Hooters settles EEOC race and retaliation lawsuit

Hooters of Louisiana LLC and associated companies have agreed to pay former Black employees $650,000 to settle a race and retaliation lawsuit filed against them by the U.S. Equal Employment Opportunity Commission, the agency said Tuesday.

The company said in a statement it disagrees with the lawsuit’s allegations.

The EEOC said Black employees at a Metairie, Louisiana, Hooters restaurant were subjected to offensive and demeaning racial remarks since at least 2017.

The agency also said that Hooters did not rehire any of the restaurant’s Black employees after laying off staff in 2020 at the outset of the pandemic, and instead initially restaffed the restaurant solely with non-Black employees. 

The company was charged with violating Title VII of the Civil Rights Act of 1964. Under the settlement agreement’s terms, in addition to paying the former employees $650,000 in backpay and damages, Hooters will conduct training, revise policies, provide regular reports to the EEOC and post a notice affirming its Title VII obligations.

The company issued a statement that said, in part, “Our decision to settle this matter is a business decision and not an agreement with the allegations in this case.

“The agreement is a commitment to the non-discrimination policies already in place requiring that all our valued employees are treated fairly and equitably and allow us to focus on serving our valued customers.”