Hooters to pay $250,000 to settle EEOC discrimination suit

Hooters of America LLC Friday agreed to pay $250,000 to resolve a lawsuit brought by the U.S. Equal Employment Opportunity Commission on behalf of a class of waitresses who said they were not rehired following COVID-19 layoffs because they were Black or had dark skin tones.

The agreement reached in Equal Employment Opportunity Commission v. Hooters of America LLC, filed in federal court in Greensboro, North Carolina, prohibits the location in that city from making any decisions on hiring and the recall or rehiring of employees following a layoff. The agreement also bars the location from retaliating against any employee who opposed the restaurant’s discriminatory practice.

The agency sued Hooters in August 2023, saying the restaurant violated Title VII of the Civil Rights Act of 1964 and Title I of the Civil Rights Act of 1991 when rehiring waitresses following COVID-19 layoffs by only hiring white or light-skinned women.

Hooters denied any allegations of wrongdoing as part of the settlement, which is still subject to court approval.

Representatives for the parties did not respond to requests for comment.