Restaurant Chain Dishes Out $1 Million in Settlement of EEOC Claims of Gender Discrimination

bw_sexual_equality_male_female_scalesRestaurants and hospitality organizations, beware–news of another seven-figure EEOC settlement with casual-dining franchise, Razoo’s Cajun Cafe restaurants.


The EEOC announced on May 7, 2008 that it had settled a class-wide discrimination case filed against Razzoo’s, a chain of Cajun restaurants, with 11 locations in the Dallas/Ft. Worth and Houston areas.

According to the EEOC, Razzoo’s had a policy favoring women for bartender positions. The EEOC alleged that the restaurant sent managers a plan calling for an 80-20 ratio of women versus men bartenders. The Commission also cited an informal policy that did not allow male bartenders were to work “girls-only” events.

Razzoo’s agreed to split $775,000 among a class of affected male servers, bartenders and applicants, and to spend the other $225,000 either to hire a human resources consultant or to set up an in-house human resources department.

Good idea.