The U.S. Equal Employment Opportunity Commission (EEOC) secured a $650,000 settlement for former employees of Hooters of Louisiana, LLC, in EEOC v. Hooters.
In the lawsuit, the EEOC represented a group of African American employees who worked at Hooters before the company laid them off in 2020. The employees alleged that, since 2017, managers and staff had made offensive and demeaning remarks about their race. Despite repeated complaints, the company failed to reduce the hostility they experienced.
The COVID-19 pandemic prompted the company to close its premises. When the business reopened, Hooters did not reinstate any of the employees involved in the lawsuit, even though they were qualified and had the necessary experience.
The U.S. District Court for the Eastern District of Louisiana determined that Hooters violated state and federal anti-discrimination laws. The court approved a $650,000 settlement that included backpay and damages for the former employees.
As part of the agreement, Hooters committed to training its staff and management on discrimination, revising its internal policies, submitting regular reports to the EEOC, and posting a notice affirming its duty to maintain a safe and equitable workplace for all employees, regardless of race or other protected characteristics.
Lessons Learned from the Case:
- The case underscores the importance of adopting comprehensive anti-discrimination policies.
- The pivotal role of the EEOC in the lawsuit is a reminder to employees to seek both state and federal intervention when reporting labor violations.
Learn more about Louisiana Labor Laws through our detailed guide.
