Colorado Dance Hall Operator to Pay $100K in Sexual Harassment and Retaliation Suit

A Colorado dance hall operator must pay $100,000 to former employees to settle a sexual harassment and retaliation lawsuit

‘Murica LLC, operator of the Western-themed Starlite Station bar and dance hall in Greeley, Colorado, and its owners were ordered to pay $100,000 to former employees and furnish other relief to settle a sexual harassment and retaliation suit brought by the U.S. Equal Employment Opportunity Commission.

The EEOC’s lawsuit charges ‘Murica LLC with creating a sexually hostile work environment for both female and male employees. The owner often touched female employees without permission, pursued sexual relationships with multiple female employees, pressured female employees to let him sleep at their homes and had sex with an intoxicated employee at the bar, which resulted in the brief loss of the bar’s liquor license, according to the EEOC.

The lawsuit also alleged the owner made derogatory and harassing comments about the appearance of women who applied to work at Starlite, and some male employees were reportedly subjected to unwelcome questions about their sex life.

The EEOC said Starlite also retaliated against employees who complained about or spoke out against the owner’s conduct, including by firing or threatening to discipline employees who complained.

Starlite and its owner then filed a defamation lawsuit in state court against a group of former employees after they filed complaints with the EEOC or made public statements objecting to the owner’s treatment of female employees and his sexual contact with an intoxicated female employee.

The EEOC’s complaint charges that the state court lawsuit was an unlawful form of retaliation and that the terms of the state court settlement prohibiting cooperation with the EEOC were illegal and should be voided as a matter of public policy.

The alleged conduct violates Title VII of the Civil Rights Act of 1964, which prohibits sexual harassment in the workplace and retaliation against employees for complaining about such conduct.

The EEOC filed suit in September 2022, EEOC v. ‘Murica, LLC d/b/a Starlite Station, Civil Action No. 1:22-cv-02549, in U.S. District Court for the District of Colorado after first attempting to reach a pre-litigation settlement through its administrative conciliation process.

The EEOC’s lawsuit also alleged that the owner and his mother, who was also a co-owner, were individually liable because they improperly used the corporation to further their personal interests. The allegations included the use of corporate funds to pay a mortgage on a home, a personal loan and personal credit cards.

The case was resolved through a five-year consent decree, which includes monetary relief totaling $100,000 for the aggrieved individuals, as well as other relief such as required training on equal employment opportunity for managers and employees, a letter of apology from the owner to each individual and review and revision of EEO policies by a Society for Human Resource Management-certified professional.

Topics Lawsuits