Outback Steakhouse pays $19m in class action settlement

Outback Steakhouse has settled a class-action sex discrimination suit for $19m.  The suit, filed in 2003, alleges that Outback Steakhouse “denied women equal opportunities for advancement and discriminated against female workers in the terms and conditions of their employment.  Women were denied favorable job assignments, such as kitchen management experience, which is required for workers to be considered for higher-level, profit-sharing management positions, the EEOC maintained.”  Outback Steakhouse’s parent company, OSI Restaurant Partners, has denied all the allegations and stress that the settlement includes no finding of fault on Outback’s behalf.  Recently hired CEO Liz Smith stated she was pleased to resolve the “legacy issue” with the EEOC.  “There is no glass ceiling at OSI, and we do not tolerate discrimination in any form,” she added. “I have a profound commitment to ensuring not only equal, but very compelling and rewarding employment opportunities for all individuals.”

In order to address this issue further, the company has agreed to hire a consultant to analyze their current process, create a new position called “vice president of people”, as well as unveiling a new online application system for current workers seeking managerial jobs.  This new system will be available for employees to have direct access to apply and test for job openings across the country.  In addition to creating the vice president of people job, OSI spokesman Joe Kadow said they had enlarged its human resources staff and increased their role.

Cultures of discrimination can lead to very costly lawsuits as Outback Steakhouse learned the hard way.  There are many ways to help protect your company including have clear and effective policies and procedures in place for hiring, firing, promotions, and evaluations.  As the number one online provider of hr forms, documents, policies, laws, training, and education, HRSentry can help you.  Visit our homepage for more information on how you can reduce your risk today.