Air Control Settles EEOC Sexual Harassment Lawsuit for $361K Following Allegations Against Company Owner

Background

Air Control Heating & Air Conditioning, Inc., operating as Air Control Heating & Electric, Inc. in Spokane Valley, Washington, has reached a settlement with the U.S. Equal Employment Opportunity Commission (EEOC) after facing serious allegations of workplace sexual harassment. The federal agency filed suit following years of alleged misconduct involving the company’s founder and ongoing failures to take corrective action.

Incident Details

According to the EEOC’s complaint, the company’s owner and president, Maxim Johnston, engaged in a pattern of sexual harassment targeting female employees beginning as early as 2010. The misconduct included frequent sexual comments, graphic innuendos, physical touching without consent, remarks about employees’ bodies, and repeated requests for female employees to dress more provocatively. Johnston also allegedly distributed tickets to a local strip club and expressed that women "do not belong in the building trades."

Despite multiple internal reports, the company’s management and directors—some of whom held executive positions—did not intervene or implement meaningful safeguards to prevent further harm. At one point, an HR consultant likened the company culture to a “sewer” due to the tolerance of the ongoing behavior. One employee ultimately resigned as a direct result of the hostile work environment.

Legal Background

The EEOC filed the lawsuit in the U.S. District Court for the Eastern District of Washington (Case No. 2:21-cv-00347), citing violations of Title VII of the Civil Rights Act of 1964. Title VII prohibits employers from discriminating based on sex, including creating or allowing a sexually hostile work environment. Employers are also liable if they fail to act on known instances of harassment or retaliation.

Settlement and Relief

To resolve the lawsuit, Air Control has agreed to:

• Pay a total of $361,000 to seven current and former female employees.
• Provide full back pay to the employee who resigned due to harassment.
• Retain an independent consultant to review and assist with anti-discrimination and anti-retaliation policies.
• Establish confidential mechanisms for investigating complaints.
• Implement mandatory companywide anti-discrimination training, including targeted training for the company’s owner.
• Submit to EEOC monitoring for five years to ensure compliance with the terms of the consent decree.

The $361,000 settlement represents the maximum compensatory damages allowable for an employer of Air Control’s size under federal law.

Key Takeaways

• Company leadership accountability is essential. Senior leaders must be held to the same—or higher—standards to maintain a safe workplace.
• Culture audits are not enough without enforcement. Ignoring expert HR assessments worsens legal exposure and damages employee trust.
• Retaliation and neglect escalate liability. Inaction in response to complaints can lead to larger settlements and extended federal oversight.

Conclusion

This case serves as a powerful reminder that ignoring reports of sexual harassment, especially when committed by leadership, can result in lasting financial and reputational harm. Employers in all industries—including male-dominated trades—must foster environments that prioritize safety, respect, and compliance with federal anti-discrimination laws.

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