A federal jury in Oregon has found Nike liable for sex discrimination, concluding that the sportswear giant paid former Nike employee Heather Hender less than similarly situated male colleagues and denied her equal promotion opportunities because of her sex. The verdict marks one of Nike’s most significant courtroom losses arising from the company’s 2018 workplace culture reckoning.
After a six-day trial in Portland and more than a day of deliberations, an eight-person jury unanimously found in favor of Hender on her claims under both federal and Oregon law. Hender, who worked at Nike from 2015 to 2020, alleged that the company discriminated against her with respect to compensation and advancement opportunities.
The jury awarded Hender $19,739.52 in economic damages. It also awarded punitive damages, including a $7.5 million award under Oregon law. The verdict form additionally reflects a separate $7.5 million punitive damages award under federal law, although it remains unclear whether those awards are cumulative or whether the court will ultimately enter a single punitive damages judgment. The court also retains authority to review any punitive damages award before entering final judgment.
From “Project Starfish” to Trial
The lawsuit got its start back in 2018, when Heather Hender and three other current and former Nike employees filed suit against the company, alleging systemic sex discrimination in pay and promotions and seeking to represent a class of similarly situated female employees. The lawsuit followed an article from The New York Times, which thrust Nike’s workplace culture into the national spotlight. Drawing on an anonymous internal survey known as “Project Starfish,” the Times cited Nike’s alleged “boys’ club” culture, claiming that women at the company were paid less than men performing substantially similar work and received fewer opportunities for promotion.
But what began as a proposed class action challenging Nike’s alleged systemic treatment of female employees ultimately became an individual discrimination case. After the court denied class certification in 2022, three of the four plaintiffs settled their claims, leaving Hender as the only remaining plaintiff. By the time the case reached trial, U.S. District Judge Amy Baggio had limited much of the broader evidence concerning Nike’s workplace culture, directing the jury to decide a narrower question: whether Hender herself had been subjected to unlawful pay and promotion discrimination.
To support her claims, Hender relied in part on testimony from labor economist David Neumark, who testified that his analysis of Nike’s employment data identified an average gender pay disparity exceeding $11,000 between male and female employees during the relevant period. Nike challenged Neumark’s methodology and the relevance of that analysis, maintaining that Hender had been compensated and promoted fairly based on her individual performance. Nike also called Hender’s former managers, who testified that decisions regarding her pay and promotions were based on legitimate, nondiscriminatory factors.
Reaction to the Verdict
Following the verdict, Hender’s attorneys characterized the decision as an important victory not only for their client but for other women at the company. “We are grateful to the jury for holding Nike accountable,” attorney Laura Salerno Owens said, adding that the verdict demonstrates that “workplace discrimination is unacceptable and has a price.” Hender’s attorneys have also indicated that they intend to appeal the denial of class certification in an effort to seek broader relief for other female employees who they contend experienced similar discrimination at the company.
Nike, meanwhile, said it was disappointed with the outcome and is evaluating its next steps.”We are disappointed by the verdict and respectfully disagree with the conclusions,” a company spokesperson said in a statement, adding that Nike remains committed to providing a workplace in which employees are treated fairly, compensated competitively, and given opportunities to succeed.
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