A Hempstead, N.Y.-based chain of retail discount stores, National Wholesale Liquidators, Inc., will pay $255,000 and agree to injunctive relief to settle a lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today. The EEOC had charged that the company subjected employees to a hostile work environment based on their race, national origin and religion and sexually harassed an employee.

In its lawsuit, the EEOC said a National Wholesale Liquidators store manager subjected South Asian workers to taunts about their national origin and religion. The EEOC also charged that the store manager sexually harassed a female employee. The woman, a Sikh, was told by the manager to remove her turban because she “would appear sexier without it.”

“The EEOC hopes this settlement encourages employers to take steps to educate their managers and employees,” said Margaret A. Malloy, the EEOC trial attorney assigned to the case. “Harassing employees based on national origin, sex or religion is unacceptable and will not be tolerated.”

EEOC New York District Director Spencer H. Lewis said, “This case should remind employers to take seriously allegations of harassment, especially where managers in positions of authority are involved in the misconduct.” [Link]