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LABOR & EMPLOYMENT LAW — 04/20/09

Cracker barrel pays $255,000 to settle allegations of sexual harassment and reprisal

Cracker Barrel Old Country Stores, Inc will pay $255,000 and provide other relief to settle a sexual harassment and retaliation lawsuit filed by under Title VII of the Civil Rights Act of 1964 by the US Equal Employment Opportunity Commission (EEOC), the agency advised in an April 9, 2009 statement. Cracker Barrel Old Country Store, Inc is a chain of "Old Country Stores," each combining a retail store and a restaurant, according to its website. Founded and headquartered in Lebanon, Tennessee, Cracker Barrel operates 581 full-service locations in 41 states.

The company allowed its general manager, managers, and other male employees to subject a class of women at its Cedar Bluff, Tennessee location to sexual harassment and retaliated against at least two of them, the EEOC's lawsuit alleged (EDTenn, No 3:07-cv-00376). The general managers, other managers and male employees made repeated and unwanted sexual jokes and lewd remarks, the federal agency said. Although the women complained to the managers and Cracker Barrel's 800 number complaint line, Cracker Barrel failed to take action to stop the harassment, and the general manager and other supervisors retaliated against women who had complained by moving one to an area where tips were low, according to the EEOC.

In addition to the monetary relief, the three-year consent decree resolving the lawsuit:

• Enjoins Cracker Barrel from discriminating because of sexual harassment and retaliation and requires the company to modify its policies and practices regarding the investigation of sexual harassment claims;

• Requires the company to conduct annual training on sexual harassment and retaliation for all employees at the restaurant for three years; and

• Requires Cracker Barrel to maintain and report complaints of harassment received for three years and post its sexual harassment policy, including its 800 hotline number for reporting such claims; post a statement that it will investigate anonymous claims of sexual harassment; and post the notice poster and a notice about the settlement.

"Under federal law, employers are required to maintain an environment free of sexual harassment and retaliation," said EEOC Regional Attorney Faye Williams of the Memphis district office. "This settlement demonstrates the EEOC's commitment to eliminating such conduct from the workplace. Further, the settlement institutes key measures in the workplace to prevent future misconduct like this."

For more information on this and other topics, consult CCH Employment Practices Guide or CCH Labor Relations.

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