SEXUAL HARASSMENT IS NO JOKE

Arizona owners of 18 California, Arizona, and Nevada McDonald’s franchises have agreed with the federal Equal Employment Opportunity Commission (EEOC) to pay $1,997,500 to settle a sexual harassment lawsuit.

The suit accused AMTCR California, LLC, AMTCR Nevada, Inc., and AMTCR, Inc. (AMTCR) of taking no action to stop known sexual harassment by employees, including supervisors and managers, in its restaurants. AMTCR’s young, teenaged employees were the principal targets not only of offensive comments, but also unwanted touching, sexual advances, and intimidation.

AMTCR has also agreed to stop such conduct in all its restaurants and implement extensive measures to prevent recurrences, including engaging an outside monitor to oversee AMTCR’s handling of such complaints; taking surveys in the restaurants; updating its policies; staff training; and implementing a centralized tracking system.

EEOC Chairperson Charlotte A. Burrows stated: “Preventing and remedying systemic harassment and protecting vulnerable workers from discrimination are key priorities for the Commission. Teenage workers are especially vulnerable to harassment.  The EEOC will continue to use all its tools—including outreach and education, technical assistance and, where necessary, litigation —to tackle workplace harassment.”

Had AMTCR implemented measures to protect vulnerable employees and acted swiftly when sexual harassment occurred, it would have saved millions in fines and legal fees and avoided the bad publicity of an EEOC lawsuit.  Most important, it would have protected numerous young employees from humiliating and offensive behavior.

TAKE-AWAYS:  Employers have a legal and moral obligation to prevent sexual harassment and rapidly deal with it when it occurs.  Sexual harassment training for managers and other employees is required in California and other places.  Such training helps employees recognize and stop bad behavior in its tracks.  Employers should provide such training and seek attorney assistance to ensure they have appropriate safeguards in place, including handbooks or other policies.

For further information, please contact Tim Bowles, Cindy Bamforth or Helena Kobrin.

See also:

• Boundaries, Explained: Mandatory Sexual Harassment Prevention Training (January 26, 2023)
• Cautionary Tale Episode 50: Do Something: EEOC Sues Convenience Stores Owner for Condoning Sexual Harassment  (March 4, 2022)
• What’s New for 2019 California’s Increased Protections Against Workplace Harassment (January 31, 2019)

Helena Kobrin
February 10, 2023