The Equal Employment Opportunity Commission (EEOC) recently announced a settlement with clothing manufacturer, FYC International. Though the Connecticut based clothing manufacturer has discontinued operations, the EEOC still held it accountable for what three female employees alleged was a hostile and sexually demeaning environment in its warehouses. The extensive allegations of sexual harassment brought by the female employees provide a textbook example of sexual harassment in the workplace and should serve as a warning for other employers and employees still maintaining a work environment where blatant sexual conduct toward women is normal.

In this posting we’ll discuss the allegations in the FYC case, the EEOC’s enforcement actions and the terms of the settlement in the case. If you’d like to talk with a lawyer about how sexual harassment laws and complaint processes might apply in your own case, please contact Eisenberg & Baum.

The Claims Against FYC International

The female warehouse employees who raised the claim against FYC alleged they were subjected to sexual harassment by their male warehouse manager and male co-workers since at least 2007. For those looking at the case from the outside, the allegations demonstrate many of the common sources and types of sexual harassment that can lead to a legal claim.

What is Sexual Harassment?

As we’ve discussed before, sexual harassment is a form of gender discrimination that exists when an employee is subjected to unwelcome sexual conduct that either creates a hostile work environment or is used a basis for employment decisions. In the FYC case, the female employees alleged that the sexually-oriented conduct of their manager and co-workers created a hostile work environment for them. For more background on hostile work environment claims, read our prior posting “What is a ‘Hostile Work Environment?’”

Who Committed the Harassment?

Harassment in the workplace can come from any number of sources, including management, co-workers, clients and vendors. In the FYC case, the victims alleged that the harassment came from two sources, starting with the warehouse manager and then spreading to male co-workers. The manager is alleged to have created the environment at work that not only could have been alleged to be harassing on its own, but also apparently encouraged other employees to act in sexually offensive ways toward female employees.

How Were the Employees Harassed?

Sexual harassment can come in many different forms, from verbal to physical conduct. In the FYC case, the female employees alleged they were subjected to all types of unwanted sexual conduct which led to the hostile environment. The warehouse manager himself allegedly made comments about female employees’ bodies, propositioned them for sex, and grabbed and touched them. According to the complainants, other male employees followed the manager’s example by displaying pornographic photographs at work, making their own sexual remarks to female employees, and discussing sexual acts in the open. This combination of physical and verbal conduct from various levels of employees at the FYC warehouses created a discriminatory environment, according to female employees.

The EEOC Process

The employees took their complaint to the EEOC, the federal agency in charge of enforcing the federal law that prohibits gender discrimination in the workplace, Title VII of the federal Civil Rights Act of 1964. In cases brought to the EEOC, the agency will often investigate and attempt to resolve the dispute between the parties. Where it finds the employer violated the law and the employer is unwilling to settle the case, the EEOC may decide to file a lawsuit directly against the employer on behalf of the employees.

In the FYC case, the EEOC investigated the claim and found reasonable cause to believe sexual harassment had occurred against female employees at FYC’s warehouses. The EEOC attempted to settle with FYC before bringing formal legal action, but the FYC rejected those attempts. In September 2014, the EEOC brought a lawsuit against FYC in federal court in Connecticut seeking both money damages for the employees and an injunction that would prohibit FYC from engaging in further sexual harassment of its employees.

Settlement Terms

With the real threat of a trial now facing it, FYC came to the negotiating table with the EEOC. In March of this year, the EEOC announced it had reached a settlement with the employer over the sexual harassment claims. Under the terms of the settlement, FYC will pay $80,000 in damages to the three female employees who raised the complaint with the EEOC. The EEOC also announced future protective measures FYC agreed to implement should it continue to do business, including hiring an independent compliance official, to ensure the incidents of sexual harassment stop.

You Have Legal Options

According to the female employees at FYC’s warehouses, they had been subjected to various forms of sexual harassment for over five years before they complained to the EEOC. The harassment may have started with the warehouse manager, but with this example from leadership, other men in the warehouse allegedly followed. Surrounded by this sexually explicit and aggressive behavior at all levels, the complainants could easily have come to accept this environment as a part of their job. They did not.

No matter who is harassing you at work and how long it has been going on, you can always seek legal help. If you believe you’ve been subjected to sexual harassment at work, please contact Eisenberg & Baum. Our attorneys have decades of experience handling sexual harassment cases in New York and are ready to help you with your claim. We offer free initial consultations for sexual harassment claims and bill on a contingent fee basis, so you won’t have to pay us unless we win or settle your case.