Toxic From the Top Down: Shocking New EEOC Lawsuit Alleges Owner-Led Culture of Harassment and Retaliation

 

This isn’t a story about a rogue employee—it’s about the person running the show.

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TL;DR: The EEOC has filed a Title VII lawsuit against the owner of a hospitality group in Hawaii, alleging he subjected teenage and adult female employees to years of sexual harassment—much of it in front of other staff and guests. The complaint also details retaliation against employees who dared to speak up, including the abrupt firing of a senior executive who raised concerns.
📄 Here’s the EEOC Press Release

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🚨 “He set the tone”—and it was toxic.

According to the EEOC, this case is a textbook example of what happens when the person in charge uses their power to abuse instead of protect. Beginning in at least 2015, the owner of a group of hotels and restaurants allegedly created an environment where harassment wasn’t just tolerated—it was normalized.

And he wasn’t hiding it. He allegedly did it in plain view of customers, staff, and even company leadership. When complaints finally reached someone with the authority to act, she was fired that same day.

🧯 The Allegations: A Hostile Workplace at the Top

What the EEOC says happened:

The EEOC is suing on behalf of two named charging parties and a class of female employees—some of them minors—who worked across several interrelated business entities with shared ownership and operations. According to the complaint, here’s just some of what the owner allegedly did:

• Demanded massages from female staff—while naked
• Exposed his genitals and touched employees without consent, including under their clothing
• Supplied drugs and alcohol to teenage staff, then attempted to coerce them into sex
• Hired women based on appearance, required photos with job applications, and encouraged employees to recruit “pretty girls”
• Required female staff to wear skimpy clothing, model bikinis, and give hugs and kisses to male friends and guests
• Made graphic, inappropriate sexual comments, played pornographic videos in front of staff, and openly discussed his own sex life

Employees allegedly complained directly to the owner and others in management. But the behavior, according to the EEOC, continued for years.

🔥 The Retaliation: Speak Up, Get Fired

The EEOC further alleged that, in spring 2021, the company’s female Controller—a senior executive—received multiple complaints from female staff and confronted the owner. She reportedly told him she had consulted with both the EEOC and the Hawaii Civil Rights Commission.

His response? He allegedly:

• Dismissed the complaints
• Ordered her not to speak to anyone about them
• Fired her on the spot for contacting government agencies without his approval

The EEOC says other employees who complained were demoted, harassed, or fired too. Some ultimately resigned because they no longer felt safe at work.

🧠 The Law in Plain English

Title VII of the Civil Rights Act prohibits:

1. Sex-based harassment that is so severe or pervasive it creates a hostile work environment
2. Retaliation against employees who report harassment or participate in investigations
3. Constructive discharge—when conditions become so intolerable that an employee feels compelled to resign

The EEOC says the harassment in this case checks all three boxes. And because the harasser was the owner, the companies are automatically liable for his conduct.

👩‍💼 Employer Takeaways

1. Culture starts at the top—good or bad.
If the owner or CEO is the problem, HR policies won’t save you. When leadership sets the wrong tone, it creates an environment where abuse is excused or even encouraged.

2. Retaliation compounds liability.
Firing a whistleblower—or anyone who tries to stop the harassment—turns a bad case into a catastrophic one. Here, the EEOC alleges that retaliation occurred repeatedly.

3. Even integrated enterprises aren’t shielded.
The EEOC went after multiple affiliated companies, alleging joint employer and integrated enterprise theories. If your various corporate entities operate as one business in practice, the EEOC will likely treat them that way in litigation.

One Last Thing

The EEOC summed it up best: “The owner of a company sets the tone for the entire workforce.” When that tone is coercive, sexist, or retaliatory, no one feels safe speaking up—and everyone suffers. Employers who genuinely want a respectful, lawful workplace need to create systems where power is accountable, not untouchable.