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06-C-0715 EEOC v. Management Hospitality of Racine, Inc.

By: WISCONSIN LAW JOURNAL STAFF//June 22, 2011//

06-C-0715 EEOC v. Management Hospitality of Racine, Inc.

By: WISCONSIN LAW JOURNAL STAFF//June 22, 2011//

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Employment
Contempt

Where an employer found liable for sexual harassment refuses to post a required notice, a $1,000 per day sanction until the notice is posted is an appropriate remedy for the contempt.

“At the hearing, the EEOC asked that I impose a conditional fine against Flipmeastack and Salauddin Janmohammed, jointly and severally, for every day that the notice is not posted in all restaurants. I agree that a conditional daily fine is an appropriate sanction. In setting the amount of this fine, I consider ‘the character and magnitude of the harm threatened by continued contumacy, and the probable effectiveness of any suggested sanction in bringing about the result desired.’ United States v. United Mine Workers of Am., 330 U.S. 258, 304 (1947). I also consider ‘the amount of defendant’s financial resources and the consequent seriousness of the burden to that particular defendant.’ Id. Taking these factors into account, I conclude that a conditional fine of $1,000 per day is appropriate. The harm threatened by allowing Flipmeastack to continue managing Janmohammed’s restaurants without posting the notices is serious, in that the employees at these restaurants may be subjected to sexual harassment and find themselves without an adequate complaint mechanism. There is also a risk that Flipmeastack will discourage employees from reporting sexual harassment. A conditional fine of $1,000 per day should be sufficient to coerce compliance with the notice requirement without being unnecessarily burdensome. A method for monitoring Flipmeastack and Salauddin Janmohammed’s compliance is specified below.”

06-C-0715 EEOC v. Management Hospitality of Racine, Inc.

E.D.Wis., Adelman, J.

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