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Hooters, the restaurant chain famous for its “Hooters Girls” and chicken wings has agreed to settle a $250,000 lawsuit alleging racial discrimination against employees.
The lawsuit was filed by the US Equal Employment Opportunity Commission (EEOC). The federal agency announced the settlement Wednesday.
As well as paying damages to affected employees across four locations in Greensboro, North Carolina, Hooters has also been ordered by the federal agency to avoid making layoff, recall, or rehire decisions based on race or color alongside further requirements including training, compliance reports, and to post on Instagram that it is an equal opportunity employer.
Hooters sued over racial discrimination and hostility
The EEOC’s lawsuit, filed in August 2023, reported that a Hooters restaurant in North Carolina temporarily laid off 43 employees following the onset of the COVID-19 pandemic.
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The layoffs included employees who worked as ‘Hooters Girls’ – the restaurant’s infamous waitresses known for their uniforms – including a “class of Black and dark-skinned women.”
In May 2020, with initial lockdown restrictions easing, Hooters began bringing some of those employees back to work. According to the EEOC, the restaurant recalled “mostly white or light-skinned employees.”
“Prior to the layoffs, 51% of the Hooters Girls were Black and/or had dark skin tones. After the May 2020 recall, only 8% of the Hooters Girls were Black and/or had dark skin tones,” the EEOC’s initial statement said, stating the actions resulted in “marked shift in the racial composition of the restaurant’s Hooters Girls workforce.”
Hooters Girls with darker skin tones who were recalled reportedly experienced racial hostility, the EEOC alleged. The lawsuit also claimed those workers witnessed company management giving preferential treatment to white employees.
The federal agency argued Hooters’ conduct violated Title VII of the Civil Rights Act of 1964.
“The law does not tolerate racial harassment in the workplace or an employer’s refusal to hire an employee because of their race or color,” said Samuel Williams, trial attorney at the EEOC’s office in Raleigh, North Carolina.
Melinda C. Dugas, regional attorney at the EEOC’s office in Charlotte, North Carolina, described the settlement as a “powerful resolution which serves the public interest” and a “welcome relief” for the affected employees.
What happens next at Hooters?
Hooters has agreed to pay $250,000 in damages to the employees involved in the case.
Dugas added that the outcome of the lawsuit will help “protect current and future employees from unlawful discriminatory decision-making based on race or color.”
The restaurant chain has been ordered by the EEOC to submit an annual compliance report to ensure it does not lay off, recall, or rehire staff based on protected characteristics.
Hooters must also conduct annual training sessions for its staff including on racial discrimination in the workplace, publish a notice of employee rights, and share a post on its Instagram feed notifying the public that it is committed to being an equal opportunity employer.
Where other employers are concerned, Dugas earlier issued a reminder in 2023, when the EEOC shared its initial statement: “When recalling employees from a layoff, it is critical that employers examine their selection criteria to ensure they are objectively verifiable and free from racial bias,” she said.
