Supersized harassment settlement highlights the extra care needed when employing minors.

• Author: Hyman, Jon

How bad must sexual harassment be for an employer to settle a harassment case for $2 million? This bad. AMTCR--the owner of 18 McDonald's franchises across California, Nevada and Arizona--will pay $1,997,500 to resolve a sexual harassment lawsuit filed by the EEOC.

According to the agency, the employer permitted its managers, supervisor and other employees to sexually harass their underage employees for years.

According to the lawsuit, since at least 2017, AMTCR knew about sexual harassment and allowed it to continue, unabated, by supervisors, managers and co-workers at various of its McDonald's restaurants. The harassing conduct, which was mainly directed at young, teenage employees, included frequent unwanted touching, offensive comments, unwelcome sexual advances and intimidation. As AMTCR failed to adequately address the complaints of sexual harassment, many workers found the working conditions so intolerable that they had no choice but to quit.

In addition to the monetary relief, AMTCR agreed to provide significant, franchise-wide injunctive relief aimed at preventing discrimination and harassment in the workplace. AMTCR has agreed to retain an outside third-party EEO monitor who will conduct internal audits of AMTCR's practices in handling harassment and retaliation complaints; establish a centralized tracking system for discrimination, harassment and retaliation complaints; and ensure accountability and appropriate disciplinary action occur. AMTCR has also agreed to conduct climate surveys within the workplace; update policies and procedures regarding discrimination, harassment and retaliation; and conduct training.

Michael Mendoza, director of the EEOC's Las Vegas office, offers this practical takeaway: "Employers should be mindful of the demographics of their workforce, including whether employees may be more vulnerable to being targeted because of their age. It is the responsibility of the employer to create a safe workplace, free from discrimination and harassment."

With sexual harassment avoidance, you need to meet employees where they...