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On August 27, the U.S. Equal Employment Opportunity Commission (EEOC) announced that a Sorrento, Florida-based company will pay $1.6 million to settle a racial harassment case. Additionally, the lawsuit also included charges of national origin harassment and retaliation. Notably, the lawsuit was brought on behalf of 17 former Black and Hispanic employees. Employers, however, must not discriminate against federally protected classes, which include race, sex, age, disability, and pregnancy status. Comparatively, the EEOC has ramped up its enforcement efforts in recent years. In August 2024, the agency announced that a staffing support firm will pay $1.25 million to settle a disability-related discrimination case.
Background of the Racial Harassment and Retaliation Lawsuit
According to the lawsuit, the EEOC charged that the company subjected Black and Hispanic employees to a hostile work environment. Markedly, the former employees were subjected to:
- open use of racial slurs and derogatory language,
- display of the Confederate flag, and
- distribution of humiliating and degrading assignments based on race and national origin.
In addition to the racial harassment, the EEOC sued, alleging retaliation claims on behalf of two former Black employees. Overall, the agency claimed the workers were fired due to complaints about their work environment. Explicitly, such alleged conduct violated Title VII of the Civil Rights Act of 1964.
Title VII of the Civil Rights Act of 1964
Title VII of the Civil Rights Act of 1964 prohibits employment discrimination based on race, color, religion, sex (including gender identity, sexual orientation, and pregnancy), national origin, age (40 or older), disability, or genetic information. The law makes it clear that it is unlawful for an employer to:
- fail or refuse to hire an applicant,
- discharge any employee, or
- otherwise discriminate against any individual with respect to their compensation, terms, conditions, or privileges of employment because of the individual’s race, color, religion, sex, or national origin.
In addition, the law requires employers to reasonably try to prevent and correct the behavior. Finally, Title VII protects employees who object to discrimination from retaliation or any adverse employment action against an employee exercising their rights.
Penalties in the Hiring Discrimination Case
Consequently, to resolve the allegations, the company will pay $1.6 million to compensate the 17 former employees. Additionally, the employer must:
- designate an employee relations hotline for employees to submit harassment and retaliation complaints;
- assign an investigator to receive and address harassment and retaliation complaints; and
- provide training to its employees on recognizing workplace harassment.
Finally, the company will also conduct work environment surveys and audits. These actions will help ensure that racial harassment does not play a role in delegating work assignments.
Employer Takeaways
In conclusion, according to the EEOC, the agency received 81,055 discrimination charges in Fiscal Year 2023. Of those total charges, nearly 43% involved racial harassment or national origin discrimination. State, federal, and local laws prohibit harassment and discrimination of employees, job applicants, and visitors based on sex, gender, age, race, religion, national origin, pregnancy, or disability. Various court decisions and agency guidance have clarified that employers must take reasonable steps to prevent harassment and discrimination from occurring. Failure to take reasonable prevention measures can result in a finding of employer liability during a harassment or discrimination lawsuit.
To assist employers in training workers on forms of harassment and discrimination that could occur in the workplace, WorkWise Compliance (formerly Personnel Concepts) created the Harassment & Discrimination Prevention Training eLearning Module for Employees. In addition to explaining harassment and discrimination, the training module describes preventing such actions and addresses ways to report complaints. For employers in California and New York, the following harassment and discrimination prevention trainings need to be utilized where appropriate:
