Nike likely averts trial by settling 2018 sex discrimination lawsuit

Published 3:30 pm Wednesday, February 19, 2025

An expected trial appears to have been averted as Nike and plaintiffs have reached a tentative settlement stemming from a sex discrimination lawsuit that had its beginnings seven years ago.

First reported by OregonLive, the settlement includes agreements with the four remaining plaintiffs, as well as an unspecified class of plaintiffs, stemming from accusations that women at Nike were treated unfairly compared with male staffers.

A two- to three-week trial was set to begin in Portland’s U.S. District courtroom March 10. After an attorney conference Feb. 11, a settlement is in the works.

In a court document filed Aug. 9, 2018, in U.S. District Court several accusations were leveled against the Beaverton-based shoe and apparel company, claiming violations of federal and state equal pay acts and state equality acts.

It was alleged in the document that women were devalued and demeaned at the company and that women were judged more harshly than men, leading to lower salaries, smaller bonuses and fewer stock options.

The plaintiffs listed in the 2018 document were Kelly Cahill and Sara Johnston. The women brought the suit on behalf of themselves and other women in similar situations. Johnston worked at Nike from June 2008 to November 2017. Cahill worked at Nike from October 2013 to July 2017, in a director position.

Cahill resigned from Nike citing a hostile work environment, while Johnston resigned citing less pay and fewer promotions as reasons. Johnston also noted a hostile work environment toward women.

Among the accusations noted in the District Court document are that Nike’s hostile work environment “devalues its female employees and adversely impacts their compensation and their promotional opportunities.”

Also, “Nike’s most senior executives caused and reinforced a hostile workplace for women.”

Several specific incidents were reported in the court filing, including that a senior manager mentioned a female employee’s breasts in an email, which resulted in a verbal warning from human resources.

In another incident, a female employee’s male manager bragged to her about the condoms he always carried. Male supervisors also reportedly discussed women’s bodies and called women vulgar names.

In addition to reports of hostility and sexual harassment at the Beaverton firm, the court filing claimed that Nike’s budgeting system for annual salary increases in bonuses adversely impact women.

Many women said they were marginalized, harassed and thwarted in their careers. Nike also came under attack for systemic gender discrimination in pay.

Lawyers for the plaintiffs, according to the OregonLive reporting, have continued to fight to make the lawsuit a class action.

There is no word on when the tentative settlement agreement will be finalized. While there is a proposed class settlement, there’s no word on specifics.

Nike has not only had to contend with the sex discrimination lawsuit, but in February 2024, Nike announced plans to lay off 2% of its workers, or roughly 1,600 workers, over several weeks. Those layoffs were expected to impact its global workforce. Three months prior, Nike said it planned to cut $2 billion in expenses over a period of three years, which included some layoffs.

Efforts to reach Nike for comment on the sex discrimination lawsuit were not successful.