What You Need to Know

• Cases were filed recently against South Austin Nissan and Boulware Toyota by female employees alleging sexual harassment.
• The women were fired or resigned after filing the complaints.
• The EEOC faulted dealer principals and HR for failing to respond to complaints and for lack of training.

New car dealers have grappled with circumstances beyond their control, from soaring interest rates to inventory shortages to automakers lately flooding them with high-priced, high-margin vehicles customers can’t afford.

But there are some things dealers can control, such as “market adjustments” and add-ons—and how they treat their employees. A pair of recent lawsuits alleging sexual harassment and retaliation against female employees underscores the need for dealers and other businesses to remain vigilant on employment law compliance.

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