ENCINITAS — Local dining chain Swami’s Café and restaurant Honey’s Bistro will pay $650,000 to settle a case alleging sexual harassment and retaliation against female employees, the U.S. Equal Employment Opportunity Commission announced this week.
The EEOC filed a case against the restaurant in 2023, alleging that female employees experienced frequent sex-based remarks and advances and unwelcome touching from male supervisors. The complaint said employees who complained were retaliated against and forced to quit their jobs.
A majority of the allegations focused on John Nolan, former manager of Swami’s Café along Coast Highway 101 in Encinitas. In addition to Nolan, several cooks, a dishwasher at other Swami’s locations, and Swami’s owner, Jaime Osuna, were also listed as defendants in the complaint.
“We continue to see young women experience sexual harassment in the restaurant industry, often during their first job experience,” said Anna Park, regional attorney for the EEOC’s Los Angeles District Office, which oversees San Diego County. “Employers have a duty to protect young workers by putting in place strong policies and procedures that ensure managers and supervisors are held accountable for maintaining a safe and respectful workplace.”
On Dec. 1, U.S. District Judge Benjamin J. Cheeks approved the settlement agreement, which includes conditions for all Swami’s Café locations, including restaurants in Encinitas, Vista, Carlsbad, Escondido, Oceanside, La Mesa and San Diego, as well as the popular Honey’s Bistro in Encinitas, which is under the same ownership, Swami’s 101 LLC.
Under the agreement, the restaurants will retain an equal employment opportunity monitor, establish a complaint procedure and hotline, and implement strong policies and procedures for reporting and responding to discrimination, harassment and retaliation.
Other conditions include implementing mandatory personnel training; assessing supervisors’ performance against EEO guidelines; maintaining records; completing audits; posting notice of the settlement; removing all negative references to harassment, discrimination, and retaliation from employees’ personnel files; and offering to reinstate individuals who were fired or quit.
“We commend these young women for their bravery in coming forward, asserting their rights, and giving a voice to others. The injunctive relief in this decree is an excellent step forward for Swami’s Café and Honey Bistro, and it would behoove other employers to take note of the relief furnished in this case and implement similar changes as necessary,” said Jacquelyn Famber, director of the EEOC’s San Diego office.
Swami’s did not admit wrongdoing in the settlement, but said in a statement to media outlets that it was in its best interest to agree to the two-year consent decree. They also noted that they have cooperated fully with the EEOC throughout the case.
“While the company disputes many of the claims, we believe it was in the best interest of our employees, our guests, and our community to resolve the matter and move forward collaboratively,” Swami’s statement said. “As part of the resolution, Swami’s Café and Honey’s Bistro have strengthened and expanded our existing workplace policies, enhanced training, and implemented additional tools such as a third-party hotline and (Equal Employment Opportunity) monitor to ensure all employees feel safe, respected, and supported.”
Osuna opened the first Swami’s Café on Highway 101 in 2005. Swami’s Cafe closed its inland Encinitas location earlier this year, with employees citing an expiring lease and rising rent as reasons for the closure.
1 comment
For Swami’s to pay $650,000 to settle federal charges of sexual harassment, and then say they “dispute many of them,” strongly suggests the problem is not going away.