Charlotte IHOP to Pay $40,000 in EEOC Religious Discrimination and Retaliation Suit

CHARLOTTE, N.C. –Suncakes NC, LLC, a North Carolina-based company, and Suncakes, LLC, a Texas-based company doing business as IHOP (collectively “Suncakes”), will pay $40,000 and provide other relief to settle a religious discrimination and retaliation lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the federal agency announced today.

According to the EEOC’s lawsuit, Suncakes hired a cook at its Woodlawn Road location in Charlotte in January 2021. At the time of hire, the employee requested and was granted a religious accommodation of not working on Sundays to honor his religious observances. After a change in management in April 2021, the new general manager expressed hostility toward the accommodation and required the employee to work on Sunday, April 25 and Sunday, May 9. After the employee told the general manager that due to his religious beliefs, he would no longer work on Sundays, the general manager fired him. 

The general manager was also alleged to have made comments to other employees such as, “religion should not take precedence over [the employee’s] job” and that the employee supposedly “thinks it is more important to go to church than to pay his bills.”

Such alleged conduct violates Title VII of the Civil Rights Act of 1964, which provides for religious accommodations in the workplace and protects individuals from religious discrimination and retaliation. The EEOC filed suit in U.S. District Court for the Western District of North Carolina, (Equal Employment Opportunity Commission v. Suncakes NC, LLC and Suncakes, LLC, d/b/a IHOP, Civil Action No.: 3:23-cv-00274) after first attempting to reach a pre-litigation settlement through its voluntary conciliation process.

Under the two-year consent decree resolving the lawsuit, Suncakes will pay $40,000 in monetary damages to the employee, provide annual training to managers on the provisions of Title VII, post a notice to employees about the settlement, and revise their current policies to expressly include protection for religious accommodations. The revised policy will be posted in all 17 IHOP locations operated by Suncakes in North Carolina.

“Religious discrimination is intolerable,” said Taittiona Miles, lead trial attorney for the case. “Employers must respect all sincerely held religious beliefs, which includes providing reasonable accommodations when no undue hardship exists.”

Melinda C. Dugas, regional attorney for the EEOC's Charlotte District, said, “Requesting an accommodation for a religious observation is protected activity under federal law. And employers are prohibited from taking adverse employment action against an employee for exercising that right.”

For more information on religious discrimination, please visit https://www.eeoc.gov/religious-discrimination. For more information on retaliation, please visit https://www.eeoc.gov/retaliation.

The EEOC’s Charlotte District is charged with enforcing federal employment anti-discrimination laws in North Carolina, South Carolina, and Virginia.

The EEOC advances opportunity in the workplace by enforcing federal laws prohibiting employment discrimination. More information is available at www.eeoc.gov. Stay connected with the latest EEOC news by subscribing to our email updates.