The federal Equal Employment Opportunity Commission filed a lawsuit accusing the chain of violating Title VII of the Civil Rights Act, which forbids racial discrimination.
Hooters of Louisiana LLC has come to an agreement with former Black employees who said the business discriminated against them.
According to Fox 8 Live, the sports bar and grill chain has agreed to pay $650,000 in back wages and damages to settle a racial discrimination and retaliation lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC).
The EEOC will also require Hooters to perform training, update its policy, and provide regular reports of its actions.
“Racial comments and discriminatory hiring practices have no place in any workplace, whether that is a restaurant floor, factory floor, or corporate headquarters,” Michael Kirkland, director of EEOC’s New Orleans Field Office, said in a statement. “The EEOC vigorously enforces the law to address race-based discrimination.”
Hooters allegedly created a hostile workplace for African-American employees in Metairie, Fox 8 reported. The lawsuit alleges that Hooters did not rehire any African-American employees after making workforce reductions in 2020 at the start of the pandemic.
The former employees also spoke of demeaning and offensive racist statements dating back to 2017. Even after receiving several complaints about the derogatory racial remarks and the company’s employment procedures, Hooters allegedly restaffed the location with non-Black workers.
The EEOC accused the business of violating Title VII of the Civil Rights Act, which forbids racial discrimination.
“This is a strong resolution which serves the public interest. The decree provides relief for the former employees and will help assure no employee will be discriminated against or subject to harassment based on race,” Rudy Sustaita, regional attorney for the EEOC’s Houston district office, said. “We are pleased the EEOC and Hooters were able to quickly reach a resolution that is in the interests of justice.”
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