EEOC Puts Some Bite in Fine Against Outback Steakhouse with 19 Million Dollar Fine

Outback Steakhouse has agreed to pay $19 million and furnish significant remedial relief to settle a major class lawsuit alleging sex discrimination against thousands of women at hundreds of its corporately owned restaurants nationwide announced by the U.S. Equal Employment Opportunity Commission (EEOC).

The EEOC said  Outback discriminated against its female employees with respect to the terms and conditions of employment, and denied women equal opportunities for advancement. The lawsuit alleged female employees hit a glass ceiling at Outback and could not be promoted to the higher-level profit-sharing management positions in the restaurant. Moreover, the EEOC also alleged women were denied favorable job assignments, particularly kitchen management experience, required for employees to be considered for the top management job in the restaurants.

"There are  still too many glass ceilings left to shatter in workplaces throughout corporate America," said EEOC Acting Chairman Stuart Ishimaru. "The EEOC will continue to bring class lawsuits like this one against employers who engage in gender discrimination on a systemic scale. Hopefully this major settlement will remind employers about the perils of perpetuating promotion practices that keep women from advancing at work."

The settlement  stems from a lawsuit filed by the EEOC in September 2006 under Title VII of the Civil Rights Act in U.S. District Court for the District of Colorado (EEOC v. Outback Steakhouse of Florida, Inc., and OS Restaurant Partners, Inc. d/b/a Outback Restaurants, No. 06-cv-01935).

In addition  to the monetary relief, the settlement, contained in a four-year consent decree signed by Federal Court Judge Christine Arguello, requires that Outback: 1.  Institute an online application system for employees interested in managerial and other supervisory positions. 2.  Employ a human resource executive in the newly created position of Vice President of People. 3.  Employ an outside consultant for at least two years who will determine compliance with the terms of the decree and analyze data from the online application system to determine whether women are being provided equal opportunities for promotion. 3. Report every six months to the EEOC on carrying out the terms of the decree.

EEOC Regional Attorney  Mary Jo O'Neill of the agency's Phoenix District, with  jurisdiction for Colorado, said, "We are pleased with the initiatives Outback has agreed to in this settlement and look forward to seeing its efforts to promote women into management positions realized. Ensuring that all of the talent in a workforce is fully utilized simply makes good business sense."

The $19 million  in monetary relief contained in the settlement will be administered through a claims process whereby an administrator will send letters to all female workers employed at corporately-owned Outback during the time period 2002 to the present who have at least three years of tenure. (workersxzcompxzkit)

EEOC Denver  Trial Attorney Stephanie Struble, who jointly led the litigation effort, said, "We encourage women who believe they were discriminated against by Outback to come forward and complete the claims form to obtain monetary relief. We also encourage all current female employees at Outback to take advantage of the new application process and let Outback know they are interested in promotion."

Author Robert Elliott, executive vice president, Amaxx Risks Solutions, Inc. has worked successfully for 20 years with many industries to reduce Workers' Compensation costs, including airlines, health care, manufacturing, printing/publishing, pharmaceuticals, retail, hospitality and manufacturing. He can be contacted at: [email protected] or 860-553-6604.

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