Racial Discrimination Case Settled
In the McDonald’s franchise race discrimination case, the Equal Employment Opportunity Commission (EEOC) alleged that the franchise failed or refused to hire black applicants. Pensec, Inc. is a Wisconsin corporation, the defendant in the claim. It owns and operates nine McDonald’s restaurants in Wisconsin.
Details of the Lawsuit
The franchise located on West Washing Street in Milwaukee, showed significantly low statistics for hiring black employees compared with the census information for the location.
Other alleged conduct in the case included a racial slur about black people and that the store needed to hire Spanish people.
Title VII of the Civil Rights Act of 1964 prohibits discrimination based on race. The EEOC first attempted to settle the issue through reconciliation. When their attempt failed, they filed a lawsuit on behalf of the applicants.
The U.S. District Court hearing the case, found in the favor of the EEOC. The company must pay $31,137 in monetary relief. The court’s consent decree also did the following:
- Prohibited the company from discriminating in the future
- Required it to make best efforts to reach hiring goals for black employees
- Mandated that the company provide training regarding Title VII to employees
- Ordered the company to submit regular reports to the EEOC regarding compliance to the decree
(Update reference: JD Supra)
Employers must be vigilant to ensure their managers and employees do not engage in racial discrimination. McDonald’s franchises exist nationwide, which goes to show that franchise owners must ensure best business practices regardless of location. Putting best practices in place is your best prevention against lawsuits. Our law office can help you put such practices in place.
Do you have concerns about race discrimination occurring in your business?
If you have questions or concerns, you should consult with an experienced employment law defense attorney. Whenever possible, it is wise to do so before legal issues arise. Call (718) 275-6500 to arrange an appointment with Stephen D. Hans & Associates, P.C.