Racial Discrimination at UPS: The $237 Million Verdict and Your Rights

The $237 Million Verdict: What Happened

In September 2024, a federal jury in Spokane, Washington awarded UPS driver Damian Gratton $237.6 million—one of the largest employment discrimination verdicts in U.S. history. The jury found that UPS discriminated against Gratton, a Black driver, and then fired him in retaliation for filing complaints.

It’s important to note: Large verdicts like this are often appealed, and the final amount may be reduced or settled after trial. The case revealed disturbing allegations: a white manager repeatedly called Gratton "Boy," telling him to "Move faster, Boy, let's go!" Gratton filed grievances in 2018, 2020, and 2021 alleging racial discrimination. After years of complaints, UPS fired him—claiming performance issues that Gratton’s attorneys argued were pretextual.

This verdict sends a clear message: racial discrimination at UPS can have massive consequences. If you’re experiencing similar treatment, you have legal rights and options.

Recognizing Racial Discrimination

Racial discrimination at work isn’t always obvious slurs or explicit statements. Understanding the different forms it can take helps you recognize when your rights are being violated.

• Direct discrimination: Racial slurs, epithets, derogatory comments, racist "jokes," or explicit statements about how race affects workplace decisions. The Gratton case involved direct discrimination: a manager repeatedly calling a Black employee "Boy" is textbook racist language with deep historical roots in dehumanization.

• Disparate treatment: This happens when you’re disciplined more harshly than white coworkers for similar conduct, denied promotions or opportunities given to less-qualified white employees, assigned worse routes or schedules, or subjected to more scrutiny than your white peers. The key is comparison: are you being treated differently than similarly-situated white employees?

• Hostile work environment: Racist conduct that is severe or pervasive enough to alter your working conditions. This can include repeated racist comments, imagery, management tolerating racist behavior, or systematic isolation and exclusion based on race.

• Retaliation: If you complain about discrimination and then face negative treatment—discipline, demotion, termination, or being labeled a "troublemaker"—that’s illegal retaliation. In the Gratton case, retaliation for filing complaints was central to the massive verdict. Retaliation claims can succeed even if the underlying discrimination claim does not.

Your Rights Under Federal Law

Two major federal laws protect you from racial discrimination at work:

Title VII of the Civil Rights Act

Title VII prohibits employment discrimination based on race, color, religion, sex, and national origin. UPS, with approximately 500,000 employees, is fully covered. Title VII protects you from discrimination in hiring, firing, pay, promotions, job assignments, harassment, and retaliation.

Illegal harassment must be severe or pervasive enough to create a hostile work environment. A single incident can be enough if it’s severe (like a physical assault or explicit threat), but usually a pattern of conduct is required.

Section 1981

This law provides additional protections against racial discrimination in contracts, including employment. Unlike Title VII, Section 1981 has no cap on damages, allows claims against individuals (not just employers), and has a longer statute of limitations (4 years for most claims).

The Gratton verdict likely included Section 1981 claims, which allowed for the massive damages award. Most verdicts are much smaller; outcomes depend on the facts and evidence.

Discrimination Patterns at UPS

The Gratton case isn’t isolated. UPS has faced multiple lawsuits and EEOC actions alleging discrimination.

Pattern of complaints:

• Multiple racial discrimination lawsuits filed in 2024 alone (alleged by plaintiffs)

• EEOC settlements for disability discrimination

• Class action allegations of systemic racial bias

• Complaints about discriminatory discipline and termination

Common allegations:

• Black drivers disciplined more harshly than white drivers

• Racial harassment tolerated by management

• Retaliation against employees who complain

• Discriminatory assignment of routes and schedules

If you’re experiencing discrimination at UPS, you’re not alone—and the legal system has shown it will hold employers accountable.

How to Document Discrimination

Documentation is crucial. The Gratton case succeeded in part because there was evidence of racist language and a clear timeline of complaints followed by retaliation.

What to document:

• Date, time, and location of incidents

• Exactly what was said or done

• Who was involved (names and titles)

• Any witnesses

• Your response

• How you’re treated compared to white coworkers

• Discipline records (yours vs. others for similar conduct)

• Assignment patterns and promotion decisions

• Every complaint you make, to whom, and when

• Responses you receive

• Any changes in treatment after complaining

How to document:

• Keep a written log (notebook or digital, off UPS systems)

• Email yourself notes immediately after incidents

• Save written communications and screenshots

• Keep copies of performance reviews, discipline records, schedules

Important: Don’t record conversations unless it’s legal in your state (check one-party vs. two-party consent laws).

Reporting Discrimination

Internal Reporting

UPS has internal processes for discrimination complaints. Reporting internally creates a record and gives UPS a chance to fix the problem. It may also be required before filing with the EEOC.

Steps to take:

1. Report to your supervisor (unless they’re the problem)

2. Contact HR or the ethics hotline

3. Put your complaint in writing

4. Keep copies of everything

What to include:

• Specific incidents with dates and details

• Names of people involved

• Any witnesses

• What you’re asking UPS to do

Filing with the EEOC

If internal reporting doesn’t resolve the issue, you can file a charge with the Equal Employment Opportunity Commission.

Time limits:

• 180 days from the discriminatory act (federal deadline)

• 300 days if your state has its own civil rights agency (most states do)

• Don’t wait—deadlines are strictly enforced

How to file:

• Online: www.eeoc.gov/filing-charge-discrimination

• In person: Visit your local EEOC office

• By mail: Download forms from the EEOC website

The EEOC investigates, may offer mediation, and can issue a “right to sue” letter even if it doesn’t find in your favor. This allows you to proceed in court.

State and Local Agencies

Many states have their own civil rights agencies with additional protections and longer deadlines. Check your state’s rules for remedies and time limits.

Retaliation: What to Watch For

Retaliation claims are often stronger than the underlying discrimination claims. In the Gratton case, retaliation—firing after years of complaints—was central to the verdict.

What counts as retaliation:

• Termination, demotion, denial of promotion

• Reduction in hours or pay

• Negative performance reviews

• Discipline for minor issues

• Undesirable schedule or route changes

• Hostile treatment from management

• Exclusion from meetings or opportunities

Timing matters:
If negative treatment follows closely after a complaint, that timing is evidence of retaliation. Courts recognize circumstantial evidence like timing.

Protecting yourself:

• Document your performance before complaining (save positive reviews, emails praising your work)

• Document any changes in treatment after complaining

• Continue doing your job well

• Report retaliation immediately, in writing

Union Protections

UPS drivers are often represented by the Teamsters union. If you’re a union member:

• File a grievance through your union

• Contact your shop steward

• The union may provide legal support

• Collective bargaining agreements may have anti-discrimination provisions

Union grievances and EEOC charges are separate processes. Union outcomes may be limited compared to what’s possible in court.

What Damages Are Available

The Gratton verdict shows what’s possible in discrimination cases, but most verdicts are much smaller.

Compensatory damages:

• Back pay (wages you lost)

• Front pay (future lost wages)

• Emotional distress

• Medical expenses related to discrimination

Punitive damages:

• Designed to punish the employer

• Available when conduct is especially egregious

• No cap under Section 1981

Title VII caps:
Title VII caps compensatory and punitive damages based on employer size, but Section 1981 has no caps, which is why verdicts like Gratton’s are possible.

Appeals process:
Large verdicts are often appealed, and the final amount may be reduced or settled. Outcomes depend on the facts, evidence, and legal arguments.

If You Witness Discrimination

If you see discrimination at UPS, you can support coworkers by:

• Documenting what you observe (dates, details, people involved)

• Offering to be a witness if needed

• Reporting concerns through internal channels or to the EEOC

Witness testimony can be powerful evidence in discrimination cases.

Using Caira to Build Your Case

Caira can help you:

• Understand discrimination law and your rights

• Document incidents systematically

• Compare your treatment to legal standards

• Draft complaints to HR or the EEOC

• Prepare for meetings with attorneys

Documents to upload:

• Performance reviews

• Discipline records

• Communications about incidents

• Your documentation log

• UPS policies on discrimination and harassment

Questions to ask Caira:

• “Does this conduct constitute racial harassment?”

• “How do I file an EEOC charge?”

• “What’s the deadline for filing in my state?”

• “Is this retaliation for my complaint?”

Empower Yourself

You have rights, and the law is on your side. Many employees succeed simply by being persistent, documenting everything, and following the proper steps. If you face obstacles, don’t give up—there are clear processes to protect you.

The key is to act while you still can. Deadlines matter in employment law, and waiting too long can cost you your claims. Document everything, understand your options, and take informed action.

Caira can help. She’s delightful to chat to.

She helps you feel more confident and less anxious about employment law issues—whether you’re facing discrimination, termination, or just want to understand your rights. Backed by 50,000 legal documents for all 50 states, Caira can:

• Answer your questions instantly 24/7

• Review and explain emails, policies, or termination letters

• Draft statements or responses for HR or agencies

• Give feedback on your filled-in forms or the other party’s arguments

• Analyze your uploaded documents, screenshots, or pay stubs

• Help you track deadlines and next steps for your state

Try Caira for free—no credit card required.

This information is for educational purposes and is not legal, financial, or tax advice. Discrimination law is complex and fact-specific. Outcomes vary depending on the evidence submitted and its strength.