DENVER – ‘Murica LLC, operator of the Western-themed Starlite Station bar and dance hall in Greeley, Colorado, and its owners will pay $100,000 to former employees and furnish other relief to settle a sexual harassment and retaliation lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced.
According to the EEOC’s lawsuit, ‘Murica LLC created a sexually hostile work environment for both female and male employees, with the owner often touching female employees without their permission; pursuing sexual relationships with multiple female employees; pressuring female employees to let him sleep at their homes; and having sex with an intoxicated employee at the bar, which resulted in the brief loss of the bar’s liquor license.
The EEOC’s lawsuit also alleged that the owner made derogatory and harassing comments about the appearance of women who applied to work at Starlite, saying some should not be hired because they were “too ugly,” or “not f***able.” Some male employees were subjected to unwelcome questions about their sex life and the owner made harassing comments to these employees about female employees and applicants.
The EEOC said Starlite also retaliated against employees who complained about or spoke out against the owner’s inappropriate sexual comments and conduct, including by firing or threatening to discipline employees who complained about the owner’s conduct.
Starlite and its owner then filed a retaliatory defamation lawsuit in state court against a group of former employees after they filed complaints with the EEOC or made public statements, including on social media, objecting to the owner’s treatment of female employees and his sexual contact with an intoxicated female employee. The EEOC’s complaint stated that the state court lawsuit was an unlawful form of retaliation and that the terms of the state court settlement prohibiting cooperation with the EEOC were illegal and should be voided as a matter of public policy.
This alleged conduct violates Title VII of the Civil Rights Act of 1964, which prohibits sexual harassment in the workplace and retaliation against employees for complaining about such conduct. The EEOC filed suit in September 2022, EEOC v. ‘Murica, LLC d/b/a Starlite Station, Civil Action No. 1:22-cv-02549, in U.S. District Court for the District of Colorado after first attempting to reach a pre-litigation settlement through its administrative conciliation process.
The EEOC’s lawsuit also alleged that the owner and his mother, who was also a co-owner, were individually liable because they improperly used the corporation to further their personal interests. The allegations included the use of corporate funds to pay a mortgage on a home, a personal loan and personal credit cards. As a result of the alleged misappropriation of funds, the EEOC argued it could reach beyond the closed bar and satisfy any judgment with the two owners’ personal assets.
The case was resolved through a five-year consent decree, which includes monetary relief totaling $100,000 for the aggrieved individuals, as well as targeted equitable relief such as required training on equal employment opportunity (EEO) for managers and employees, a letter of apology from the owner to each aggrieved individual, and review and revision of EEO policies by a Society for Human Resource Management-certified professional, among other provisions.
“This case demonstrates why owners should not think that they can escape liability simply by closing a business and filing retaliatory defamation lawsuits in an attempt to silence victims,” said Mary Jo O’Neill, regional attorney for the EEOC’s Phoenix District Office. “The EEOC will vigorously litigate against retaliatory defamation lawsuits and private settlements that seek to prevent communication with the EEOC and obstruct our enforcement of civil rights laws.”
EEOC Phoenix District Director Melinda Caraballo said, “The EEOC is committed to protecting employees from harassment by their employers, especially at the hands of owners. It is essential that employees can work freely without fear of being fired or facing other retaliation for complaining about sex discrimination or sexual harassment, which is protected activity under Title VII.”
The EEOC is represented in-house by Karl Tetzlaff, Jillian Edmonds, and Paula Salazar.
The EEOC’s Phoenix District Office has jurisdiction over Colorado, Arizona, Utah, Wyoming, and parts of New Mexico.
The EEOC is the sole federal agency authorized to investigate and litigate against businesses and other private sector employers for violations of federal laws prohibiting employment discrimination. For public sector employers, the EEOC shares jurisdiction with the Department of Justice’s Civil Rights Division; the EEOC is responsible for investigating charges against state and local government employers before referring them to DOJ for potential litigation. The EEOC also is responsible for coordinating the federal government’s employment antidiscrimination effort. More information about the EEOC is available at www.eeoc.gov. Stay connected with the latest EEOC news by subscribing to our email updates.
