Honolulu Restaurant and HR Firm Settle EEOC Sexual Harassment Lawsuit for $115,000

Background:

Aged Artisans LLC and Surfeit Group LLC, operating as Square Barrels, a former Honolulu-based restaurant, along with their outsourced HR company, ALTRES, Inc. (doing business as SimplicityHR), have settled a sexual harassment lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC). The settlement includes a payment of $115,000 and the implementation of measures to prevent future discrimination.

Allegations:

The EEOC's lawsuit alleged that a co-owner of Aged Artisans targeted gay employees for sexual harassment. The co-owner was accused of exposing his genitals at the workplace, soliciting oral sex, and making repeated sexually explicit comments related to the employees' sexual orientation. The allegations further claimed that both Aged Artisans/Surfeit Group and their HR provider, ALTRES, failed to conduct an adequate investigation, which allowed the harassment to continue.

This behavior violates Title VII of the Civil Rights Act of 1964, which prohibits discrimination based on sex and sexual orientation. The EEOC filed the lawsuit in the U.S. District Court for the District of Hawaii (Case No.: 1:23-cv-00208-SOM-WRP) after unsuccessful attempts to reach a pre-litigation settlement through its voluntary conciliation process.

Settlement:

Beyond the monetary compensation, the settlement requires Aged Artisans/Surfeit Group and ALTRES to implement several measures to address and prevent workplace discrimination. These measures include:

• Equal Employment Opportunity Monitoring: Ensuring compliance with Title VII.
• Policy Revision and Distribution: Reviewing, revising, and distributing policies addressing discrimination and harassment companywide.
• Complaint Mechanisms: Establishing an online complaint process and mechanisms for prompt corrective action if discrimination occurs.
• Anti-Discrimination Training: Providing training on anti-discrimination laws and practices.
• Compliance Tracking: Monitoring and tracking compliance with Title VII and reports of discrimination and harassment.
• Audits and Record Maintenance: Conducting audits of complaints and investigations and maintaining appropriate records.
• The decree will remain under court jurisdiction for three years, with the EEOC monitoring compliance.

Recommendation:

In light of this case, it is highly recommended that all employers in the restaurant and hospitality industries conduct regular sexual harassment training for their employees. This training should cover recognizing harassment, understanding the consequences of such behavior, and the procedures for reporting incidents. Proactive training can create a safer and more respectful workplace environment, reducing the risk of harassment and ensuring compliance with federal laws.

Conclusion:

The settlement of $115,000 and the agreed-upon measures reflect a commitment to addressing and preventing sexual harassment in the workplace. This case underscores the importance of employers' responsibilities under Title VII and the need for robust measures to protect employees from discrimination and harassment.