Merck Hit With $100 Million Sex Discrimination Lawsuit

Author: Marta Moakley, Brightmine Legal Editor

A sales representative has filed a class action lawsuit against her employer, Merck & Co., seeking $100 million in damages for discrimination against female employees with respect to compensation and promotion opportunities. Kelli Smith v. Merck & Co., Inc., No. 3:33-av-00001 (D. N.J. filed May 9, 2013). Consequently, employers should ensure that any internal compensation systems or promotion processes do not have an adverse impact on female employees, especially those who have taken or will take pregnancy or maternity leave.

Merck, the second-largest US pharmaceutical corporation, maintains that it has strong policies against discrimination and retaliation. In a statement, Merck notes that it provides paid parental leave, six-month job protected child care leave and flexible work arrangements to its employees.

However, the female plaintiff in the lawsuit alleges that, after taking maternity leave, she was demoted, received reduced pay and was rated poorly during performance reviews. In addition, she alleges that her chances for promotion are significantly reduced based on her sex.

Because Merck ties compensation and promotion opportunities to a system in which pay is linked to overall team productivity, the lawsuit alleges that female sales representatives who are either pregnant or may become pregnant are at a disadvantage because their overall productivity will decline if maternity leave is taken. The female employee also claims that her internal complaints were met with intimidation and that the overall atmosphere at Merck is nurturing and tolerant to male employees as opposed to female employees.