The Cost of Not Taking Corrective Action

Recently, a 17-year old employee was awarded $180,000 in response to an EEOC sexual harassment claim against a national restaurant chain [EEOC v. Steak 'N Shake Operations, Inc. No. 4:04CV00880 SNL (E.D. Mo. June 22, 2006)]. The female employee was subjected to sexual harassment by a male coworker, who verbally and physically sexually harassed the employee for 3 months. She complained to the restaurant’s General Manager and to two other managers, but no corrective action was taken. In September 2002, after the coworker attempted to coerce the employee into sexual activity in the restaurant parking lot, she quit. 

In addition to awarding the monetary award, the 3-year consent decree also mandates that the company prepare a reference letter that lists the former employee’s job duties and employment dates and states that her performance was “well above average” and that she is eligible for rehire. The letter will be made a part of her permanent employment records, and restaurant must limit responses to prospective employers to the information contained in the letter, as applicable.

The restaurant also stated in the decree that it no longer employs the harasser.  The decree states that the restaurant’s sexual harassment policy must clearly describe the proper procedure to file an internal sexual harassment complaint and must include a 1-800 hotline number.  They must keep records of all written internal complaints of possible sexual harassment, including hotline reports, received during the term of the decree. At all of its St. Louis District restaurants, they must: (1) provide sexual harassment training for all General Managers and Human Resources personnel; (2) post for 1 year a modified “hotline poster” stating that employees may also contact defendant’s counsel with internal discrimination complaints; and (3) continue for 3 years their Youth at Work Initiative, which involves notifying new employees age 18 and under and their custodial parent(s) about (a) the youth’s right to work in an environment free of harassment and discrimination and (b) how to report discrimination. In addition, every 9 months the company must provide employees at five restaurants in the District where the harassment occurred, and any other restaurant whose General Manager was employed at the restaurant during the time the employee was harassed with a copy of the company’s sexual harassment policy and a confidential written survey to assess the effectiveness of the policy.

source: EEOC

How can you prevent this type of claim in  your business? Provide training for all managers and supervisors on Sexual Harassment, as well as on proper documentation and employee counseling techniques. Many managers aren’t natural disciplinarians and may procrastinate or altogether avoid counseling employees.  Review your Sexual Harassment Policy on a regular basis. Workplace policies shouldn’t be static. In an ever-changing business environment, it’s important to review all of your workplace policies on a regular basis to ensure that the information is relevant and within the scope of federal and state regulations.   Take time to review how the policy is communicated to all employees – both new hires and long-term employees. Periodically re-issue the policy and ask that all employees (and managers) review and sign an acknowledgment that they read the policy. Hippo & Fleming Law Offices can help: We provide customizable training and workshops for business owners and managers.  Contact our office to learn more about how we can help.  Whether you need an existing policy reviewed, or are just starting to think about writing an employee handbook, our attorneys can give you the legal guidance you need. Contact our office for more information.