The owner and operator of grocery stores in several states and headquartered in Kentucky, has agreed to pay $50,000 and provide other relief to settle a sexual harassment lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the federal agency announced.

Asure’s HR experts help business owners comply with federal, state, and local employment laws. Learn how to protect your business here.

Company Failed to Take Action Against Abusive Customer

According to the EEOC’s lawsuit, the owners subjected female employees at the grocery store to frequent, unwelcome sexual touching by a regular customer of the store for several years. Although female employees repeatedly complained to store supervisors, the company failed to take prompt corrective action to prevent or stop the harassment.

After repeated complaints went unheeded, on June 5, 2020, one female employee called the police, who came to the store and issued the customer a trespass notice signed by the store manager. Nevertheless, the customer was still allowed to enter the store until at least September 2020, according to the suit.

Title VII Violation

Such alleged conduct violates Title VII of the Civil Rights Act of 1964, which prohibits a hostile environment based on sexual harassment in the workplace. The EEOC filed suit in U.S. District Court for the Southern District of Alabama after it completed an investigation and was unable to reach a pre-litigation settlement through its voluntary conciliation process.

The four-year consent decree resolving the lawsuit requires the grocery store owners to pay $50,000 to one victim of the harassment. The grocery store owners will develop or revise policies and procedures to prevent and correct sexual harassment.

The company is also required to conduct annual training for employees and managers in its 15 other stores in Alabama to ensure compliance with these policies and the law. The EEOC will monitor the company’s compliance for the duration of the decree.

“An employer has a duty to protect its employees from a hostile environment of frequent or serious sexual harassment when it knows of the ongoing harassment,” said Bradley Anderson, district director of EEOC’s Birmingham office. “It is an unacceptable and unlawful practice to ignore complaints and continue to allow such misconduct, even from a customer.”

Marsha Rucker, regional attorney for the EEOC’s Birmingham District, said, “Tolerating sexual harassment by a customer violates federal anti-discrimination laws. This consent decree sends a message to employers that they cannot ignore complaints of sexual harassment of its employees by a customer or other third parties. Federal law requires prompt, remedial action.”

Conclusion

The recent settlement reached by the grocery store owner serves as a stark reminder to small and midsize business owners of the severe consequences of allowing sexual harassment in the workplace. Employers have a legal obligation to protect their employees from a hostile environment and take prompt action to address complaints of harassment, regardless of the source.

Title VII of the Civil Rights Act of 1964 strictly prohibits sexual harassment in the workplace and holds employers accountable for their failure to prevent or address such misconduct. In the case of the grocery store, the company’s failure to respond adequately to repeated complaints from female employees resulted in legal action by the EEOC.

To avoid similar situations and the accompanying financial penalties, businesses must prioritize creating a safe and respectful work environment. This involves implementing robust policies and procedures to prevent sexual harassment, promptly investigating and addressing complaints, and providing regular training to employees and managers.

By taking proactive measures and fostering a culture of respect and inclusivity, small and midsize business owners can protect their employees, maintain legal compliance, and cultivate a positive workplace environment.

Asure’s HR experts help business owners comply with federal, state, and local employment laws. Learn how to protect your business here.

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