Il Fornaio settles EEOC sexual harassment lawsuit for $3 million

Il Fornaio, a California-based Italian restaurant chain, has agreed to pay $3 million to settle a lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC). The lawsuit alleged that the company created a sexually hostile work environment for at least 100 female employees, many of whom were teenagers. The EEOC’s Los Angeles District announced the settlement this month.

Allegations of Widespread Harassment

The lawsuit, originally filed in 2022 and amended in 2024, alleged that supervisors and employees across multiple locations subjected female workers to repeated sexual harassment. According to the EEOC, this conduct included “forceful groping in restaurant bathrooms, multiple instances of grabbing female employees’ private parts, requests for sexual favors, and explicit references to sexual activities.”

The complaint stated that male employees at “all levels” of the company, from the vice president of operations to line cooks and bussers, helped create and maintain the hostile environment. The EEOC noted that the conduct “went unchecked, was open and notorious, and was ratified by higher-level management, resulting in a revolving door of female workers who left due to the intolerable working conditions.”

Specific incidents detailed in the complaint include a teenage employee at the Palo Alto location who reported being raped by an older male employee. According to the suit, managers told her “nothing could be done because the rape happened outside of work,” despite her having experienced harassment at work for months prior. The employee reported the alleged rape to police, and the male employee was convicted of a sex crime, according to the lawsuit.

Company Response and Settlement Terms

Il Fornaio denied the allegations. In court documents, the company stated there was “no companywide pattern or practice of discrimination, harassment, or retaliation.” Attorney Hope Case said in an email that the settlement is not an admission of liability or wrongdoing but a means to “avoid the burden, expense, and uncertainty of continued litigation.”

“Il Fornaio takes harassment seriously and will continue to do everything possible to prevent and eliminate harassment in the workplace against all workers,” Case said. She added that the company prides itself on fostering a positive working environment, reflected in its high number of long-term employees and low turnover rate for the industry.

The settlement agreement includes three years of company-wide workplace reforms. These reforms require Il Fornaio to maintain a dedicated human resources function for each restaurant and hire an external monitor to conduct audits and ensure compliance with Title VII of the Civil Rights Act. The EEOC stated that the company had eliminated its Human Resources Department by July 2020, leaving employees with no effective way to report harassment.

Impact on Employees

The lawsuit alleged that numerous women complained to managers about sexual harassment, but their complaints were often disregarded. The EEOC said this left “their female employees, many of them teenagers working their first jobs, to fend for themselves.” Retaliatory actions against those who reported harassment included worsening harassment, intimidation, reduced hours, and termination.

Beatriz B. Andre, acting regional attorney for the EEOC’s Los Angeles District, said in a statement, “Sexual harassment continues to be a widespread issue in the restaurant industry, and during this case, we learned of at least 100 women negatively affected by Il Fornaio’s work environment.”

Christine Park-Gonzalez, director of the agency’s Los Angeles District, said, “The EEOC will continue to stamp out workplace sexual harassment wherever it occurs.” She added, “we are thankful to the women who came forward and courageously shared their stories.”

Why it matters

The settlement highlights ongoing challenges in the restaurant industry regarding workplace safety and the protection of young workers. The inclusion of an external monitor and mandatory HR functions underscores the EEOC’s focus on structural compliance to prevent future violations. Il Fornaio, which operates 15 locations across California and Nevada, is owned by Create Restaurants Holdings, a Japanese restaurant and food service group that acquired the chain in October 2019.

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Sources

• latimes.com: Scores of women, teen workers were groped, grabbed at this restaurant chain, feds say - Los Angeles Times
• sfchronicle.com: Il Fornaio to pay $3M settlement in sexual harassment case

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.