$2.2 Million Settlement in Tavern on the Green Suit
Legendary New York City restaurant Tavern on the Green agreed to settle sex, race and national origin harassment and retaliation claims for $2.2 million (EEOC v. Tavern on the Green Ltd., S.D.N.Y., No. 07-8256 (June 2, 2008)).
The Allegations
The EEOC alleged that the restaurant engaged in “severe and pervasive” harassment of female, African-American and Hispanic employees. “Verbally, female employees were subjected to repeated comments related to sexual positions, sexual acts, female genitalia and even demands for sexual favors,” said Kam Wong, attorney for the EEOC. “Physically, female employees were also grabbed, groped and fondled.” The EEOC also alleged that one of the restaurant’s top managers severely harassed African-American and Hispanic employees, calling them a variety of epithets and ridiculing their culture. Employees who complained had their hours and pay cut, according to the EEOC.
The Settlement
The $2.2 million settlement will be divided among approximately 50 employees who worked for the restaurant between 1999 and 2007. In addition, the consent decree requires the restaurant to: (1) refrain from rehiring the alleged harassers; (2) establish a hotline for discrimination complaints; (3) conduct annual employment law training; and (4) distribute a revised anti-discrimination policy to all employees.
Tavern on the Green was established in 1934 and describes itself as the “highest-grossing independently owned restaurant in the United States, with annual revenues in excess of $34 million and over half a million visitors a year.” The restaurant denied any wrongdoing and said it was “pleased this long-pending matter has been amicably settled.”
The Lesson
The EEOC alleged that the employer ”knew or should have known of the severe and pervasive harassment, yet failed to exercise reasonable care to prevent and correct promptly the harassing behavior.” Don’t let that happen to you. Promptly and thoroughly investigate any and all complaints of discrimination or harassment, using the investigation checklist under “Tools & Tips” on the left as a guide.
