Sexual Harassment Issues in the Restaurant Industry
A McDonalds franchise, AMTCR, Inc. settled their sexual harassment lawsuit with the EEOC in January 2023. AMTCR is a franchise owner operating approximately 18 McDonald’s restaurants in Nevada, Arizona and California.
What were the details of the case?
The EEOC (Equal Employment Opportunity Commission) brought the case against AMTCR on behalf of the workers. The case revealed that AMTCR knew supervisors, managers, and co-workers were sexually harassing employees at various McDonald restaurants. However, they allowed the harassment to continue and did nothing to deal with it.
What types of harassment occurred?
The targeted employees were young males and females. The behavior violated Title VII of the Civil Rights Act of 1964, and included unwanted:
- Touching
- Offensive remarks
- Sexual advances
- Intimidation
The unwanted behavior had occurred since 2017. The EEOC filed its original complaint in Sept. 2021. It complained of the alleged harassment of 11 victims. The hostile work environments and sexual abuse had resulted in most of these employees quitting their jobs.
What were the details of the settlement?
A U.S. District Judge in Las Vegas heard the case, and the case settled for $1,997,500. Eligible complainants will receive the money from the payout. In addition, the judge’s decree required AMTCR to maintain an outside monitor for overseeing how the company handled their harassment and retaliation complaints.
AMTCR agreed to do the following:
- Improve employee training
- Track harassment and retaliation complaints
- Survey employees annually regarding workplace conditions
Details of an earlier McDonalds lawsuit that involved McDonalds directly
McDonalds was not a party in the above lawsuit. However, in April of 2021, McDonalds had pledged to improve its training to fight harassment and discrimination. This occurred after the company faced lawsuits involving corporate owned locations where alleged widespread sexual harassment had affected female employees. In the following eight months, the former Chief Executive Steve Easterbrook published an apology as part of a lawsuit settlement. He also returned more than $105 million of his severance payment. He claimed he had tried to conceal sexual relationships with employees.
As an employer, do you have questions about sexual harassment policy and how to protect your business?
If you have questions, consult with us and get a legal opinion. You can discuss your issues with our attorneys at Stephen D. Hans & Associates, P.C. We are glad to provide you with experienced legal guidance. Call (718) 275-6500 to arrange an appointment.