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Press Release 04-10-2009

CRACKER BARREL TO PAY $255,000 FOR SEX HARASSMENT AND RETALIATION; SETTLEMENT INCLUDES TRAINING

EEOC Says Women at Cedar Bluff Store Punished for Complaining About Sexually Hostile Work Environment

KNOXVILLE, Tenn. -- Cracker  Barrel Old Country Stores, Inc. will pay $255,000 and provide other relief to  settle a sexual harassment and retaliation lawsuit filed by the U.S. Equal  Employment Opportunity Commission (EEOC), the agency announced today.

The EEOC’s suit (No.3:07-cv-00376  E.D.TN), filed in the U.S. District Court for the Eastern District of  Tennessee, Knoxville Division, had charged that Cracker Barrel allowed its  general manager, managers, and other male employees to subject a class of women  at its Cedar Bluff, Tenn., location to sexual harassment and retaliated against  at least two of them. The general  managers, other managers and male employees made repeated and unwanted sexual  jokes, and lewd remarks, the EEOC said.  Further, the agency said, although the women complained to the managers  and Cracker Barrel’s 800 number complaint line, the company failed to take  action to stop the harassment, and the general manager and other supervisors  retaliated against women who had complained by moving one to an area where tips  were low.

Sexual harassment and retaliation  for complaining about it violate Title VII of the Civil Rights Act of  1964. The EEOC filed suit after first  attempting to reach a voluntary settlement.

  Besides  paying monetary relief, the three-year consent decree signed by U.S. District  Judge   Thomas A. Varlan resolving the lawsuit:

     
  • Enjoins      Cracker Barrel from discriminating because of sexual harassment and      retaliation and requires  the company to modify its policies and practices regarding the investigation of  sexual harassment claims;
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  • Requires      the company to conduct annual training on sexual harassment and      retaliation for all employees at the restaurant for three years; and
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  • Requires      Cracker Barrel to maintain and report complaints of harassment received      for three years and post its sexual harassment policy, including its 800      hotline number for reporting such claims; post a statement that it will      investigate anonymous claims of sexual harassment; and post the notice      poster and a notice regarding the settlement.

  “Under federal law, employers are required to maintain an environment  free of sexual harassment and retaliation,” said EEOC Regional Attorney Faye  Williams of the Memphis District Office.  “This settlement demonstrates the EEOC’s commitment to eliminating such  conduct from the workplace. Further, the  settlement institutes key measures in the workplace to prevent future  misconduct like this.”

According  to its web site, Cracker Barrel Old Country Store, Inc. is a chain of “Old Country Stores,” each  combining a retail store and a restaurant.  Founded and headquartered in Lebanon,  Tenn., Cracker Barrel operates  581 full-service locations located in 41 states.

The  EEOC enforces federal laws prohibiting employment discrimination. Further information about the EEOC is  available on its web site at www.eeoc.gov.