Gas Station Chain Settles Sexual-Harassment Lawsuit

​McDonald Oil Corp., which owns gas stations and convenience stores in Alabama and Georgia, recently agreed to pay $400,000 to five female employees to settle a class-action sexual-harassment lawsuit. The company operates Summit Food Stores.

The settlement requires the company to revise its policies and procedures to prevent sexual harassment; train managers on documenting and investigating sexual-harassment complaints; and train employees on their right to work in an environment free from sexual harassment.

Background

In 2021, the U.S. Equal Employment Opportunity Commission (EEOC) sued the company under Title VII of the Civil Rights Act of 1964, claiming female employees suffered sexual harassment at the Orange Beach, Fairhope and Spanish Fort, Ala. stores. The lawsuit said the company ignored frequent complaints from multiple female employees and customers about ongoing sexual harassment by a male employee.

The male employee subjected female employees and customers to unwanted sexual touching, sexual comments about their bodies and questions about their sex lives, according to the lawsuit. The EEOC alleged that the male employee solicited co-workers for sex and repeatedly disrobed at work. Managers did not discipline him, instead transferring him to another store, where he continued sexually harassing female employees, the lawsuit said. He was eventually fired because he sent nude photos of himself to a female manager.

EEOC Birmingham District Director Bradley Anderson said, "Transferring a harasser to work around other women without any corrective discipline does not correct a hostile work environment. It only exacerbates the problem by creating more victims. The EEOC is committed to ensuring that employers reasonably investigate and take meaningful corrective action when they learn of complaints of sexual harassment."

Employers are legally obligated to address instances of sexual harassment promptly, though there's not an agreed-upon number of days. "Some courts have said that an employer waiting 10 days to take action is too long. Other courts have found that an employer waiting 10 days, under certain circumstances, was perfectly fine," said Andrew Gordon, an attorney with Hinshaw & Culbertson in Fort Lauderdale, Fla. "It all depends on the facts of the case. However, the sooner an employer can intervene to put an end to alleged sexual harassment, the better. The longer an employer waits, the more likely that delay will be seen as unreasonable and create a presumption that the employer did not take the allegations as seriously as they should have. That delay, and the associated presumption of a lack of caring, will haunt the employer in any sexual harassment claim brought by [an] employee."

Employers may prevent misconduct by offering anti-harassment training and reminding employees about the organization's sexual-harassment policy, including specific examples of prohibited behaviors and who should be contacted with complaints.

"If an employer is truly unaware of sexual harassment that is happening in the workplace, the employer can't take action to address and correct that behavior," Gordon said. "This is why it is imperative for employers to create an environment where employees know how to report this type of behavior and know that their employer will take any such reports seriously. The best thing an employer can do to show they did everything they could to prevent harassment from occurring is to create an environment where employees know their employer has their backs and best interests at heart."

Industry Differences

Sexual harassment is more likely to occur in workplaces that rely on customer service and decentralized worksites, such as retail stores, hotels and chain restaurants, according to the EEOC.

Sexual harassment often goes unreported, especially if employees fear retaliation or feel the employer won't take steps to stop the harassment.

"Workplace sexual harassment is pervasive and flourishes in silence," said Fatima Goss Graves, president of the National Women's Law Center in Washington, D.C.