On December14, 2009, the Equal Employment Opportunity Commission (EEOC) announced a class-action settlement with national restaurant chain Bahama Breeze for $1.26 million and significant remedial relief. The case originated with 37 black workers at the company’s Beachwood, Ohio, location who claimed they were repeatedly harassed because of their race.
In the lawsuit, the EEOC charged that Bahama Breeze managers committed numerous and consistent acts of racial harassment against black employees, including frequently addressing black staff members with slurs such as “Aunt Jemima,” “home boy,” “you people,” and the “n” word. Additionally, managers allegedly imitated what they perceived to be language and mannerisms of black employees and denied them breaks while allowing breaks to Caucasian employees. Despite the employees’ complaints to management, the alleged race-based harassment continued.
In addition to monetary relief, under the three-year consent decree, Bahama Breeze agreed to:
* maintain and update its written policies and procedures in all restaurants nationwide to prohibit employment discrimination, including race discrimination, racial harassment, and retaliation;
* provide antidiscrimination and diversity training to all of its Beachwood restaurant employees, including managers;
* comply with EEOC monitoring of the decree;
* periodically provide written reports of any discrimination complaints; and
* display and maintain the EEOC poster in a place visually accessible to employees in all restaurants currently within the Beachwood operational region.
EEOC v. GMRI, Inc., dba Bahama Breeze, D.C. OH Civ. No. 1:08CV2214.
Albertsons Agrees to Pay Almost $9 Million to Settle Job Bias Claims
On December15, 2009, Albertsons, LLC, a national grocery chain, agreed to pay $8.9million and furnish other relief to settle three employment discrimination lawsuits filed by the EEOC. The EEOC had charged the grocer with race, color, and national origin discrimination and retaliation at its Aurora, Colorado, distribution center. The monetary relief will be distributed among 168 former and current employees.
All three of the EEOC cases stem from incidents at the Aurora distribution center, which is closing for unrelated reasons. The first case was filed in 2006 and alleged a pattern or practice of workplace harassment and discrimination based on race, color, and national origin. According to the lawsuit, minority employees were repeatedly subjected to derogatory comments and graffiti.
The EEOC said the offensive graffiti included racial and ethnic slurs, depictions of lynchings, swastikas, and white supremacist and anti-immigration statements. The graffiti in a commonly used men’s room was so offensive that several employees would relieve themselves outside the building or go home at lunchtime rather than use the restroom. Some of the graffiti remained for years until the restroom was remodeled.
The EEOC also charged that minority employees were given harder work assignments and were more frequently and severely disciplined than their Caucasian counterparts. According to the commission, managers were aware of and participated in the harassment and discrimination.
A second lawsuit was filed in 2008 and alleged a pattern or practice of retaliation. The EEOC alleged that dozens of employees complained about the discriminatory treatment and harassment. As a result, they were given harder job assignments, passed over for promotion, and even fired in retaliation for their complaints.
The third case was also filed in 2008 and alleged race discrimination on behalf of a single African American employee at the distribution center who was terminated.
In addition to monetary relief, under the consent decree, Albertsons agreed to submit to four years of court-ordered monitoring and institute an extensive training program to which all managers will be held accountable. D.C. Co. Civil Action Nos. 06-CV-01273, 08-CV-00640, 08-CV-02424.
Jury Serves IHOP with $105,000 Verdict in a Sexual Harassment Case
On November 23, 2009, a federal jury in Milwaukee, Wisconsin, returned a $105,000 verdict following a four-day sexual harassment trial filed by the EEOC against International House of Pancakes (IHOP). The jury’s verdict awarded an aggregate of $5,000 to two teenagers who worked at a Racine IHOP restaurant. The teens claimed they were sexually harassed by their assistant manager, who subjected them to sexual propositions, groping, and hair pulling.
The jury found that IHOP acted recklessly with respect to one of the servers and awarded her $100,000 in punitive damages. The IHOP at which the servers worked was independently owned and managed by a consulting firm, Flipmeastack. In finding for the employees in this case, the jury did just that! EEOC v. Management Hospitality of Racine, Inc., et al., D.C. Wis. No.06-C-0715.