Facts

The U.S. Equal Employment Opportunity Commission filed a lawsuit against Wells Fargo Bank in relation to certain employment matters.

PLAINTIFF'S CONTENTIONS:
Joanna Garcia filed a discrimination charge with the EEOC against Wells Fargo, which claimed Wells Fargo discriminated against her based on her sex because it subjected her to sexual harassment and constructively discharged her. As a result of the investigation, the EEOC found reasonable cause existed to believe defendant subjected Garcia and a class of employees to a sexually hostile work environment in violation of Title VII. The EEOC also found reasonable cause to believe that Garcia was constructively discharged in violation of Title VII. The EEOC claimed that Garcia and three other female employees were subjected to unwelcome and sexually offensive verbal, visual and physical conduct by a female supervisor and a female co-worker, which created a hostile work environment. EEOC alleged that defendant knew or should have known of the hostile work environment, but failed to take prompt, effective remedial action. EEOC also alleged that Garcia had been constructively discharged when defendant permitted the hostile environment to continue and worsen.

DEFENDANT'S CONTENTIONS:
Defendant denied liability or that it engaged in any unlawful employment practices.

Result

According to a two-year consent decree, applying to all branch locations within the Sierra Mountains District, defendant agreed to pay a $290,000 settlement to the four women, require annual anti-discrimination training of employees and managers, issue a memorandum from the district head on procedures for reporting harassment complaints, report to EEOC discrimination complaints from employees, and place a disciplinary notice in the personnel record of the former branch manager concerning his failure to the address the harassment.