LEGAL BRIEF: BLACKS FORCED TO WAIT ON CUSTOMERS THAT WHITE STAFF REFUSED TO SERVE

EEOC v. Cracker Barrel Old Country Store, Inc.No. 04C 5273 (N.D. Il. March 13, 2006)

This complaint is for the Chicago District Office of Cracker Barrel’s Old Country Store. The owner of the store created a hostile work environment for black employees through the use of racially derogatory language, and to adverse terms and conditions of employment such as requiring Black employees to wait on customers that the white employees refused to serve and to work in the smoking section. A white employee was also subjected to racially offensive language because of her association with a black employee. Employees were subjected to adverse terms and conditions of employment for complaining about the discriminatory conduct. Management officials at the three Illinois stores failed to take effective corrective action to stop the harassment and other discrimination. The company took no action in response to complaints to the company's complaint hotline.

Under the 2-year consent decree resolving this case, Cracker Barrel’s Old Store, Inc. will pay $2 million into a Settlement Fund to be used to make payments of compensatory damages to individuals identified as class members. Fifty-one individuals are eligible to receive checks from the Settlement Fund, in amounts ranging from $7,500 to $300,000. Defendant must provide annual training, approved by EEOC, to managers on discrimination, including harassment and retaliation issues, and to all employees on workplace harassment.

Source: http://www.eeoc.gov/litigation/settlements/settlement03-06.html