Whataburger to pay $180K to settle retaliation suit that claims manager was told to only hire white applicants

TALLAHASSEE, Fla - Whataburger Restaurants LLC, a regional fast-food chain, has agreed to pay $180,000 and furnish other relief to settle a retaliation suit filed by the Equal Employment Opportunity Commission.

According to the lawsuit, a general manager of a Tallahassee Whataburger location repeatedly told her hiring manager to hire white, and not black, applicants. When the hiring manager complained, she was told that upper management wanted the teams "to reflect the customer base where we do business."

In a statement to FOX 7 Austin, Whataburger said their commitment to inclusion is reflected in Whataburger’s hiring numbers in the Tallahassee, Florida, area where the manager worked. "In the timeframe of the allegations, 81% of employees hired in the Tallahassee market were African American and 93% of new hires were African American at the restaurant where she worked," the company said.

The EEOC says the manager was then subjected to physical and verbal abuse, threats, a schedule change and additional work assignments which eventually forced her to resign. EEOC says this alleged conduct violates Title VII of the Civil Rights Act of 1964, which prohibits employers from retaliating against employees who report or oppose workplace race discrimination.

"Whataburger also denies the allegations that it retaliated against Ms. Burrous," the company's statement reads. "Whataburger has taken great measures to provide employees with opportunities and avenues to discuss issues they might have with their supervisors. Outside of the restaurant, both upper management and human resource professionals were available to meet with employees."

The EEOC says it filed suit after first attempting to reach a pre-litigation settlement through its conciliation process.

In addition to the $180,000, the three-year consent decree requires Whataburger to adopt new human resources policies, conduct live and computer-based training and maintain an anonymous hotline for complaints. The chain must also post a notice at its worksite about the suit and report any new complaints of retaliation to the EEOC.

Whataburger said in its statement that it agreed to these terms in large part because the company already has in place most of what the decree requires, including an anonymous hotline for employees to report concerns about their work environment, including potential discrimination, harassment or retaliation, robust policies and procedures that prohibit discrimination, harassment and retaliation and training to all employees on those policies and procedures.

"Despite having all of these proactive HR measures already in place, Whataburger decided to settle this protracted and exhausting legal matter purely as a business decision," reads the statement. "The brand needed to focus its resources on our employees, customers and the communities we serve."

READ THE FULL WHATABURGER STATEMENT BELOW:

Whataburger is proud of its record of compliance with all applicable laws and regulations. As a brand, we pride ourselves on our inclusive workforce culture and always hire the best qualified applicant regardless of race, color, religion, sex, sexual orientation, gender identity, national origin, genetic information, disability, veteran status, age, or other status protected by law.

Our employees – whom we call Family Members – make the difference at Whataburger. We have a culture of Pride, Care and Love – meaning we have pride in our work, take care of each other and we absolutely love serving our customers. It’s a culture we’ve upheld for 70 years in our more than 830 restaurants – across a 10-state Whataburger footprint.

In order to stay true to these values, Whataburger remains committed to providing equal employment opportunities to all employees and applicants.

Whataburger believes that the allegations in this lawsuit are false, disappointing and completely counter to the culture Whataburger lives and breathes every day. We value our brand as an employer for all and celebrate our extremely inclusive workforce.

Our commitment to inclusion is reflected in Whataburger’s hiring numbers in the Tallahassee, Florida, area where Ms. Burrous worked. In the timeframe of Ms. Burrous’s allegations, 81% of employees hired in the Tallahassee market were African American and 93% of new hires were African American at the restaurant where she worked. 

Whataburger also denies the allegations that it retaliated against Ms. Burrous. Whataburger has taken great measures to provide employees with opportunities and avenues to discuss issues they might have with their supervisors. Outside of the restaurant, both upper management and human resource professionals were available to meet with employees. 

Whataburger agreed to the terms of the Consent Decree in this case -- in large part -- because Whataburger already has in place most of what the Consent Decree requires.  Among other requirements, and contrary to the Commission’s inference in its press release, Whataburger has for years maintained an anonymous hotline for employees to report concerns about their work environment, including potential discrimination, harassment or retaliation. Whataburger has a long history of robust policies and procedures that prohibit discrimination, harassment and retaliation. What’s more, Whataburger routinely provides training to all employees on those policies and procedures.

Despite having all of these proactive HR measures already in place, Whataburger decided to settle this protracted and exhausting legal matter purely as a business decision. The brand needed to focus its resources on our employees, customers and the communities we serve. Whataburger is dedicated to being a place where goodness lives.

KTBC reported this story from Austin, Texas.