New England Biz Law Update
A Culver’s franchisee in Minnesota has agreed to pay $261,000 to resolve two federal lawsuits brought by the U.S. Equal Employment Opportunity Commission (EEOC).
The cases alleged pervasive workplace misconduct spanning race, sex, sexual orientation, and disability discrimination, including harassment of teenage employees and a worker with an intellectual disability.
According to the EEOC’s complaints, staff at the restaurant were repeatedly subjected to slurs and inappropriate behavior, including:
- A gay Black employee endured racial and homophobic slurs, invasive sexual remarks, and workplace stalking.
- Female workers as young as 14 years old were the targets of sexual harassment, including groping and sexually explicit gifts from coworkers.
- A 60-year-old employee with an intellectual disability was taunted, called slurs, and paid less than non-disabled employees performing similar work.
Despite multiple internal complaints, the employer failed to investigate or take appropriate corrective action.
Under two consent decrees approved by the U.S. District Court for the District of Minnesota, the franchise operator will pay $186,000 to resolve the race, sex, and LGBTQ+-related harassment claims and $75,000 to resolve the disability discrimination case.
The company must also implement policy reforms, post notices of employee rights, submit to EEOC oversight, and conduct anti-discrimination and harassment training for all staff.
This case highlights the serious legal risks associated with ignoring or inadequately addressing workplace harassment, particularly when it affects vulnerable workers such as teens, LGBTQ+ individuals, and people with disabilities.
Employers should ensure that their reporting systems are accessible, their investigations are timely, and their training programs address legal obligations and real-life scenarios that may lead to challenges in the workplace.
