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Pay Discrimination & Retaliation Against US Workers

Pay discrimination in fashion industry against American executives.

The Hidden Cost of High Fashion: Pay Discrimination

Behind the glittering runways and exclusive boutiques of the high fashion industry, complex human stories often unfold out of the public eye. Brands like LVMH and Stella McCartney project an image of elegance and prestige. However, the internal operations of these celebrated organizations can sometimes reveal a starkly different reality for the professionals working tirelessly behind the scenes.

Recently, the legal battle initiated by Andrew Dershaw, a former senior executive at Stella McCartney, has brought these hidden workplace issues directly into the spotlight. After dedicating over a decade to building the brand’s presence in the United States, Dershaw filed a federal lawsuit alleging severe retaliation, pay discrimination, and pricing misconduct. His story serves as a powerful reminder that prestige does not automatically guarantee a fair or equitable workplace.

This post explores the serious implications of pay discrimination and retaliation against American employees. By examining the details of Dershaw’s lawsuit and outlining the federal legal protections available to workers, we can better understand the vital importance of workplace fairness and the legal avenues available to those facing similar injustices.

 

The Case of Andrew Dershaw: A Deeper Look

For fourteen years, Andrew Dershaw was a cornerstone of Stella McCartney’s U.S. operations. He successfully grew the brand’s American wholesale business, overseeing more than $40 million in annual revenue across hundreds of retail accounts. Despite this extensive loyalty and success, his recent federal complaint paints a troubling picture of corporate exploitation and retaliation.

Allegations of Pricing Misconduct

According to the lawsuit, Dershaw raised serious objections in early 2025 to a coordinated pricing strategy imposed on U.S. retailers. Internal communications allegedly described this strategy as anti-competitive and illegal. When Dershaw refused to participate, he claims the company immediately retaliated by drastically reducing his bonus. The lawsuit notes that LVMH and Stella McCartney continued this pricing strategy despite growing scrutiny in Europe. Notably, the European Commission later fined Loewe, another LVMH-owned brand, €18 million for similar anti-competitive practices.

Allegations of Pay Discrimination

LVMH and Stella McCartney built a system designed to extract maximum value from an American executive who gave them fourteen years of loyalty and successfully grew their U.S. business into what it is today, while ensuring he would never be treated as an equal,” said Bennitta L. Joseph, Founding Partner at Joseph & Norinsberg

The complaint also details profound pay disparities. Dershaw claims he was the only American male on a senior leadership team composed almost entirely of European executives. When a European executive was terminated in 2024, Dershaw assumed her full responsibilities. However, he was reportedly denied her title and was paid roughly half of her compensation.

The disparities allegedly worsened during the COVID-19 pandemic. Dershaw’s salary was reduced by approximately 30%, while the compensation of his European counterparts remained unchanged. During this same period, public filings indicate that Stella McCartney increased her own compensation by a staggering £221,000. Following his internal complaints about these wage issues, Dershaw received his first negative performance review in fourteen years, resulting in further financial penalties and tens of thousands of dollars in unreimbursed business expenses.

The Human Toll

The cumulative impact of these actions caused immense personal and professional harm. The relentless pressure and unequal treatment ultimately forced Dershaw to take medically prescribed leave in October 2025 after receiving diagnoses for Major Depressive Disorder and Generalized Anxiety Disorder. His lawsuit now brings claims under the Equal Pay Act, New York Human Rights Laws, and whistleblower retaliation statutes, demanding accountability from one of the world’s most powerful fashion conglomerates.

Legal Protections for American Employees

Dershaw’s experience highlights a critical vulnerability that many American professionals face in globalized industries. Fortunately, robust legal frameworks exist to protect employees from national origin discrimination and retaliation.

National Origin Discrimination

Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on race, color, religion, sex, and national origin. The Equal Employment Opportunity Commission (EEOC) strictly enforces these protections for all national origin groups, including U.S. citizens. An employer cannot legally treat an applicant or employee unfavorably simply because they are from the United States.

Prohibited Discriminatory Practices

Discrimination can manifest in several ways, from subtle biases to overt policies. Title VII strictly bars discriminatory job advertisements, such as postings that explicitly prefer foreign visa holders over qualified American workers. Furthermore, unequal treatment during the recruitment or termination processes is illegal. If an employer subjects U.S. workers to more burdensome application requirements or terminates American workers at a higher rate than their foreign counterparts, they are violating federal law. Harassment based on national origin that creates a hostile work environment is equally prohibited.

Whistleblower Protection

Federal and state laws provide strong protections for whistleblowers. Retaliation against an employee for objecting to discriminatory practices, reporting illegal behavior, or filing an EEOC charge is strictly forbidden. It takes immense courage for whistleblowers to speak out against powerful employers. The law recognizes this courage by offering mechanisms to hold retaliatory companies accountable for punitive actions, such as wrongful termination or demotion.

Employer Justifications Debunked

Employers often try to defend discriminatory practices by citing business necessities. However, the law is clear. A company cannot justify discrimination based on customer preference, the cost of labor, or unfounded stereotypes about the work ethic of specific nationalities. Saving money through cheaper foreign labor does not override an American worker’s civil rights.

A Precedent for Justice: The Chivas USA Case

Courts actively enforce these protections, as seen in the notable lawsuit against the Chivas USA professional soccer organization. Two American youth academy coaches successfully sued the organization, alleging they were fired because they were not of Mexican or Latino descent. The lawsuit detailed an ethnocentric policy implemented by the new ownership, which created a hostile environment for non-Latino Americans. This case forcefully demonstrates that anti-American discrimination is a recognized and actionable violation of civil rights.

How to File a Claim

The attorneys at Helmer Friedman LLP can guide you through this complex process, ensuring your claim is filed correctly and on time. The EEOC investigates these charges and, in some instances, may file a lawsuit on your behalf. However, it is crucial to act quickly. There are strict time limits—generally 180 calendar days from the day the discrimination took place (extended to 300 days in some cases)—and missing these deadlines can result in a permanent loss of your legal rights. Contacting our firm can help you navigate these critical first steps.

Broader Implications for Workplace Fairness

High-profile lawsuits like Andrew Dershaw’s do more than seek justice for one individual. They expose systemic issues and prompt necessary conversations across entire industries.

Workplaces only thrive when every employee is valued, heard, and compensated fairly based on their contributions, rather than their country of origin. Pay discrimination and whistleblower retaliation are fundamental violations of dignity and respect. Fostering a corporate culture rooted in integrity, openness, and compassion requires holding powerful organizations accountable when they fall short of these basic standards.

Fostering a Culture of Respect and Accountability

>Andrew Dershaw’s courageous decision to stand up to LVMH and Stella McCartney sheds critical light on the often hidden realities of pay discrimination and corporate retaliation. His case underscores the urgent need for employers to evaluate their internal practices and ensure fair treatment for all staff members, regardless of nationality.

If you have experienced unequal pay, a hostile work environment, or retaliation for reporting illegal corporate behavior, you do not have to face it alone. Understanding your legal rights is the first step toward reclaiming your professional dignity and financial security. By consulting with an experienced legal advocate, you can explore your options, protect your career, and help build a safer, more respectful work environment for everyone.

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Discrimination Against American Workers: Your Legal Rights

Nationality Discrimination & Harassment is illegal. Helmer Friedman LLP Los Angeles Nationality Discrimination lawyers.

Protecting American Workers from Discrimination

When we consider workplace discrimination, our thoughts often gravitate toward the challenges faced by minority groups in terms of race, gender, or religion. However, it’s important to recognize that the legal frameworks in place to ensure fair treatment in the workplace, especially Title VII of the Civil Rights Act of 1964, encompass much broader protections. One significant but frequently overlooked aspect of this law is the protection against national origin discrimination.

For many professionals, the painful realization that they have been overlooked, sidelined, or let go in favor of foreign workers can be devastating. This experience strikes at the very heart of their financial security and professional self-worth. It’s crucial to understand that the protections against national origin discrimination also extend to U.S. citizens. Acknowledging this can empower individuals to stand up against unjust bias and advocate for their rights with confidence.

What is National Origin Discrimination?

National origin discrimination is a pressing issue that affects many individuals in the workplace, often causing significant distress. It occurs when an employer treats an applicant or employee unfavorably solely because of the applicant’s or employee’s country of origin. While discussions around this topic often highlight the importance of protecting immigrants, it’s essential to recognize that the Equal Employment Opportunity Commission (EEOC) makes it clear that these protections extend to all national origin groups, including those from the United States.

Under federal law, no one should face unfair treatment or preferential treatment in the workplace because of their background. This means it’s illegal for employers to favor foreign workers over American workers, including when decisions are made based on visa status. If an employer allows their preferences for workers from specific countries, or those holding certain visas like H-1B, to influence hiring, firing, or pay scales, they may unfortunately be violating Title VII. It’s crucial for everyone to be treated fairly and with respect, regardless of their origins.

Types of Discrimination Against American Workers

Discrimination can be subtle, hiding behind corporate jargon, or it can be brazenly open. For American workers, bias often manifests in specific patterns that disadvantage them compared to their foreign counterparts.

Discriminatory Job Advertisements

One of the most visible forms of discrimination appears before a worker is even hired. Title VII strictly bars discriminatory job advertisements. An employer cannot publish job postings that indicate a preference for or requirement of applicants from a particular country or with a particular visa status.

For example, advertisements that state “H-1B preferred” or “H-1B only” are red flags. These postings suggest that the employer has already decided to exclude U.S. workers from consideration, regardless of their qualifications. By actively discouraging American applicants, companies create an uneven playing field that violates federal law.

Unequal Treatment

Unequal or Disparate treatment refers to intentional discrimination where an employer treats individuals differently based on a protected characteristic. This often happens among American workers during recruitment or termination processes.

  • Hiring Barriers: Employers may erect artificial barriers to make it more difficult for American applicants to apply. For instance, during the PERM labor certification process—a step companies take to hire foreign workers permanently—some employers may subject U.S. workers to more burdensome application requirements than H-1B visa holders, effectively discouraging them from pursuing the role.
  • Termination and “The Bench”: Disparate treatment also occurs in firing decisions. In the IT and staffing sectors, workers often face time on “the bench” between assignments. Evidence of discrimination exists if a company terminates American workers on the bench at a much higher rate than it terminates visa guest workers in the same situation.

Harassment

Workplace harassment based on national origin is strictly prohibited. This goes beyond simple teasing; it becomes illegal when it is so frequent or severe that it creates a hostile or abusive work environment, or when it results in an adverse employment decision (such as being fired or demoted).

American workers might face unwelcome remarks about their work ethic compared to foreign nationals, or be subjected to derogatory comments about their “American” communication style or cultural background. When this conduct permeates the workplace, it creates an atmosphere of intimidation that the law does not tolerate.

Retaliation

Perhaps the most insidious form of misconduct is retaliation. Title VII prohibits employers from punishing an individual for engaging in a “protected activity.” Protected activities include:

  • Objecting to national origin discrimination.
  • Filing a charge with the EEOC.
  • Participating in an investigation.

If an American worker speaks up about a policy they believe favors foreign workers and is subsequently fired, demoted, or ostracized, the employer may be liable for retaliation. This charge can sometimes be easier to prove than the underlying discrimination itself.

What Doesn’t Excuse Discrimination?

Employers often attempt to justify discriminatory practices using business rationale. However, the law is clear that specific “business reasons” do not excuse hiring foreign workers over American citizens.

Customer Preference: An employer cannot claim that their clients prefer working with individuals from a specific country or those with specific visas. Customer bias is not a legal defense for discrimination.

Cost of Labor: The desire to save money does not override civil rights. Employers cannot justify displacing American workers simply because foreign labor is cheaper, whether that is due to abuse of visa-holder wage rules or “under the table” payments.

Stereotypes about Work Ethic: Beliefs that workers from a specific national origin are “more productive,” “harder working,” or possess a “better work ethic” than Americans are based on stereotypes. Using these generalized beliefs to make employment decisions is unlawful.

Real-World Examples: The Chivas USA Case

These protections are not theoretical; they are enforced in courts of law. A prominent example involving allegations of anti-American and anti-non-Latino discrimination is the lawsuit filed against the Major League Soccer organization, Chivas USA.

Two former youth academy coaches, Daniel Calichman and Theothoros Chronopoulos, filed a lawsuit alleging they were fired because they were “neither Mexican nor Latino.” The coaches, described in the complaint as “Caucasian, non-Latino Americans,” were former members of the U.S. National Team.

According to the complaint, after Jorge Vergara Madrigal acquired full ownership of Chivas USA, the organization began implementing an ethnocentric policy similar to the “Mexican-only” policy of its counterpart team, Chivas de Guadalajara. The lawsuit alleged that Vergara stated at a staff meeting, “If you don’t speak Spanish, you can go work for the Galaxy, unless you speak Chinese, which is not even a language.”

The plaintiffs claimed they were asked to provide ethnic data on youth players, and when they complained about the discriminatory environment to HR, no investigation was conducted. Instead, they were fired shortly after. This case highlights how leadership changes can lead to discriminatory shifts in culture and policy, and how American workers can find themselves targeted based on their national origin and race.

Filing a Charge with the EEOC

If you believe you have been a victim of national origin discrimination, you cannot immediately sue in federal court. You must first file a charge of discrimination with the U.S. Equal Employment Opportunity Commission (EEOC).

The attorneys at Helmer Friedman LLP can guide you through this complex process, ensuring your claim is filed correctly and on time. The EEOC investigates these charges and, in some instances, may file a lawsuit on your behalf. However, it is crucial to act quickly. There are strict time limits—generally 180 calendar days from the day the discrimination took place (extended to 300 days in some cases)—and missing these deadlines can result in a permanent loss of your legal rights. Contacting our firm can help you navigate these critical first steps.

Protecting Your Rights

Discrimination against American workers is a serious violation of federal law. Whether it manifests as a job ad that excludes you, a layoff that targets you while retaining visa holders, or a hostile work environment, you have the right to work in an environment free from bias.

Navigating the complexities of Title VII and EEOC procedures requires experience and tenacity. If you suspect you have been discriminated against based on your national origin, do not face it alone. Contact Helmer Friedman LLP today for a confidential consultation to discuss your situation and explore your legal options.

 

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Soccar Players Selected Based on Ethnicity

Coaches Sue Chivas USA Professional Soccer Organization, Allege Discrimination Against Non-Latinos

Two former members of the coaching staff of Chivas USA have filed a lawsuit against the Major League Soccer organization, saying they were fired “because they were neither Mexican nor Latino.”
The filing was announced by Gregory D. Helmer, of the Los Angeles law firm of Helmer Friedman, LLP, who represents the two coaches.

Daniel Calichman and Theothoros Chronopoulos, both of whom were former professional soccer players and members of the U.S.National Team before being hired by Chivas USA, are suing in Los Angeles Superior Court. The men, described in the complaint as “Caucasian, non-Latino Americans,” allege discrimination, harassment, retaliation and wrongful termination by Chivas USA based on national origin, ethnicity and race.

Mr. Chronopoulos and Mr. Calichman were employed as coaches in the Chivas USA Academy, which offers soccer programs for youngsters from approximately age seven through age 18.
Mr. Helmer noted that the Chivas USA team was formed in 2004 by a group that included Jorge Vergara Madrigal, a prominent Mexican businessman.

Two years earlier Mr. Vergara had acquired Chivas de Guadalajara. The Mexican team, popularly known as “Chivas,” has since 1908 had a stated policy of hiring only players who are Mexican-born or born of Mexican parents.

In 2012, Mr. Vergara acquired full ownership of Chivas USA and, according to the complaint, began to “implement a discriminatory policy similar to the ethnocentric ‘Mexican-only’ policy that exists at Chivas de Guadalajara.” This included “replacing players and staff who had no Mexican or Latino heritage,” and appointing Mexican nationals to the team’s top executive positions.

“While the hiring practices of Chivas de Guadalajara may be legal in Mexico,” Mr. Helmer said, “Chivas USA must follow California and federal laws prohibiting discrimination, including treatment based on race, national origin or ethnicity.”

On November 13, 2012, the complaint states, Mr. Vergara called all Chivas USA employees to a meeting and announced that non-Spanish speaking employees would be fired. It quotes Mr. Vergara as saying, “If you don’t speak Spanish, you can go work for the Galaxy, unless you speak Chinese, which is not even a language.” (The Los Angeles Galaxy soccer team hires players from diverse backgrounds, notably including David Beckham of England.)

In late November of 2012, the complaint states, Jose David, the team’s newly hired president and chief business officer, asked Mr. Chronopoulos to report which Academy players and coaches were Mexican or Mexican-American and which were not.

In late December Mr. David directed Mr. Chronopoulos to collect ethnic and national origin data on the youngsters enrolled in the Chivas Academy and their parents, according to the complaint, which states that  

“When the requests for this information were sent to the parents, many of them were offended and refused to provide it.”

On January 11, 2013, Mr. Calichman and Mr. Chronopoulos submitted written complaints of discrimination and harassment to the team’s Human Resources Manager, Cynthia Craig. At a meeting three days later, according to the court filing, “Ms. Craig assured Mr. Calichman that Chivas USA was going to conduct a ‘full investigation’” into the men’s complaint, but no investigation was made.

At that meeting Mr. David stated that he and Mr. Vergara “were taking the team ‘back to its Mexican roots,’” the complaint states, and indicated that Mr. Calichman and Mr. Chronopoulos would not be “part of the effort to take the team back to its Mexican roots.”

The two men subsequently “were informed that they were not being fired but, at the same time were told not to perform their job duties. They were, in effect, placed on suspension.”

The following day, the complaint states, Ms. Craig contacted both men proposing that they resign from their jobs in exchange for two weeks of severance. On January 18, Mr. Calichman responded by email, rejecting the proposal and asking Ms. Craig to verify that he was still employed.

In February, having received no response to their allegations of harassment and discrimination, the court filing states, the men filed complaints with the California Department of Fair Employment and Housing.

On March 7, 2013, according to the court filing, both men received identical letters from Mr. David, notifying them that their employment was being terminated as of the following day. Their lawsuit notes that “the letter is conspicuously silent” as to whether the company had investigated their complaints of harassment and discrimination. “Moreover, in further retaliation for their complaints, Mr. David falsely and maliciously accused them of ‘demonstrat[ing] unprofessional conduct that created an unsafe work environment,’” without stating how they allegedly did so.

The lawsuit seeks general, special and punitive damages in amounts to be determined at trial, as well as any other relief the Court may deem proper.

Also named as defendants are Insperity, Inc. and Insperity Business Services, L.P. The complaint alleges that Insperity is a joint employer with Chivas USA and, in that capacity, is liable for any unlawful employment practices.

“A major professional soccer team should pick its players and coaches based on their abilities,” Mr. Helmer noted. “The behavior detailed in our complaint against Chivas USA is totally unacceptable for any American employer. It is also a disservice to young people of all ethnicities who might aspire to a career in professional soccer, or who look at these players as role models. It also short-changes fans by fielding a team whose players are selected because of their ethnicity rather than their skills.”

Helmer Friedman LLP provides legal representation and advice in a wide range of areas, including labor and employment, sports, and entertainment. The firm can be reached at 310-396-7714 or www.helmerfriedman.com.