A Culver’s restaurant franchisee will pay $261,000 to resolve two federal discrimination lawsuits alleging widespread harassment of employees based on race, sex, sexual orientation and disability at its Minnesota location.
R & G Endeavors, Inc., which operates Culver’s Restaurants of Cottage Grove, agreed to the settlement with the U.S. Equal Employment Opportunity Commission announced Thursday. The company must also implement new policies and training programs under consent decrees resolving both cases.
The EEOC filed separate lawsuits alleging that managers and employees at the restaurant subjected workers to severe harassment over multiple protected characteristics. In one case, a gay African American employee endured repeated racial and homophobic slurs from coworkers and supervisors. In a second case, female employees faced unwelcome sexual conduct, while a worker with an intellectual disability was harassed and underpaid.
The federal complaints detailed a pattern of hostile behavior that created an intimidating work environment for vulnerable employees, particularly young workers who make up a significant portion of the restaurant workforce.
Multiple forms of harassment alleged
According to the EEOC lawsuits, managers and employees regularly called the gay African American worker racial and homophobic slurs. They also made inappropriate comments about his body and personal life as part of ongoing harassment.
Female employees, including teenage workers, faced sexual harassment from adult employees that included unwelcome touching, stalking behavior, sexual propositions and inappropriate gifts. Supervisors used unwelcome pet names when addressing female staff members.
The worker with an intellectual disability faced constant name-calling, derogatory language and unfair disciplinary actions compared to other employees. The company also paid him less than similarly situated workers, according to the federal complaint.
Company failed to address complaints
The EEOC alleged that Culver’s management failed to take corrective action even after receiving complaints about the hostile work environment. The company’s inaction allowed the harassment to continue and escalate over time.
The alleged conduct violates Title VII of the Civil Rights Act of 1964, which prohibits workplace harassment based on race, sex and sexual orientation. The disability-related claims violate the Americans with Disabilities Act, which prohibits harassment and discrimination based on disability status.
Settlement requires comprehensive changes
Under the consent decrees, the franchisee will pay $186,000 to affected individuals in the Title VII case and $75,000 to the worker in the disability discrimination case.
The company must also notify all employees about the lawsuits and implement new anti-harassment policies. Management and non-management employees will receive regular training on discrimination prevention and reporting procedures.
The franchisee must report any future discrimination complaints to the EEOC during the monitoring period, allowing federal officials to track the company’s compliance with the settlement terms.
Young workers particularly vulnerable
The case highlights risks facing young workers in the restaurant industry, where teenagers often work alongside adult employees and may lack experience recognizing or reporting harassment.
The EEOC filed both lawsuits in U.S. District Court for the District of Minnesota in May 2023 after attempts to reach pre-litigation settlements failed through the agency’s administrative process.
The settlement demonstrates federal enforcement priorities targeting workplaces where multiple forms of discrimination intersect and where employers fail to protect vulnerable workers from harassment.
The EEOC’s Chicago District Office, which handled the cases, has jurisdiction over Illinois, Wisconsin, Minnesota, North Dakota, South Dakota and Iowa.