November 5, 2024

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Owner of several Vermont McDonald’s settles sexual harassment case for $1.6 million

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McDonald’s sign. Photo by Kelvin Studdard/Pixabay

The owner of 10 McDonald’s restaurants in Vermont and New Hampshire has agreed to pay $1.6 million to settle sexual harassment charges filed by the U.S. Equal Employment Opportunity Commission in March 2021.

The commission alleged that franchise owner Coughlin, Inc. failed to protect Jennie Lumbra from “a hostile work environment based on sex” and from retaliation by a supervisor after she complained of discrimination. 

Lumbra, who died in November 2021, was an employee at the Randolph McDonald’s. 

The settlement agreement was filed Thursday and has yet to be approved by the court. It would require Coughlin, Inc., which is based in Rutland, to take a number of steps to prevent future sexual harassment, including mandatory yearly trainings for all employees. 

It would also require the franchise owner to provide an independent, third-party hotline for employees to report sexual harassment, discrimination, retaliation or other workplace violations. Coughlin, Inc. would also have to develop and distribute an anti-discrimination policy to all employees.

A third-party entity would monitor the company’s compliance with the settlement agreement.

Company owner Charles Coughlin said in a written statement that he was pleased to have reached an agreement. 

“In my restaurants, nothing is more important than the safety and wellbeing of our employees and guests. We remain deeply committed to running a values-led organization, where harassment of any kind is not tolerated,” Coughlin wrote. 

He also stated, “We have established strict policies and mandatory sexual harassment training for all employees upon their hiring.”

In 2008, Coughlin, Inc. settled a similar case with the Vermont attorney general’s office, involving allegations of sexual harassment at McDonald’s restaurants in Rutland, according to a report in Legal Newsline. That agreement required Coughlin, Inc. to adopt policies and practices to prevent workplace sexual harassment.

In 2021, the federal Equal Employment Opportunity Commission alleged that Peter Pratt, an assistant manager at the Randolph restaurant, had continuously harassed male and female employees. His behavior allegedly included “unwelcome sexual comments” and “grabbing or attempting to grab employees’ breasts and buttocks and hitting employees’ genitals.”

The suit stated that Coughlin, Inc. removed Lumbra from her regular work schedule after she reported Pratt’s behavior, leading Lumbra to resign. Coughlin, Inc. later fired Pratt after another employee reported his behavior to local law enforcement.

The Vermont attorney general’s office joined the suit as a plaintiff, alleging that Coughlin, Inc. also violated state employment law. 

“This settlement sets the tone for employers to recognize their duty to keep workers safe, respect their dignity, and provide a workplace free from discrimination,” Vermont Deputy Attorney General Joshua Diamond said in a written statement.

Pratt pleaded guilty in August 2021 to disorderly conduct and paid a fine, according to the Orange County state’s attorney, Dickson Corbett, and is prohibited from entering any Coughlin-owned business.

Lumbra’s estate will receive $275,000. The Vermont state government will receive $125,000 for civil penalties and legal fees, and $1.2 million will go to a federal settlement fund to be distributed to affected individuals.

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