Recently, an Italian restaurant chain, with 15 locations across California and Nevada, settled a sexual harassment and retaliation lawsuit brought by the Equal Employment Opportunity Commission (“EEOC”) and as a result will pay $3 million dollars and provide other relief.

Inside the $3 Million EEOC Sexual Harassment Settlement

The lawsuit against Il Fornaio LLC, which was settled earlier this fall, was brought by the EEOC on behalf of at least 100 women who had been employed by the company. The lawsuit alleged that numerous supervisors and employees across Il Fornaio’s restaurants had repeatedly engaged in sexual harassment towards female employees, some of whom were only teenagers at the time.

Sexual Harassment and Retaliation Allegations

The harassment detailed in the lawsuit included forceful groping in restaurant bathrooms, multiple instances of grabbing women employees’ private parts, requests for sexual favors, and explicit references to sexual activities. The suit also alleged that when the female employees reported sexual harassment, instead of taking steps to stop the behavior, supervisors reduced their hours or shifts worked, forced them to do more difficult tasks, or denied requests for time off in retaliation for reporting the conduct. As a result of this retaliatory behavior, some employees believed that they had no choice but to resign from their positions with the company.

The EEOC filed suit in the U.S. District Court for the Central District of California after first attempting to reach a pre-litigation settlement through its administrative conciliation process.

In the news release regarding the settlement reached with Il Fornaio, Beatriz B. Andre, acting regional attorney for the EEOC’s Los Angeles District, stated, “Sexual harassment continues to be a widespread issue in the restaurant industry, and during this case, we learned of at least 100 women negatively affected by Il Fornaio’s work environment,” and “Through this settlement, we hope Il Fornaio will take meaningful steps to prevent sexual harassment and respond promptly and effectively when complaints arise.”

What is Sexual Harassment in the Workplace?

Sexual harassment is a form of discrimination involving unwanted sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature. Workplace harassment may violate Title VII of the Civil Rights Act and Nevada law when an employee experiences harassment or discrimination on the basis of sex, including statements or behavior involving sexual orientation and gender identity.

The definition of sexual harassment can encompass a range of conduct depending on the circumstances, but generally occurs in three different ways in the workplace:

• Submission to such conduct is made a term or condition of employment.
• Submission to or rejection of such conduct is used as a basis for employment decisions.
• Such conduct has the purpose or effect of unreasonably interfering with the individual’s work performance or creating an intimidating, hostile, or offensive work environment.

Why Sexual Harassment Prevention Matters for Employers

Sexual harassment is still a significant issue in the workplace, especially in certain industries. Employers should take steps and be proactive in preventing these issues to avoid creating a workplace where sexual harassment and harassing behavior are prevalent. Effective sexual harassment prevention requires employers to take proactive steps, including:

• Create and Regularly Update Your Sexual Harassment Policy: Employers should implement specific anti-harassment and behavior policies for the workplace. These policies should define prohibited conduct, provide examples of conduct that violates company policy, outline federal and state protections, and explicitly ban retaliation against anyone who reports an incident or participates in an investigation.
• Conduct Regular, Interactive Training: While there is no specific requirement for employers to provide harassment training under Nevada law, best practices to prevent workplace harassment and sexual harassment issues recommend regular training for employees: if not annually, at least every two years. Harassment training should be live and interactive, provided to all employees, and include specialized instruction for supervisors on how to recognize warning signs, handle disclosures, and prevent retaliation.
• Committed Leadership: Companies should take steps to ensure that managers, supervisors, and higher executives are well trained on these issues and make it clear to these individuals that one of their top priorities is to model respectful workplace behavior and also enforce all behavior related policies in the workplace.
• Provide Accessible Reporting Channels: Employees should have multiple ways to report allegations of sexual harassment, including anonymous hotlines, online portals, or designated contacts within the human resources department or another representative outside an employee’s immediate supervisor or chain of command. Employees should also receive training on who and how they can report such incidents in the workplace.
• Take Immediate and Impartial Action on Complaints: Companies need to immediately investigate any complaint of harassment or similar behavior in the workplace. All investigations must be unbiased and kept as confidential as possible. If the allegation is substantiated, employers should take appropriate corrective action consistent with company policy and applicable law.

Taking a Proactive Approach to Harassing Behavior and Inappropriate Conduct

The Il Fornaio sexual harassment case serves as an important reminder that employers should take complaints seriously, respond promptly, and maintain effective policies and reporting procedures. A proactive approach to workplace harassment prevention should include regular sexual harassment training, clear reporting options, prompt and impartial investigations, and appropriate corrective action when allegations are substantiated. Taking these steps can help employers promote a respectful workplace and address inappropriate conduct before it becomes a larger workplace issue or a multi-million-dollar settlement.

By: Cara Sheehan, Esq.