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EEOC pursues race claim against NC restaurant

April 2023 employment law letter
Authors: 
Richard Rainey, Womble Bond Dickinson (US) LLP

The U.S. Equal Employment Opportunity Commission (EEOC) has struck again, this time with a lawsuit claiming a North Carolina-based chain of Subway franchises subjected employees to a hostile work environment, discharged Black employees, and discriminated against applicants in the hiring process because of their race and color.

‘Think fresh’ doesn’t reflect franchise owner’s racial attitudes

According to the EEOC’s lawsuit, from October 2018 to August 2021, the owner of several Subway franchises in the Fayetteville area repeatedly instructed the general manager (GM) not to hire Black employees and to discharge other employees because they were Black or because they appeared to be Black.

The owner also allegedly created a hostile work environment for Black employees by repeatedly making disparaging remarks and stereotyping them based on his own racial bias. When the general manager confronted the owner stating he was Black, the owner argued with him stating he was “not really black” and had “Puerto Rican” in him.

Some of the more egregious conduct alleged in the lawsuit includes:

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