The restaurant industry's high levels of sexual harassment present a formidable and pervasive problem as one of the largest employers of women and young people, as well as one of the largest private-sector employers in general. Data from Advisen demonstrates how common these losses can be.
Gender/sexual discrimination and harassment account for more than half of all employment-related claims in the restaurant industry, excluding wage and hour losses. According to Advisen loss data, this is more than double the frequency of other types of losses.
Harassment Is Widespread
According to studies, the majority of sexual harassment in the restaurant industry is perpetrated by customers. Tipped employees are more likely to be sexually harassed. Tipped employees are permitted by federal law to be paid a minimum cash wage of as little as $2.13 per hour, with the remainder of their pay coming from tips. According to research, relying on tips can contribute to a power imbalance between restaurant employees and customers, allowing sexual harassment to thrive in the industry.
According to the same study, sexual harassment is frequently perpetrated by those in positions of authority. These instances of sexual harassment are frequently not isolated incidents, but rather occur over a period of days, weeks, or months.
Loss Illustrations
Harassment in Advisen's database includes the following examples:
- Chipotle—In this 2016 lawsuit, a Chipotle employee claimed that her supervisor sexually harassed and assaulted her. The plaintiff was awarded $7.65 million by the jury.
- The Texas Roadhouse —The Equal Employment Opportunity Commission filed this lawsuit in 2016 on behalf of a group of female Texas Roadhouse employees. Unwanted touching, humiliating sexual remarks, and pressure for sexual favors were allegedly inflicted on the women. A $1.4 million settlement was reached in the lawsuit.
In addition to the emotional toll that sexual harassment takes on victims, there are several tangible ways that sexual harassment harms businesses. Such harassment, in particular, can:
- Reduce employee morale
- Result in reputational harm
- Make your workplace hostile or offensive
- Victims may be demoted or fired as a result
- Make legal obligation
Sexual harassment is against the law. The consequences for employees and businesses in general can be severe.
Employment Losses in the Restaurant Industry by Median Severity
According to Advisen loss data, the median cost of a gender/sexual discrimination and harassment loss in the restaurant industry is $66,000. This is one of the most costly types of job losses in the industry. Only wrongful termination had a higher median loss cost, with a loss cost of $90,000.
Although wrongful termination encompasses a wide range of losses, some gender/sexual discrimination and harassment claims are included in this category. These losses are frequently linked to allegations of retaliation-related firings of employees who reported gender/sexual discrimination and harassment, as well as a hostile workplace environment.
Harassment Prevention
Developing and implementing anti-sexual harassment policies is critical for the health of your employees and your business. Here are some strategies for reducing the risk of sexual harassment in your workplace:
- Examine your hiring methods. Allow potential new hires to meet with current employees at all levels. A brief conversation may provide additional insight into a potential hire's personality.
- Alter the shift schedules. Changing up routine work schedules is a proactive way to make the workplace safer. Employees who have been subjected to sexual harassment may be more likely to speak up if they do not work with the perpetrator on a regular basis.
- Managers must be trained. When it comes to sexual harassment, most employees will go to their manager first. Managers should be trained on what they can do to keep employees safe if this happens.
- Impose penalties. Establish clear expectations for workplace harassment, as well as consequences for failing to meet those expectations. Make certain that the consequences are enforced. Attempting to protect specific employees or managers who violate sexual harassment policies can be detrimental to your company and its employees.
Women must be empowered. Men currently make up the majority of restaurant industry leadership and higher-paying positions. Women are more likely to hold lower-paying jobs, resulting in a power imbalance. Your workplace can help correct the industry's skewed power balance by giving women more opportunities for leadership positions.