The Equal Employment Opportunity Commission (EEOC) recently filed a lawsuit in Florida claiming a local hotel discriminated against Black Haitian dishwashers, including calling them “slaves”. The case raises the questions of whether discrimination can happen between minorities, and how staffing agencies can mask deeper problems.

In this post, I will discuss EEOC vs SBEEG Holdings, LLC et al. I will review the racial discrimination allegations and explain how Title VII applies between different classes of minorities. I will also explore how the EEOC is pursuing staffing agencies who hide discrimination through outsourcing labor.

Hotel Discriminates Against Black Haitian Dishwashers

A number of Black Haitian dishwashers filed a complaint with the Equal Employment Opportunity Commission (EEOC) against the hotel that employed them. They claimed that they had been discriminated against based on their race, color, and national origin when the SLS Hotel South Beach brought on a staffing company to do their work as stewards and dishwashers. The staffing company’s employees were primarily light-skinned Hispanic workers. Some of the terminated employees saw their replacements doing their work, even as they were being escorted from the building by security.

The ensuing EEOC investigation revealed that at the time of their replacement, the Black Haitian employees were treated differently than their Hispanic counterparts. Hotel management prohibited the use of Creole, even between employees, but permitted its Hispanic employees to speak Spanish. It also assigned difficult and physically demanding tasks, such as carrying heavy items, to Haitian staff. In addition, managers and chefs allegedly called the Black Haitian dishwashers disparaging names, including “f—–g Haitians” and “slaves”.

The EEOC addressed the dishwashers’ complaints by submitting the claim to conciliation efforts. When informal negotiations failed in April 2017, the EEOC filed a lawsuit in the United States District Court for the Southern District of Florida. In its Complaint, the EEOC accused SLS Hotel South Beach and other related legal entities of violating Title VII of the Civil Rights Act of 1964.

Racial Discrimination Between Minorities

Title VII prohibits discrimination based on a number of different personal traits, including race, color, and national origin. Employers are not allowed to use these protected traits when making hiring and firing decisions or to create a hostile working environment. While many EEOC complaints allege discrimination by a member of the majority against members of a minority, the law is not so narrow. Any discrimination based on race is illegal, even if it happens by members of the same ethnic community or competing minority groups.

In the case of SLS Hotel South Beach, the allegations were that the hotel pit two minority groups against one another. The management was said to have replaced Black Haitian employees with light-skinned Hispanic workers. This created an apparent hierarchy among racial and ethnic minorities. It also appeared that the management treated each minority group by its own rules. If these allegations are true, it would amount to racial discrimination, favoring the Hispanic workers over their Black Haitian counterparts.

Using Staffing Companies to Sidestep Title VII

EEOC vs SBEEG Holdings, LLC et al. poses a second legal question which appears to have gotten the EEOC’s attention. The Black Haitian dishwasher plaintiffs were removed as a group when the SLS Hotel decided to outsource their jobs to a staffing company that hired primarily light-skinned Hispanic workers. This adds a layer of complexity to the case because the hotel may have access to defenses that have more to do with the legal structure of companies than the treatment of employees. For example, it may argue that it did not control the race of the workers sent by the staffing company.

But the EEOC says that is no excuse. Michael Farrell, District Director for the EEOC’s Miami District Office, said in a statement:

“In serving this community, the Miami District Office is mindful of the diverse workforce in all facets of the service, hospitality and tourism sectors and will protect workers facing discrimination in these important Florida industries.”

Discrimination in complex employment relationships, including staffing agencies, independent contractors, and on-demand workers is one of the EEOC’s top priorities, as described in the Strategic Enforcement Plan for 2017-2021. Regional Attorney Robert E. Weisberg of the Miami District Office said:

“Employers should not be able to avoid liability by using a staffing agency to discriminate when it cannot lawfully do so on its own. . . . Consistent with the agency’s strategic enforcement goals, the EEOC will be vigilant in ensuring employment discrimination is not hidden behind increasingly complex business relationships, including the outsourcing concept.”

Whether SLS Hotel South Beach and its co-defendants will be found to have violated Title VII through the use of a staffing company remains to be seen. But the EEOC believes that by firing the Black Haitian dishwashers without giving them a chance to apply to the staffing agency, the hotel committed illegal racial discrimination against its staff.

At Eisenberg & Baum, LLP, our employment discrimination attorneys stay up to date with current events in racial discrimination. We can help you understand your rights at work, and what your remedies might be if you have faced employment discrimination based on your race, color, or where your family comes from. Contact Eisenberg & Baum, LLP, today for a free consultation.