Hooters of America, LLC settled a race and color discrimination lawsuit for $250,000.
The lawsuit was filed by the EEOC after Hooters allegedly recalled primarily white employees after post-COVID-19 layoffs. The conduct violated Title VII of the Civil Rights Act of 1964, which prohibits discrimination based on race and color.
The settlement includes a three-year decree prohibiting race-based layoff and recall decisions, annual training, compliance reports, and public reassurances of equal opportunity employment.
According to the EEOC:
…a Hooters located in Greensboro, North Carolina, laid off approximately 43 employees in response to the COVID-19 pandemic. Included in the layoffs were a class of employees who were Black and/or had dark skin tone and worked as "Hooters Girls." When Hooters began recalling employees to return to work in May of 2020, Hooters recalled primarily white employees and those with lighter skin tones. The lawsuit also alleged that Hooters Girls with dark skin tones experienced racial hostility and observed preferential treatment of white employees while employed at the restaurant. https://www.eeoc.gov/newsroom/hooters-america-llc-pay-250000-settle-eeoc-race-and-color-lawsuit (Oct. 22, 2024).
Commentary
Title VII of the Civil Rights Act of 1964 prohibits discrimination based on race and color.
In the above source, the claim states that "white employees" were recalled and "those with lighter skin tones" and persons with "darker" tones were not recalled. The EEOC charged that decision was a violation of Title VII under race discrimination, but it could also be viewed as "color discrimination".
For example, suppose your employees, Lisa and June, both Native Americans, have the same experience and work record, but Lisa's skin tone is darker than June's. A downturn occurs, both of them are laid off at the same time for legitimate financial reasons. If you ask June to return before Lisa simply because her skin is a lighter tone than Lisa's, even if she is of the same race, that is illegal discrimination.
The takeaway is race and skin tone (color) should be inconsequential to deciding who returns back to the workplace after a layoff.
