Fremont Toyota dealership settles racial bias suit with EEOC for $400,000

SAN FRANCISCO—Fremont Automobile Dealership L.L.C. agreed to settle a federal discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission, paying $400,000 to resolve the case and implement training for management and staff.

The settlement resolves a 2011 lawsuit filed by the EEOC against the Fremont, Calif.-based dealership, which does business as Fremont Toyota, in U.S. District Court for the Northern District of California in San Francisco, the EEOC said Tuesday in a statement.

The EEOC alleged that Fremont Toyota singled out Afghan-American salesmen during a meeting and verbally abused them, calling them “terrorists” and threatened to blow them up with grenades, according to court documents.

After reporting the harassment, the men were subject to further verbal abuse and extra job scrutiny and finally felt they had no choice but to resign.

In addition to paying $400,000 to the former employees, Fremont Toyota agreed to train all managers, post a notice regarding the lawsuit and report to the EEOC for a three-year period as part of the settlement.

"The irony of this matter is that, after being labeled ‘terrorists’ at our old job, most of us found work with the U.S. military serving in Afghanistan protecting U.S. soldiers from the terrorists," said Mohammad Sawary, one of the former employees, in the statement.

"We hope this case clearly signals that the civil rights laws of this country protect everyone from illegal discrimination, regardless of their national origin,” William R. Tamayo, regional attorney for the EEOC in San Francisco, said in the statement.

Calls and requests for comment to Fremont Toyota’s attorneys were not returned.