Crain Automotive Holdings to Pay $47,500 in Federal Employment Lawsuit

FAYETTEVILLE, Ark.– Crain Automotive Holdings, LLC, operator of automobile dealership Crain Kia of Bentonville, Arkansas, will pay $47,500 and furnish other relief to settle a U.S. Equal Employment Opportunity Commission (EEOC) retaliation lawsuit, the federal agency announced today.

According to the EEOC’s lawsuit, Crain retaliated against an employee by firing him after he reported his manager to human resources for a racially discriminatory comment during a weekly sales meeting. After his report to human resources, Crain offered the employee a transfer to a different dealership across the street or write a statement that he felt safe working at Crain. The employee declined the transfer or to write the statement, and he was terminated, according to the suit.

Such alleged conduct violated Title VII of the Civil Rights Act of 1964 (Title VII) which prohibits retaliation against those who complain about discrimination. The EEOC filed suit (EEOC v. Crain Automotive Holdings, Case No. 5:23-cv-05164-TLB) in U.S. District Court for the Western District of Arkansas after first attempting to reach a pre-litigation settlement through its administrative conciliation process.

In addition to paying $47,500 in damages to the former employee, the two-year consent decree settling the suit requires Crain to post a notice in the workplace informing employees of the settlement. Crain will also conduct an hour of remote training on Crain’s antidiscrimination policy for all employees. Furthermore, Crain will train supervisors and managers on Crain’s anti-discrimination and anti-retaliation provisions, including reporting requirements to Crain’s human resource department, investigations of complaints, and resolutions and outcomes.

“Terminating employees who complain about alleged race discrimination violates Title VII and the EEOC remains committed to ensuring employers understand their obligations under federal law,” said Faye Williams, regional attorney for the EEOC’s Memphis District Office. “The EEOC will aggressively investigate and, if necessary, prosecute employers who violate the rights of their employees.”

Delner Franklin-Thomas, district director of the Memphis District Office said, “Clear EEO policies and consistent enforcement of those policies help employees, including management, understand and prevent discrimination in the workplace.”

For more information on retaliation, please visit https://www.eeoc.gov/retaliation.

The EEOC’s Memphis District Office has jurisdiction over Arkansas, Tennessee, and 17 counties in Northern Mississippi.  

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.