Dive Brief:
- ‘Murica LLC and its owners agreed to settle for $100,000 a sexual harassment and retaliation lawsuit filed by the U.S. Equal Employment Opportunity Commission in the U.S. District Court for the District of Colorado, according to a news release issued by the agency Monday.
- The lawsuit, EEOC v. ‘Murica, LLC, alleged that the owner of Western-themed Starlite Station bar and dance hall in Greeley, Colorado, created a sexually hostile environment for workers by frequently touching female employees without their permission, seeking out sexual relationships with female employees, pressuring female employees to let him sleep at their homes, and having sex with an intoxicated worker at the bar, among other actions.
- In a five-year consent decree, ‘Murica LLC agreed to give monetary relief to the affected individuals, to require equal employment opportunity training for managers and employees, to send an apology letter to those affected, and to have its EEO policies reviewed by a SHRM-certified professional.
Dive Insight:
“This case demonstrates why owners should not think that they can escape liability simply by closing a business and filing retaliatory defamation lawsuits in an attempt to silence victims,” Mary Jo O’Neill, regional attorney for EEOC’s Phoenix District Office, said in a statement. “The EEOC will vigorously litigate against retaliatory defamation lawsuits and private settlements that seek to prevent communication with the EEOC and obstruct our enforcement of civil rights laws.”
‘Murica LLC closed in November 2021 and has not operated or had employees since, according to the consent decree.
The lawsuit alleged that the owner and his mother, a co-owner, were individually liable because they both used the company for their own personal interests, such as by using corporate funds to pay a home mortgage, a personal loan and personal credit cards. Because of the alleged misappropriation of funds, EEOC argued it could “reach beyond the closed bar and satisfy any judgment with the two owners’ personal assets,” per the release.
According to the complaint, the owner of Starlite Station, a “country restaurant, dancehall, and bar,” allegedly made sexual comments about female applicants, such as stating that they were “too ugly” to be hired or that he had already had sex with them. The owner also allegedly frequently commented on female employees’ weight and appearance and said that female workers who were thin and wore revealing clothing would not be in danger of losing their jobs, while those who didn’t fit his ideal risked discharge or being scheduled for fewer hours, per the complaint.
The company also retaliated against workers who complained or spoke out against the owner’s conduct by firing or threatening to discipline them, EEOC said. Additionally, the company filed a retaliatory defamation lawsuit in state court against a group of former employees who had filed complaints with EEOC or made public statements, objecting to the owner’s behavior toward female workers, including his alleged sexual contact with an intoxicated female employee, the release said.
Title VII of the Civil Right Act prohibits sexual harassment in the workplace and retaliation against employees for complaining about such behavior.
“The EEOC is committed to protecting employees from harassment by their employers, especially at the hands of owners. It is essential that employees can work freely without fear of being fired or facing other retaliation for complaining about sex discrimination or sexual harassment, which is protected activity under Title VII,” EEOC Phoenix District Director Melinda Caraballo said in a statement.
