Facts

The U.S. Equal Employment Opportunity Commission (EEOC) filed a complaint against Cyma Orchids Inc. on behalf of Latina greenhouse workers alleging pervasive harassment, discrimination, and retaliation based on sex and national origin.

PLAINTIFF'S CONTENTIONS:
The workers alleged that they were continually sexually harassed by supervisors, managers, and the owners. They were groped on their breasts and buttocks; received repeated unwelcome touchings and propositions; and were the subject of sexual jokes and comments about their bodies. The complaint further alleged that both Korean and Hispanic male supervisory staff engaged in the widespread sexual harassment and racial discrimination. The complaint further alleged that workers who complained were retaliated against, including a male worker who was fired after he defended one of the victims.

DEFENDANTS' CONTENTIONS:
Cyma purchased the assets of Taean, including its California orchid growing operations in 2008. At that time, Taean's employees came to work for Cyma, but the company was not aware of any allegations of sexual harassment and discrimination that occurred at Taean prior to that time. Taean denied that such actions occurred, and Cyma denied that any such alleged actions took place thereafter, in particular that its owner (who purchased the business from the owners of Taean) was involved in any such alleged actions.

Result

When the suit was filed in 2010, the EEOC demanded Cyma (as Taean's successor) pay over $10 million and agree to EEOC oversight under a 5-year consent decree. At a settlement conference before Judge Magistrate Margaret Nagle, Cyma agreed to pay $200,000 to settle the entire class action and the prior owners of Taean agreed to pay $40,000 to cover the CRLA's attorneys fees. Further, the EEOC and Cyma agreed to a 2 1/2 year consent decree.