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11-23 Local 11 Letter To EEOC Concerning HMS Host
11-23 Local 11 Letter To EEOC Concerning HMS Host
11-23 Local 11 Letter To EEOC Concerning HMS Host
, Suite 201 • Los Angeles, California 90017 • (213) 481-8530 • FAX (213) 481-0352
Re: Request for Systemic Discrimination Inquiry at HMS Host at Sky Harbor
Ms. Miner:
We write on behalf of UNITE HERE Local 11 to formally request that the Equal
Employment Opportunity Commission (“EEOC”) issue a Commissioner Charge
regarding HMS Host (Host International, Inc.).1 Our union represents HMS Host
concessions workers at Sky Harbor International Airport. As described below, data
obtained from HMS Host indicate substantial disparities in hiring, promotion, and
compensation along racial and ethnic lines. We are also concerned that management has
adopted a biased “tap-on-the-shoulder” approach to promotion, despite official policies to
the contrary.
Below, we outline, in detail, grounds for the EEOC to investigate and issue a
Commissioner Charge concerning HMS Host’s pay and promotion practices.
Factual Allegations
1. HMS Host has paid workers of color substantially less overall than white
workers.
During 2019—the most recent full fiscal year prior to the disruptions caused by the
COVID-19 pandemic—HMS Host paid substantially more in compensation to white
workers than to other racial/ethnic groups. The following figures reflect total earnings—
including both hourly wages and tips—over the course of the fiscal year for all
employees for whom we have received race/ethnicity and compensation data from the
company (which excludes workers in management).
1
See 29 C.F.R § 1601.6 (stating that “[a]ny person or organization may request the issuance of a
Commissioner charge for an inquiry into individual or systematic discrimination. Such request, with any
pertinent information, should be submitted to the nearest District, Field, Area, or Local office”).
1. FY 2019 Pay Disparities
- Latinx workers were paid, on average, 78% of the total annual earnings of white
workers, taking home $6,343.25 less than white workers. On an average hourly
basis, Latinx workers were paid 81.9% of the compensation paid to white
workers.
- American Indian workers were paid, on average, 63% of the total annual
earnings of white workers, taking home $10,684.99 less than white workers. On
an average hourly basis, American Indian workers were paid 65.7% of the
compensation paid to white workers.
- Asian workers were paid, on average, 91% of the total annual earnings of white
workers, taking home $2,432.04 less than white workers. On an average hourly
basis, Asian workers were paid 99.5% of the compensation paid to white workers.
The underlying FY 2019 figures for each group, along with data on total hours
worked, are presented in the following chart:
2
The average hourly wage figures presented here include hourly compensation and gratuities for both
straight time and overtime.
2
2. FY 2020 Pay Disparities
Earnings for workers and employment levels were significantly reduced overall
during fiscal year 2020 because of COVID-19’s impact on air travel and employment.
Nonetheless, disparities between workers of color and white workers grew during this
period. During fiscal year 2020:
- Black/African American workers were paid, on average, 76% of the total annual
earnings of white workers, taking home $3,941.51 less than white workers.
However, on an average hourly basis, Black/African American workers were paid
only 64.8% of the compensation paid to white workers, a lower percentage than
during prior year.
- Latinx workers were paid, on average, 91% of the total annual earnings of white
workers, taking home $1,528.01 less than white workers. On an average hourly
basis, however, Latinx workers were paid only 75.5% of the compensation paid to
white workers.
The data presented above do not cover management positions, as we do not have
compensation data for those roles. However, based on the racial make-up of
management as described below and the likelihood that management positions provide,
on average, higher compensation than non-management positions, we expect that
disparities would be greater had management positions been included in the analysis.
3
2. Racial earnings gaps cannot be explained solely by differences in working
hours or years of service.
The number of hours that workers have worked each year cannot explain the racial
disparities in earnings. First, the disparate access to work opportunities can itself be a
form of unlawful discrimination—in other words, the consequence, rather than the cause,
of disparate outcomes. See, e.g., Burlington Indus. v. Ellerth, 524 U.S. 742, 760-61
(1998) (conduct prohibited by Title VII may include tangible employment actions such as
hiring, failing to promote, and assigning employees positions with significantly different
responsibilities).
Second, the degree of disparities between racial/ethnic groups far exceeds the
disparities in their hours worked. During 2019, Black/African American employees
worked on average 96% of the number of hours that white workers worked (including
straight time and overtime) but were paid on average only 67% of the compensation
(wages and tips) that white workers received. Likewise, during 2019, Latinx workers
worked on average 95% of the hours worked by white workers but were paid only 67%
of the compensation white workers received. During 2020, Black/African American
workers and Latinx workers continued to earn significantly less overall than white
workers even though both groups worked on average more hours than white workers.3
Nor can disparities be explained away as resulting simply from differences in years of
service. First, again, a group’s relatively greater average seniority may itself result from
prior discrimination in hiring, giving one group more time to accrue raises. Second, our
review of the data thus far indicates that there are no significant differences by
racial/ethnic group in terms of each group’s overall average length of service. For 2019,
Black/African American workers had worked on average 4.52 years and Latinx workers
had worked on average 4.68 years—both within 2% of the average for white workers of
4.61 years.4
3
Disparities in annual earnings did not differ significantly from differences in average hourly earnings.
4
An outlier on this factor was American Indian workers, a much smaller set of employees, who worked on
average only 1.16 years.
4
White workers are dramatically overrepresented within the company’s best-paying
roles. Bartenders and servers are among the best-paid non-management positions
because these workers receive tips on top of their base pay. In 2021, white workers make
up approximately 32% of the workforce for whom we have received race/ethnicity and
compensation data from the company, but 40% of white workers are bartenders or
servers. By contrast, Black/African American workers comprise around 25% of HMS
Host’s non-management workforce but only 4% of Black/African American workers hold
tipped bartender/server positions. In total, white workers are nearly 10 times more likely
to be in the better-paid tipped bartender/server positions than Black/African American
workers.5
5
Published EEO data for the food service industry does not differentiate between non-management food
preparation and serving workers. But white workers are overrepresented in tipped bartender/serving
positions as compared to the distribution of white workers within the regional labor market. Within the
Phoenix-Mesa-Scottsdale area, white workers outnumber Latinx workers by a factor of 2. But white
employees are 3x more likely than Latinx workers to serve as servers and bartenders at HMS Host. The
distribution of white employees in higher-paid roles exceeds the expected rate by half, which, as discussed
below, merits an inquiry into the disparity. See EEO-ALL01R - Occupation by Sex and Race/Ethnicity for
Residence Geography, Phoenix-Mesa-Scottsdale, AZ Metro Area (2014-2018), available at
https://www.census.gov/acs/www/data/eeo-data/eeo-tables-
2018/tableview.php?geotype=msa&msa=31000us38060&filetype=all1r&geoName=Phoenix-Mesa-
Scottsdale,%20AZ%20Metro%20Area.
5
Of all 66 HMS managers or supervisors (including those above) for whom workers
reported a perceived race/ethnicity:
The high representation of white persons in management positions contrasts with the
racial make-up of the company’s non-management workforce. The following are figures
from 2020 (the proportions appear to be consistent over time) for employees for whom
we have race/ethnicity data from the company:
These figures indicate that white persons are significantly more likely than persons of
color to be employed in management positions. Based on the above information,
although white non-management workers outnumber Black/African American non-
management workers by a ratio of only about 3 to 2, white senior managers outnumber
black senior managers by a margin of 12 to 1, and white managers outnumber
Black/African American managers overall by a margin of 6 to 1. Likewise, although
there are nearly the same number of white and Latinx non-management workers, white
senior managers outnumber Latinx senior managers by margin of 6 to 1 and white
managers outnumber Latinx managers overall by a margin of nearly 4 to 1.
6
The latest EEO data for supervisors of food preparation and serving workers in
the Phoenix-Mesa-Scottsdale labor market is presented below:6
Balance
Black/ American
of not
Total All Hispanic White African- Indian Asian
Hispanic
Groups or Latinx Alone American /Alaska alone
or
alone Native
Latinx
Total 15,455 5,710 6,985 680 350 1,210 520
Percent
100% 36.9% 45.2% 4.4% 2.3% 7.8% 3.4%
Total
The composition of HMS Host management noticeably diverges from the distribution
of workers employed in these positions in the Phoenix area. The most recent EEO data
indicate that Latinx workers make up 29.1% of the labor force for the Phoenix-Mesa-
Scottsdale metro area, and white workers constitute 57.4% of workers. The same data
reveal that, among supervisors of food preparation and serving workers in the region,
36.9% identify as Latinx and 45.2% identify as white. But at HMS Host, Latinx workers
comprise only 17% of the managers at the company’s Sky Harbor units. When this
figure is compared against the regional food supervisor figures, Latinx workers are less
than half as likely to be supervisors at Host than in the local labor market. These gross
deviations from the regional data—when combined with anecdotal evidence of potential
bias—supply further cause to investigate HMS Host’s hiring and promotion practices.
On the other hand, we have heard complaints from workers of color who desired
advancement but report they were not given the same degree of attention and access to
information. For example, Scott Mattos Elliott, a mixed-race Puerto Rican and Native
American employee, filed a complaint with the Phoenix Equal Opportunity Department
6
These figures can be found at the following URL: https://www.census.gov/acs/www/data/eeo-data/eeo-
tables-2018/tableview.php?geotype=msa&msa=31000us38060&filetype=all1r&geoName=Phoenix-Mesa-
Scottsdale,%20AZ%20Metro%20Area.
7
(“EOD”) this July alleging, among other things, that despite having trained other
employees, he was not approached about becoming a certified trainer, a change that
comes with a $0.50 an hour pay increase. He was certified only after filing the
complaint.
The same employee and another African-American male employee have also
complained to us that they had been referred to as “boy” by a manager and by another
white male employee.
Similarly, Obed Cardin, a Latino employee who works as a bar steward in the
American Airlines lounge, reports that he was passed over for a bartending position at
Blanco Tacos and Tequila in favor of a white employee. Mr. Cardin reports that he was
given a perfunctory interview for a floating bartender position and was told by
management that the role could be allotted as few as two shifts per month. Mr. Cardin
felt that this information was delivered in a manner that was designed to dissuade him
from accepting the job, and he declined the position. (Mr. Cardin would have accepted
the position had it included one or two shifts per week). The manager who allegedly
dissuaded Mr. Cardin subsequently permitted a white host (who was also the son of a
bartender in the unit) to move into a part-time bartending role. This employee has worked
more than thirteen shifts classified as a bartender and has also persuaded management to
hire his friend as a new host and part-time bartender. Mr. Cardin was not reapproached
after it became clear that more shifts were available.
Workers have also described additional instances where managers at HMS Host
appear to have diverged from official policy in order to advance favored employees. Per
the terms of the Collective Bargaining Agreement (“CBA”), job vacancies are awarded to
the senior qualified employee within the store (“unit”) and then are opened to other
7
This condition of promotion (which is notably absent from the Collective Bargaining Agreement between
management and the Union) also raises disparate impact concerns. Because workers of color are
disproportionately concentrated in lower-paying and high-turnover positions at HMS Host, it is more
difficult for employees and managers to recruit and retain their replacements. We are currently
investigating whether this requirement is a company-wide policy. But at a minimum, it serves as further
evidence of how unchecked discretion among lower-level supervisors could impair advancement
opportunities for workers of color.
8
employees within that classification. Subsequent openings must be filled from within the
unit before being posted on an open job list, which is maintained outside of the Human
Resources office in Terminal 3.8 But recently, at LaGrande Orange, a general manager
allegedly hired a new white bartender before offering shifts to current part-time workers
with seniority. Similarly, a Black/African American employee who has worked with the
company for six years has alleged that management at Blanco opted to promote a lighter-
skinned host into management, even though this host had less seniority. This employee
has also reported that, instead of promoting senior employees of color into management
roles, Cowboy Ciao has recruited white managers from outside of the company.
Similarly, we understand HMS Host opted to hire a white woman with no prior
experience as a Starbucks manager instead of promoting a current employee.
Management has also acted against employees that express support for racial justice.
During April 2021, HMS Host management at Sky Harbor prohibited workers from
wearing Black Lives Matter (“BLM”) masks. UNITE HERE Local 11 filed an unfair
labor practice charge with the National Labor Relations Board in June 2021 alleging that
Host management separately directed two Starbucks baristas employed by the company,
Scott Matos-Elliott and Victoria Stahl, to remove masks bearing the words “Black Lives
Matter” or “BLM,” stating that the masks’ political messaging violated company policy.
Matos-Elliott and Stahl had decided to wear the masks as part of an effort to advance
racial equity at the company. The company told Ms. Stahl that it had banned BLM masks
to placate customers; earlier, a customer in Terminal 3 had become very angry upon
seeing a barista wearing a BLM mask and had screamed at the worker.
8
Article 10.5 of the Collective Bargaining Agreement between HMS Host and the Union provides that:
Permanent job vacancies, including jobs in new or remodeled units [defined as a store], shall be
open for a period of five (5) days, and shall be awarded to the senior qualified Employee within
the unit first and then open to employees outside the unit within the classification for those who
submits a bid. Any subsequent openings resulting from the job bidding process shall be filled
from within the unit prior to being posted on the open job requisition list. […] It shall be the
responsibility of the employee to submit his or her bid directly to the HR office on a form
provided by the company.
9
Analysis
To show pattern or practice of disparate treatment, a plaintiff must "carry the initial
burden of offering evidence adequate to create an inference that" employment decisions
were "based on a discriminatory criterion illegal under the Act." International Broth.
Teamsters v. U.S., 431 U.S. 324, 358 (1977). “Where gross statistical disparities can be
shown, they alone may in a proper case constitute prima facie proof.” Hazelwood School
Dist., 433 U.S. at 307–308 (citing Teamsters, 431 U.S. at 339). See also Stender v. Lucky
Stores, 803 F.Supp. 259, 319 (N.D. Cal. 1992) (observing that “[p]roof of discriminatory
intent may be direct, circumstantial, or may be inferred from statistical evidence”).
Gross statistical disparities in earnings, hiring, and promotion at HMS Host merit an
EEOC investigation into the possibility of disparate treatment. As described above, white
workers are overrepresented within the ranks of management and the higher-paid non-
management roles. Almost two-thirds of the managers at HMS Host are white, but
among similar firms in the region, workers of color fill the majority of food service
supervisor roles. And although white workers make up only one-third of the non-
management workforce at HMS Host, 40% of white workers hold the better-paid tipped
bartender/server positions. By comparison, Black/African American workers make up
around 25% of the non-management workforce but only 4% of Black/African American
employees hold bartender/server jobs.
9
Compare Ward’s Cove Packing Co. v. Atonio, 490 U.S. 642, 651 (1989) (stating that liability will not
obtain where “the absence of minorities holding such skilled positions is due to a dearth of qualified
nonwhite applicants (for reasons that are not petitioners' fault)”).
10
negotiation. And despite the seniority policies enshrined in the CBA, workers of color
have also reported instances where they were allegedly passed over for promotion in
favor of more junior light-skinned employees.10
Should the EEOC determine, after investigation, that the disparities described above
are insufficient to support an inference of intentional discrimination, the agency may also
proceed under a disparate impact theory. To establish a prima facie case of disparate
impact under Title VII, a plaintiff is ordinarily required to isolate and identify the specific
employment practice that is allegedly responsible for statistical disparities. 42 U.S.C. §
2000e-2(k)(1)(A)(i). However, a decision-making process may also be analyzed as one
employment practice “if the complaining party can demonstrate that the elements … are
incapable of separation for analysis.” Id. § (k)(1)(B)(ii).
10
These allegations would be sufficient to establish a prima facie case of individual disparate treatment.
See McDonnell Douglas Corp. v. Green, 411 U.S. 792, 802 (1973) (stating that a plaintiff must show that
(1) he belongs to a statutorily protected class, (2) he applied for and was qualified for an available position,
(3) he was rejected despite his qualifications, and (4) after the rejection, the position remained available and
the employer continued to review applicants possessing comparable qualifications). “The burden of
establishing a prima facie case of disparate treatment is not onerous.” Texas Dep't of Cmty. Affairs v.
Burdine, 450 U.S. 248, 253 (1981).
11
Compare Stout v. Potter, 276 F.3d 1118, 1124 (9th Cir. 2002) (stating that a promotion process that
included screening panels, supervisor evaluations, validated competences, and meetings to compare
evaluations could be analyzed as several discrete elements).
11
arising from a policy of “leaving initial placement, promotion and training decisions to
the sole discretion of lower-level supervisors whose conscious and subconscious
prejudices are unchecked by objective and publicized decision making criteria.” Id.12
When HMS Host’s selection and promotion methods are analyzed as one
employment practice, strong disparities emerge. As described above, there are large
differences in representation among management and the higher-paid bargaining unit
positions, and these discrepancies cannot be readily explained through reference to the
relevant labor market or a lack of qualifications among lower-level employees of color.
Further investigation is needed concerning the root cause of these inequalities.
Conclusion
For the reasons outlined above, we request that the EEOC initiate a systemic
investigation into the pay, hiring, and promotion practices of HMS Host at Sky Harbor,
including questions of legal compliance and best practices. We are continuing to
investigate these issues and are prepared to assist the EEOC in this process by making
workers available to speak with the agency’s investigators. Please do not hesitate to
reach UNITE HERE Local 11 General Counsel Jeremy Blasi by phone at 202.251.0048
or by email at jblasi@unitehere11.org. We look forward to hearing from you.
Sincerely,
/s/
12
This principle is not disturbed by Wal-Mart Stores v. Dukes, which discussed the standard for class
certification. 564 U.S. 338, 355 (2011). There, the Supreme Court reiterated that “in appropriate cases …
giving discretion to lower-level supervisors can be the basis of Title VII liability under a disparate-impact
theory—since “an employer's undisciplined system of subjective decisionmaking [can have] precisely the
same effects as a system pervaded by impermissible intentional discrimination.” Id. (internal punctuation
omitted).
12
/s/
/s/
13