$19 Million Settlement In 'Glass Ceiling' Suit

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$19 Million Settlement In 'Glass Ceiling' Suit

The Outback Steakhouse chain’s parent company, OSI Restaurant Partners, LLC, will pay $19 million to settle a gender discrimination class-action lawsuit tried in Colorado. The U.S. Equal Employment Opportunity Commission (EEOC) sex bias lawsuit was filed in September 2006 under Title VII of the Civil Rights Act. According to the complaint, female employees at Outback failed to get promoted to higher-level, profit-sharing management positions at the restaurants. The EEOC further claimed that women were denied favorable job assignments, particularly in kitchen management, which was a requirement for employees being considered for top management jobs in the Outback restaurants. (MSCAd Case Id. 633921)

In addition to the financial settlement, the consent decree signed by U.S. District Court Judge Christine Arguello on December 29, 2009, requires that the restaurant chain institute several structural changes in its promotion process. Outback has agreed to create an online process that will enable employees to directly apply for managerial positions. It will also hire a "Vice President for People" who will assist with human resource problems. To ensure that Outback is complying with the terms of the agreement, the company has also agreed to bring in an outside consultant for at least two years and to report to the EEOC every six months. Women who have worked at Outback restaurants since 2002 and have at least three years of tenure are eligible for part of the $19 million payout.

"There is no glass ceiling at OSI, and we do not tolerate discrimination in any form," says Liz Smith, CEO of Outback's parent company OSI Restaurant Partners, which is headquartered in Tampa, Florida.

The OSI Restaurant Partners' portfolio consists of Outback Steakhouse, Carrabba's Italian Grill, Bonefish Grill, Fleming's Prime Steakhouse & Wine Bar, Roy's, Lee Roy Selmon's, Blue Coral Seafood & Spirits and Cheeseburger in Paradise restaurants. It has operations in 50 states and 20 countries worldwide.

In a statement, OSI reiterated that the settlement includes no finding of fault on the part of Outback. The company ultimately determined that settling the lawsuit with funds provided entirely by insurance was preferable to the cost and distraction of further litigation. In the current economic climate, according to OSI, it is more important than ever to concentrate all of its financial and operational resources on serving its guests, supporting its employees, and driving its business.

“Hopefully this major settlement will remind employers about the perils of perpetuating promotion practices that keep women from advancing at work,” says Stuart Ishimaru, acting chairman of the U.S. Equal Employment Opportunity Commission.

The term "glass ceiling", is thought to have first been used to refer to invisible barriers that impede the career advancement of women in the American workforce in an article by Carol Hymowitz and Timothy Schellhardt in the March 24, 1986 edition of the Wall Street Journal.

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