Nike, based in Beaverton, Oregon, said the company “opposes discrimination of any type and has a long-standing commitment to diversity and inclusion.” (Photo: Shutterstock)

Nike Inc. was sued for sexual discrimination by former female employees who say women were “devalued and demeaned” by the company, where they are passed over for promotions, paid less than their male counterparts and ignored when they complain.

The lawsuit, filed Thursday in federal court in Portland, Oregon, seeks class-action status and accuses the maker of athletic footwear and apparel of violating the Federal Equal Pay Act and similar state laws. The plaintiffs, former employees Sara Johnston and Kelly Cahill, say the company's employment policies are hostile to women.

“The ultimate arbiters of these policies or practices are a small group of high-level executives who are majority male,” the former employees say in the complaint.

Nike, based in Beaverton, Oregon, said the company “opposes discrimination of any type and has a long-standing commitment to diversity and inclusion.”

“We are committed to competitive pay and benefits for our employees,” the company said in a statement. “The vast majority of Nike employees live by our values of dignity and respect for others.”

Nike shares have gained 37 percent in the past year. The stock surged in late June, reaching a record high at the time, after North American sales rose for the first time in four quarters, signaling that Nike's new products are catching on with U.S. shoppers. The company has been promising investors that slowing growth and revenue declines in its largest market were only a short-term trend.

The case is Cahill v. Nike Inc., 18-cv-1477, U.S. District Court, District of Oregon (Portland).

— With assistance by Eben Novy-Williams

Copyright 2018 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.

Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.