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Press Release 08-03-2009

HOMETOWN BUFFET, INC. AGREES TO SETTLE SEXUAL HARASSMENT SUIT WITH EEOC

EEOC Says Women Subjected to Groping and Sexual Advances by Male Managers

SAN    DIEGO -- The  U.S. Equal Employment Opportunity Commission (EEOC) today announced a class  litigation settlement against Hometown Buffet, Inc., on behalf of teens and  Latinas who were subjected to a sexually hostile workplace, including verbal  and physical abuse, in violation of Title VII of the Civil Rights Act.

Specifically, the EEOC alleged that  Hometown Buffet failed to prevent and tolerated a pattern of ongoing sexual  harassment in which male managers, supervisors, and co-workers subjected female  employees to a sexually hostile workplace, including groping, hugging, kissing,  sexual advances, and stalking employees outside the workplace. One female victim was allegedly raped by a  male co-worker. The EEOC further alleged  that due to the female employees’ young age and/or lack of English proficiency,  a breakdown in the company’s complaint process failed to adequately remedy the  sexual harassment.

In addition to a monetary settlement of $710,000, the two-year consent  decree resolving the matter will also ensure the implementation of measures to  prevent and remedy sexual harassment at the company’s El Cajon location. These measures include annual training for  employees, managers, and supervisors regarding sexual harassment and  retaliation; a formal complaint procedure with close tracking of any future  complaints; and, providing annual reports to the EEOC regarding future  complaints and remedial action.

“Sexual assaults are increasingly  becoming more commonplace in sexual harassment cases,” said EEOC Regional  Attorney Anna Y. Park of the agency’s Los Angeles District Office. “During this  economic downturn, it is more important than ever for employers to actively  ensure a workplace free of hostility.  What may appear to be a short term gain by cutting out training on EEO  laws, may result in long term cost to a company if claims of discrimination are  not actively prevented or corrected.”

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