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Friday, October 9, 2026

McDonald's Franchisee to Pay $1.6 Million in Sexual Harassment Case - SHRM

In March 2021, the U.S. Equal Employment Opportunity Commission (EEOC) sued a New England-area McDonald's franchisee for failing to protect workers from a manager who sexually harassed them over several years at a Randolph, Vt., location.

The company must now pay $1.6 million in damages.

"Combating workplace harassment and retaliation is a top priority for the EEOC," Charlotte A. Burrows, EEOC chair, said in a statement. "The agency will continue to vigorously enforce [Title VII of the Civil Rights Act of 1964], particularly in cases involving teenage workers who may be more vulnerable to being taken advantage of by co-workers or their superiors."

Coughlin, Inc., a Vermont-based company that owns and operates 10 McDonald's franchise restaurants in Vermont and New Hampshire, was accused of creating a sexually hostile workplace environment against its workers, mostly teenagers.

The EEOC lawsuit alleged that a male night shift manager touched employees inappropriately; hit and groped their genitals, breasts and buttocks; and subjected them to derogatory comments and threats of physical harm. It also charged that the company retaliated against at least one employee by revoking her disability-related reasonable accommodation and forcing her to quit after she complained.

"Protecting vulnerable workers in the fast-food industry is a strategic enforcement priority for our district," Jeffrey Burstein, regional attorney for the EEOC's New York District, said in a statement. "The...



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