Pacific Fun Enterprises LLC, dba Snappers Sports Bar and Grill and Snap-ette Beach and Liquor Store must pay $255,302.53 for sexual harassment of female employees.
The Equal Employment Opportunity Commission (“EEOC”) sued the bar in September 2017 for sexual harassment and retaliation on behalf of women who worked at the bar. The EEOC alleged that the bar’s owner, his son, and patrons subjected female employees to repeated sexual harassment including making sexual comments, inappropriately touching them, calling them derogatory names, and telling them to wear clothes that revealed more skin. When employees complained, the bar retaliated by reducing work shifts, terminating them, or creating such a hostile work environment that the employees felt forced to quit.
The bar never responded to the EEOC’s complaint. A federal magistrate judge recommended that default judgment be granted in favor of the EEOC, and that the bar must pay $255,302.53 for compensatory and punitive damages, back pay, and prejudgment interest.
In November 2017, the bar filed for bankruptcy. The EEOC indicated that it is working to obtain relief through the bankruptcy proceedings.
“Employers should take note of this decision and understand their liability for the work environment they condone,” said Anna Park, regional attorney for the EEOC’s Los Angeles District, which includes Hawaii in its jurisdiction. Glory Gervacio Saure, director of the EEOC’s Honolulu Local Office, added, “This ruling sends a clear message to employers in the tourism industry and beyond that the EEOC and the courts will not tolerate sex discrimination in the workplace, especially where owners and management are involved.”
This case serves as a reminder of the importance of ensuring everyone in your company, including owners and managers, are appropriately trained to prevent and respond to sexual harassment. HEC offers training in preventing workplace harassment through its Fundamentals of Supervision Series and through in-house training. Contact an HR consultant for more information.