San Diego restaurant chain Swami’s Café has agreed to pay $650,000 to settle a lawsuit brought by the U.S. Equal Employment Opportunity Commission that had accused a restaurant manager of creating a “highly sexualized work environment” and the chain’s owner of failing to address allegations of sexual harassment and retaliation.
Swami’s and its owner did not admit any wrongdoing as part of the settlement, but agreed to a two-year consent decree that outlines formal policies — including anti-discrimination and anti-retaliation policies — that the chain’s restaurants and management must implement.
The consent decree also requires the restaurant chain to establish a new complaint process and to hire an independent monitor to conduct audits and oversee the implementation of all portions of the consent decree.
A federal judge in San Diego approved the consent decree Monday. It applies to all nine Swami’s locations throughout the county and Honey’s Bistro in Encinitas, which is part of the same chain.
“While the company disputes many of the claims, we believe it was in the best interest of our employees, our guests, and our community to resolve the matter and move forward collaboratively,” Swami’s told the Union-Tribune in a statement. “… As part of the resolution, Swami’s Café and Honey’s Bistro have strengthened and expanded our existing workplace policies, enhanced training, and implemented additional tools such as a third-party hotline and (Equal Employment Opportunity) monitor to ensure all employees feel safe, respected, and supported.”
The EEOC’s sexual harassment and retaliation lawsuit, filed in May 2023, had alleged that a manager at the chain’s original Encinitas location on South Coast Highway 101 subjected young women and teenage girls to rampant sexual harassment, then punished and retaliated against employees who resisted his sexual advances.
The suit also alleged that the owner of Swami’s failed to take steps to address the alleged misconduct and that similar harassment and retaliation of young female employees had occurred at some of the chain’s other locations. In addition to its original Encinitas location, Swami’s has restaurants in Vista, Carlsbad, Escondido, Oceanside, La Mesa, North Park, Hillcrest and downtown San Diego.
“We commend these young women for their bravery in coming forward, asserting their rights, and giving a voice to others,” Jacquelyn Famber, director of the EEOC’s San Diego office, said in a statement. “The injunctive relief in this decree is an excellent step forward for Swami’s Café and Honey’s Bistro, and it would behoove other employers to take note of the relief furnished in this case and implement similar changes as necessary.”
The EEOC’s investigation of Swami’s began after the agency received a complaint from a teenage girl who claimed she was fired from her server job in retaliation for complaining about sexual harassment by the Encinitas manager, according to the lawsuit.
The company participated in the EEOC’s subsequent investigation, during which time the agency issued the company two letters stating it had “reasonable cause” to believe the restaurant chain had violated Title VII of the Civil Rights Act, which prohibits employment discrimination, according to the suit. But after months of pre-litigation negotiations, Swami’s would not agree to remedy its practices on terms acceptable to the EEOC, according to the lawsuit.
In its statement, Swami’s said it has “cooperated fully with the EEOC throughout this process” and that it put in place proactive measures “as soon as concerns were raised.” The chain added that it is committed to transparency and continued improvement.
“Swami’s Café has been a family-owned part of San Diego County for more than 20 years, and nothing is more important to us than the well-being of our team members,” the company said in its statement. “We appreciate the opportunity to demonstrate our continued commitment to a positive and inclusive workplace. We remain focused on serving our community and providing a welcoming environment for our guests and staff.”
According to the consent decree, the $650,000 settlement payment will be split between the woman who first complained to the EEOC and other eligible employees, as determined by the EEOC. The agency is required by the consent decree to contact current and former female employees to determine whether they’re eligible claimants.
“The company shall also remove any negative references to the harassment, discrimination and retaliation from the employees’ personnel files and offer the individuals who were fired or quit the opportunity to be reinstated, if they so choose,” the EEOC said in a statement.
Swami’s also agreed to implement robust new anti-discrimination and anti-retaliation policies and agreed to implement new procedures for handling complaints of sexual harassment and discrimination. The company must post a notice of the settlement in all restaurant locations.
The company also agreed to hire an independent monitor “with demonstrated experience in the areas of preventing and combating sexual discrimination and harassment.” The monitor will conduct audits and perform other oversight duties to ensure that Swami’s is complying with the provisions of the consent decree. The monitor will also consult with and assist the company in creating mandatory anti-harassment and anti-retaliation training for all employees.