Labor & Employment Law Daily Wrap Up, EEOC NEWS—Employers pay $85K for harassment, discrimination; new suit and subpoena enforcement announced, (May 21, 2025)

By Jonathan Anderson

Investigators are probing whether one employer assigned workers to different facilities based on race, national origin, or sex.

Two employers in California and Ohio entered settlement agreements totaling $85,000 to resolve allegations by the EEOC that the employers violated Title VII and the ADA. In addition to providing monetary relief to affected employees, the employers agreed to make changes to their policies, procedures, and training. Separately, the EEOC filed a lawsuit against a Hawaii employer alleging rampant sexual harassment against young female employees. The agency also filed an action in federal court to enforce a subpoena issued to an Illinois employer.

Sexual harassment conciliation. United Parcel Service dba UPS will pay $10,000 and furnish other injunctive relief to settle via conciliation agreement a Title VII sexual harassment charge filed by the EEOC on behalf of a member of a class of injured parties. The agency alleged that UPS created a hostile work environment by failing to address ongoing sexual harassment by a coworker at a company facility in Santa Barbara, California, along with denial of promotion due to sex. The agency found reasonable cause to believe that the employer violated Title VII when it failed to remedy sexual harassment in the workplace for the individual who filed the charge, along with a class of female coworkers who were also affected by the harassment in the workplace. In addition to the monetary relief paid to the impacted class member, UPS must provide training to all employees at the Santa Barbara facility and permanently affix the UPS “Golden Rules” on the inside of the bathrooms there. Additionally, UPS must post a notice to all employees about the resolution of this charge and their rights under federal anti-discrimination law at the Santa Barbara location. The EEOC will monitor compliance for the agreement’s three-year term. UPS entered into the conciliation agreement with the EEOC without admitting liability.

Race, disability discrimination settlement. Morton Salt, Inc. will pay $75,000 and provide other relief to settle a Title VII and ADA lawsuit filed by the EEOC alleging race and disability discrimination and retaliation. The lawsuit alleged that the affected employee, who worked for Morton Salt in a labor position in Rittman, Ohio, was fired and subjected to other unfavorable treatment because of his race (Black) and disability, and because he reported alleged discrimination. In addition to the monetary relief, which includes back pay and compensatory damages, the two-year consent decree requires the company to provide periodic reporting, monitoring, and training for its employees to ensure compliance with Title VII and the ADA.

The EEOC filed its lawsuit in the Northern District of Ohio; the case is No. 1:24-cv-01689.

Sexual harassment lawsuit. Paia Inn, a hotel in Maui, Hawaii, violated Title VII when its owner sexually harassed a class of young female employees and terminated those who complained or tried to address the rampant sexual harassment, according to a lawsuit filed by the EEOC. The lawsuit alleges that since at least 2015, the hotel’s has owner regularly preyed on a class of female employees, including some teenagers, and subjected them to sexual harassment. The harassment included repeated, frequent, and offensive touching, along with sexual advances and comments. The owner demanded massages while he was naked, propositioned female employees for sexual encounters, and inappropriately touched female employees. In addition, the owner frequently commented on the female employees’ looks and bodies in front of male friends who patronized the hotel, and he insisted on hiring attractive female applicants after requiring their photos as part of the application process. The suit further alleges that the owner immediately fired an employee who stood up for other female employees to stop the sexual harassment, while other employees who complained about the sexual harassment were terminated or forced to quit their jobs.

The EEOC filed its lawsuit in the District of Hawaii; the case is No. 1:25-cv-00199.

Subpoena enforcement. The EEOC also announced it filed an action in federal court to enforce a subpoena issued to Illinois-based Mauser Packaging Solutions about its hiring and staffing practices. The agency is investigating allegations that the packaging manufacturer may have violated Title VII by engaging in illegal hiring practices, including limiting, segregating, or classifying applicants by race, national origin, or sex for various facilities, primarily in the Chicagoland area. The EEOC filed a charge of discrimination against Mauser in February 2024 alleging that the company denied employment opportunities to applicants on multiple different bases, depending on the Mauser facility in question, including white applicants, Black applicants, Hispanic applicants, and female applicants. The EEOC said it has reason to believe that Mauser may be making inappropriate requests to staffing, placement, or recruiting companies to provide it with workers or candidates for various Mauser facilities who had demographic characteristics that matched the demographics of the population of employees who already worked at those facilities, effectively segregating various facilities by race, national origin, or sex. The subpoena issued to Mauser sought, among other things, the identities of applicants at certain of its facilities in Illinois and Pennsylvania. The subpoena also asked Mauser whether the candidates had been referred to the company and, if so, by whom; to provide the position for which they were considered; whether they were hired; and their demographic and contact information.

The EEOC filed the action in the Northern District of Illinois, Eastern Division; the case is No. 25-cv-05248.

Companies: United Parcel Service; UPS; Morton Salt, Inc.; Paia Inn; Mauser Packaging Solutions

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