EEOC Sues Two Employers for Sex Discrimination

WASHINGTON –The U.S. Equal Employment Opportunity Commission (EEOC) filed lawsuits against two companies to enforce Title VII of the Civil Rights Act of 1964 (Title VII), the federal agency announced today.

“Harassment in the workplace based on gender identity is sex discrimination, and it’s against the law,” said EEOC General Counsel Karla Gilbride. “Transgender people have the same rights as everyone else to be safe at work and to have their humanity respected. Employers who treat transgender employees worse than their coworkers or allow them to be harassed without taking steps to stop the abuse should know that those actions may have legal consequences.”

The EEOC filed:

• EEOC v. Starboard Group, Inc., d/b/a Wendy’s, and Starboard with Cheese LLC, Case 3:24-cv-02260 in the U.S. District Court for the Southern District of Illinois. In its lawsuit, the agency charged that the Wendy’s Carbondale, Illinois location subjected a class of transgender employees to pervasive sexual harassment including repeatedly subjecting the transgender employees to misgendering, graphic sexual comments, unequal access to bathrooms, intrusive questions, and degrading conduct based on gender identity. Employees said supervisors inquired about their genitalia and forbade them from using restrooms consistent with their gender identity, co-workers referred to them as “it” and often misgendered them even after being corrected. The conduct altered the terms or conditions of employment and Wendy’s terminated one member of the class and retaliated against the others when it reduced their hours for opposing the harassment. The company also refused to update company records to reflect legal name changes.
  • “Title VII forbids discrimination based on sex,” said Greg Gochanour, regional attorney for the EEOC’s Chicago District Office. “Courts have made clear that transgender status falls under the protections of Title VII, and employers have an obligation to ensure that transgender employees are not subjected to harassing conduct.”
  • Amrith Aakre, District Director of the EEOC’s Chicago office, said, “For many racial and ethnic groups there are certain words that are inherently hurtful and offensive. Similarly, for transgender individuals, being intentionally addressed with the wrong pronoun or being called by a former name is similarly offensive. Just as employers should not tolerate the use of racial slurs in the workplace, they must also prohibit misgendering and “deadnaming” their transgender employees.”
• EEOC v. Lush Handmade Cosmetics, LLC, Case 5:24-cv-06859 in the U.S. District Court for the Northern District of California. The agency filed suit against the retailer after the manager at Lush’s Valley Fair, California location subjected employees to offensive physical and verbal sexual conduct, including unwanted touching of their buttocks, requesting sex, commenting about their breasts and his penis, inquiring about sex acts relating to their sexual orientation and/or gender identity, and using sexually offensive terms, such as “c*nt” and “b*tch”. Lush failed to adequately investigate employee accounts of the manager’s behavior, the harassment continued, and at least two employees quit.
  • Regional Attorney Roberta Steele said, “This case involves particularly egregious sexual harassment of LGBTQ+ employees by a volatile store manager who is still employed by Lush with power and authority over employees in his store. EEOC will seek the full extent of legal relief for any and all victims of sexual harassment.”

“LGBTQ+ employees are particularly vulnerable at the workplace and the EEOC has made a priority of defending the civil rights of vulnerable workers and will seek the full extent of legal relief for any and all victims of sexual harassment,” said Nancy Sienko, District Director of the San Francisco District Office.

These companies’ alleged conduct violated Title VII of the Civil Rights Act of 1964, which prohibits harassment and retaliation against employees who object to discrimination. The EEOC filed suit after first attempting to reach a pre-litigation settlement through its administrative conciliation process in each of the cases.

In fiscal year (FY) 2023, the EEOC received more than 3,000 charges alleging discrimination based on sexual orientation or gender identity, the most since the agency started tracking these charges in FY 2013, and up more than 36% from the previous year. For more information on discrimination based on sexual orientation or gender identity, please visit https://www.eeoc.gov/sexual-orientation-and-gender-identity-sogi-discrimination.

More than 56% of the EEOC’s 81,055 charges in FY 2023 allege retaliation, and reached the highest number in more than 30 years. For more information on retaliation, please visit https://www.eeoc.gov/retaliation.

The EEOC prevents and remedies unlawful employment discrimination and advances equal opportunity for all. More information is available at www.eeoc.gov. Stay connected with the latest EEOC news by subscribing to our email updates.