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Manager misconduct? Chipotle pays $400K after allegedly ignoring sexual harassment complaints

Carol Warner
By: Carol Warner
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About the Author

For nearly two decades, Carol Warner has analyzed the legal and financial realities behind workplace decisions, covering employment law, benefits, payroll and HR technology. She translates complex legal updates, regulatory shifts and vendor claims into plain language that HR teams can act on. Her focus is simple: What does this mean for employers, and what should they do next? Connect with her on LinkedIn.

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Last Updated: September 22, 2023
2 minute engagement
EEOC: Company leaders ignored manager misconduct

Chipotle has agreed to pay $400,000 to settle a sexual harassment lawsuit stemming from alleged manager misconduct, the Equal Opportunity Employment Commission (EEOC) announced.

According to the EEOC’s lawsuit, a Chipotle located in Sammamish, Washington, permitted three crew members – one was a 17-year-old minor – to be sexually harassed by a 29-year-old service manager. He allegedly:

  • Sexually assaulted the underage employee
  • touched another crew member’s bottom
  • made unwanted sexual comments and requests for sex, and
  • isolated workers in the restaurant’s walk-in refrigerator, blocking their exit and making them fearful for their safety.

EEOC: Higher-ups ignored complaints of manager misconduct

Moreover, the EEOC’s lawsuit alleged the employees reported this misconduct to the general managers of the Sammamish location, who “failed to adequately investigate their complaints and did not take adequate remedial measures to stop the sexual harassment.”

Under Title VII, the location’s general managers were obligated to investigate the complaints and take steps to prevent sexual harassment in the workplace, the EEOC said. It sued on behalf of the employees.

In the EEOC’s press release on the settlement agreement, the agency’s Regional Attorney Roberta Steele said, “New employees entering the workplace for the first time are especially vulnerable to harassment because they frequently do not understand how Title VII protects them from such unlawful conduct. Employers must make sure that their managers and workers understand their rights and responsibilities under Title VII and take prompt action to stop such conduct when it occurs in the workplace.”

To resolve the dispute, the company entered into a three-year consent decree. Under it, Chipotle will pay $400,000 to the affected employees. It must also:

  • Appoint an internal consent decree coordinator to review, revise and implement anti-discriminatory policies and procedures that prohibit sexual harassment and retaliation
  • Provide additional sexual harassment training to its employees, supervisors and managers at seven of its Washington restaurants in Bellevue, Redmond, Issaquah and Sammamish
  • Provide additional training to its HR investigators on how to conduct sexual discrimination and harassment investigations
  • Adopt and distribute policies holding its supervisors and managers accountable for their compliance with its EEO policies and procedures.

Info: Chipotle to pay $400,000 to settle EEOC sexual harassment lawsuit, 9/14/23.

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  • Employment Law
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