Popular clothing store Wet Seal is set to pay more than $7 million to settle a wrongful termination suit filed by an African American employee. The retailer, which operates in states including California, had come under fire for racial discrimination after the distribution of policies that discouraged minorities from holding leadership positions.
A former employee from Pennsylvania was the lead plaintiff in the class-action suit that was filed in federal court against the clothing company. At least $5.58 million of the $7.5 million settlement will be set aside for current and former African American employees. Minority workers were denied promotion opportunities. Further, African American managers were often fired without just cause, presumably because they did not fit the company's "image."