An Arizona pet store chain recently agreed to pay $340,000 to settle a harassment and retaliation lawsuit brought by the Equal Employment Opportunity Commission (EEOC) on behalf of female employees of the chain.
In a federal lawsuit filed in the United States District Court of Arizona, the EEOC alleged that a male manager at one store location and a male employee at another location sexually harassed female employees. The conduct included inappropriate sexual comments, physical touching without consent, sexual propositioning, and showing inappropriate photos. Female employees made multiple complaints to management over several years, which were allegedly not properly addressed. The lawsuit also alleged retaliation when some female employees were terminated, and others felt forced to resign, after making complaints to management about the harassment. The EEOC claimed that the harassment and retaliation violated Title VII of the Civil Rights Act of 1964.
The settlement includes a $340,000 payment to the sexual harassment victims and requires the company to retain an independent consultant to train its employees, managers, supervisors, and human resources staff in the areas of sexual harassment, discrimination, and retaliation. The company must also review its existing policies related to discrimination and retaliation and make necessary revisions.
This case and settlement demonstrate the importance of promptly acting on allegations of harassment in the workplace. The case also underscores the legal risks of retaliating against employees engaging in protected actions.
District Director of the EEOC Phoenix District Office Melinda Caraballo mentioned these risks and noted the prevalence of the issue within the EEOC’s Phoenix District (which includes Arizona, Colorado, Utah, Wyoming, and part of New Mexico), saying: “This case shows that lack of compliance with laws that prohibit employment discrimination can be costly. Over 50% of our charges in the Phoenix District have a retaliation complaint. It is essential that employees be able to work freely without fear of being fired or otherwise retaliated against for complaining about sex discrimination or sexual harassment, which is protected activity under Title VII.”
When an employer is informed of a sexual harassment allegation, it should promptly investigate the matter, and, if necessary, stop the activity and take appropriate corrective actions. Employers must also take steps to ensure employees are not retaliated against for making harassment claims or participating in an investigation. Enterprise and Consulting members should contact an Employers Council attorney immediately upon receiving a harassment or retaliation complaint to discuss the next steps.
John Zubek is an attorney for Employers Council.