Sexual Harassment Exposes Employers to Serious Liability (California Company Will Pay $650,000)
On December 2, 2025, the Equal Employment Opportunity Commission (EEOC) announced that two employers in California will pay approximately $650,000 to resolve a sexual harassment claim. Swami’s Café and Honey’s Bistro allegedly allowed a class of young female employees to face systematic sexual harassment in the workplace. In this article, our California employment attorney for employers provides a more comprehensive overview of the enforcement action.
Southern California Employer Responsible for Allowing Systematic Sexual Harassment
A group of young female employees at several Swami’s Café and Honey’s Bistro locations in San Diego County will receive $650,000 as part of a sexual harassment case. It comes after the EEOC sued the restaurants for sexual harassment and retaliation. The EEOC alleged that managers and co-workers subjected teenage and other young women to ongoing unwanted comments, inappropriate advances, and even physical touching. Further, the EEOC alleged that some workers were punished or forced out after complaining. The settlement requires the restaurants to adopt stronger oversight measures, install reporting systems, provide harassment training, and remove negative records from personnel files.
Three Lessons Employers in California Can Take from this Case
- Employers Need Strong, Well-Enforced Sexual Harassment Practices
The Swami’s Café case shows that written policies alone are not enough. Employers must actively monitor the workplace, especially when supervising young or inexperienced workers. California’s Fair Employment and Housing Act (FEHA) requires employers to take all reasonable steps to prevent and correct harassment.
- Supervisors Should Be Trained and Held Accountable
In this case, the EEOC alleged that supervisors were key contributors to the hostile environment. In California, employers must provide legally compliant harassment-prevention training under Gov. Code § 12950.1. Of course, anti-sexual harassment training only works when paired with accountability. Employers should evaluate supervisors on legal compliance, document their performance, and intervene early when issues arise. When supervisors are responsible for harassment and/or fail to address harassment, an employer is at a serious risk of facing liability.
- Retaliation Prevention Must Be a Priority (Additional Liability Risk)
In California, workers have the right to report sexual harassment. In this case, several employees reportedly faced retaliation after complaining. Under both federal law and FEHA, retaliation is an independent violation. It has the potential to be even costlier than the underlying harassment claim. Employers must create safe reporting channels, ensure complaints are investigated promptly, and strictly prohibit adverse actions against anyone who raises concerns. A well-monitored, confidential complaint system protects both employees and the company.
Call Our California Employment Lawyer for Employers Today
At Sloat Law Group, APC, our California employment lawyer is standing by, ready to protect your rights and your interests. If you have any questions about sexual harassment liability, we are here to help. Please do not hesitate to contact us today for a completely confidential, no obligation initial consultation. We defend employers in claims throughout all of California.
Source:
eeoc.gov/newsroom/swamis-cafe-and-honeys-bistro-pay-650000-eeoc-sexual-harassment-suit
