Nike ordered to pay $7.5M
Nike ordered to pay $7.5M after jury finds gender discrimination against former engineer Heather Hender. Pexels/Mathias Reding

Nike has been ordered to pay more than $7.5 million after a federal jury in Portland, Oregon, found the sportswear giant discriminated against a former employee because of her gender.

The jury ruled that Nike paid Heather Hender, a process engineer, less than her male colleagues and promoted her more slowly during her five years at the company, in violation of both the federal Equal Pay Act and Oregon state law.

A Case Rooted In Nike's 'Boys' Club' Reckoning

The case dates back to 2018, when Hender and three other current and former Nike employees sued the company alleging systemic sex discrimination in pay and promotions. The lawsuit followed a New York Times investigation that drew on an anonymous internal survey known as 'Project Starfish', which pointed to a male-dominated culture at the Beaverton-based firm.

A judge denied the group's bid for class action status in 2022. Three of the four original plaintiffs then settled their claims, leaving Hender as the sole plaintiff to take her case to trial.

US District Judge Amy Baggio oversaw the six-day trial and narrowed proceedings to a single question: whether Hender herself, rather than Nike's wider workplace culture, had faced unlawful discrimination.

Pay Gap Evidence Presented at Trial

Hender's legal team called labour economist David Neumark, who testified that his analysis of Nike's employment data found an average gender pay gap of more than $11,000 a year between male and female staff during the relevant period.

Nike disputed Neumark's methodology and called Hender's former managers, who testified that her pay and promotion decisions were based on legitimate, performance-related factors rather than her gender.

After more than a day of deliberation, the eight-member jury, comprising one woman and seven men, sided unanimously with Hender. Jurors awarded her $19,739.52 in economic damages, plus $7.5 million in punitive damages under Oregon law. The verdict form also recorded a separate $7.5 million punitive award under federal law, though it remains unclear whether the court will treat the two as cumulative or enter a single combined judgment.

Attorney Calls Verdict a 'Message' to Corporate America

Hender's attorney, Laura Salerno Owens of Markowitz Herbold, said the jury's decision sends a message beyond the courtroom. 'We are grateful to the jury for holding Nike accountable,' she said, adding that the verdict shows 'workplace discrimination is unacceptable and has a price'.

Hender's legal team has also said it intends to appeal the earlier denial of class action status, in an effort to secure broader relief for other women who they argue experienced similar treatment at Nike.

Nike said it disagreed with the jury's findings. 'We are disappointed by the verdict and respectfully disagree with the conclusions,' a company spokesperson said, adding that Nike remains 'committed to providing a workplace where employees are treated fairly, compensated competitively, and given opportunities to grow and succeed'.

The verdict lands as one of Nike's heaviest courtroom losses since its 2018 workplace culture reckoning, and comes as gender pay gap litigation continues to test large employers across the United States. The company has not said whether it plans to appeal the jury's finding.