A natural food company is set to pay a substantial sum of over $182,500 to settle a sex discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC). The settlement aims to provide relief for former employees at the natural foods company’s headquarters in Michigan, following allegations of sexual harassment by the male owner and president.
Owner of Food Company Regularly Harassed Female Employees
The EEOC lawsuit outlined disturbing instances where the company owner inappropriately touched multiple female employees on their backs, shoulders, and legs. Some female employees endured the discomfort of his leg pressed against them for hours. The owner went further by kissing female employees without their consent and engaging in unwarranted touching, including on the buttocks. The workplace was further tainted by lewd comments, sexual references in marketing materials, and crude language directed at female employees.
This egregious conduct, as per the EEOC, constitutes a violation of Title VII of the Civil Rights Act of 1964, which prohibits sex-based discrimination in the workplace. The lawsuit was filed in the United States District Court for the Eastern District of Michigan, asserting sexual harassment claims on behalf of a marketing department manager and three other female employees. The manager, responding to the hostile work environment, filed an intervening complaint, including allegations of retaliation and wrongful discharge.
The consent decree, spanning 3½ years and resolving the lawsuit, mandates that the natural food company pay $182,500 in compensatory damages distributed among the three additional female employees. Additionally, substantial monetary compensation will be provided to the marketing department manager. The natural food company is now obligated to conduct annual training for its management, including the owner, and submit annual reports to the EEOC. The company must also maintain a hotline for employees to report complaints.
Miles Uhlar, a trial attorney in the Detroit Field Office of the EEOC’s Indianapolis District, condemned the owner’s egregious conduct, emphasizing that the EEOC will always stand up to company owners who believe they have free license to sexually harass employees.
Title VII Violation Reminder
For small and midsize business owners, this case serves as a stark reminder of the legal and financial consequences associated with workplace harassment. Violating Title VII can result in substantial monetary penalties, damage to a company’s reputation, and a toxic work environment. It underscores the critical importance of fostering a workplace culture that prioritizes respect, inclusivity, and compliance with anti-discrimination laws.
Conclusion
Business owners must actively work towards preventing and addressing workplace harassment. Investing in comprehensive training programs, promptly addressing employee complaints, and cultivating a culture of respect are crucial steps in avoiding the severe penalties associated with violations of employment law. Building a workplace free from discrimination is not only ethically imperative but also a strategic move to safeguard the well-being of employees and the longevity of the business.