Managers of the Razzoo’s Cajun Café chain of 11 restaurants in Texas and North Carolina thought they had hit on a surefire way to build bar business: Make sure 80% of their bartenders were women. One factor they failed to consider: The EEOC takes a dim view of such hiring quotas.
Now Razzoo’s is paying the price for what the EEOC said is discrimination—a cool $1 million.
In May, the Dallas-based chain agreed to pay $775,000 to settle a sex discrimination lawsuit brought by the EEOC on behalf of male employees who alleged they were systematically denied promotion to high-paying bartender positions. The EEOC claimed Razzoo’s practices violated Title VII of the 1964 Civil Rights Act.
Razzoo’s is also required to spend at least $225,000 to retain a human resources consultant or develop a human resources department. It agreed to train all its employees, post anti-discrimination notices, review its complaint procedures, and provide employees with convenient, confidential and reliable mechanisms for reporting discrimination.
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