04-09-2019
The Equal Employment Opportunity Commission (EEOC) filed suit against IHOP franchisees in Nevada and New York for “ongoing egregious sexual harassment.” The harassment included groping, pictures of male genitalia, propositions for sex, viewing of pornography, vulgar comments as well as unwelcome touching and kissing. According to the EEOC’s complaint, the company did not take corrective action in response to complaints made about the conduct and instead retaliated by reducing the work hours of and terminating complaining employees.Moreover, the EEOC alleged that these franchises had in place a written sexual harassment policy that mandated employees who were sexually harassed report that harassment to a national office in writing within 72 hours or waive all rights. This policy had purportedly been in effect since 2005 and precluded complaints being made in individual restaurants to local management. The EEOC alleged this policy had the impact of deterring employees from complaining, removed manager and supervisor responsibility for what was occurring, and “emboldened the abusers.”
A five-year consent decree was entered into and provides $700,000 for a class of female employees, eliminates the 72-hour reporting policy, requires a new Human Resources department and outside monitor, and new Title VII compliant performance review standards. Management will also receive training on how to prevent and correct harassment and retaliation.