LeoPalace Resort Settles EEOC National Origin Discrimination Case for $1.4 Million

Background

LeoPalace Guam Corporation, operating as LeoPalace Resort, has agreed to pay $1,412,500 and implement corrective measures to resolve a lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC). The case involved allegations that the resort discriminated against non-Japanese employees, particularly American workers, by offering unequal wages, benefits, and employment conditions compared to their Japanese counterparts.

Incident Details

From at least 2015, LeoPalace Resort allegedly provided Japanese employees with higher wages and better benefits than non-Japanese workers, even when they held equal or lower positions. The affected employees, many of whom were American nationals, received less favorable employment terms, which the EEOC determined to be a violation of federal anti-discrimination laws.

Legal Background

The EEOC lawsuit was filed in the U.S. District Court for the Territory of Guam (Case No. 1:25-cv-00004) after efforts to reach a pre-litigation settlement through conciliation failed. The lawsuit cited Title VII of the Civil Rights Act of 1964, which prohibits national origin discrimination in employment practices. The EEOC sought both monetary relief and injunctive measures to ensure compliance with federal law.

Settlement and Relief

Under the three-year consent decree, LeoPalace Resort has agreed to:

• Pay $1,412,500 in financial compensation to affected employees.
• Hire an external equal employment opportunity (EEO) monitor to oversee compliance.
• Revise policies and procedures to prevent future discrimination.
• Conduct mandatory anti-discrimination training for employees and management.
• Oversee the reinstatement of former employees who wish to return to work.
• Submit to periodic audits and reports to ensure compliance with federal regulations.

The decree, approved by Judge Ramona V. Manglona on February 18, 2025, keeps the case under court supervision for three years.

Key Takeaways

1. Employers cannot favor foreign workers over American employees in terms of wages, benefits, or working conditions.
2. Title VII protects all employees from national origin discrimination, ensuring equal pay for equal work.
3. Proactive compliance measures, such as hiring an external monitor, can prevent future legal action.

Conclusion

This case reinforces the importance of equal treatment in the workplace, regardless of national origin. Employers must ensure that compensation and employment conditions are based on merit and fairness rather than nationality or background. Companies that fail to uphold these principles risk significant legal and financial consequences.