The U.S. Equal Employment Opportunity Commission (EEOC) has reinforced that business owners remain liable for civil rights violations—even after shutting down their operations. This reminder follows a $100,000 settlement with ’Murica LLC, a former operator of the Starlite Station bar and dance hall in Greeley, Colorado.

According to the EEOC’s lawsuit filed in the U.S. District Court for the District of Colorado, the bar’s owner created a hostile work environment by routinely engaging in inappropriate conduct with female employees. Allegations included unwanted physical contact, sexual advances, coercion to allow him to stay at employees’ homes, and sexual activity with an intoxicated worker on the premises.

The complaint also claims the owner made discriminatory remarks during the hiring process and toward staff, including degrading comments about their looks and weight. Female employees who didn’t meet his personal standards reportedly faced reduced shifts or termination threats.

When workers raised concerns, ’Murica LLC retaliated—firing or threatening employees and filing a defamation lawsuit against those who spoke out or contacted the EEOC. The agency condemned these legal tactics as an attempt to silence victims and obstruct its enforcement efforts.

Though the business ceased operations in November 2021, the EEOC held both the owner and his mother—also a co-owner—personally liable. The agency noted the misuse of company funds for personal expenses, such as mortgage payments and credit card bills, enabling it to pursue the owners’ personal assets to satisfy the judgment.

As part of a five-year consent decree, ’Murica LLC will provide monetary compensation to affected individuals, implement EEO training, issue apology letters, and have its anti-discrimination policies reviewed by a SHRM-certified professional.

“The EEOC will not tolerate employers trying to evade accountability through retaliation or business closures,” said Mary Jo O’Neill, Regional Attorney for the EEOC’s Phoenix District Office. “Employees must be able to speak up without fear.”

EEOC Phoenix District Director Melinda Caraballo added, “No employee should face harassment or punishment for asserting their rights under Title VII.”

Explore HR Tech News for the latest advancements in Human Resources Technologies insightful updates from industry experts! 

Source: Hrdive.com