The EEOC issued this press release on Monday:“Burger King Franchise Pays $400,000 for Alleged Sexual Harassment of Teens”
This has local interest for us as it is a St. Louis County case.
The $400,000 is to be paid to seven female employees — and their attorneys of course. Additionally, significant nonmonetary relief includes:
[E]xtensive sexual harassment training for management personnel, including eight hours of training for several upper-level managers, distribut[ion of] the revised sexual harassment policy and procedure to all restaurant employees, and more prominently post[ing] an 800-number hotline for reporting harassment . . . For the two-year period of the Decree, the companies must report to the EEOC all internal complaints of sexual harassment involving employees at the . . . restaurant [in question].
Allegations centered on one individual,the restaurant manager, who allegedly subjected the female employees, six of them high school students, to “repeated groping, vulgar sexual comments, and demands for sex.” Allegedly, complaints to assistant managers at the restaurant as well as to a district manager did not result in any action. Finally, following a complaint to the corporate office, and a a brief company investigation, the alleged harasser was allowed to resign. One of the assistant managers who allegedly failed to respond to earlier complaints, although initially reprimanded, was later promoted to manager.
Here’s the EEOC press release.
The settlement actually was relatively modest. If they shared equally, each employee would only get about $34,000, given the number of complaining employees sharing in it, and the big chunk of the settlement a typical 40% contingent fee would take (I have no knowledge this was the fee arrangement in this case, but mention it for illustration only).
I consider EEOC settlements good barometers of case value.
Bearing in mind that this case involves several aggravating circumstances, notably physical conduct, teenage victims, and unsuccessful complaints to lower management, this settlement indicates sexual-harassment cases may not be the pot of gold many plaintiffs’ lawyers and their clients expect them to be.
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