New England Biz Law Update
A restaurant group has agreed to pay $2 million and implement significant workplace reforms to resolve a sexual harassment lawsuit brought by the U.S. Equal Employment Opportunity Commission. The case serves as another reminder that employers can face substantial liability when complaints of workplace harassment are ignored or inadequately addressed.
According to the EEOC, male supervisors and coworkers at a Las Vegas restaurant subjected both female and male employees to repeated sexual harassment over several years.
The alleged conduct included unwanted touching, sexually explicit comments, unwanted spanking, sexual advances, and other offensive physical and verbal behavior. The agency also alleged that employees who complained were subjected to retaliation and that management failed to take appropriate corrective action despite being aware of the misconduct.
A federal judge approved a consent decree requiring the restaurant group to pay $2 million to affected employees. In addition to the monetary relief, the company must strengthen its anti-harassment policies, provide enhanced training, retain an independent monitor for four years and implement additional measures designed to improve its response to workplace complaints.
Prompt action remains essential
Employers have a legal obligation to take prompt and effective action when they learn of potential workplace harassment. Investigating complaints thoroughly, documenting the employer’s response and taking appropriate corrective action are all critical steps in reducing legal risk.
The case also illustrates that unwanted physical contact, even if characterized by some as joking or horseplay, can constitute unlawful harassment when it is unwelcome or contributes to a hostile work environment.
Employers should ensure that managers understand their responsibility to respond immediately to complaints and to foster a workplace where inappropriate conduct is neither tolerated nor dismissed.
