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June 14, 2022

Jury Awards $1.85 Million in Damages to Former Costco Employee on Claims of Disability Discrimination

After a multi-day jury trial, a California jury recently awarded a former Costco employee $1,700,000 in non-economic damages and $150,000 in punitive damages on her claims for disability discrimination.
Home » News » Jury Awards $1.85 Million in Damages to Former Costco Employee on Claims of Disability Discrimination

Sarah M. Block
Tue, 06/14/2022

After a multi-day jury trial, a California jury recently awarded a former Costco employee $1,700,000 in non-economic damages and $150,000 in punitive damages on her claims for disability discrimination. In Martinez v. Coscto Wholesale Corp., Case No. 3:19-cv-01195 (C.D. Cal.), Marisa Martinez brought suit against her former employer under the California Fair Employment and Housing Act, arguing that Costco discriminated against her based on her disability when it denied her opportunities to travel to trade shows, threatened to demote her and put her on unpaid administrative leave, and constructively discharged her from her position as a management-level buyer. Martinez also argues that the company failed to accommodate her disability of severe anxiety with panic attacks, particularly related to travel to Mexico.

Martinez, a 25-year Costco employee, had held a position as a Mexico Buyer for 12 years. She had only traveled to Mexico seven times while in this position On one trip, one of the cars in her caravan was held up at gunpoint. In 2019, Martinez was diagnosed with severe anxiety and panic attacks, and her doctor noted that Martinez has an extreme fear of travel to Mexico which is exacerbating her panic attacks. Her doctor also stated that Martinez should not travel to Mexico for six months or until she feels that appropriate safety measures are in place.

Martinez repeatedly raised concerns about her safety while traveling to Mexico to Costco, but Costco failed to sufficiently respond to her concerns or provide confirmation of any safety protocols to be implemented. However, Costco informed Martinez that none of her other travel would be approved until she took a trip to Mexico, and also informed her that a scheduled trip to Tijuana did not count as a trip to Mexico. Costco subsequently denied her approval to travel to attend multiple trade shows, despite trade show attendance being an important part of her job as a buyer. Costco then told Martinez that if she did not travel to Mexico City, she would be given 60 days to find another position or move to a non-management Inventory Control Specialist Position. In February 2019, Martinez took a medical leave of absence as a result of her worsening health condition, and she eventually resigned from Costco in March 2019 for alternative employment.

After the court denied Costco summary judgment on the Plaintiff’s disability discrimination claims, noting that the denial of trade show attendance and threats of demotion could constitute actionable adverse actions under California law, an eleven-day jury trial was held in May and June 2022. The jury ultimately ruled in favor of Martinez, awarding her 1.85 million in damages. The court entered judgment in the full amount of the jury award on June 9, 2022.

If you think you have been subjected to any type of employment discrimination, including discrimination based on disability, please do not hesitate to reach out to MSE through our website for further information about your rights.

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