Lakeside Plastics to Pay $60,000 in EEOC Racial Harassment and Retaliation Lawsuit

MILWAUKEE – Lakeside Plastics, Inc., a manufacturing company in Oshkosh, Wisconsin, will pay $60,000 and provide other equitable relief to settle a race discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC).

The EEOC’s suit alleged that a black temporary employee worked for Lakeside Plastics, which produces traffic safety products, from June to July 2019 as a production technician. According to the suit, during the course of his employment, the black employee was harassed by a white co-worker who subjected him to race-based derogatory comments and slurs, including the “n-word,” threatened him with physical harm, and insinuated that he could get the black employee fired.

The suit alleged the black employee complained about the racial harassment to his supervisors and was fired in retaliation for his complaints. The EEOC’s lawsuit also charged that Lakeside Plastics terminated the black employee because of his race.

Such alleged conduct violated Title VII of the Civil Rights Act of 1964, which makes it unlawful to discriminate against employees because of their race. The EEOC filed suit in U.S. District Court for the Eastern District of Wisconsin (Equal Employment Opportunity Commission v. Lakeside Plastics, Civil Action No. 1:22-cv-01149 WCG) after first attempting to reach a pre-litigation settlement through its conciliation process.

The parties reached a settlement outlined in a consent decree after the court granted the EEOC’s Motion to Alter the Judgment, and the court reversed its order granting summary judgment to Lakeside Plastics and issued an order denying summary judgment (Equal Employment Opportunity Commission v. Lakeside Plastics, Civil Action No. 1:22-cv-01149 WCG, Docket No. 46). In denying summary judgment to Lakeside Plastics, the Court found that, given evidence that the white coworker used the “n-word” multiple times, coupled with a threat of violence, there was enough evidence of discrimination for a jury to consider the case. The court also held there was sufficient evidence to proceed to trial on the EEOC’s claims that Lakeside Plastics terminated the black employee based on his race and/or in retaliation for his complaints about the harassment.

The consent decree settling the suit requires Lakeside Plastics to pay $60,000 in monetary damages to the former employee. The two-year decree also requires Lakeside Plastics to provide training on Title VII, racial harassment and retaliation to managers, employees and temporary workers. Lakeside Plastics will also review and revise its policies to include that complaints of racial harassment or retaliation will be investigated within five days after a complaint is made. Managers, supervisors and leads must report or communicate racial harassment or retaliation complaints of which they are aware to human resources. If they fail to do so, they will be subject to disciplinary action. Additionally, Lakeside Plastics must provide reports to the EEOC regarding complaints of racial harassment, race discrimination and/or retaliation.

“Employers cannot ignore or disregard complaints of discrimination, harassment or threats of racial violence, and must take prompt remedial action to ensure that employees are safe, and the workplace is free from discrimination,” said Gregory Gochanour, regional attorney for the EEOC’s Chicago District. “Race discrimination is a problem that the EEOC is committed to eradicating.”

The director of the EEOC’s Chicago District Office, Amrith Aakre, said, “Ensuring that all workers, including temporary workers, are aware of their rights under the equal employment opportunity laws continues to be a priority for the EEOC.”

The EEOC’s Chicago District Office has jurisdiction over Illinois, Wisconsin, Minnesota, Iowa and North and South Dakota, with Area Offices in Milwaukee and Minneapolis.

The EEOC is the sole federal agency authorized to investigate and litigate against businesses and other private sector employers for violations of federal laws prohibiting employment discrimination. For public sector employers, the EEOC shares jurisdiction with the Department of Justice’s Civil Rights Division; the EEOC is responsible for investigating charges against state and local government employers before referring them to DOJ for potential litigation. The EEOC also is responsible for coordinating the federal government’s employment antidiscrimination effort. More information about the EEOC is available at www.eeoc.gov. Stay connected with the latest EEOC news by subscribing to our email updates.