassment case.

Ironically, the case was settled not by the defendant, former Fox News chairperson Roger Ailes, but by his former employer, 21st Century Fox, the parent company of Fox news.  Ailes, 76, won’t pay a dime. (Not only that,  Ailes received a $40 million payout from Fox when he left his job under pressure in July.)

It is speculated Tuesday that Carlson, a former Miss America,  secretly tape recorded Ailes, whom she alleged refused to renew her contract after she refused to have sexual relations with  him.

The largest sexual harassment award in history is believed to have occurred in 2011 when a federal jury in Tennessee awarded $95 million to Ashley Alford, a young employee who was  sexual  harassed and physically assaulted by a supervisor  at the rent-to-own company, The Aaron’s Inc. The award included $15 million in compensatory damages and $80 million in punitive damages. U.S. District Court Judge J.  Michael Reagan subsequently reduced  the amount the jury awarded Alford on the sexual harassment claim from $4 million to $300,000 pursuant to a federal statutory cap. on damages under Title VII of the Civil Rights Act. Judge Reagan also vacated $50 million of the punitive damages award. That still left Alford with about $41 million.

In addition to the monetary award, 21st Century Fox issued a press release stating:  “We sincerely regret and apologize for the fact that Gretchen was no treated with the respect and dignity that she and all of our colleagues deserve.”

Meanwhile, two other women at Fox reportedly were offered settlements after complaining about sexual harassment.

Carlson’s complaint appears to have prompted the sudden departure of Fox personality Greta Van Susteren from the network on Tuesday. Susteren had publicly defended Ailes and accused Carlson of retaliating against Ailes after  being fired due to poor ratings.

Carlson received little support generally from her former Fox colleagues. In addition to Van Susteren, more than a dozen top personalities at Fox News including Sean Hannity, Neil Cavuto and Kimberly Guilfoyle defended Ailes against claims of sexual misconduct.