EEOC Settles Harassment Suit with Dealership

EEOC Settles Harassment Suit with Dealership

Critical Shifts:

  • Monetary Settlement and Legal Action: Benson Enterprises, Inc. agreed to pay $430,000 and enter into a court-approved consent decree to settle an EEOC lawsuit alleging Title VII violations for sex-based harassment and retaliation.

  • Discriminatory and Hostile Work Environment: A male manager systematically created a hostile environment through misogynistic comments, excluding female employees from bonus opportunities and communication channels, and redirecting clients away to lower a female advisor's commission-based pay.

  • Unlawful Retaliation: The dealership unlawfully terminated the female fleet service advisor shortly after she submitted multiple complaints regarding the manager's discriminatory conduct.

  • Mandatory Systemic Reform & Monitoring: Beyond financial relief, the settlement requires the dealership to implement anti-discrimination policies, conduct employee training, report future complaints directly to the EEOC, and undergo ongoing compliance monitoring.

_________________________________

Benson Enterprises, Inc., the operator of automotive dealerships including Ingram Park Chrysler Jeep Dodge Ram in San Antonio, will pay $430,000 and furnish other relief to settle a sex-based harassment and retaliation lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the federal agency announced today.

According to the EEOC’s lawsuit, from January to June 2021, a male manager for Ingram Park Chrysler Jeep Dodge Ram created and maintained a hostile work environment by subjecting a female fleet service advisor to frequent and offensive sexist comments about her and other women, such as statements that women were ignorant, lazy or unqualified to work as service advisors.

The suit charged that the manager also directed clients away from the fleet service advisor and excluded her from important communications regarding business operations – resulting in a loss of sales and negatively affecting her commission-based compensation. Additionally, the manager excluded the fleet service advisor and another female employee from an employee group chat announcing competitions for monetary bonuses, resulting in denial of earnings opportunities based on sex.

The lawsuit also charged that the fleet services advisor made several reports to the dealership about the male manager’s discriminatory conduct, and the dealership subsequently fired her on June 11, 2021, in retaliation for those complaints and because of her sex.

“Avoiding liability for workplace discrimination requires organizations to hold managers accountable for their treatment of subordinate employees,” said acting EEOC Dallas Regional Attorney Ronald L. Phillips. “That means well-defined and accessible complaint procedures; active monitoring of employee well-being; appropriate managerial oversight mechanisms; strong retaliation prevention measures such as auditing of personnel actions concerning workers who have reported suspected harassment and discrimination; and imposition of serious sanctions for managers who abuse their positions of authority by mistreating workers.”

This alleged conduct violates Title VII of the Civil Rights Act of 1964, which prohibits sex-based workplace harassment and discrimination in the terms and conditions of employment and further prohibits retaliation against employees who report or oppose such practices. The EEOC filed suit (U.S. EEOC v. Benson Enterprises, Inc., et al., Case No. 5:24-cv-01072) in the U.S. District Court for the Western District of Texas, San Antonio Division after first attempting to reach a pre-litigation settlement through its administrative conciliation process.

EEOC San Antonio Field Office Director Norma Guzman said, “Unlawful sex-based harassment is not limited to unwelcome sexual remarks and conduct but also can include misogynist comments and sexist behavior. No employee should fear retaliation in the workplace for bringing discrimination to the attention of their company’s management or human resources department.”

On Aug. 6, the federal court denied the defendants’ motion for summary judgment challenging some of the EEOC’s claims, finding sufficient evidence supporting those claims to warrant a trial by jury. The EEOC and the defendants subsequently agreed to settle the case by consent decree before trial.

In addition to paying monetary relief to the two affected employees, the court-approved decree enjoins the dealership from engaging in any future harassment, discrimination or retaliation; requires the dealership to adopt policies and procedures designed to prevent any future sex-based harassment and retaliation; provide extensive training on conducting harassment, discrimination and retaliation investigations to employees who are assigned the function; provide non-discrimination training to employees; report future complaints of sex harassment, sex discrimination, or retaliation to the EEOC; and be subject to other compliance-monitoring measures.d