According to the state, the settlement reached by the state and the US Equal Opportunity Commission with Coughlin Inc. is the largest public sexual harassment settlement in the history of the Attorney General's Office and one of the largest reported employment discrimination settlements in Vermont.
Among the terms of the five-year consent decree, Coughlin will establish a $1.2 million settlement fund to compensate victims of sexual harassment at its Randolph restaurant, as well as revise its sexual harassment policies and procedures.
It will also pay the State of Vermont $125,000 in civil penalties and other damages, as well as $275,000 to the estate of one of the complainants who died during the course of the litigation.
According to the state, the litigation began in March 2021, when the EEOC sued Coughlin for failing to protect young workers at its Randolph restaurant from a manager whose behavior over a period of years included hitting on employees and making offensive and degrading sexual comments.
The state claims it intervened in the case because of its relationship with Coughlin. Coughlin violated Vermont's Fair Employment Practices Act in 2007 when it failed to address sexual harassment of employees at a different McDonald's location, according to the state Office Civil Rights Unit.
"This settlement establishes a precedent for employers to recognize their obligation to keep workers safe, respect their dignity, and provide a workplace free of discrimination," Vermont's Acting Attorney General Joshua Diamond said in a statement.
According to owner Charles Coughlin, his company is dedicated to worker safety and well-being.
"We have established strict policies and require sexual harassment training for all new employees," Coughlin said in an email to The Associated Press. "I am relieved that we have reached an agreement and can proceed."