‘Murica LLC, which operated the Western-themed Starlite Station bar and dance hall in Greeley, Colorado, will pay $100,000 to former employees to settle a federal sexual harassment and retaliation lawsuit filed by the U.S. Equal Employment Opportunity Commission.
The settlement resolves allegations that the business owner created a hostile work environment for both male and female employees through unwanted sexual conduct and retaliated against workers who complained about the behavior.
Widespread harassment alleged
According to the EEOC lawsuit, the owner touched female employees without permission, pursued sexual relationships with multiple female workers and pressured them to let him sleep at their homes. The complaint also alleged the owner had sex with an intoxicated employee at the bar, which temporarily cost the establishment its liquor license.
The owner made derogatory comments about female job applicants, saying some should not be hired because they were “too ugly” or “not f***able,” according to court documents. Male employees faced unwelcome questions about their personal lives and heard harassing comments about female workers and applicants.
Retaliation claims
The EEOC said Starlite fired or threatened to discipline employees who complained about the owner’s conduct. After former workers filed EEOC complaints or made public statements on social media criticizing the owner’s behavior, the company filed a defamation lawsuit against them in state court.
The federal agency argued this defamation suit constituted illegal retaliation and that settlement terms prohibiting cooperation with the EEOC violated public policy.
Personal liability pursued
The lawsuit also targeted the owner and his mother, a co-owner, for individual liability. The EEOC alleged they improperly used corporate funds for personal expenses including mortgage payments, personal loans and credit card bills.
This misappropriation allowed the EEOC to pursue the owners’ personal assets even after the bar closed, according to the complaint.
Settlement terms
The five-year consent decree requires monetary relief totaling $100,000 for affected workers. Additional requirements include mandatory equal employment opportunity training for managers and employees, written apologies from the owner to each affected individual, and policy reviews by a Society for Human Resource Management-certified professional.
“This case demonstrates why owners should not think that they can escape liability simply by closing a business and filing retaliatory defamation lawsuits in an attempt to silence victims,” said Mary Jo O’Neill, regional attorney for the EEOC’s Phoenix District Office. “The EEOC will vigorously litigate against retaliatory defamation lawsuits and private settlements that seek to prevent communication with the EEOC and obstruct our enforcement of civil rights laws.”
Enforcement message
EEOC Phoenix District Director Melinda Caraballo emphasized the agency’s commitment to protecting workers from owner harassment.
“The EEOC is committed to protecting employees from harassment by their employers, especially at the hands of owners,” Caraballo said. “It is essential that employees can work freely without fear of being fired or facing other retaliation for complaining about sex discrimination or sexual harassment, which is protected activity under Title VII.”
The original lawsuit was filed in September 2022 in U.S. District Court for the District of Colorado after settlement negotiations failed.
