Il Fornaio at Del Mar Plaza will pay $3 million and operate under a three-year federal consent decree to settle a sexual harassment lawsuit.
The U.S. Equal Employment Opportunity Commission (EEOC) announced the settlement Tuesday, Oct. 13, as first reported by SanDiegoVille. The agency alleged that male supervisors and coworkers subjected female employees, including teenagers, to what it called pervasive sexual harassment across the chain's California and Nevada locations. The lawsuit was filed Aug. 24, 2022.
The Del Mar restaurant at 1555 Camino Del Mar, Suite 301, is one of two San Diego County locations covered by the company-wide decree. No source identifies which specific locations were tied to individual incidents.
The EEOC alleged female workers were groped in restaurant bathrooms, had their bodies grabbed without consent and received requests for sexual favors. Women who complained faced retaliation including reduced shifts, heavier workloads and threats, the agency alleged. Some felt they had no choice but to resign.
At least 100 women were affected, the EEOC alleged.
"Through this settlement, we hope Il Fornaio will take meaningful steps to prevent sexual harassment and respond promptly and effectively when complaints arise," Beatriz Andre, acting regional attorney for the EEOC's Los Angeles District, said in the Oct. 13 announcement.
The consent decree, filed with the court on Oct. 6, requires Il Fornaio to hire an external monitor, conduct annual audits of its harassment policies and maintain a dedicated human resources function with an open-door complaint policy. The company must also operate a seven-day-a-week telephone hotline for employees to file grievances, according to the Orange County Register.
The San Francisco Chronicle reported that Il Fornaio eliminated its human resources department in 2020, leaving employees with no avenue to report harassment other than to managers. The underlying misconduct allegedly spanned about a decade, the Chronicle reported.
Il Fornaio denies the EEOC's claims. Attorney Hope Case said the company settled to avoid the cost and uncertainty of continued litigation, according to the Chronicle. Director of marketing Matt Foley said in a statement to SFGATE that the company has increased efforts to prevent harassment and discrimination.
The $3 million covers compensatory damages for emotional distress. Il Fornaio must pay $1.5 million within 90 days of the Oct. 6 effective date, an additional $750,000 within nine months and the final $750,000 within 15 months. The decree can be extended if the court finds a hostile work environment persists.
Il Fornaio, owned by Tokyo-based Create Restaurants Holdings since 2019, operates 15 locations in California and Nevada. The Italian restaurant has anchored Del Mar Plaza since 1989. Both the Del Mar and Coronado Ferry Landing locations remain open.
Under the decree, all current employees must receive revised workplace policies and complete anti-harassment training within three months of Oct. 6.
