Feds sue Forum Shops over alleged discrimination

By Steve Green

Published Wednesday, July 1, 2009 | 12:30 p.m.

Updated Wednesday, July 1, 2009 | 6:03 p.m.

A federal agency has sued the owner of the Forum Shops at Caesars, charging that three to four years ago, Hispanic janitors there were subjected to discrimination including racial slurs.

Simon Property Group Inc. of Indianapolis, owner of the mall on the Las Vegas Strip, was sued in U.S. District Court in Las Vegas on Tuesday by the U.S. Equal Employment Opportunity Commission.

Simon on Wednesday strongly denied the allegations against it and criticized the EEOC's filing of the suit more than two years after the complaints were first investigated.

The EEOC said it sued on behalf of Enrique Bautista, Hugo Erives, Jose Gutierrez, Rigoberto Gutierrez and others similarly situated.

The lawsuit said the janitors were subjected to "harassment resulting in a hostile work environment based on their national origin (Hispanic/Latino.)"

"The unlawful employment and discriminatory practices include but are not limited to physical intimidation and verbal harassment ... by repeated use of the term 'wetback' and other derogatory comments directed against them based on their national origin," the lawsuit charged.

Santos Albarran, a program analyst at the EEOC district office in Los Angeles, said in an interview that the alleged discrimination took place in 2005 and 2006 and that none of the custodial workers named in the complaint are still working at the Forum Shops.

Albarran said a supervisor allegedly involved in the discrimination had been terminated by the Forum Shops, in part because of the racial harassment claims.

Simon Property Group officials have previously told the EEOC they addressed the problem, Albarran said.

But the agency sued "to make sure it does not happen again," he said.

The EEOC is seeking an injunction against Simon forbidding it from discriminating against employees on the basis of national origin as well as monetary damages for the affected workers, Albarran said.

But Simon spokesman Les Morris in Indianapolis called the complaint "wholly without merit" and "over-reaching."

"We find it distressing that the federal EEOC would evaluate this case for over two years in isolation without seeking our input," he said in a statement.

"What makes the federal action even more preposterous is that in 2006, after a prompt and thorough investigation of these same facts, the Nevada Equal Rights Commission issued a finding of no probable cause and dismissed the action. The EEOC has failed to specify any new or additional facts that would justify ignoring the no probable cause finding of the state agency," Morris said.

"It is critical to understand that none of the complainant's were fired or suffered any of loss of pay or any other adverse employment action, consistent with the Nevada Equal Right Commission's finding of no probable cause,'' Morris said. "We are acutely dismayed by this filing because Simon prides itself as being an employer of choice, treating its employees with respect and in full accordance with all fair employment laws."

"We look forward to vigorously defending ourselves," Morris said.

Simon's code of corporate conduct specifically prohibits discrimination.

"The company is committed to providing a work environment that is free from any form of discrimination on the basis of race, ethnicity, gender, creed, religion, age, disability or sexual orientation. It is our policy to provide equal opportunity to all employees with regard to hiring, pay rates, training and development, promotions, and other terms of employment. Employment decisions will comply with all applicable employment laws.

"The company will not tolerate harassment, including sexual harassment, in any form. This includes verbal or physical conduct that demeans or threatens any employee, creates a hostile work environment, unreasonably interferes with an individual's work performance or otherwise adversely affects an individual's employment," the code says.

Simon in March was named the most admired company in the nation in the real estate industry by Fortune magazine. Those rankings are based on factors including social responsibility. Simon has also been honored for its Youth Foundation, which works to advance educational opportunities, career development and life skills for at-risk youth around the country.

Simon is the nation's largest mall owner. Besides the Forum Shops, its Las Vegas properties are the Las Vegas Outlet Center and the Las Vegas Premium Outlets.