Starlite Station to Pay $100,000 in Sexual Harassment and Retaliation Settlement

Background

'Murica LLC, the operator of Starlite Station—a Western-themed bar and dance hall in Greeley, Colorado—has settled a federal lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC) involving claims of sexual harassment and unlawful retaliation in the workplace.

The case originated after multiple employees reported egregious misconduct by the business owner and management, alleging a pattern of inappropriate sexual behavior and retaliatory actions against those who spoke out.

Details of the Incident

The EEOC’s complaint alleged that the owner of Starlite Station created and maintained a sexually hostile work environment for both female and male employees. Specific allegations included:

• Unwanted physical contact with female staff.
• Pursuing sexual relationships with subordinates.
• Pressuring employees to allow him to stay at their homes.
• Sexual activity with an intoxicated employee on the premises, which temporarily resulted in the loss of the bar's liquor license.

Additionally, the owner allegedly made vulgar and discriminatory remarks about job applicants’ appearances and inappropriately questioned male employees about their sexual experiences.

When employees voiced concerns, the company allegedly retaliated. Actions included terminations, threats of discipline, and a state court defamation lawsuit targeting former employees who filed EEOC complaints or made public statements about the workplace conduct. The EEOC asserted that such lawsuits were retaliatory and designed to silence complainants, in violation of federal law.

Legal Background

The conduct described in the EEOC’s complaint violates Title VII of the Civil Rights Act of 1964, which prohibits sexual harassment and protects employees from retaliation when they oppose unlawful workplace behavior. Additionally, the EEOC argued that the owners were personally liable due to misuse of corporate funds and attempts to shield personal assets after the business closed.

Settlement and Relief

The case was resolved through a five-year consent decree with the following terms:

• $100,000 in monetary relief for affected employees.
• Mandatory EEO training for all staff and management.
• A written apology from the owner to each aggrieved individual.
• A certified human resources professional will review and revise the company’s anti-discrimination policies.
• Agreement that future retaliatory lawsuits or settlements that discourage EEOC cooperation are unenforceable.

Key Takeaways

• Retaliation extends beyond termination—using legal threats to silence victims can also violate Title VII.
• Owners and executives can be held personally liable when corporate structures are misused to shield misconduct.
• Closure of a business does not end accountability—compliance obligations and enforcement may continue.

Conclusion

The Starlite Station case underscores the consequences for employers who tolerate or perpetuate harassment in the workplace—especially when retaliation follows employee complaints. Employers must foster a workplace culture of accountability, provide safe reporting mechanisms, and act swiftly on harassment claims to remain compliant with federal law.

Training Recommendation: TAP Series

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