R & G Endeavors, Inc., which operates Culver’s Restaurants in Cottage Grove, Minnesota, will pay $261,000 to settle two lawsuits filed by the U.S. Equal Employment Opportunity Commission (EEOC). These cases involve serious allegations of harassment and discrimination based on race, sex, sexual orientation, and disability.
According to the EEOC, several employees faced a hostile work environment at the Culver’s location. One employee, who is both gay and African American, reported being subjected to racial and homophobic slurs, including frequent use of derogatory terms. He also faced inappropriate comments about his body and personal life from managers and coworkers.
In another instance, female employees at the restaurant experienced sexual harassment. Reports included unwanted touching, stalking behaviors, and inappropriate gifts directed at teenage girls by adult employees.
The second lawsuit focused on a worker with an intellectual disability who was harassed through name-calling and unfair treatment. This employee was also paid less than his coworkers despite performing similar work. The EEOC claimed that the company did not take action to address these issues, even after receiving complaints.
These actions violate Title VII of the Civil Rights Act, which protects against workplace harassment based on race, sex, and sexual orientation. They also breach the Americans with Disabilities Act, which safeguards individuals with disabilities from discrimination.
The EEOC initially sought to resolve the issues through discussions with the company but filed lawsuits in May 2023 when those attempts failed. The cases were resolved through consent decrees. This means the company will pay $186,000 to the individuals affected in the Title VII case and $75,000 to the individual in the ADA case. Additionally, the settlement includes provisions for employee training, policy changes, and regular reporting of future complaints to the EEOC.
This settlement highlights the importance of a safe and respectful workplace for all employees.