Outback Pays $19 Million to Settle Sex Bias Suit
January 13, 2010
On December 30, 2009, Outback Steakhouse announced that it would pay $19 million dollars to settle a class action sexual discrimination lawsuit brought by the United States Equal Employment Opportunity Commission (EEOC). The EEOC filed the suit in September 2006 in Denver, Colorado.
The EEOC claimed that Outback’s policies created a “glass ceiling,” which prevented women from advancing within the company. The EEOC claimed that Outback denied women favorable job assignments–particularly kitchen management positions–which were required in order to obtain restaurant management positions.
Outback admitted no liability in the settlement, and claimed that it resolved the case because it “ultimately determined that settling . . . with funds provided entirely by insurance was preferable to the cost and distraction of further litigation.” In addition to paying the $19 million dollars, the settlement agreement also requires Outback to implement various remedial measures, including an online application system for employees interested in managerial and other supervisory positions.
