• •

MARY JO O'NEILL #005924 C. EMANUEL SMITH SALLY C. SHANLEY # 012251 EQUAL EMPLOYMENT OPPORTUNITY COMMISSION Phoenix District Office 3300 North Central Avenue, Suite 690 Phoenix, Arizona 85012 Telephone: (602) 640-5032
Attorneys for Plaintiff

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IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF UTAH, CENTRAL DIVISION

Equal Employment Opportunity Commission
Plaintiff,
VS.
Newonics, Inc. Defendant.

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COMPLAINT AND JURY TRIAL DEMAND

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NATURE OF THE ACTION

This is an action under the Equal Pay Act of 1963 and Title VII of the Civil Rights Act of 1964 and Title I of the Civil Rights Act of 1991 to restrain the unlawful payment of wages to employees of one sex at rates less than the rates paid to employees of the opposite sex, and to provide appropriate relief due to Deborah Wayland as a result of such unlawful practices. The Commission alleges that Newonics, Inc. paid Deborah Wayland at wage rates which are less than the rates paid to its male employees performing substantially equal work, as an Assembly Lead, and otherwise discriminated against her because of her sex, female and retaliated against her when she complained about unequal wages.

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JURISDICTION AND VENUE 1. Jurisdiction of this Court is invoked pursuant to 28 U.S.C. §§ 451, 1331, 1337,
1343 and 1345. This action is authorized and instituted pursuant to Sections 16(c) and 17 of the Fair Labor Standards Act of 1938 (the "FLSA"), as amended, 29 U.S.C. §§ 216(c) and 217, to enforce the requirements of the Equal Pay Act of 1963, codified as Section 6(d) of the FLSA, 29 U.S.C. § 206(d), and pursuant to Section 706(f)(1) and (3) of Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e-5(f)(1) and (3) ("Title VII") and pursuant to Section 102 of the Civil Rights Act of 1991,42 U.S.C. § 1981a. 2. The employment practices alleged to be unlawful were committed within the jurisdiction of the United States District Court for the District of Utah.
PARTIES 3. Plaintiff, the Equal Employment Opportunity Commission ( "Commission"), is the
agency of the United States of America charged with the administration, interpretation and enforcement of the Equal Pay Act and Title VII, and is expressly authorized to bring this action by Sections 16(c) and 17 of the FLSA, 29 U.S.C. "§§ 216(c) and 217, as amended by Section 1 of Reorganization Plan No. 1 of 1978, 92 Stat. 3781, and Public Law 98-532 (1984), 98 Stat. 2705; and by Section 706(f)(1) and (3) of Title VII, 42 U.S.C. § 2000e-5(f)(1 )and (3). 4. At all relevant times, Defendant, a Utah corporation, has continuously been doing business in the State of Utah and Salt Lake City, and has continuously had at least 15 employees. 5. At all relevant times, Defendant Employer has continuously been an employer engaged in an industry affecting commerce within the meaning of Sections 701 (b), (g) and (h) of Title VII, 42 U.S.C. §§ 2000e(b), (g) and (h). 6. At all relevant times, Defendant Employer has acted directly or indirectly as an employer in relation to employees and has continuously been an employer within the meaning of Section 3(d) of the FLSA, 29 U.S.C. § 203(d).
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7. At all relevant times, Defendant Employer has continuously employed employees engaged in commerce or in the production of goods for commerce within the meaning of Sections 3(b), (i) and U) of the FLSA, 29 U.S.C. §§ 203(b), (i) and U) has continuously been an enterprise engaged in commerce or in the production of goods for commerce within the meaning of Sections 3(r) and (s) of the FLSA, 29 U.S.C. §§ 203(r) and (s), in that said enterprise has continuously been an enterprise whose annual gross volume of sales made or business done is not less than $500,000. STATEMENT OF CLAIMS Count One- Employment Discrimination on the Basis of Sex, Female
42 U.S.C. § 2000e-2(al
8. More than thirty days prior to the institution of this lawsuit Deborah Wayland filed a charge with the Commission alleging violations of Title VII by Defendant. All conditions precedent to the institution of this lawsuit have been fulfilled.
9. Since at least November 1, 1999, Defendant has engaged in unlawful employment practices at its West Valley City location, in violation of Section 703(a) ofTille VII, 42 U.S.C. §§2000e-2(a) by discriminating against Deborah Wayland because of her sex, female.
10. The effect of the practices complained of in paragraph 9 above has been to deprive Deborah Wayland of equal employment opportunities and otherwise adversely affect her status as an employee, because of her sex, female.
11. The unlawful employment practices complained of in paragraph 9 were intentional.
12. The unlawful employment practices complained of in paragraph 9 above were done with malice or with reckless indifference to the federally protected rights of Deborah Wayland. Count Two - EBual Pay Act Violation
29 U.S.C. § 2 6(d)(1l and 215(a)(2)
13. Since at least November 1, 1999, Defendant Employer has violated Sections
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6(d)(1) and 15(a)(2) of the FLSA, 29 U.S.C. §§ 206(d)(1) and 215(a)(2) and 215(a)(3), by paying wages to its female Assembly Lead, Deborah Wayland, in its West Valley City facility, at rates less than the rates paid to male employees in the same establishment for substantially equal work on jobs the performance of which requires equal skill, effort, and responsibility, and which are performed under similar working conditions. 14. As a result of the acts complained of in paragraph 13, Defendant Employer unlawfully has withheld and is continuing to withhold the payment of wages due to Deborah Wayland. 15. The unlawful practices complained of in paragraph 13 above were willful.
Count Three - Retaliation 16. In March, 2000, Defendant violated Section 15(a)(3) of the FLSA, 29 U.S.C. §
215(a)(3) by discharging Deborah Wayland because she complained about the unlawful acts complained of above. 17. Since at least March, 2000 , Defendant has engaged in unlawful retaliatory practices by terminating her for opposing practices which she reasonably believed were unlawful in violation of Section 704(a) of Title VII, 42 U.S.C. § 2000e-3(a). 18. The effect of the practices complained of in paragraphs 16 and 17 above has been to deprive Deborah Wayland of equal employment opportunities and otherwise adversely affect her status as an employee, because of her opposition to unlawful discrimination. 19. The unlawful employment practices complained of in paragraphs 16 and 17 were intentional. 20. The unlawful employment practices complained of in paragraphs 16 and 17 above were done with malice or with reckless indifference to the federally protected rights of Deborah Wayland.
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PRAYER FOR RELIEF Wherefore, the Commission respectfully requests that this Court: A. Grant a permanent injunction enjoining the Defendant, its officers, successors, assigns and all persons in active concert or participation with it, from engaging in unequal payment of wages and in any other employment practice which discriminates on the basis of sex. B. Grant a permanent injunction enjoining the Defendant its officers, successors, assigns and all persons in active concert or participation with it, from discriminating within any of its establishments between employees on the basis of sex, by paying wages to employees of one sex at rates less than the rates at which it pays wages to employees of the opposite sex for substantially equal work on jobs the performance of which requires equal skill, effort, and responsibility, and which are performed under similar working conditions. C. Order Defendant Employer to institute and carry out policies, practices and programs which provide equal employment opportunities for women and those who participate in proceedings under the EPA or Title VII or who oppose practices made unlawful by the EPA or Title VII and which serve to eradicate the effects of its past and present unlawful employment practices. D. Order Defendant Employer to make whole Deborah Wayland by providing appropriate back pay with prejudgment interest, in amounts to be proved at trial, and other affirmative relief necessary to eradicate the effects of its unlawful employment practices, including but not limited to reinstatement or front pay. E. Grant a judgment requiring Defendant Employer to pay appropriate back wages in amounts to be determined at trial, and an equal sum as liquidated damages or prejudgment interest in lieu thereof, to Deborah Wayland whose wages are being unlawfully withheld as a result of the acts complained of above. F. Order Defendants to post and keep posted the notices required by Section 105 of
5

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the ADA, 42 U.S.C. § 12115, which incorporates by reference Section 711 (a) of Title VII, 42 U.S.C. § 2000e-10(a).
G. Order Defendants to make whole Deborah Wayland by providing compensation for past and future nonpecuniary losses resulting from the unlawful practices complained of above, including emotional pain, suffering, inconvenience, loss of enjoyment of life, and humiliation, in amounts to be determined at trial.
H. Order Defendants to pay Deborah Wayland punitive damages for its malicious and reckless conduct, as described above, in amounts to be determined at trial.
I. Grant such further relief as the Court deems necessary and proper in the public interest.
J. Award the Commission its costs. JURY TRIAL DEMAND
The Commission requests a jury trial on all questions of fact raised by its complaint.

RESPECTFULLY SUBMITTED this 2yth day of June, 2002.

PAUL M. WARNER United States Attorney
~\~ CARLIE CHRIS I ENSEN Civil Chief MAGGIE HUGHEY ABUHAIDAR Assistant U.S. Attorney UNITED STATES ATTORNEY 185 S. State #400 Salt Lake City, Utah 84111 (801) 325-32"1-3 Associated Local Counsel for Plaintiff

GWENDOLYN YOUNG REAMS Associate General Counsel EQUAL EMPLOYMENT OPPORTUNITY COMMISSION 1801 L Street, N.w. Washington, D.C. 20507 ,
Supervisory Trial Attorney

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EQUAL EMPLOYMENT OPPORTUNITY COMMISSION Phoenix District Office 3300 North Central Avenue, Suite 690 Phoenix, Arizona 85012 (602) 640-5032 Attorneys for Plaintiff
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MARY JO O'NEILL #005924

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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF UTAH, CENTRAL DIVISION

Entered on docket
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Equal Employment Opportunity Commission,
Plaintiff,
vs.
Newonics, Inc.,

CASE NO. 2:02 CV-0632C Judge Tena Campbell
CONSENT DECREE

The United States Equal Employment Opportunity Commission (the "Commission" or "EEOC") filed this action against Newonics, Inc., ("Newonics" or "Defendant") to enforce Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, and the Equal Pay Act. In the Complaint, the Commission alleged that Defendant discriminated against Ms.
Deborah Wayland in violation of the Equal Pay Act, 29 U.S.C. §§ 206 (d)(1) and 215(a)(2) and Title VII, 42 U.S.C. § 2000e-2(a), by paying her lower wages than those paid to male
employees performing substantially equal work. The Commission further alleged that
Defendant discriminated against Ms. Wayland in violation of Title VII, 42 U.S.C. § 2000e-
2(a),because of her sex, female and retaliated against her when she complained about unequal wages. Defendant denies that it violated the Equal Pay Act, or otherwise discriminated against Ms. Wayland and contends that there were justifiable, non-

discriminatory reasons for any pay differences. In the interest of resolving this malter, and as a result of having engaged in
comprehensive settlement negotiations, the Parties have agreed that this action should be finally resolved by entry of this Decree.
The Parties do not object to the jurisdiction of the Court over this action and waive their rights to a hearing and the entry of findings of fact and conclusions of law.
It is hereby ORDERED, ADJUDGED AND DECREED: 1. This Decree resolves all claims of the Commission against Defendant, including back pay, compensatory and punitive damages, interest, injunctive relief, attorney's fees, and costs arising out of the issues in this lawsuit.
INJUNCTION 2. Defendant and its officers, agents, employees, successors, assigns, and all persons in active concert or participation with it, both at the time that this Decree becomes effective and for the duration of this Decree, agree that for the duration of the Decree, and at all times thereafter, they are enjoined from: (a) unlawfully paying any female employee less than a male employee for substantially equal work; (b) terminating any employee due to his or her sex.
MONETARY RELIEF 3. Defendant hereby agrees to pay the sum of twenty thousand dollars ($20,000), as set forth in the following paragraphs. 4. These payments represent settlement of back wages in the amount of $2,000.00 and compensatory damages in the amount of $18,000.00. Defendant will pay all payroll taxes it owes on the back wages for the tax year during which payment is made, and deduct the additional payroll taxes owed by Ms. Wayland. Defendant will issue United States Internal Revenue Service Form 1099 to Ms. Wayland for the compensatory damages for the tax year during which payment is made. 5. The settlement shall be paid as follows:

?is Consent Decree Erik Strindberg

-2-

~SaIlY Shanley

a. An initial payment of $2,000.00, representing back wages shall be made within ten days of the entry of this Decree. b. A second payment of $2500.00, shall be made thirty days after the payment specified in paragraph a. c. Subsequent payments of $1500.00 per month shall be made on the first of each month, commencing on February 1,2004, and continuing until paid. d. There shall be no penalty for early payment. e. The damage amount will be secured by a personal guarantee executed by Cheri McPhie and Douglas McPhie, attached as Exhibit A. 6. Defendant shall pay the settlement amounts to Ms. Deborah Wayland by check or money order made payable to Ms. Wayland and mailed to the address provided by the Commission. Within three business days of the issuance of each check or money order, Defendant shall submit a copy of the check or money order and all related correspondence to Mary Jo O'Neill, Regional Attorney, Equal Employment Opportunity Commission, 3300 North Central Avenue, Suite 690, Phoenix, Arizona 85012.
OTHER RELIEF 7. Defendant shall expunge from the personnel file of Ms. Wayland: (a) all references to the charge of discrimination filed against Defendant that formed the basis of this action; (b) all references to Ms. Wayland's participation in this action; (c) any derogatory document which relates to complaints or investigation of complaints of wage discrimination and unlawful termination based on sex; and (d) any other documents relating to the reasons for the termination of Ms. Wayland's employment (Defendant may retain documentation showing that her employment ended, however). 8. Defendant shall continue to institute and carry out policies and practices that help assure a work environment free from wage discrimination based on sex, and unlawful termination based on sex. To assist Defendant in its efforts to assure such a work environment, Defendant shall take the actions provided in paragraphs 9 through 16 of this

6"
Consent Decree /SErik Strindberg -3-

~sallY Shanley

Decree. NOTICE
9. Defendant shall post for the duration of this Decree, in a prominent place frequented by its employees at its facilities, the Notice attached as Exhibit B. The Notice shall be the same type, style and size as set forth in Exhibit B.
TRAINING 10. Defendant shall continue to provide training on wage discrimination and unlawful termination based on sex, according to the following terms:
A. Defendant shall retain and pay a consultant/lecturer who shall provide training to its employees for a period of two years from the date of this Decree, on the issues of addressing wage discrimination and unlawful termination based on sex. During the first year, the consultant/lecturer shall conduct one live seminar training session. The live session in the first year may be videotaped for use in subsequent years, All of Defendant's employees, including managers, officers, and directors, shall attend the live session or a videotaped showing of the live session each year. Defendant may at its election have duplicative videotaped sessions to accommodate staffing needs. Defendant shall be responsible for any additional costs to provide such duplicative sessions.
B. Defendant shall obtain the EEOC's approval of the consultant/lecturer selected by Defendant to provide the training described above. At least sixty (60) days prior to the proposed training session, Defendant shall submit the name(s), address(es), telephone number(s) and resume(s) of the proposed consultant/lecturer(s), together with the dates of the proposed training session and an outline of the contents of the training, to the Regional Attorney of the Phoenix District Office of the EEOC, at the address provided above. The Commission shall have thirty (30) days from the date of receipt of the information described above to accept or reject the proposed consultant/lecturer and/or the contents of the seminar. In the event the Commission does not approve the designated consultant/lecturer and/or the contents of the training and Defendant refuses, after appropriate notice, to make the

1:<;
Consent Decree _(_ Erik Strindberg -4-

~ Sally Shanley

requested changes or modifications, the Commission may designate the consultant/lecturer at a cost not to exceed $2000.00 per seminar session, which shall be paid by Defendant.
C. During the first year, 2004, the seminar training sessions shall be conducted within six months of the entry of this Decree. During the second year, the seminar-training sessions shall be conducted between eleven (11) and thirteen (13) months after the completion of the preceding session.
D. The seminar training sessions shall be no less than two hours, plus fifteen to thirty minutes of questions and answers. All of Defendant's employees shall register when they attend a seminar-training session. The registry of attendance shall be retained by Defendant for the duration of this Decree.
E. The seminars shall include: (1) what constitutes wage discrimination and unlawful termination based on sex; (2) that Title VII and the Equal Pay Act are violated by wage discrimination based on sex; (3) that Title VII is violated by termination based on sex; (4) how to prevent wage discrimination and unlawful termination based on sex; (5) how to provide a work environment free from wage discrimination and unlawful termination based on sex; and (6) to whom and by what means employees may complain if they feel they have been subjected to wage discrimination or unlawful termination based on sex in the workplace. The session shall also review and explain Defendant's policies set out in this Decree.
F. During the live training sessions, Defendant's President shall speak to the employees about the legal consequences faced by companies that tolerate wage discrimination and unlawful termination based on sex; the importance of maintaining an environment free of wage discrimination and unlawful termination based on sex, and Defendant's policies in regard to wage discrimination and unlawful termination based on sex, referred to in paragraph 12 of this Decree. The President shall explain that managers and supervisors will be evaluated, in part, on their enforcement of policies prohibiting wage discrimination and unlawful termination based on sex, and their response to complaints of wage discrimination or unlawful termination based on sex.

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Consent Decree (SErik Strindberg -5-

~ Sally Shanley

11. The Commission, with reasonable notice, may designate Commission representatives to attend and participate in the seminar-training sessions, and the representatives shall have the right to attend and fully participate in the sessions.
POLICIES AND PROCEDURES 12. Within sixty (60) days of the entry of this Decree, Defendant shall develop written policies concerning wage discrimination and unlawful termination based on sex, to conform with the law, and submit the policy for review to the Regional Attorney of the Phoenix District Office of the EEOC at the address provided above. These written policies must include at a minimum:
A. A strong and clear commitment to a workplace free of wage discrimination and unlawful termination based on sex;
B. A clear and complete definition of wage discrimination and unlawful termination based on sex;
C. A statement that wage discrimination and unlawful termination based on sex is prohibited and will not be tolerated;
D. A clear and strong encouragement of persons who believe they have been subjected to wage discrimination or unlawful termination based on sex to come forward;
E. The identification of specific individuals, internal and external to Defendant, with their telephone numbers, to whom employees, who have been subjected to wage discrimination or unlawful termination based on sex, can report the unlawful conduct, including a written statement that employees may report the unlawful conduct to designated persons outside of their chain of management. The statement shall explain that, should a non-English speaking employee seek to report wage discrimination or unlawful termination based on sex, Defendant shall provide an interpreter for purposes of taking the report and further communicating with the employee about the reported incidents;
F. An assurance that Defendant will investigate allegations of wage discrimination

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Consent Decree L /Erik Strindberg -6-

~SaIlY Shanley

or unlawful termination based on sex promptly, fairly, reasonably and effectively, using

appropriate investigators, and that appropriate corrective action will be taken by Defendant to

make victims whole and to eradicate the unlawful conduct.

G. A description of the consequences, up to and including termination, that will be

imposed upon violators of the policy;

H. A promise of maximum feasible confidentiality for persons who believe that they

have been subjected to wage discrimination or unlawful termination based on sex;

I.

An assurance of non-retaliation for persons who believe they have been

subjected to wage discrimination or unlawful termination based on sex, and for witnesses.

13. These policies shall be distributed to each of Defendant's current employee within

ninety (90) days of the entry of this Decree. These policies shall be distributed to all new

employees of Defendant when hired. These policies also shall be posted in a prominent place

frequented by the employees.

14. Defendant shall promptly and appropriately investigate all complaints by its employees

of wage discrimination or unlawful termination based on sex. The investigation must include a

finding of whether the alleged conduct occurred, a credibility assessment, if necessary;

interviews of all potential victims and witnesses identified; and concurrent notes of the

investigation. Defendant shall take immediate appropriate corrective action to make victims of

the unlawful conduct whole, to discipline those who engaged in the unlawful conduct, and to

eradicate the unlawful conduct.

15. Defendant shall not retain documents related to the investigation of complaints of wage

discrimination or unlawful termination based on sex in any of the complainant's personnel files.

All disciplinary actions taken against employees for violation of Defendant's policies regarding

wage discrimination or unlawful termination based on sex shall be retained in the wrongdoer's

personnel file. In those cases in which no conclusion could be reached on the allegations, the

investigation documents shall be retained in an investigation file.

REPORTING BY DEFENDANT AND ACCESS BY EEOC

/--~~.'
>,L, Consent Decree _L_ Erik Strindberg -7-

~ Sally Shanley

16. Defendant shall report in writing and in affidavit form to the Regional Attorney of the Commission's Phoenix District Office, at the address provided, beginning six months from the date of the entry of this Decree, and thereafter every year for the duration of the Decree, the following information:
A. Any changes, modifications, revocations, or revisions to its policies and procedures which concern or affect the subjects of wage discrimination and unlawful termination based on sex. B. The name, address, position, social security number, and telephone number of any individual who has brought allegations, whether formal or informal, of wage discrimination and/or unlawful termination based on sex, against Defendant' personnel including, but not limited to, management officials and/or non-management employees, during the first six months, and thereafter every year, preceding the report to the EEOC. The nature of the complaint, investigatory efforts made by Defendant, and corrective action taken, if any, also shall be specified. C. The registry of persons attending the seminars required in paragraph 10 of this Decree and a list of current personnel employed by Defendant on the days of the seminar training sessions. D. Confirmation that (1) the Notice required in paragraph 9 of this Decree was posted and the locations where it was posted; (2) the policies required in paragraph 12 were distributed to each current and new employee of Defendant, and posted; (3) the expungement Ms. Wayland's personnel files required in paragraph 15 of this Decree took place, the date of the expungement, and the specific documents expunged. 17. The Commission, upon reasonable notice and agreement, shall have the right to enter and inspect Defendant's premises and work sites to ensure compliance with this Decree and the prohibitions of wage discrimination and unlawful termination based on sex contained in the Equal Pay Act and Title VII.
COSTS AND DURATION

L= //,/
Consent Decree Erik Strindberg

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~ Sally Shanley

18. Each Party shall bear its costs and attorney's fees incurred as a result of this action through the filing of this Decree. 19. The duration of this Decree shall be twenty-four (24) months from its entry. This Court shall retain jurisdiction over this action for the duration of the Decree, during which the Commission may petition this Court for compliance with this Decree. Should the Court determine that Defendant has not complied with this Decree, the Court may order appropriate relief, including extension of this Decree for such period as may be necessary to remedy its non-compliance, an award of attorney's fees and costs, and fines for contempt of court. 20. In the event Defendant is in non-compliance with any provision of this Decree and refuses to come into compliance after appropriate notice from the Commission, and the Commission petitions the Court to order Defendant to comply, Defendant shall pay all attorney's fees and costs incurred by the Commission to enforce the Decree. 21. Absent extension, this Decree shall expire by its own terms at the end of twenty-four (24) months from the date of entry without further action by the Parties. 22. The Parties agree to entry of this Decree subject to final approval by the Court.

Dated this2LUday of ~ ,2003

~"'~ TEAAMt.L
United States District Judge

~Erik Consent Decree

Strindberg -9-

~ Sally Shanley

APPROVED AND CONSENTED TO:

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Erik Strindberg, Esq.

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Lauren I. Scholnick, Esq.

Strindberg & 44 Exchange

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L.L.C. Floor

Salt Lake City, UT 84111

Attorneys for Defendant

MARY ,o,slill§ Regiona

EQUAL EMPLOYMENT OPPORTUNITY
COMMISSION Phoenix District Office 3300 North Central Avenue, Suite 690 Phoenix, Arizona 85012 (602) 640-5032 Attorneys for Plaintiff

,(
Consent Decree _c_ Erik Strindberg -10-

~SaIIY Shanley

CERTIFICATE OF SERVICE

~day ~2003 I hereby certify that on the

of

a true and correct copy of the

foregoing

was mailed, first class, postage prepaid, to:

Erik Strindberg, Esq. Lauren I. Scholnick, Esq. Strindberg & Scholnick, L.L.C. 44 Exchange Place, 2nd Floor Salt Lake City, Utah 84111 Attorneys for Defendant

Carlie Christensen Civil Chief
Maggie H. AbuHaidar Assistant U. S. Attorney UNITED STATES ATTORNEY
185 South State, #400 Salt Lake City, Utah 84111 Associated Local Counsel for Plaintiff

U:\current clients\Newonics\consentdecree_11-20.wpd

Consent Decree t( SErik Strindberg -11-

~ Sally Shanley

EXHIBIT A

PERSONAL GUARANTY OF PAYMENT
1. FOR VALUABLE CONSIDERATION, the undersigned ("Guarantors") personally ~Juaranty and promise to pay up to TWENTY THOUSAND DOLLARS ($20,000) of the payments due by Newonics, Inc. ("Newonics") to be paid to EEOC in the event that Newonics fails to make the payments as required in paragraph 3 of the Consent Decree entered in the lawsuit captioned EQUAL EMPLOYMENT OPPORTUNITY COMMISSION V. NEWONICS, INC., 2:02 CV-0632C in the United States District Court for the District of Utah (the "Consent Decree"). All payments made by Newonics shall reduce the amount guarantied by the Guarantors under this Guaranty on a dollar-for-dollar basis by the amount of the payments made. In no event shall Guarantors obligations under this Guaranty exceed $20,000.00
2. The obligations of Guarantors hereunder shall survive and continue in full force and effect until a total of $20,000, has been paid pursuant to the Consent Decree. Guarantors shall not be liable for Newonics 's failure to comply with any other provision of the Consent Decree.
3. Newonics and EEOC may not, without the prior written consent of Guarantors, renew, modify, compromise, extend, accelerate or otherwise change the time for payment or the amount of any payment or otherwise change the terms of the Consent Decree or any part thereof.
4. In the event of any court proceedings arising out of this Guaranty, the prevailing party's court costs and attorneys' fees shall be paid by the non-prevailing party and set by the court and not by jury.
5. This Guaranty shall be governed by and construed according to the laws of the State of Arizona.
6. Any action or proceeding arising out of this Guaranty shall be brought solely in a court of competent jurisdiction located in the United States District Court for the District of Utah.
SIGNED this :?o day of November, 2003
Guarantors Cherie McPhie and Douglas McPhie, husband and wife~/ ~
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Address: ~S5() 5'0. DecKe~ k1:.c (Stud #(/
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EXHIBIT B

NOTICE TO ALL EMPLOYEES OF NEWONICS, INC.
This Notice is posted pursuant to a Consent Decree entered into between Newonics, Inc. and the Equal Employm,nt Opportunity Commission (the EEOC).
It is unlawful under federal law, Title VII of the Civil Rights Act and state law to discriminate against an employee on the basis of sex, including sexual and gender based harassment, in the recruitment, hiring, firing, compensation, assignment, or other terms, and conditions or privileges of employment. Sexual harassment includes unwelcome or offensive sexual advances or touching, requests for sexual favors, or other verbal or physical conduct directed at a person because of his/her sex. It is also unlawful to retaliate against any person because the person protested discriminatory practices or contacted the EEOC.
An employer shall not discriminate against any employee on the basis of sex, including sexual and gender-based harassment, and shall not retaliate against any employee.
If you believe you have been discriminated against by your employer, you have the right to seek assistance from:
(1) EEOC, 3300 North Central Avenue, Suite 690, Phoenix, Arizona 85012, (602) 640-5000; or
(2) The Utah Antidiscrimination Division of the Labor Commission (the UALD) (801-532-6840)
You have the right to file a charge with the EEOC or the UALD if you believe you are being discriminated against.
No Retaliation Clause. No action may be taken against you by any supervisory or management official of Newonics, Inc., for (1) opposing discriminatory practices made unlawful by federal or state law; (2) filing a charge or aSSisting or participating in the filing of a charge of discrimination; or (3) assisting or participating in an investigation or proceeding brought under Title VII. Should any such retaliatory actions be taken against you, you should immediately contact the EEOC at the address or telephone numbers listed above.

alt United States District Court
for the District of Utah December 31, 2003
* * CERTIFICATE OF SERVICE OF CLERK * *
Re: 2:02-cv-00632
True and correct copies of the attached were either mailed, faxed or e-mailed by the clerk to the following:
Mr. Erik Strindberg, Esq. STRINDBERG & SCHOLNICK 44 EXCHANGE PL 2ND FL SALT LAKE CITY, UT 84111 EMAIL
Magg:ie H. Abuhaidar, Esq. US A'rTORNEY'S OFFICE
:84111 EMAIL
Sally Shanley, Esq. EQUAL EMPLOYMENT OPPORTUNITY COMMISSION PHOENIX DISTRICT OFFICE 3300 N CENTRAL AVE STE 690 PHOENIX, AZ 85012-1848 EMAIL

 </s> CM/ECF - U.S. District Court:utd - Docket Report

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Electronic Case Filing System District of Utah (Central)
CIVIL DOCKET FOR CASE #: 2:02-cv-00632-TC

CLOSED

EEOC v. Newonics Assigned to: Judge Tena Campbell Demand: $0 Cause: 28:0451 Employment Discrimination
Plaintiff Equal Employment Opportunity Commission

Date Filed: 06/28/2002 Date Terminated: 12/31/2003 Jury Demand: Plaintiff Nature of Suit: 442 Civil Rights: Jobs Jurisdiction: U.S. Government Plaintiff
represented by Maggie H. Abuhaidar US ATTORNEY'S OFFICE (UT) SALT LAKE CITY, UT 00000 (801)524-5682 Email: maggie.abuhaidar@usdoj.gov LEAD ATTORNEY ATTORNEY TO BE NOTICED
Sally C. Shanley EQUAL EMPLOYMENT OPPORTUNITY COMMISSION (AZ) PHOENIX DISTRICT OFFICE 3300 N CENTRAL AVE STE 690 PHOENIX, AZ 85012-1848 (602)640-5032 Email: sally.shanley@eeoc.gov LEAD ATTORNEY ATTORNEY TO BE NOTICED
C. Emanuel Smith EQUAL EMPLOYMENT OPPORTUNITY COMMISSION (AZ) PHOENIX DISTRICT OFFICE 3300 N CENTRAL AVE STE 690 PHOENIX, AZ 85012-1848 (602)640-5000 Email: emanuel.smith@eeoc.gov ATTORNEY TO BE NOTICED
Mary Jo O'Neill EQUAL EMPLOYMENT OPPORTUNITY COMMISSION (AZ) PHOENIX DISTRICT OFFICE 3300 N CENTRAL AVE STE 690 PHOENIX, AZ 85012-1848 (602)640-5000

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V. Defendant Newonics

Email: mary.oneill@eeoc.gov ATTORNEY TO BE NOTICED
represented by Erik Strindberg STRINDBERG & SCHOLNICK 426 N 300 W SALT LAKE CITY, UT 84103 (801)359-4169 Email: erikecf@xmission.com LEAD ATTORNEY ATTORNEY TO BE NOTICED
April L. Hollingsworth STRINDBERG & SCHOLNICK 426 N 300 W SALT LAKE CITY, UT 84103 (801)359-4169 Email: aprilecf@xmission.com ATTORNEY TO BE NOTICED
Lauren I. Scholnick STRINDBERG & SCHOLNICK 426 N 300 W SALT LAKE CITY, UT 84103 (801)359-4169 Email: laurenecf@xmission.com ATTORNEY TO BE NOTICED

Date Filed 06/28/2002 07/02/2002
07/31/2002 08/01/2002
08/05/2002

#

Docket Text

1 Complaint filed, assigned to Judge Tena Campbell. Receipt no.: Waived (alt) (Entered: 07/01/2002)
2 Motion and Order signed by Judge Tena Campbell , 07/02/02 Granting motion/PHV for Attorney Sally Shanley, Mary Jo O'Neill, C. Emanuel Smith on behalf of plaintiff EEOC cc:attys (tsh) (Entered: 07/03/2002)
3 Answer to Complaint by Newonics (tsh) (Entered: 08/01/2002)
Clerk's mailing of certificate of acknowledgment of alternative dispute resolution option. Mailed or faxed to plaintiff EEOC, defendant Newonics (tsh) (Entered: 08/01/2002)
4 Magistrate Notice of Hearing Initial Pretrial Conference set for 10:30 11/18/02 To be held before Judge Alba cc:atty ( Ntc generated by: RNB's secretary) (ce) (Entered: 08/05/2002)

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08/06/2002 08/15/2002 11/12/2002 11/13/2002
11/25/2002 03/05/2003 03/14/2003 04/07/2003 04/24/2003 04/28/2003 04/28/2003 05/01/2003 05/07/2003 05/19/2003 06/30/2003 07/09/2003 07/11/2003
08/08/2003

5 Certificate of election filed by defendant Newonics Refer to: mediation. cc: ADR Admin (tsh) (Entered: 08/07/2002)
6 Certificate of election filed by plaintiff EEOC Refer to: normal litigation track (tsh) (Entered: 08/19/2002)
7 REPORT of Attorney Planning Meeting (kvs) (Entered: 11/14/2002)
8 Scheduling order setting; Joining of parties, amending of pleadings on 5:00 1/15/03 ; Deadline for filing of all motions 5:00 9/30/03 ; Discovery cutoff 5:00 8/29/03 ; Attorney Conference by 1/26/04 ; Final Pretrial Conference for 3:00 2/9/04 ; 5-Day Jury Trial for 8:30 3/1/04 Rule 26(f)(1) cnf held. Expert witness disclosure dates set. Not Referred to ADR. Discovery limits set. Signed by Judge David Nuffer 11/12/02 cc:atty. (tsh) (Entered: 11/15/2002)
9 Certificate of service by EEOC re: Pla's Initial Rule 26(a)(1) Disclosure Statement (tsh) (Entered: 12/02/2002)
10 Certificate of service re: 1st set of interrogs, req for admissions & req for prod/docs by Newonics (alt) (Entered: 03/06/2003)
11 Return of summons executed as to Newonics c/o Allen Sims, 7/16/02. Answer due on 8/5/02 for Newonics (alt) (Entered: 03/14/2003)
12 Certificate of service re: resp to 1st req for admissions by EEOC (alt) (Entered: 04/07/2003)
13 Joint motion by EEOC, Newonics to extend time to 7/30/03 for disc ddl (alt) (Entered: 04/25/2003)
14 Order of Reference signed by TC 4/27/03, 636(b)(1)(A). Mag Judge to hear & determine any nondispositive pretrial matters. cc: atty (alt) (Entered: 04/28/2003)
Case referred to magistrate under 28:636(b)(1)(A). (alt) (Entered: 04/28/2003)
15 Case referred to Judge David Nuffer cc: atty (alt) (Entered: 05/02/2003)
16 Order granting [13-1] joint motion to extend time to 7/30/03 for fact disc ddl; signed by Judge David Nuffer, 5/6/03 cc:atty (alt) (Entered: 05/07/2003)
17 Certificate of service re: disc responses by EEOC (alt) (Entered: 05/20/2003)
18 Certificate of service re: 1st set of interrogs, 1st req for admissions & 1st req for prod/docs by EEOC (alt) (Entered: 06/30/2003)
19 Stipulation by EEOC, Newonics stip to extend time to 8/31/03 for disc cutoff (alt) (Entered: 07/09/2003)
20 Order granting [19-1] stipulation motion stip to extend time to 8/31/03 for disc cutoff, discovery due set for 8/31/03 signed by Judge Tena Campbell , 7/10/03 cc:atty (Entered: 07/11/2003)
21 Certificate of service re: dft's answers to pla EEOC's 1st set of non-unniform interrogs, ans to pla's 1st req for admissions & ans to pla's 1st req for prod/docs by Newonics (alt) (Entered: 08/11/2003)

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09/04/2003 09/11/2003 12/31/2003
12/31/2003 12/31/2003

22 Joint motion by EEOC, Newonics to extend time for disc ddl to 9/30/03 and for motion filing to 10/31/03 (alt) (Entered: 09/08/2003)
23 Order granting [22-1] joint motion to extend time for disc ddl to 9/30/03 and for motion filing to 10/31/03, discovery due set for 9/30/03 , motion filing deadline set for 10/31/03 signed by Judge David Nuffer, 9/11/03 cc:atty (alt) (Entered: 09/12/2003)
24 Consent judgment for EEOC against Newonics; Dft is enjoined from gender discrimination in pay and employment and dft agrees to pay $2,000 in settlement of back wages and $18,000 in compensatory damages. Each pty to bear own costs & fees. See Consent for details. Signed by TC, 12/30/03 [EOD Date 12/31/03] (alt) (Entered: 12/31/2003)
CASE NO LONGER REFERRED TO Judge David Nuffer (alt) (Entered: 12/31/2003)
Case closed per Consent no. 24 (alt) (Entered: 12/31/2003)

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[CONTENT] June 2002 | the Phoenix District Office | EEOC | Newonics, Inc. | the U.S. District Court | Utah | the Equal Pay Act | 1963 | EPA | Title VII | the Civil Rights Act | 1964 |||  |||  ||| December 2003 ||| two-year | EPA | Title VII | EEOC | 20,000 [SUMMARY] In June 2002, the Phoenix District Office of the EEOC brought this suit against Newonics, Inc. in the U.S. District Court for the District of Utah alleging discrimination on the basis of sex in violation of the Equal Pay Act of 1963 ("EPA") and Title VII of the Civil Rights Act of 1964.  Specifically, the defendant paid the charging party, a female employee, at wage rates less than it paid its male employees for completing essentially the same work.  In addition, the defendant retaliated against the charging party by terminating her when she complained of the discrimination.  After some scheduling orders, the parties settled through consent decree in December 2003.  

The two-year decree required the defendant to: expunge the charging party's personnel file from all references to the charge of discrimination, post a notice of the consent decree, provide annual EPA and Title VII training, develop and distribute  a written anti-discrimination policy, report to the EEOC at specified intervals, and pay $20,000 to the charging party.

