U.S. Equal Employment Opportunity Commission v. AMTCR, Inc. et al, No. 2:2021cv01808 - Document 15 (D. Nev. 2023)

Court Description: ORDER granting 14 Stipulated/Consent Judgment; The Clerk of Court is directed to CLOSE THIS CASE. Signed by Judge Jennifer A. Dorsey on 1/5/2023.; Case terminated. (Copies have been distributed pursuant to the NEF - HAM)

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U.S. Equal Employment Opportunity Commission v. AMTCR, Inc. et al Doc. 15 Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 1 of 47 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Anna Y. Park, CA SBN 164242 Nakkisa Akhavan, CA SBN 286260 Connie K. Liem, TX SBN 791113 Derek Li, CA SBN 1550122 Maurice Neishlos, NY SBN 5639265 U.S. EQUAL EMPLOYMENT OPPORTUNITY COMMISSION 255 East Temple Street, Fourth Fl. Los Angeles, California 90012 Telephone: (213) 785-3080 Facsimile: (213) 894-1301 Email: anna.park@eeoc.gov Attorneys for Plaintiff UNITED STATES EQUAL EMPLOYMENT OPPORTUNITY COMMISSION Martin K. LaPointe, IARDC 6195827 LaPointe Law 1200 Shermer Rd., Suite 425 One Lane Center Northbrook, Illinois 60062 Telephone: (847) 786-2500 Facsimile: (847) 786-2650 Email: mlapointe@lapointelaw.com Attorney for Defendants AMTCR, INC., AMTCR NEVADA, INC., and AMTCR CALIFORNIA, LLC UNITED STATES DISTRICT COURT DISTRICT OF NEVADA 17 18 19 20 U.S. EQUAL EMPLOYMENT OPPORTUNITY COMMISSION, Plaintiff, 21 22 23 24 25 26 Case No. 2:21-cv-01808-JAD (NJK) CONSENT DECREE AND ORDER vs. AMTCR, INC., AMTCR NEVADA, INC., AMTCR CALIFORNIA, LLC collectively dba McDonald’s, and DOES 1-10, inclusive Defendants. ECF No. 14 Honorable Jennifer A. Dorsey U.S. District Judge 27 28 -1- CONSENT DECREE Dockets.Justia.com Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 2 of 47 1 I. 2 INTRODUCTION Plaintiff U.S. Equal Employment Opportunity Commission (the “EEOC” or 3 “Commission”) and Defendants AMTCR, Inc., AMTCR Nevada, Inc., and 4 AMTCR California, LLC (hereinafter collectively “Defendants”) hereby stipulate 5 and agree to entry of this Consent Decree to resolve the Commission’s Complaint, 6 filed under Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 7 2000e et seq. (“Title VII”). The Commission alleges Defendants engaged in 8 unlawful employment practices by subjecting Charging Party and other aggrieved 9 individuals to a sexually hostile work environment in violation of Section 703(a) of 10 Title VII, 42 U.S.C. § 2000e-2(a). The Commission further alleges that due to the 11 ongoing sexually hostile and abusive working conditions and Defendants’ failure to 12 remedy the harassment, Charging Party was subjected to constructive discharge in 13 violation of Section 703 (a) of Title VII. Defendants deny all claims made by the 14 EEOC in this action and denies any wrongdoing or liability. 15 II. PURPOSES AND SCOPE OF THE DECREE 16 In the interest of resolving this matter, the Parties have agreed that this 17 Action should be finally settled by entry of this Decree. This Decree shall be 18 binding on and enforceable against Defendants, as well as their parents, 19 subsidiaries, officers, directors, agents, successors, and assigns. According to 20 Defendants, there are currently eighteen (18) stores in operation and three (3) 21 recently closed stores, as reflected in the Exhibit “A,” attached hereto. For 22 purposes of Monetary Relief and Claims Administration contained in Section IX of 23 this Decree, the scope includes the twenty-one (21) stores listed in Exhibit A. For 24 purposes of Injunctive Relief contained in Sections X and XI of this Decree, the 25 scope is company-wide, and includes all of Defendants’ Nevada, California, and 26 Arizona stores in operation at any time during the duration of this Decree and the 27 stores currently in operation listed in Exhibit A, unless otherwise indicated. 28 -2- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 3 of 47 1 The Parties shall bear their own costs and attorney’s fees in this Action. The Parties 2 have entered into this Decree for the following purposes: 3 A. To provide appropriate monetary and injunctive relief; 4 B. To ensure that Defendants’ employment practices comply with 5 pertinent laws regarding discrimination, harassment, and related 6 retaliation; C. 7 8 To ensure that Defendants maintain workplaces free of discrimination, harassment, and related retaliation; D. 9 To ensure that Defendants take reasonable steps to prevent and correct discrimination, harassment, and related retaliation; 10 E. 11 To review and update, as necessary, Defendants’ policies, practices, 12 and procedures with respect to discrimination, harassment, and related 13 retaliation; F. 14 To review and ensure effective training for Defendants’ employees, 15 managers, supervisors, and human resources personnel with respect to 16 the pertinent laws regarding discrimination, harassment, and related 17 retaliation; G. 18 19 To ensure proper accountability and appropriate and effective handling of complaints of harassment, discrimination and retaliation; H. 20 To ensure appropriate review, recordkeeping, and reporting related to 21 discrimination, harassment, and related retaliation in Defendants’ 22 workplaces; and I. 23 To avoid the time, expense, and uncertainty of litigation. 24 25 26 27 III. DEFINITIONS A. “Action” is U.S. Equal Employment Opportunity Commission vs. AMTCR, Inc., AMTCR Nevada, Inc. and AMTCR California, LLC, 28 -3- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 4 of 47 1 collectively McDonald’s, and DOES 1-10, Inclusive; Case No. 2:21- 2 cv-01808-JAD (NJK) (D. Nev.) 3 B. “Claims Administrator” is an independent company responsible for 4 handling administration of the claims process in accordance with this 5 Decree. 6 C. “Settlement Fund” is the escrow account into which Defendants will 7 cause to be deposited for distribution to yet to be identified claimants 8 who have been determined by the EEOC to be eligible for monetary 9 relief in accordance with the terms of this Decree. 10 D. “Claim Form” is the form developed by the EEOC and reviewed by 11 Defendants in accordance with this Decree to determine whether a 12 Claimant will be designated as an Eligible Claimant. 13 E. “Notice of Settlement” is the notice prepared by the EEOC to advise 14 potential Claimants of the settlement, terms of the Decree, and 15 information for submitting a Claim Form. 16 F. 17 18 “Distribution List” is the list of Eligible Claimants, the amounts to be paid to each, and the addresses to where payment should be sent. G. “Eligible Claimant” is an individual who meets all of the following 19 requirements: (i) is a Claimant who was employed at any of the 20 twenty-one (21) stores listed in Exhibit A at any time during the period 21 January 1, 2017 to the Effective Date of this Decree; and (ii) based on 22 the EEOC’s sole discretion, is determined to be eligible for monetary 23 relief from the Settlement Fund. 24 H. “Potential Claimant” is an individual who may be eligible for 25 monetary relief from the Settlement Fund, but who has not yet been 26 determined to be eligible by the EEOC. 27 I. “Effective Date” is the date this Decree is entered by the Court. 28 -4- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 5 of 47 1 IV. RELEASE OF CLAIMS A. 2 The Parties agree that this Decree completely and finally resolves all 3 allegations raised by the EEOC in its Complaint against all named 4 Defendants in this Action and fully resolves Charge No. 487-2017- 5 01281. B. 6 Nothing in this Decree will be construed to limit or reduce any of 7 Defendants’ obligations to comply fully with Title VII or any other 8 federal employment statute. C. 9 Nothing in this Decree shall be construed to preclude the EEOC from 10 bringing suit to enforce this Decree in the event that Defendants fail to 11 perform the promises and representations contained herein. D. 12 This Decree in no way affects the EEOC’s right to bring, process, 13 investigate, or litigate charges that may be in existence or may later 14 arise against Defendants other than claims brought in this Action. 15 16 17 V. JURISDICTION A. The Court has jurisdiction over the Parties and the subject matter of 18 this litigation. See 29 U.S.C. § 626(b). The Action asserts claims that, 19 if proven, would authorize the Court in its discretion to grant the 20 equitable relief set forth in this Decree. The terms and provisions of 21 this Decree are fair, reasonable, and just. This Decree conforms to the 22 Federal Rules of Civil Procedure and Title VII and is not in derogation 23 of the rights or privileges of any person. 24 B. The Court will retain jurisdiction of this Action for the duration of the 25 Decree for the purposes of entering all orders, modifications, 26 judgments, and decrees that may be necessary to fully implement the 27 relief provided herein. 28 -5- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 6 of 47 1 2 VI. EFFECTIVE DATE AND DURATION OF DECREE A. The provisions and agreements contained herein are effective 3 immediately upon the date which this Decree is entered by the Court 4 (“the Effective Date”). 5 B. Except as otherwise provided herein, this Decree will remain in effect 6 for three (3) years after the Effective Date and shall expire by its own 7 terms at the end of the third year after the Effective Date without 8 further action by the Court or the EEOC. 9 10 11 VII. MODIFICATION AND SEVERABILITY A. This Decree constitutes the complete understanding of the Parties with 12 respect to the matters contained herein. No waiver, modification, or 13 amendment of any provision of this Decree will be effective unless 14 made in writing and signed by an authorized representative of each of 15 the Parties. 16 B. If one or more provisions of the Decree are rendered unlawful or 17 unenforceable, the Parties will make good faith efforts to agree upon 18 appropriate amendments in order to effectuate the purposes of the 19 Decree. If any provision of the Decree is rendered unlawful or 20 unenforceable, the remaining provisions will remain in full force and 21 effect unless the purposes of the Decree cannot, despite the Parties’ 22 best efforts, be achieved. 23 C. By mutual written agreement of the Parties, this Decree may be 24 amended or modified in the interests of justice and fairness in order to 25 effectuate the provisions herein. 26 27 28 VIII. COMPLIANCE AND DISPUTE RESOLUTION A. EEOC Review Regarding Compliance -6- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 7 of 47 1 Defendants agree that the EEOC may review compliance with this Decree. 2 The EEOC may request from the EEO Monitor, as defined in Section XII.A., a 3 copy of any document received or created by the EEO Monitor as a result of the 4 EEO Monitor’s duties as described in this Decree. The EEOC may request from the 5 Claims Administrator, as defined in Section IX.D., a copy of any document 6 received or created by the Claims Administrator as a result of the Claims 7 Administrator’s duties as described in this Decree. The EEOC may request that 8 Defendants permit the EEOC to interview employees, including those selected by 9 the EEOC, or inspect Defendants’ records. Defendants will comply with any such 10 request to review, interview, or inspect within thirty (30) calendar days of the 11 EEOC’s request, unless otherwise agreed by the Parties. 12 B. 13 The Parties expressly agree that if the EEOC has reason to believe that 14 Defendants have failed to comply with any provision of this Decree, the EEOC may 15 initiate a lawsuit in the appropriate Federal Court to enforce this Decree, seeking all 16 available relief, including an extension of the term of the Decree, the EEOC’s costs 17 and any attorneys’ fees incurred in securing compliance with the Decree, additional 18 monetary relief, additional injunctive relief, and/or any other relief the Court deems 19 appropriate. 20 Non-Compliance Prior to initiating such action, the EEOC will notify Defendants and their 21 legal counsel of record, in writing, of the nature of the dispute. This notice shall 22 specify the particular provision(s) that the EEOC believes Defendants have violated 23 or breached. Defendants shall have thirty (30) calendar days from receipt of such 24 written notice to attempt to resolve or cure the breach. The Parties may agree to 25 extend this period upon mutual consent. The Parties agree to cooperate with each 26 other and use their best efforts to resolve any dispute referenced in the EEOC 27 notice. 28 -7- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 8 of 47 1 IX. MONETARY RELIEF AND CLAIMS ADMINISTRATION 2 A. Total Settlement Amount 3 1. In settlement of this lawsuit, Defendants shall pay a total of 4 $1,997,500 (“Total Settlement Amount”) in monetary relief. The Total Settlement 5 Amount will be distributed to Eligible Claimants, including Charging Party Shawn 6 Sarbacker, in accordance with the terms of this Decree. 7 2. The EEOC has full and complete discretion under the terms of 8 this Decree to determine who is an Eligible Claimant and the amount of such 9 payments, as hereinafter described in this Decree. 10 3. The Parties agree that the monetary relief amount to each 11 Eligible Claimant will be characterized as non-wage compensation. Defendants 12 will issue a Form 1099 to each Claimant in the amount of his/her non-wage 13 monetary relief. No tax withholdings shall be made. Defendants shall make all 14 appropriate reports to the Internal Revenue Service and other tax authorities. 15 Neither the EEOC nor Defendants make any representations, or assume any 16 responsibility for any tax liability, assessments, interest, penalties and/or costs that 17 the Charging Party or the Eligible Claimants may or may not incur on such 18 payments under local, state or federal law. 19 20 21 22 23 24 25 26 27 28 B. Initial Distribution List and Payments to Charging Party and Currently Identified Eligible Claimants The EEOC shall provide Defendants with an Initial Settlement Distribution List identifying each currently identified Eligible Claimant, each Claimant’s monetary allocation, Charging Party’s monetary allocation, and the name and address to which each currently identified Eligible Claimant’s settlement check shall be delivered, as well as each Claimant’s completed W-9 tax reporting form. Within ten (10) business days of receiving the EEOC’s Initial Settlement Distribution List and tax reporting forms, Defendants shall send a check in the amount specified, via certified mail, to Charging Party and each identified Eligible -8- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 9 of 47 1 Claimant at the address provided. Within five (5) calendar days after mailing any 2 payment to these Eligible Claimants, Defendants shall electronically serve a copy 3 of the checks to Anna Y. Park, Regional Attorney, U.S. Equal Employment 4 Opportunity Commission at anna.park@eeoc.gov and lado.legal@eeoc.gov. 5 6 7 8 9 10 11 12 13 14 C. Settlement Fund for Unidentified Eligible Claimants The remaining balance from the Total Settlement Amount in Section IX.A. shall be designated as a “Settlement Fund” to provide compensation to yet to be identified Eligible Claimants that the EEOC determines to be entitled to relief in this action. Within thirty (30) calendar days of the Effective Date of this Decree, Defendants shall deposit these monies into an interest-bearing escrow account and provide the EEOC with written verification of the funding within ten (10) calendar days thereafter. The EEOC shall retain sole discretion to determine the allocation of monies from the Settlement Fund to these yet to be identified Eligible Claimants. D. Claims Administration of Settlement Fund 1. Claims Administrator’s Duties and Responsibilities 15 Within thirty (30) calendar days of the Effective Date, Defendants shall hire 16 and appoint a Claims Administrator, approved by the EEOC, to oversee the claims 17 process and payments to yet to be identified Eligible Claimants as directed by the 18 EEOC in the manner provided in this Decree. 19 The Claims Administrator will work with the EEOC and Defendants to carry 20 out the terms of the Decree. The Claims Administrator will be responsible for: (a) 21 establishing, within fifteen (15) calendar days of being appointed, an escrow 22 account to hold in trust the Settlement Fund and notifying the EEOC and 23 Defendants when the account is established and ready for deposit of the Settlement 24 Fund; (b) receiving and holding the Settlement Fund in trust, until distribution; (c) 25 establishing an informational website accessible to the Parties and Potential 26 Claimants; (d) establishing an email address, mobile phone number, and/or other 27 digital means of contact accessible to Potential Claimants to submit questions and 28 -9- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 10 of 47 1 Claim Forms as defined in this Decree; (e) establishing a toll-free telephone number 2 accessible to Potential Claimants; (f) responding to information requests from 3 Potential Claimants; (g) sending Notices of the Settlement, and Claim Forms to 4 Potential Claimants; (h) obtaining updated addresses for Potential Claimants and re- 5 mailing returned notices; (i) receiving and processing Claim Forms as provided in 6 the Decree; (j) assist with scoring Claim Forms based on criteria provided by the 7 EEOC; (k) receiving documents and information from Potential Claimants to 8 forward to EEOC; (l) sending notices regarding eligibility and monetary allocation 9 to Eligible Claimants; (m) sending notice of ineligibility to Potential Claimants and 10 anyone else determined by the EEOC to be ineligible; (n) issuing payments to 11 Eligible Claimants in accordance with the final Distribution List provided by the 12 EEOC; (o) issuing tax reporting forms to each Eligible Claimant who receives a 13 settlement payment; (p) if necessary, filing tax returns and issuing IRS Form 1099’s 14 with respect to the Settlement Fund; (q) communicating as necessary with the 15 EEOC and Defendants; (r) tracking all necessary data regarding contact with 16 Potential and recently identified Eligible Claimants; (s) reissuing checks where 17 required in consultation with the EEOC; (t) final distribution of the Settlement 18 Fund; and (u) if necessary, redistributing any remaining monies from the Settlement 19 Fund to Eligible Claimants at EEOC’s sole discretion as provided in this Decree. 20 21 2. Claims Administrator’s Selection and Approval If the Claims Administrator initially appointed by Defendants thereafter 22 declines to serve or to carry out its duties under this Decree, Defendants will have 23 ten (10) business days to notify the EEOC in writing of the need for a replacement 24 Claims Administrator and will provide the EEOC with the name of a new Claims 25 Administrator for approval by the EEOC. If the EEOC objects to the appointment 26 of the new Claims Administrator identified by Defendants, the Parties will meet 27 and confer until they reach mutual agreement on a replacement Claims 28 -10- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 11 of 47 1 Administrator. In the absence of an agreement of the parties, the EEOC may 2 appoint a Claims Administrator. 3 4 3. Claims Administrator’s Fees and Costs Defendants will pay all costs associated with the selection and retention of 5 the Claims Administrator as well as the performance of the Claims Administrator’s 6 duties under this Decree. 7 4. a. Website, Email Address, and Toll-Free Telephone Number 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Claims Process and Distribution of Settlement Fund Within thirty (30) calendar days after being retained, the Claims Administrator shall: (i) establish a website in English and Spanish which will be accessible to the Parties and potential Claimants; (ii) establish an email address for purposes of communicating with potential Claimants by email; and (iii) establish a toll-free telephone number which will be accessible to potential Claimants in English and Spanish. The website and/or email address will be set up so that Potential Claimants may obtain and submit a Claim Form either electronically or via U.S. Mail. Information posted on the website and available on a recorded message on the toll-free telephone number will be limited to the general information included in the Notice of Settlement sent to Potential Claimants or updated information as to status of the claim process (e.g., claim-filing deadline; projected distribution date when known). The website will provide information regarding the Settlement Fund and how to complete the Claim Form in either English or Spanish. The website shall include an embedded Claim Form in English and Spanish for downloading by potential Claimants. The website shall also explain how potential Claimants can seek assistance in completing the Claim Form. 27 28 -11- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 12 of 47 1 2 b. List of Potential Claimants Within forty-five (45) calendar days of retaining the Claims Administrator, 3 Defendants will provide the Claims Administrator with a list of all current and 4 former employees who were employed at any of Defendants’ twenty-one (21) 5 stores listed in Exhibit A at any time during the period January 1, 2017 to the 6 Effective Date of this Decree (“List of Potential Claimants”). 7 For each individual on the List of Potential Claimants, Defendants will 8 provide the following information from its records, to the extent known by 9 Defendants: (i) full name, including all known prior names or aliases; (ii) last 10 known address; (iii) date of birth; (iv) Social Security number; (v) employee 11 identification number, if any, and if different from the employee’s Social Security 12 Number; (vi) last known telephone numbers; (vii) last known email addresses; 13 (viii) dates of employment at any of the Defendants; and (ix) any relevant 14 documents or information related to the claims for the EEOC to consider. c. Notice of Settlement and Claim Form 15 16 After the Claims Administrator is retained, the EEOC will provide the 17 Claims Administrator with the following forms: (i) Notice of Settlement, and 18 (ii) Claim Form. The EEOC will afford Defendants an opportunity to provide input 19 on the Notice of Settlement and Claim Form before issuance to Potential Claimants, 20 but the EEOC will make the final determination regarding the form and contents of 21 these documents. 22 d. Mailing Notice of Settlement and Claim Form 23 Upon receipt of the List of Potential Claimants from Defendants, the Claims 24 Administrator will first utilize available resources including a database search to 25 update email addresses and mailing addresses. Using the updated mailing 26 addresses, the Claims Administrator will send via U.S. Mail the Notice of 27 Settlement, the Claim Form, and a return envelope addressed to the Claims 28 Administrator to each Potential Claimant. Moreover, the Notice and the Claim -12- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 13 of 47 1 Form will also be sent via electronic mail at the earliest possible date, but no later 2 than twenty-eight (28) calendar days after the Claims Administrator receives the 3 final Notice of Settlement and Claim Form from the EEOC. Within ten (10) 4 calendar days of issuance, the Claims Administrator will provide the EEOC with a 5 List of the Potential Claimants who were sent a Notice of Settlement and Claim 6 Form via U.S. Mail and/or electronic mail. 7 e. Return Mail Handling 8 For each mailing to a potential Claimant that is returned as undeliverable, the 9 Claims Administrator shall, within ten (10) calendar days: (i) research the potential 10 Claimant’s most-recent address, using best efforts and a database search to locate 11 the potential Claimant; and (ii) resend the Notice of Settlement, Claim Form, and 12 cover letter to the new or different address if a new or different address is obtained, 13 or (iii) advise the EEOC of the efforts taken to locate the potential Claimant if no 14 new or different address is obtained. The Claims Administrator will make no more 15 than two (2) attempts to locate a potential Claimant whose mailing is returned as 16 undeliverable and in no event will any re-mailing of the Notice of Settlement and 17 Claim Form occur more than six (6) months later than the Effective Date unless the 18 EEOC determines a second round of mailings is needed to advance the interest of 19 the terms of this Decree. 20 21 f. Claim Form Filing Deadline Potential Claimants who believe they are entitled to monetary relief from the 22 Settlement Fund may submit a completed Claim Form within one hundred and 23 twenty (120) calendar days after receipt of the Notice of Settlement and the Claim 24 Form via U.S. Mail and/or electronic mail. If a re-mailing was necessary, the 25 Potential Claimant may submit a completed Claim Form within one hundred and 26 twenty (120) calendar days after receipt of the re-mailed Notice of Settlement and 27 the Claim Form via U.S. Mail. Returned Claim Forms postmarked or submitted 28 electronically to the Claims Administrator within these periods will be considered -13- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 14 of 47 1 timely. However, Claim Forms that are received after the aforementioned time 2 periods may be considered by the EEOC at its sole discretion. 3 4 g. Evaluation of Claim Forms The EEOC shall create the general criteria for scoring claims made through 5 completed Claim Forms. The EEOC has sole discretion in determining the criteria, 6 eligibility, and monetary relief amounts for all potential Claimants. In order to 7 determine each potential Claimant’s eligibility, the EEOC will consider factors 8 including, but not limited to, the length of employment, frequency and severity of 9 experiences at work, and timeliness. Defendants agree that the EEOC’s 10 11 determination of these issues is final. Within one-hundred and eighty (180) calendar days after the initial mailing 12 and/or remailing of the Notice of Settlement and the Claim Form, the Claims 13 Administrator will electronically provide to the EEOC all of the returned and 14 completed Claim Forms and accompanying information submitted by each 15 Claimant for the EEOC’s use in assessing who is an Eligible Claimant. The Claims 16 Administrator will receive, track, and hold all documents, submitted by mail, in 17 person, or electronically, and will provide to the Parties access to all documents 18 related to the claims process. 19 20 h. Distribution Lists from EEOC The EEOC shall subsequently provide the Claims Administrator with one or 21 more lists of Eligible Claimants including their names, current addresses, the 22 amount to be paid to each, the classification of such amounts to be paid, and any 23 additional relevant identifying information (“Distribution List”). The EEOC, based 24 upon the claims process, will submit subsequent Distribution Lists. The EEOC also 25 will provide the Claims Administrator with a Notice of Ineligibility for any 26 potential claimants whom the EEOC determines are not eligible for payments from 27 the Settlement Fund. The Claims Administrator will share the Distribution Lists 28 -14- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 15 of 47 1 and the list of Claimants who are not eligible for payments from the Settlement 2 Fund with all Parties. 3 4 i. Notices to Claimants Upon receiving the list of Eligible and Ineligible Claimants from the EEOC, 5 the Claims Administrator will mail to each Eligible Claimant on the EEOC’s 6 approved Distribution List(s) a Notice of Eligibility with the Claim Share Amount. 7 To each Claimant determined to be ineligible, the Claims Administrator will mail a 8 Notice of Ineligibility. 9 10 j. Payment to Eligible Claimants Within twenty (20) calendar days from the receipt of any and all Distribution 11 List(s), as well as completed W-9 tax reporting forms for all Eligible Claimants, 12 from the EEOC, the Claims Administrator shall issue checks from the Settlement 13 Fund to the Eligible Claimants identified, in the amount allocated for each Eligible 14 Claimant, and at the addresses provided in the EEOC’s Distribution List(s). 15 Within five (5) calendar days after mailing any payment to Eligible 16 Claimants, the Claims Administrator shall electronically submit a register or copy 17 of the checks to Anna Y. Park, Regional Attorney, U.S. Equal Employment 18 Opportunity Commission at anna.park@eeoc.gov and lado.legal@eeoc.gov. 19 k. Returned and/or Uncashed Checks 20 On a quarterly basis throughout the duration of this Decree, the Claims 21 Administrator shall provide the EEOC with a copy of each cancelled check 22 electronically, and identify any check not negotiated and/or returned non- 23 negotiated. The Claims Administrator shall notify the EEOC on a quarterly basis of 24 the remaining amount of Settlement Funds. 25 For any checks that are returned as undeliverable, the Claims Administrator 26 shall attempt to find an updated address and will provide the EEOC with the name, 27 last known address, date of birth, and social security number of the Eligible 28 Claimant. If an updated address can be found, the check will be re-mailed via -15- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 16 of 47 1 Certified Mail. If an Eligible Claimant fails to present his or her check after ninety 2 (90) calendar days of it being issued, the Claims Administrator will provide the 3 EEOC with the name, last known address and date of birth of the Eligible Claimant, 4 and the EEOC may make additional efforts to locate the Eligible Claimant. If any 5 unclaimed monies in the Settlement Fund remain undistributed after exhausting 6 these efforts to locate the Eligible Claimants after issuing a final Distribution List, 7 the EEOC and Defendants will confer to designating any remaining monies to be 8 put into a cy pres fund. The monies to a cy pres fund will be distributed to a non- 9 profit organization serving victims of sexual harassment and/or sexual assault or 10 11 12 battery. The EEOC shall approve the cy pres designee prior to distribution. l. Unaccepted Eligible Claimants’ Shares If an Eligible Claimant does not subsequently accept or negotiate the check 13 in a timely manner, the Eligible Claimant will be deemed to have rejected the claim 14 share. However, the EEOC may request to re-issue checks for good cause 15 including, but not limited to, circumstances outside of the Eligible Claimants’ 16 control. The Eligible Claimants’ monetary allocation deemed to be rejected under 17 this subsection may be re-distributed, as determined by the EEOC. 18 Within ninety (90) calendar days from the mailing of the last check on 19 EEOC’s last Distribution List, the Claims Administrator will provide the EEOC and 20 Defendants an accounting of the monies remaining from the Settlement Fund. 21 Defendants have no standing to challenge the EEOC’s distribution determinations, 22 which are entirely in the discretion of the EEOC. 23 m. Cooperation 24 The Parties will work together to ensure that the distribution, including 25 reissuing checks should that be required, is effectively carried out under the Decree. 26 In the event that any extension of claims-related deadlines become necessary, the 27 Parties’ agreement to extend any deadline(s) shall be in writing. 28 -16- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 17 of 47 1 X. CLAIMANT SPECIFIC INJUNCTIVE RELIEF 2 A. If Defendants maintain records regarding the underlying charge of 3 discrimination or records relating to any Claimant’s involvement in this 4 Action for purposes of complying with this Decree, such records must be 5 maintained separately from the Claimants’ personnel file. 6 B. In the event Defendants receive a request for a job reference for the 7 Charging Party and/or any Claimant, such job reference shall be (1) neutral, 8 and (2) limited to dates of employment and position(s) held. 9 C. Defendants shall reclassify the termination of any Eligible Claimant(s) 10 to voluntary resignation if the claimant has been identified by the EEOC as 11 having been subjected to discriminatory discharge (based on a list provided 12 by the EEOC). 13 14 D. Defendants shall ensure that Eligible Claimants are not prohibited from reemployment with Defendants, other than for non-discriminatory and non- 15 retaliatory reasons. 16 17 XI. GENERAL INJUNCTIVE RELIEF 18 A. Non-Discrimination 19 Defendants, their officers, agents, management (including all supervisory and 20 lead employees, General/Store Managers and above), human resources personnel, 21 successors, assigns, and all those in active concert or participation with them, or 22 any of them, are hereby enjoined from: (1) engaging in unwanted verbal, physical, 23 or any other kind of conduct of a sexual nature; (2) engaging in sexual harassment 24 in the workplace; (3) engaging in or being party to any action, policy, or practice 25 that discriminates and/or creates a hostile or abusive work environment on the basis 26 of sex; and (4) creating, facilitating, or permitting the existence of a work 27 environment that is hostile to employees on the basis of sex. 28 -17- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 18 of 47 1 B. 2 Anti-Retaliation Defendants, their officers, agents, management (General/Store Managers and 3 above, including all supervisory and lead employees), human resources personnel, 4 successors, assigns, and all those in active concert or participation with them, or 5 any of them, are hereby enjoined from engaging in, implementing, or permitting 6 any action, policy, or practice that adversely affects and/or creates a hostile or 7 abusive work environment towards any current or former employee because he/she 8 has in the past, or during the term of this Decree: 9 1. 10 Opposed any practice made unlawful under Title VII’s prohibition on discrimination or harassment based on sex; 11 2. 12 Filed a charge of discrimination with the EEOC alleging such practice based on sex; 13 3. Testified or participated in any manner in an internal or external 14 investigation or proceeding relating to any claim of a violation 15 of Title VII’s prohibition on discrimination or harassment based 16 on sex; 17 4. 18 Been identified as an Eligible Claimant with respect to this Action; 19 5. Asserted any right under this Decree; or 20 6. Sought and/or received any relief in accordance with this 21 Decree. 22 23 XII. SPECIFIC INJUNCTIVE RELIEF 24 A. 25 Equal Employment Opportunity Monitor Within thirty (30) calendar days after the Effective Date, Defendants shall 26 retain a third-party EEO Monitor, approved by the EEOC, with demonstrated 27 experience in the areas of preventing and combating sexual harassment, and/or 28 related retaliation. The EEO Monitor shall have access to documents and -18- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 19 of 47 1 employees and shall monitor Defendants’ compliance with applicable laws and the 2 provisions of this Decree. Defendants shall bear all costs associated with the 3 selection and retention of the EEO Monitor and the reasonable costs associated with 4 the performance of the EEO Monitor’s duties. 5 The EEO Monitor’s duties shall include: 6 1. Conducting audits under Section B below, to identify existing deficiencies 7 in Defendants’ response to complaints of sexual harassment, sex-based 8 discrimination or retaliation and to determine whether sexual harassment, sex-based 9 discrimination or retaliation exists at Defendants’ worksites; 10 11 12 2. Tracking and evaluating all information received by Defendants regarding alleged sex-based discrimination, harassment, or retaliatory conduct; 3. Reviewing documents relating to complaints of sex-based discrimination, 13 harassment or retaliation, and any documents related to the investigation or 14 resolution of such complaints to ensure that Defendants are responding to such 15 complaints by conducting prompt, thorough and impartial investigations; 16 4. Ensuring that all complaints of sex-based discrimination, harassment 17 and/or retaliation are documented and properly handled, whether they are formal or 18 informal complaints; 19 5. Reviewing all disciplinary actions taken in response to complaints of sex- 20 based discrimination, harassment, and/or retaliation to ensure that discipline is 21 consistent in preventing and correcting the conduct as required under this Decree 22 and Title VII; 23 24 25 6. Ensuring centralized tracking and monitoring of complaints of sex-based discrimination, harassment, and/or retaliation; 7. Ensuring that Defendants’ policies and procedures relating to sex-based 26 discrimination, harassment, and retaliation are effective and fully comply with Title 27 VII and all terms set forth in this Decree, as described in Section C below; 28 -19- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 20 of 47 1 8. Reviewing and guiding Defendants on the best ways to effectively 2 communicate complaint mechanisms in place to employees and to ensure that 3 Defendants are tracking and handling complaints promptly and effectively; 4 9. Ensuring that Defendants’ trainings regarding sex-based discrimination, 5 harassment, or retaliation are effective, especially with respect to training of 6 managers and human resources employees, and provide guidance or feedback if 7 additional or revised training is needed; 8 10. Ensuring proper accountability measures are implemented and that 9 Defendants properly interface with a) employees who have made sex-based 10 discrimination complaints are not subjected to retaliation, and b) any alleged 11 perpetrators/harassers so as to ensure that proper preventative and corrective 12 measures were taken; 13 11. Reviewing and evaluating the disciplinary scheme to ensure that 14 preventative and corrective measures are consistently and properly implemented; 15 12. Reviewing and evaluating any changes to proposed discipline flowing 16 from an investigation, and report to the EEOC the Monitor’s evaluation of the 17 changes; 18 13. Assisting Defendants with developing and implementing a system to 19 ensure accountability and EEO compliance by managers, supervisors and human 20 resource personnel regarding potential sexual harassment, sex discrimination, and 21 retaliation; 22 14. Assisting Defendants with implementing mechanisms for bottom-up 23 feedback from employees to managers, in a manner that encourages and solicits 24 feedback regarding sexual harassment, sex discrimination, retaliation and the 25 inclusivity of Respondent’s culture for individuals of all genders, as described in 26 this Decree; 27 28 15. Providing Defendants with feedback on the three (3) reports to the EEOC for the duration of the Decree regarding Defendants’ progress and compliance -20- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 21 of 47 1 under this Decree (Prior to submission, Defendants shall provide the EEO Monitor 2 with confirmation and any underlying related documents for review, verification, 3 and approval of the reports’ accuracy.); 4 5 16. Ensuring that Defendants’ reports required by this Decree are accurately compiled and timely submitted; 6 7 17. Ensuring the retention and maintenance of any complaints; documents or records relating to investigations required by this Decree; 8 9 18. Ensuring the distribution of any documents as required by this Decree; and 10 19. Measuring and monitoring the timeliness and effectiveness of 11 investigations into complaints of discrimination, harassment, and/or retaliation. 12 With respect to the Defendants’ duties and obligations under this Decree that 13 have not been delegated to the EEO Monitor, the Parties recognize that La Pointe 14 Law has been appointed to fulfill those duties and obligations for Defendants. 15 B. 16 17 18 19 20 21 22 23 24 25 26 27 Compliance Audits 1. Audit of McDonald’s Stores in Nevada, Arizona, and California For all of Defendants’ stores currently in operation during the term of this Decree, the EEO Monitor shall evaluate Defendants’ investigations of any reports of sexual harassment and/or retaliation in Defendants’ store locations including, but not limited to, providing guidance to Defendants related to employee interviews, reviewing documents and recommending corrective measures and/or preventative steps for any unresolved complaint(s). The EEO Monitor shall identify appropriate preventative steps to avoid reoccurrence of the same or similar issues identified through audits in the other stores. Defendants may follow the EEO Monitor’s recommendation or suggest a good faith alternative resolution. The EEO Monitor shall review and evaluate Defendants’ investigative findings and recommendations 28 -21- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 22 of 47 1 and provide feedback, if necessary, prior to finalizing the investigation and taking 2 any action. 2. 3 4 Annual Audits On an annual basis throughout the duration of this Decree, the EEO Monitor 5 shall conduct at least two (2) unannounced visits, between the hours of 2:00 pm and 6 4:00 pm on a weekday or an alternative time to be worked out with the EEO 7 Monitor at any of Defendants’ stores currently in operation during the term of this 8 Decree to interview current and prospective employees and a) assess whether sex- 9 based discrimination, harassment, and/or retaliation issues are properly being 10 addressed, b) assess whether the mechanisms implemented pursuant to this Decree 11 are effective, c) assess whether the trainings are effective, and d) to identify areas 12 for improvement. When seeking employee input, the EEO Monitor will meet 13 employees outside the presence of management and/or supervisors, and without any 14 management or supervisors’ advance knowledge of the audit. 15 The EEO Monitor shall audit the effectiveness of the handling of complaints 16 of sex-based discrimination, harassment, and retaliation to assess whether 17 corrective and preventative measures that were taken are effective by Defendants. 18 The EEO Monitor shall audit and review all complaints to ensure they are properly 19 documented and tracked, and that the investigations are properly conducted. The 20 Monitor shall also audit the disciplinary scheme and provide feedback to 21 Defendants on whether any changes are needed to ensure accountability and 22 consistency. 23 The EEO Monitor will also review the complaints that are made including 24 the Complaint Log described in this Decree and report on a semi-annual basis to the 25 EEOC regarding Defendants’ implementation of the Complaint Log and the proper 26 tracking and handling of the complaints. The EEO Monitor will assess whether 27 employee sex-based discrimination and/or harassment complaints are accurately 28 recorded and addressed. The EEO Monitor shall have access to all records -22- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 23 of 47 1 including underlying investigations into complaints of sex-based discrimination, 2 harassment, and/or retaliation, and shall have access to employees, if necessary, to 3 conduct interviews with employees of the EEO Monitor’s choosing. 4 During these annual unannounced audits, the EEO Monitor shall also ensure 5 that managers and supervisors are held accountable and to encourage employees to 6 report suspected sex-based discrimination, harassment and/or retaliation. To seek 7 employee input, the audits will be conducted outside the presence and knowledge of 8 managers and/or supervisors. If the audit responses indicate potential misconduct 9 that may be in violation of Defendant’s policies that prohibit sex-based 10 discrimination, harassment, and/or retaliation, the EEO Monitor will provide notice 11 to the Defendants to take properly investigative steps and address the issue. 12 13 3. Climate Surveys Within one-hundred and twenty (120) calendar days of the Effective Date, 14 and annually thereafter, the EEO Monitor shall send EEOC-approved Climate 15 Surveys in English and Spanish, to all current supervisory and hourly employees of 16 Defendants via electronically or otherwise to ensure the most effective means to 17 administer the surveys and to receive a response. The Climate Surveys will allow 18 employees to respond anonymously in order to assess whether sex-based 19 discrimination, harassment, and/or retaliation exists in the workplace and the 20 effectiveness of Defendants’ responses. 21 Defendants also agree to provide the same Climate Survey to all employees 22 upon termination or end of their employment. The Climate Surveys shall be 23 reviewed by Defendants and the EEO Monitor. Defendants will take prompt and 24 effective remedial action, with input from the EEO Monitor, in response to any 25 Climate Survey responses indicating that sexual harassment and/or a sexually 26 hostile work environment are occurring. The EEO Monitor will report on the status 27 of the climate surveys and issues not properly addressed. 28 -23- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 24 of 47 1 C. Policies and Procedures 1. 2 3 Workplace Policies and Procedures Within sixty (60) calendar days of the Effective Date, Defendants shall 4 review their existing policies and procedures regarding sex discrimination, sexual 5 harassment, and/or related retaliation (“Workplace Policies and Procedures”), and 6 revise them if needed to ensure that throughout the duration of this Decree, they 7 include: 8 a. 9 10 A strong and clear commitment to a workplace free of sex-based discrimination, harassment, and/or related retaliation; b. A clear and comprehensive description of sex-based 11 discrimination, harassment, and/or related retaliation, including 12 a discussion of the meaning of the phrase “hostile work 13 environment” and “retaliation” under Title VII and examples of 14 prohibited conduct and conduct which, if left unchecked, may 15 rise to the level of unlawful discrimination, harassment, or 16 related retaliation; 17 c. A statement that Defendants shall hold all employees 18 accountable for engaging in conduct prohibited under applicable 19 laws regarding sex-based discrimination, harassment, and/or 20 related retaliation or this Decree, including but not limited to 21 failing to take prompt appropriate action to redress sex-based 22 discrimination, harassment, and/or related retaliation in the 23 workplace, and a description of the consequences for those that 24 fail to adhere to reporting procedures; 25 d. A statement that persons who complain about sex-based 26 discrimination or harassment they experienced or witnessed and 27 persons who provide information relating to such complaints 28 will not be subjected to retaliation; -24- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 25 of 47 1 e. 2 3 A statement affirming that Defendants’ anti-harassment policies include same sex harassment; f. A policy regarding workplace relationships that, consistent with 4 applicable law, discourages and/or prohibits the formation of 5 sexual and romantic relationships between supervisors and/or 6 managers and any employees who report to them, directly or 7 indirectly, and requires the disclosure of other sexual and 8 romantic relationships between employees to Defendants so that 9 appropriate measures can be taken to avoid the existence or 10 appearance of sexual and/or romantic favoritism and quid pro 11 quo sexual harassment in the workplace 12 g. A statement that Defendants’ harassment policies protect all 13 employees, including temporary hourly employees, against 14 workplace harassment committed by other employees and third 15 party customers; 16 h. An internal complaint procedure applying to the workplace and 17 all work-related events that provides all employees with 18 multiple reporting options for complaints of sex-based 19 discrimination, harassment, and/or related retaliation, as 20 described in this Decree; 21 i. An explanation that the internal complaint procedure does not 22 replace the right of any employee to file a charge or complaint 23 of sex-based discrimination, harassment, and/or related 24 retaliation under any available municipal, state, or federal law, 25 and that filing an internal complaint does not relieve the 26 complainant of meeting any deadline for filing a charge of 27 discrimination; and 28 -25- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 26 of 47 1 j. The procedures will provide contact information for state and 2 local Fair Employment Practice (FEP) agencies and the EEOC 3 toll-free complaint line at (800) 669-4000. 4 Prior to implementation and distribution to employees, supervisors, 5 managers, and human resources personnel, Defendants shall submit the revised 6 workplace policies and procedures to the EEO Monitor for his/her feedback and 7 final approval. Defendants agree to submit to the EEOC any revisions to their 8 Workplace Policies and Procedures addressing this section of the Decree at least 9 thirty (30) calendar days prior to the proposed change. 10 2. Internal Complaint Investigation Procedure 11 Within sixty (60) calendar days of the Effective Date, Defendants shall 12 review their Internal Complaint Investigation Procedure and make any revisions to 13 ensure that it incorporates the following elements: 14 a. A statement encouraging employees to ask questions, share 15 concerns, and provide information about potential sex-based 16 discrimination, harassment, and/or related retaliation to 17 Defendants, such as by (i) sharing information with the Human 18 Resources Department, the EEOC, and or state local agency, or 19 (ii) participating candidly in investigations of potential 20 discrimination, harassment, or related retaliation; 21 b. A clearly described process for submitting complaints of sex- 22 based discrimination, harassment, and/or related retaliation that 23 includes multiple avenues for employees to lodge complaints of 24 sex-based discrimination, harassment, and/or related retaliation 25 verbally or in writing, including (i) a direct toll-free phone 26 number and email address for Defendants’ Human Resources 27 Department; (ii) a telephone complaint Hotline that Defendants 28 -26- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 27 of 47 1 will track pursuant to this Decree; and (c) notifying any manager 2 or Human Resources representative; 3 c. A clearly described process for a prompt, thorough, and 4 impartial investigation of all complaints of sex-based 5 discrimination, harassment, or related retaliation by Defendants, 6 including (i) interviewing relevant witnesses, (ii) review of 7 relevant evidence; and (iii) creation of written investigative 8 reports that document all investigatory steps, any findings and 9 conclusions, and any actions taken, and including all complaints, 10 11 notes of interviews, and other relevant evidence; d. An assurance that no complainant shall be required to confront 12 his or her alleged harasser and that the confidentiality of the 13 complaint, complainant, and investigation shall be maintained to 14 the fullest extent possible; 15 e. Tracking and collection of all complaints of sex-based 16 discrimination, harassment, and/or related retaliation in the 17 Complaint Log; 18 f. Resolution of all complaints of sex-based discrimination, 19 harassment, and/or related retaliation by Defendants in a timely 20 and effective manner, including communication with 21 complainant of the outcome of the investigation; and 22 g. A requirement that any employee in a manager, supervisory, or 23 Human Resources managerial position document and report any 24 and all observations or complaints of potential sex-based 25 discrimination, harassment, or related retaliation to Defendants’ 26 Human Resources Department promptly but no later than within 27 seventy-two (72) hours, and that failure to carry out this duty is 28 -27- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 28 of 47 1 grounds for disciplinary action, up to and including immediate 2 discharge. 3 Prior to implementation and distribution to employees, supervisors, 4 managers, and human resources personnel, Defendants shall submit the revised 5 internal complaint procedure to the EEO Monitor for his/her feedback and final 6 approval. Defendants agree to submit to the EEOC any revisions to the internal 7 complaint procedure addressing this section of the Decree at least thirty (30) 8 calendar days prior to the proposed change. 3. 9 10 Distribution of Workplace Policies and Procedures Within ninety (90) calendar days of the Effective Date and after receiving 11 final approval from the EEO Monitor, Defendants shall disseminate a hard copy of 12 any revised Workplace Policies and Procedures, in English and Spanish, to all 13 employees. During the term of the Decree, Defendants shall disseminate a copy of 14 these policies and procedures to all current employees on at least a semi-annual 15 basis via electronic mail or hard copy. Newly hired employees shall receive a hard 16 copy of these Workplace Policies and Procedures immediately upon hire. 17 Defendants shall include in its annual reports to the EEOC, an annual confirmation 18 of the various methods by which Defendants make their policies and procedures 19 accessible to their employees, including Spanish-speaking employees. 20 D. 21 EEO Training Prior to the implementation and distribution of any and all training materials 22 under this Decree, Defendants shall obtain feedback for effectiveness and final 23 approval of such materials from the EEO Monitor. 24 25 26 1. Compliance and Workplace Harassment Prevention Training for Hourly Employees Within one-hundred and eighty(180) calendar days after the Effective Date 27 and with the approval of the EEO Monitor, Defendants shall initiate training 28 sessions for all hourly non-supervisory employees assigned to any of Defendants’ -28- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 29 of 47 1 stores currently in operation during the term of this Decree. Defendants may 2 conduct these training sessions through online recorded training programs, or 3 through remote training sessions, either live or recorded, using methods such as 4 Zoom or WebEx. These training sessions shall be conducted on an annual basis for 5 the duration of the Decree. After the on-line training session, there will be an 6 interactive in-person session to allow each employee an opportunity to ask 7 questions. The interactive session will be facilitated by management or human 8 resources representative where the employee can ask questions and be given an 9 information sheet that has a) a description of what constitutes sexual harassment, b) 10 information about the Defendants’ EEO complaint procedures, c) the prohibition of 11 retaliation; and d) the names and contact information of persons to submit questions 12 or complaints if they are not comfortable doing so at the in person session. The 13 first year’s training sessions shall be completed within two hundred and forty (240) 14 days after the Effective Date. 15 16 The training under this section shall cover: a. 17 18 what constitutes unlawful sex-based discrimination, harassment, and/or related retaliation with examples; b. employees’ and employers’ rights and responsibilities if they 19 experience, observe, or become aware of conduct that they 20 believe may be discriminatory, harassing, or retaliatory, based 21 on sex, including the responsibility of managers and/or 22 supervisors to report such conduct to Human Resources 23 personnel; 24 c. how to effectively intervene as a bystander; 25 26 d. Defendants’ Workplace Policies and Procedures and Internal Complaint Procedure; 27 28 a component on bystander intervention, including examples of e. contact information for Human Resources and the Hotline; -29- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 30 of 47 1 f. a statement emphasizing that harassment prevention, 2 maintaining a respectful workplace, and diversity are high 3 priorities for Defendants and that Defendants are committed to 4 accountability and safety of their workforces; 5 g. a statement confirming Defendants’ commitment that 6 harassment prevention, civility, and maintaining a respectful, 7 diverse, and safe workplace are top priorities; and 8 h. 9 10 methods to prevent sex-based harassment and bullying in the workplace. All newly hired employees under Section VII.D.1 shall complete the initial 11 online training and follow-up interactive session within sixty (60) days of their hire 12 date during the duration of the Decree. Defendants’ President/Owner Abe Martinez 13 III shall also take this online training. 14 Anonymous course evaluation surveys for attendees to complete shall be 15 solicited at each training session and copied to the EEO Monitor to examine the 16 effectiveness of the training. The EEO Monitor will review the anonymous 17 evaluation forms and make any appropriate recommendations for improving 18 subsequent training sessions to Defendants. 19 20 2. Human Resources/Manager Training Within one hundred and twenty (120) calendar days after the Effective Date 21 and with the approval of the EEO Monitor, Defendants shall initiate separate live 22 training sessions for all Human Resources managers and supervisors assigned to 23 any of Defendants’ stores currently in operation during the term of this Decree. 24 This includes HR personnel, managers, supervisors assigned to the Kingman, 25 Arizona office and any other employees who are responsible for investigating 26 complaints of sex-based discrimination, harassment, and/or related retaliation. 27 Defendants may conduct these live training sessions online through live remote 28 methods such as Zoom or WebEx. These training sessions shall: a) be at least two -30- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 31 of 47 1 (2) hours in duration; b) be conducted on an annual basis for the duration of the 2 Decree; and c) have an interactive component with a question and answer session 3 toward the end. The first year’s training session shall be completed within one- 4 hundred and eighty (180) days after the Effective Date. 5 These training sessions shall be recorded, and all newly hired human 6 resources personnel, managers, supervisors, and employees described above in 7 Section VII.D.2, shall complete the recorded session of such training including the 8 recorded question and answer portion of the training, within sixty (60) days of their 9 hire date for the duration of the Decree. 10 The training under this section shall include role playing and emphasize 11 accountability of management and documenting and reporting complaints of 12 discrimination, harassment, and/or retaliation. This training shall also include 13 examples and interactive materials to properly identify what constitutes sex-based 14 discrimination, harassment, and/or related retaliation and emphasize: 15 a. 16 17 and to take appropriate action; b. 18 19 the affirmative obligation for managers and supervisors to report the duty to promptly report potential sex-based discrimination, harassment, and/or related retaliation; c. the need to thoroughly document sex-based harassment and 20 discrimination complaint investigations, including taking and 21 retaining notes of interviews conducted for those investigating 22 complaints; 23 d. types of preventative and corrective measures and how to 24 determine whether the action proposed is reasonably calculated 25 to prevent or end sex-based harassing conduct; and 26 e. post-investigation procedures for evaluating the work 27 environment after receiving a complaint from an employee or 28 third-party. -31- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 32 of 47 1 For human resources personnel and any other employees who are responsible 2 for investigating sex-based discrimination, harassment, and related retaliation 3 complaints, the training shall also include instruction on how to properly investigate 4 such complaints, including the proper scope of the investigation. 5 6 3. Requirements for All Training Sessions All trainings described in this Section shall occur on an annual basis and are 7 mandatory for the duration of this Decree. Training sessions shall be in English and 8 Spanish where necessary for Spanish-speaking employees. All trainings and 9 training materials shall be provided in English or Spanish, whichever language is 10 11 commonly understood by Defendants’ employees. All persons shall verify their attendance in writing or through an electronic 12 confirmation. Defendants shall maintain copies of training sign-in sheets and/or 13 electronic records demonstrating attendance for the duration of this Decree. 14 Defendants agree to work with the EEO Monitor to develop the training 15 curriculum and obtain approval from the EEO Monitor. During the sessions, 16 examples of prohibited conduct shall be given and tailored to Defendants’ 17 workplace. For live online/remote training, Defendants shall leave time for 18 question and answer periods at the conclusion of each training. 19 20 21 All employees will be paid their normal rate of pay for attending the training sessions. Defendants shall give the EEOC and the EEO Monitor a minimum of twenty 22 (20) calendar days advance written notice of the date, time, and location of each 23 group live training session provided pursuant to this Decree. An EEOC 24 representative or the EEO Monitor may attend any live training upon request by the 25 EEOC or the EEO Monitor. The EEOC and the EEO Monitor shall review training 26 materials proposed and/or used upon request in order to provide feedback. 27 28 -32- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 33 of 47 1 2 E. Centralized Tracking and Complaint Log Within thirty (30) calendar days of the Effective Date, Defendants shall 3 confirm to the EEOC the creation and implementation of a centralized tracking 4 system or Complaint Log for all formal and informal complaints regarding sex- 5 based discrimination, harassment, and/or related retaliation and the ongoing 6 evaluation of such complaints to prevent retaliation. During the term of this 7 Decree, Defendants will maintain a complaint database containing information 8 related to complaints regarding sex-based discrimination, harassment, and/or 9 related retaliation that will be shared with the EEO Monitor. The complaint 10 database is and will remain searchable by name of individual(s) and by location(s) 11 of alleged misconduct, and contains and will contain, for each complaint or 12 investigation of sex-based discrimination, harassment, and/or related retaliation, at 13 least the following information: 14 1. 15 16 full name, contact information, and sex-based of each complainant and potential aggrieved individual; 2. full name and sex-based of any persons allegedly involved 17 (including but not limited to those identified as potential 18 perpetrators); 19 3. a description of how Defendants learned of the complaint (i.e., 20 whether made to a manager, human resources employee, or via 21 the Hotline), and the date the complaint was reported; 22 4. date each investigation began and was completed; 23 5. type of sex discrimination, sex harassment, and/or related 24 25 retaliation complained of, reported, or investigated; 6. type of complaint or type of adverse employment action 26 allegedly involved (e.g., “harassment,” “failure to hire,” “failure 27 to promote,” “demotion,” “failure to schedule/assign,” 28 “termination,” etc.); -33- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 34 of 47 1 7. name and title of person(s) who conducted each investigation; 2 8. description of action taken in response to the charge, complaint, 3 report, or investigation; 4 9. 5 and each investigation conducted; and 10. 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 resolution, or decision made, regarding each complaint made status of each complaint or investigation reflected in the database (such as “open,” “pending,” “closed,” etc.). The Complaint Log shall be maintained throughout the entire duration of the Decree and produced to the EEOC on request. F. Performance Evaluations Defendants agree to develop and implement a system for holding regional managers, store managers, and assistant store managers who oversee or supervise any of Defendants’ stores accountable for failing to comply with Title VII, and Defendants’ anti-discrimination, anti-harassment, and anti-retaliation policies and procedures. Defendants may also use incentives to ensure EEO compliance by supervisors and managers. Within one-hundred and eighty (180) calendar days of the Effective Date, Defendants agree to provide the EEO Monitor with the proposed written measures in order to provide an opportunity for comment regarding the measures before implementation. Once the measures have been finalized and approved by the EEO Monitor, they will be sent to the EEOC within fifteen (15) calendar days. Any revisions to these measures during the duration of the Decree will also be sent to the EEOC within fifteen (15) calendar days. G. Toll Free Hotline Within thirty (30) calendar days of the Effective Date, Defendants shall confirm the creation and implementation of a current toll-free bilingual hotline for any Spanish or English-speaking employee to report complaints of sex and/or gender discrimination, harassment, and/or related retaliation (“Hotline”). The -34- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 35 of 47 1 Hotline shall operate seven (7) days per week, twenty-four (24) hours per day. The 2 Hotline shall offer the option to employees to make an anonymous complaint. The 3 EEO Monitor shall ensure that all Hotline inquiries, and response times are tracked 4 and logged by Defendants in the Complaint Log described in this Decree. 5 On an annual basis during the entire duration of this Decree, Defendants shall 6 disseminate the Hotline number and related information to all employees in English 7 and Spanish, and encourage them to report incidents of workplace harassment, 8 discrimination, and/or related retaliation. Defendants shall notify newly hired 9 employees about the Hotline in English and Spanish no later than within five (5) 10 days of hire. 11 H. 12 Posting of Notice of Settlement Within ten (10) calendar days after the Effective Date and throughout the 13 term of this Decree, Defendants shall post in both English and Spanish, a full-sized 14 copy of the Notice of Settlement attached as Exhibit “B,” which sets forth many of 15 the terms of this Decree in clearly visible locations frequented by their employees 16 (i.e. break rooms or bulletin boards with other employee notices). The notice shall 17 be posted at Defendants’ eighteen (18) currently open stores listed in Exhibit A. 18 The notice shall remain posted for the entire duration of this Decree. 19 I. 20 Recordkeeping Within sixty (60) calendar days after the Effective Date of this Consent 21 Decree, Defendants shall review with the EEO Monitor its record-keeping 22 procedure that provides for the centralized tracking of sex-based discrimination, 23 harassment, and/or related retaliation complaints and the ongoing evaluation of 24 such complaints to prevent retaliation. The EEO Monitor will ensure and/or 25 confirm that the records to be maintained include: 26 A. Non-privileged documents generated in connection with any complaint 27 of sex-based discrimination, harassment, and/or related retaliation, 28 including documents relating to all investigations or resolutions of any -35- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 36 of 47 1 complaints and the identities of all witnesses identified by the 2 complainant and/or through Defendants’ investigation; 3 B. Documents verifying the occurrence of all training and follow-up 4 sessions, the information sheets to trainees, and names and positions of 5 all attendees for each session as required under this Decree; 6 C. Documents generated in connection with the overseeing, counseling, 7 and disciplining of employees whom Defendants determine to have 8 engaged in discriminatory conduct in violation of the workplace 9 policies and procedures as they relate to sex-based discrimination, harassment, and/or related retaliation; 10 11 D. Documents generated in connection with the development of a system 12 to hold regional managers, store managers, and assistant store 13 managers accountable for not reporting complaints of sex-based 14 discrimination, harassment, and/or related retaliation, and also for 15 rewarding those managers who did report correctly as part of its 16 reporting process; 17 E. 18 19 All communications with the EEO Monitor, the Claims Administrator, and the EEOC; F. Non-privileged documents generated in connection with the audits conducted by the EEO Monitor under this Decree; 20 21 G. All training evaluation surveys collected under this Decree; and 22 H. Non-privileged documents related to Defendants’ compliance with this 23 24 25 26 Decree. Defendants shall make the aforementioned records available to the EEOC within fifteen (15) calendar days following a written request by the EEOC. In the event that the EEO Monitor raises concerns about potential non- 27 compliance with this Decree, the EEOC may request documents or information, 28 including interviews of witnesses, that the EEOC determines is necessary to -36- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 37 of 47 1 conduct an inquiry into the specific compliance issue. Defendants agree to make 2 the requested information or documents available to the EEO Monitor and the 3 EEOC. Defendants shall cooperate with the EEO Monitor to ensure access to 4 information to carry out their duties under this Decree. 5 J. 6 7 8 9 Reporting to the EEOC 1. Within one-hundred and eighty (180) calendar days after the Effective Date Defendants shall submit to the EEOC an initial report containing: a. The name, contact information, and qualifications of the proposed EEO Monitor under this Decree; 10 11 Initial Report b. The name and contact information of the specific professional 12 individual or organization that Defendants propose to serve as 13 the Claims Administrator and the proposed contract, for the 14 EEOC’s review and comment; 15 c. Verification that List of Potential Claimants were submitted to 16 the Claims Administrator; a statement detailing Defendants’ 17 compliance with this Decree regarding Claimant Specific 18 Injunctive Relief; 19 d. A summary of any forthcoming modifications to the Workplace 20 Policies and Procedures, including the Internal Complaint 21 Investigation Procedure; 22 e. A summary of the procedures and recordkeeping methods in 23 place and/or as modified with the EEO Monitor for centralized 24 tracking of sex-based discrimination, harassment, and/or related 25 retaliation complaints and the evaluation of such complaints; 26 f. Written verification of the funding of the Settlement Fund; 27 28 -37- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 38 of 47 1 g. An update on Defendants’ progress toward developing a system 2 to hold regional managers, store managers, and assistant store 3 managers accountable for not complying with EEO policies; 4 h. 5 6 Hotline; i. 7 8 j. 13 14 15 k. 2. Defendants shall provide subsequent reports containing: a. b. 24 25 26 27 Confirmation that Defendants have distributed Workplace Policies and Procedures to all employees under this Decree; c. Confirmation of the occurrence of all training sessions under this Decree and a copy of the training materials used; d. Confirmation that the Hotline has been communicated to all employees under this Decree; 22 23 The attendance lists of all attendees for the training sessions required under this Decree that took place since the prior report; 20 21 Second Report Within twenty (20) months after the Effective Date of this Decree, 18 19 A current copy of all Defendants’ policies and procedures as required under this Decree. 16 17 A statement confirming that Defendants have posted the Notice of Settlement as required under this Decree; and 11 12 A statement attesting that all employees have been notified of the Toll-Free Hotline; 9 10 The written notice provided to employees informing them of the e. A copy of the Complaint Log; f. Results of the Climate Surveys; g. Confirmation as to whether any relevant revisions of Defendants’ Workplace Policies and Procedures took place 28 -38- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 39 of 47 1 since the preceding report, including a current working copy of 2 all policies and procedures as required under this Decree; 3 h. 4 Confirmation of Defendants’ compliance with the terms of this Decree; and 5 i. Confirmation that the interactive follow-up training sessions for 6 hourly non-supervisory employees were completed or being 7 conducted under this Decree, including the dissemination of the 8 information sheet. 9 These reports shall also include a statement from the EEO Monitor regarding 10 the accuracy of Defendants’ report to the EEOC, describes all work performed 11 pursuant to this Decree, and provides the EEO Monitor’s feedback and 12 recommendations, if any, going forward. The statement shall include the EEO 13 Monitor’s evaluation and recommendations following the audits and climate 14 surveys; the trainings sessions under this Decree; and review of Defendants’ 15 implementation of the Internal Complaint Investigation Procedure and Complaint 16 Log under this Decree. Most importantly, the EEO Monitor’s statement shall 17 provide feedback regarding Defendants’ good faith efforts to comply with this 18 Decree and all applicable laws regarding sex-based discrimination, harassment, 19 and/or related retaliation, and cover all the EEO Monitor’s responsibilities, as 20 detailed in this Decree. 3. 21 Exit Report 22 Within at least ninety (90) calendar days prior to the expiration of this 23 Decree, Defendants shall report to the EEOC regarding their compliance with this 24 Decree. 25 Separately, the EEO Monitor shall report to the EEOC at least ninety (90) 26 calendar days prior to the expiration of this Decree covering all the EEO Monitor’s 27 duties, as detailed in this Decree and providing feedback regarding Defendants’ 28 compliance with this Decree and laws regarding sex-based discrimination, -39- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 40 of 47 1 harassment, and/or related retaliation, and whether Defendants have responded 2 appropriately to sex-based discrimination, harassment, and/or related retaliation 3 complaints. The EEO Monitor shall make recommendations, where appropriate, 4 for extension of the term of this Decree. All reports under this Section shall be 5 directed: U.S. Equal Employment Opportunity Commission, Attn. Regional 6 Attorney Anna Y. Park, at anna.park@eeoc.gov and lado.legal@eeoc.gov. 7 8 9 10 11 XIII. COSTS OF ADMINISTRATION AND IMPLEMENTATION OF DECREE Defendants shall bear all costs associated with its administration and implementation of its obligations under this Decree. 12 13 14 XIV. COSTS AND ATTORNEYS’ FEES Each of the Parties shall bear its own costs and attorneys’ fees. 15 16 17 XV. MISCELLANEOUS PROVISIONS Unless otherwise stated, all notices, reports, and correspondence required 18 under this Decree to be delivered to the EEOC shall be delivered electronically to 19 the attention of Anna Y. Park, Regional Attorney, U.S. Equal Employment 20 Opportunity Commission, at lado.legal@eeoc.gov and anna.park@eeoc.gov. 21 Defendants shall maintain copies of all such notices, reports, and correspondence 22 for at least the duration of this Decree. 23 During the duration of this Decree, Defendants shall provide any potential 24 successor-in-interest with a copy of this Decree within a reasonable time of not less 25 than thirty (30) calendar days prior to the execution of any agreement for 26 acquisition or assumption of control of any or all of Defendants’ facilities, or any 27 other material change in corporate structure, and shall simultaneously inform the 28 EEOC of same. -40- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 41 of 47 1 During the duration of this Decree, Defendants shall assure that each of its 2 directors, officers, human resources personnel, General Managers, and Area 3 Supervisors are aware of any term(s) of this Decree which may be related to his/her 4 job duties and/or obligations. 5 6 7 XVI. SIGNATURES This Decree may be executed in several counterparts, each of which shall be 8 deemed an original, but all of which shall constitute one and the same instrument. 9 All of such counterpart signature pages shall be read as though one, and they shall 10 have the same force and effect as though all the signers had signed a single 11 signature page. Electronically transmitted executed copies of this Decree shall be 12 fully binding and effective for all purposes whether or not originally executed 13 documents are transmitted to the other party. Fax signatures on documents are to 14 be treated the same as original signatures. 15 16 All Parties, through the undersigned, respectfully apply for and consent to the entry of this Consent Decree Order. 17 18 19 20 21 22 23 24 25 26 27 28 -41- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 42 of 47 Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 43 of 47 1 [PROPOSED] ORDER 2 3 The provisions of the foregoing Consent Decree are hereby approved and 4 compliance with all provisions thereof is HEREBY ORDERED. The Court hereby 5 retains jurisdiction over this Consent Decree until its expiration or as determined 6 by this Court. The Clerk of Court is directed to CLOSE THIS CASE. 7 8 9 10 11 IT IS SO ORDERED. 5, 2023 __________________ Date: January _____________________________ The Honorable Jennifer A. Dorsey United States District Court Judge 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 -43- CONSENT DECREE Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 44 of 47 EXHIBIT A According to Defendants, there are currently eighteen (18) stores in operation and three (3) recently closed stores, as reflected below. For purposes of Monetary Relief and Claims Administration contained in Section IX of this Decree, the scope includes the twenty-one (21) stores listed below. For purposes of Injunctive Relief contained in Sections X and XI of this Decree, the scope is company-wide and includes all of Defendants’ Nevada, California, and Arizona stores in operation at any time during the duration of this Decree and the eighteen (18) stores currently in operation listed below. California Stores 1. McDonalds 2034 345 N. Imperial Ave Imperial, CA 92243 2. McDonalds 5177 105 W. Main St Brawley, CA 92227 3. McDonalds 12653 1990 S. 4th St El Centro, CA 92243 4. McDonalds 3112 191 S. Lovekin Blvd. Blythe, CA 92225 5. McDonalds 5924 1201 Third St Needles, CA 92363 Exhibit A, McDonald’s Stores Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 45 of 47 Nevada Stores 6. McDonalds 7790 1237 Boulder City Prkwy Boulder City, NV 89005 7. McDonalds 25740 670 US 95 South Searchlight, NV 89046 8. McDonalds 35508 1900 S. Casino Dr Laughlin, NV 89029 Arizona Stores 9. McDonalds 2967 3264 Andy Devine Ave Kingman, AZ 86401 10.McDonalds 5526 100 Swanson Ave Lake Havasu City, AZ 86403 11.McDonalds 10459 1241 W. Main St Quartzsite, AZ 85346 12.McDonalds 12179 990 Riverside Dr Parker, AZ 85344 13.McDonalds 16225 4754 S. Hwy 95 Fort Mohave, AZ 86426 Exhibit A, McDonald’s Stores Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 46 of 47 14.McDonalds 24347 2250 Hwy 95 Bullhead City, AZ 86442 15.McDonalds 32685 6501 Showplace Ave Lake Havasu City, AZ 86403 16.McDonalds 31782 600 Hwy 95 Bullhead City, AZ 86442 17.McDonalds 33234 3431 Stockton Hill Rd. Kingman, AZ 86409 18.McDonalds 32787 12500 Brannigan Park Rd Bellmont, AZ 86015 Stores Currently Not in Operation 19.McDonalds 31129 2840 Hwy 95 Bullhead City, AZ 86442 20.McDonalds 30877 3396 Stockton Hill Rd Kingman, AZ 86409 21.McDonalds 30881 2150 N. Waterman Ave El Centro CA, 92243 Exhibit A, McDonald’s Stores Case 2:21-cv-01808-JAD-NJK Document 15 Filed 01/05/23 Page 47 of 47

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