Labor & Employment Law Daily Wrap Up, EEOC NEWS—Union, employers settle bias and harassment charges by agency, (Sep 5, 2025)

By George Basharis, J.D.

Employers and a teachers’ union will pay $715,000 and adopt reforms to resolve Title VII claims.

The EEOC has separately announced three settlements resolving allegations of workplace discrimination under Title VII. The employers, a Michigan manufacturer, a Virginia-based fast-food operator, and an Illinois labor union, will collectively pay more than $700,000 in monetary relief and adopt remedial measures including training, monitoring, and revised policies. The cases involve allegations of sexual harassment and race discrimination across diverse workplace settings.

Union liability for blocking promotion. Sunnybrook Union, representing teachers and support staff in Illinois’s Sunnybrook School District, agreed to pay $110,000 to resolve claims that it unlawfully interfered with the promotion of a Black custodian. According to the EEOC’s suit, the school district attempted to promote the worker to head custodian outside the strict terms of the collective bargaining agreement. The union blocked the promotion by filing a grievance, though it had previously permitted or even facilitated similar promotions for non-Black employees.

The EEOC stressed that “Title VII’s prohibition of race discrimination applies to labor organizations as well as employers” and emphasized its commitment to holding unions accountable.

Under a consent decree lasting until the close of the 2026—2027 school year, the union will not only pay monetary damages but also train its officers, distribute a “know-your-rights” notice to members, and submit periodic reports to the agency regarding any new discrimination allegations.

The EEOC brought its lawsuit in the Northern District of Illinois; the case is No. 1:23-cv-2804.

Harassment allegations at Michigan manufacturer. East Jordan Plastics, Inc., a manufacturer of horticultural containers with a facility in Beaverton, Michigan, will pay $460,000 to resolve a sexual harassment suit brought by the EEOC. The agency alleged that a male co-worker subjected female employees to repeated sexual comments and inappropriate touching. Despite at least two complaints, the company took no corrective action, allowing the conduct to continue until a third worker came forward. Only then did the employer conduct an investigation and terminate the harasser.

The EEOC’s Indianapolis Regional Attorney Kenneth Bird noted, “This early resolution demonstrates a commitment to achieving a harassment-free workplace.” The case charged the company with violating Title VII’s prohibition on sexual harassment.

In addition to monetary relief, the three-year consent decree requires the company to provide training, report annually to the EEOC on its handling of harassment complaints, and post workplace notices informing employees of their rights under federal law.

The EEOC filed its lawsuit in the Eastern District of Michigan; the case is No. 2:25-cv-12302.

Fast-food operator resolves teen harassment claims. Mid Atlantic Dairy Queen, LLC, a Franklin, Virginia-based operator of Dairy Queen restaurants, entered into conciliation agreements with the EEOC to resolve charges of sexual harassment at two Virginia locations. The agency’s investigation found reasonable cause to believe that two former employees at the Norfolk and Virginia Beach stores harassed multiple female workers, including teenagers, between July 2022 and February 2023. The conduct included inappropriate comments and unwelcome physical contact.

The EEOC determined that the company knew or should have known about the harassment but failed to take timely corrective action. “Employers must take prompt, appropriate action when they learn that sexual harassment has occurred in the workplace,” said EEOC Norfolk Local Office Director Norberto Rosa-Ramos.

The agreements provide $100,000 in relief for the two employees who filed charges and $45,000 for five additional women who were subjected to the hostile work environment. The employer also agreed to strengthen policies prohibiting harassment and retaliation, provide training for managers and employees, undergo three years of EEOC monitoring, and post notices regarding employee rights. These conciliation agreements resolve the agency’s findings without litigation.

Companies: Mid Atlantic Dairy Queen, LLC; Dairy Queen; East Jordan Plastics, Inc.; Sunnybrook Union

News: AgencyNews Discrimination Retaliation LaborNews RaceDiscrimination SexualHarassment SexDiscrimination RemediesDamages