• 14
  • July
    2010

A class action lawsuit has been filed in California against 24 Hour Fitness USA Inc, known simply as "24 Hour Fitness," alleging discrimination on the basis of gender and race. Plaintiffs in the case allege that the company often restricted promotions and higher pay to employees of a specific race or gender, leaving minorities and female employees out.

Failure to provide equal compensation for equal work or withhold promotion on the basis of skin color or sex is against the law and violates both the Fair Employment and Housing Act and the California Business and Profession Code.

The California-based gym franchise has denied all allegations of employee discrimination and maintains that hiring and promotion practices fall within the law. Privately-owned, the gym chain is worth more than $1 billion and has 420 clubs around the country. It employees close to 20,500 people.

Employees involved in the discrimination lawsuit have asked for back pay and damages, as well as a court-mandated end to 24 Hour Fitness' discriminatory practices. The lawsuit was filed in Alameda County Superior Court this month and there is not yet an indication of how the case might play out.

In many such cases, employers will often settle the lawsuit without admitting guilt. While plaintiffs, technically, get what they are asking for, it is often a weak compromise at best. Especially in today's economy, it is important that companies practice honest and straightforward communication and actively work to correct problems in both organization and structure.

Most of this starts with admitting errors and shortcomings.

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