Restaurant Chain Accused of Groping Female Workers in Bathrooms and Retaliating Against Complainants Agrees to Pay $3M to Settle

Il Fornaio, an Italian restaurant chain with 15 locations in California and Nevada, will pay $3 million to settle a federal lawsuit alleging that female employees, including teenagers, were subjected to sexual harassment, forceful groping in restaurant bathrooms, and retaliation after reporting the misconduct, according to the US Equal Employment Opportunity Commission (EEOC).

The settlement covers allegations that supervisors and employees repeatedly sexually harassed women across restaurants. The EEOC said the conduct included grabbing employees' private parts, demanding sexual favours, and making explicit references to sexual activities.

The agency further alleged that Il Fornaio failed to stop the harassment despite complaints from female workers and retaliated against many who spoke up. Several employees ultimately felt they had no choice but to resign, according to the lawsuit.

The $3 million settlement is intended to resolve the EEOC's claims of a sexually hostile work environment and retaliation. The agency announced the agreement as part of its efforts to address workplace sexual harassment in the restaurant industry.

However, Il Fornaio disputed the allegations and said the settlement was not an admission of liability or wrongdoing. The company said it reportedly entered into the agreement to avoid the burden, expense, and uncertainty of continued litigation.

At Least 100 Women Were Affected

Beatriz B. Andre, acting regional attorney for the EEOC's Los Angeles District, said the agency learned during the case that at least 100 women had been negatively affected by the restaurant chain's work environment.

'Sexual harassment continues to be a widespread issue in the restaurant industry,' Andre stated, adding that the agency hoped the settlement would lead Il Fornaio to take meaningful steps to prevent harassment and respond promptly and effectively when complaints arise.

Christine Park-Gonzalez, director of the EEOC's Los Angeles District, said the agency would continue to pursue workplace sexual harassment cases and thanked the women who came forward and shared their experiences.

Matt Foley, Il Fornaio's director of marketing and creative services, reportedly told HR Dive that the restaurant 'takes harassment seriously and will continue to do everything possible to prevent and eliminate harassment in the workplace against all workers. The company prides itself on fostering a positive working environment for its employees, which is reflected in the high number of long-term employees and low turnover rate for the industry.'

Lawsuit Alleged Violations of Federal Civil Rights Law

The EEOC brought the case under Title VII of the Civil Rights Act of 1964, which prohibits employment discrimination based on sex, including sexual harassment that creates a hostile work environment. The law also prohibits retaliation against employees who complain about sexual harassment or engage in other legally protected activity.

The agency filed the lawsuit in the US District Court for the Central District of California after attempting to resolve the matter through its administrative conciliation process.

The allegations highlight workplace risks that can arise in restaurants, where employees may work closely with supervisors, share confined back-of-house spaces, and depend on managers for scheduling and continued employment. For younger workers, the ability to report misconduct without fear of losing shifts or facing other consequences is particularly important.

Under Title VII, employers can face liability for workplace sexual harassment, depending on the circumstances, including who committed the misconduct and how the employer responded. Retaliation against employees for raising complaints about conduct they reasonably believe violates federal discrimination law can also be unlawful.

The EEOC said the agreement was intended to help bring Il Fornaio into compliance with federal civil rights law and improve how the company prevents and responds to sexual harassment complaints.