Labor & Employment Law Daily Wrap Up, EEOC NEWS—Two employers pay more than $1.6M to resolve allegations of age, sex discrimination, (Mar 17, 2025)

By Patricia K. Ruiz, J.D.

Additionally, the EEOC filed a new lawsuit alleging sexual harassment of teenage employees.

The Equal Employment Opportunity Commission (EEOC) entered into two settlements totaling $1,617,000 to resolve allegations that employers engaged in discrimination in violation of Title VII of the Civil Rights Act of 1965 and the Age Discrimination in Employment Act (ADEA). The EEOC also filed a new lawsuit against Taco Bell franchisees alleging that a senior area manager sexually harassed female employees, including multiple teenage employees.

Sex discrimination. The EEOC entered into $1.6 million settlement with Security Engineers, Inc., an Alabama contract security solutions provider, to settle a Title VII sex discrimination lawsuit filed by the agency. The lawsuit alleged the employer engaged in sex discrimination throughout Alabama by denying security officer jobs and assignments to a class of women despite their experience in security, law enforcement, or the military. Discriminatory directives in the employer’s human resources database said, “DO NOT schedule a female for this post” and “Post is MALE ONLY!” The employer further admitted to some female applicants that they would not be selected for security positions or assignments because of sex. The EEOC alleged the pattern or practice of sex discrimination continued for several years, beginning in at least 2017. Under the settlement, the employer will provide monetary relief to a class of women denied security officer positions. The settlement also prohibits the employer from discriminating based on sex and requires that it delete all directives not to select, assign, or hire women because of sex, and requires the employer to conduct training, monitoring, and reporting.

The EEOC filed its lawsuit in the Northern District of Alabama; the case is No. 2:23-cv-01213-AMM.

Age discrimination. The EEOC entered into a $17,000 settlement with the Washington Unified School District in Fresno, California, to resolve an age discrimination charge under the ADEA. The EEOC alleged that the employer denied an employee reasonable accommodation, subjected the employee to different terms and conditions of employment, and discharged the employee because of age and disability. Under the settlement, the employer will provide the employee with monetary relief and a neutral letter of reference and will train supervisors and managers on the ADEA and complaint handling. The employer will also post a notice to all employees about the resolution of the charge and their rights under federal anti-discrimination law.

Sexual harassment, retaliation. A new lawsuit by the EEOC alleges six entities operating Taco Bell restaurants in Michigan violated Title VII when they allowed a senior area manager to sexually harass female employees, including multiple teenage employees. The lawsuit alleges the harassment occurred on a near-daily basis at multiple Taco Bell restaurants he supervised; the harassment included inappropriate sexual comments, unwanted and inappropriate touching, and requests for videos or images of an employee having sex with her boyfriend. The EEOC alleged the employers failed to take effective action against the manager, despite receiving multiple complaints. The EEOC further alleged a local area manager was fired on the same day she complained of the senior area manager’s sexual harassment. After that complaint, the senior area manager continued to sexually harass female employees for several months before he was fired.

The EEOC filed its lawsuit in the Eastern District of Michigan; the case is No. 25-10575.

Companies: Security Engineers, Inc.; Washington Unified School District; Teamlyders, LLC

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