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An Arizona-based McDonald’s franchise owner will pay $1,997,500 to resolve a sexual harassment lawsuit filed by the U.S. Equal Employment Opportunity Commission.
The agency said in a statement Friday that Kingman, Arizona-based AMTCR Inc., AMTCR Nevada Inc. and AMTCR California LLC, which operate about 18 McDonald’s restaurants in Arizona, California and Nevada, had been aware of the harassment since at least 2017.
The agency said that despite this, AMTCR allowed it to continue unabated by supervisors, managers and coworkers at various of its McDonald’s restaurants.
The EEOC said the harassment was mainly directed at teenage employees and included frequent, unwanted touching, offensive comments, unwelcome sexual advances and intimidation.
It said that when AMTCR failed to address complaints, many workers found they had no choice but to quit.
The franchise owner was charged with violating Title VII of the Civil Rights Act of 1964.
In addition to paying the sum, AMTCR agreed to retain an outside third-party monitor to conduct audits of its practices in handling harassment and retaliation complaints, among other settlement provisions.
AMTCR’s attorney did not respond to a request for comment.