A few years ago I had a lovely three course lunch with a few of my African American, Hispanic, and Asian friends at the world famous Tavern on the Green restaurant, just off of Central Park in New York City. The atmosphere and the food were wonderful, but according to a recent settlement what was alleged to be going on behind the scenes at the famed restaurant was something quite the opposite.

According to the suit filed by the Equal Employment Opportunity Commission, Tavern on the Green restaurant had allegedly engaged in “severe and pervasive” harassment of female, African-American and Hispanic employees over an eight year period. According to lawyers for the EEOC, female restaurant employees were “grabbed, groped, and fondled,” and were also “subjected to repeated comments related to sexual positions, sexual acts, female genitalia and even demands for sexual favors.”

As if that were not enough to make you lose your lunch, additional allegations stated that in addition to being severely harassed, African American and Hispanic employees were called a variety of epithets and their cultures were publicly ridiculed. When these employees complained, their hours and pay were cut in retaliation, according to the allegations.

Tavern on the Green agreed to settle the sex, race, national origin harassment and retaliation claims for $2.2 million, which was divided among 50 (that’s right 50) restaurant employees who worked for the restaurant over the eight year period. As conditions of the settlement, Tavern on the Green will refrain from rehiring the alleged harassers (I guess they fired them), distribute a new anti discrimination policy to all employees, create a telephone hotline to field discrimination complaints, and hold employment law training on an annual basis.

I should also mention that the restaurant denied any wrongdoing. Period.

I can’t say that I know what was going on at Tavern on the Green during those eight years; all I can really say is that the food was quite good. But I do find it rather difficult to swallow that 50 separate individuals alleged to have experienced some sort of discrimination or harassment and the restaurant knew nothing about it.

It is this supposed lack of knowledge that is at the heart of the EEOC vs. Tavern on the Green case. Employers who suspect or have even the most remote knowledge of the possibility of the presence of discrimination in their workplace have the obligation to investigate, if only to absolve themselves of the appearance of condoning the activity. If and when the discriminatory activity is discovered, employers should correct the behavior in a quick and decisive manner.

When employers fail to promptly and thoroughly investigate complaints of discrimination, harassment, workplace violence, or any other behavior that can create a hostile working environment, their inaction may be sufficient cause for a complainant to allege the company’s liability. In addition, the failure to take preventative measures against discrimination can also be construed as retaliation, as one can allege that the employer let the behavior continue as punishment for the complaint.

Just ask the owners of Tavern on the Green.