GREENSBORO, N.C. (WGHP) — Hooters of America has reached a settlement with the U.S. Equal Employment Opportunity Commission in a lawsuit over claims that managers at a Greensboro restaurant discriminated against Black and dark-skinned servers, according to court records.
In a lawsuit filed on Aug. 24, 2023, the U.S. Equal Employment Opportunity Commission said that managers at a Hooters location in Greensboro would racially discriminate against servers, referred to in the suit as “Hooters Girls,” who were Black and or had dark skin tones and claimed that the restaurant, following COVID-19 layoffs, rehired almost exclusively white and light-skinned servers. Hooters of America denied the allegations.
In a joint motion, Hooters of America and the EEOC released details of the settlement on Oct. 18, which will be subject to court approval. Hooters of America will pay $250,000 to the Hooters Girls involved in the case. Half of the payments will constitute wages for tax purposes.
The company will be required to update the records of any employees involved to say they “resigned” as opposed to being laid off or suspended in 2020, except for those who were rehired and dismissed for cause, and marked “eligible for rehire.” Any of these former employees will be able to apply for a job at a corporate-owned Hooters location in the U.S., and Hooters must offer them the position if they meet hiring eligibility criteria if an opening is available.