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2.
In orderto m axim ize itsprofit,M cD onald'sCorporate hascontrolover nearly
every aspectof its restaurants'operations. Though nom inally independent,franchised
M cD onald's restaurants are predom inantly controlled by M cD onald's Corporate. M cD onald's
Corporateexercisescontrolthrough itsfranchise agreementwith franchisees;policiesand
m arm als governing every aspectofrestaurantoperations'
,continualoversightby corporate
representatives and in-store com putersystem s'
,m andatory com puter system s generating
em ployees'schedulesand assignm ents'
,com prehensive training of allrestaurantem ployees,
from generalmanagersto cooks;and involvementwithhiringdecisions.(See1%28-112,infra.)
The Plaintiffsin thiscase worked atfranehised M cDonald'srestaurantsin South
BostonandClarksville,Virginia,which areoperatedbySowevaCo.(t'Soweva''),thefranehisee.
Nineoftheten plaintiffsareAfrican-Am erican.The remaining plaintiffisHispanic.Plaintiffs
have collectively w orked forover fifty yearsatM cD onald'srestaurants. They w orked diligently
to serve M cD onald'scustom ers,w hile struggling to earn a living fortheir fam ilieson m inim um
ornear-m inim um w ages.
Plaintiffsweresubjectedtorampantracialandsexualharassment,committedby
the restaurants'highest-ranking supervisors. Together,these supervisors dem eaned African
Am erican workers;often com plained thati%there are too m any black people in the storei''called
A frican-Am erican w orkers 6ibitch,''Gtghetto,''and çtratcheti''called H ispmlic w orkers E4dirty
M exicani''disciplined A frican-Am erican em ployees fornlle infractionsthatw ere forgiven w hen
com m itted by white em ployees;inappropriately touched fem ale em ployees on theirlegs and
buttocks;sentfem ale em ployeessexualpictures;and solicited sexualrelations from fem ale
employees. (See$% 113-148,in-fèa.)
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5.
Sowevabecame thefranchiseoperatorfortheSouth Boston and Clarksville
M cDonald'sneartheendof2013.Atthattime,themajorityoftherestaurants'employeeswere
A frican-A m erican. Soon afteritbecam e the franchise operator,Sow eva im plem ented a plan to
reduce the num berofA frican-A m erican em ployees and hire m ore w hite em ployees. Sow eva's
owner,M ichaelSimon,explained to workersthattçtheratio wasoffin each ofthe stores,''and
thathejustwantedtçtheratiotobeequal.''Soweva'ssupervisorswereblunt,tellingemployees
thatitw as6Etoo dark''in the restaurants,and thatthey were going to hire differentw orkers
because they ttneed to getthe ghetto outofthe store.'' Before im plem enting the plan,one
stlpervisorsaidtotheother,''now wecan getridoftheniggersandtheM exicans.''(See(11% 149-
153,infra.)
A large num berofw hite em ployeesw ere hired in M arch 2014. On M ay l2,
2014,aboutfifteen A frican-A m erican em ployees were term inated,including plaintiffs Betts,
Boyd,Lea,M arable,M orris,R obinson,Stanfield,Tucker,and K ing W illiam s. W hen they asked
why they werebeing terminated,Soweva'sownertold them thatthey weregood workers,but
theykçdidn'tfittheprofile''ofhisorganization.(See11% 154-171,infra.)
Follow ing the training instnlctions given by M cD onald's Corporate,severalofthe
plaintiffs called M cDonald'sCorporate to com plain abouttheir term inations and the blatant
racialdiscrim ination. M cD onald'sCop orate,however,did nothing.
Plaintiffs seek reliefforthe discrim ination and harassm entthey suffered from all
ofthe responsible parties:M cD onald'sCorporate,Soweva,and M ichaelSim on.
JURISDICTION AND VENUE
Thisaction isbroughtpurstlantto Title VIIofthe 1964 CivilRightsActCt-ritle
VlI''),42 U.S.C.b 2000e,et.seq.,asamended,and 42 U.S.C.q 1981,asam ended.
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10. ThisCourthasoriginaljurisdiction overPlaintiffs'claimspursuantto28U.S.C.j
1331 and 28 U.S.C.j 1343(a)(4).
A lm ostallm aterialeventsgiving rise to the causes ofaction occurred in H alifax
County,V irginia.
Under28 U .S.C.j 1391(b),venueisproperin the United StatesDistrictCourtfor
the W estern D istrictofV irginia.
PARTIES
13.
D efendantM cD onald's Corporation is a D elaw are com oration w hose principal
placeofbusinessisOneM cDonald'sPlaza,Oak Brook,lllinois60523. ltscorporatesystem
includes m ore than 35,000 restaurants,spanning allfifty states,including V irginia. M cD onald's
Corporationisanttemployer''orGtperson''subjecttosuitunderTitleV1I,42U.S.C.j2000e,and
42 U.S.C.j 1981.
14.
DefendantM cDonald'sUSA,LLC,awholly-owned subsidiary ofM cDonald's
Corporation,is a Delaw are corporation whose principalplace ofbusiness isO ne M cDonald's
Place,O ak Brook,lllinois 60523. 1ts corporate system includesm ore than 14,000 restaurants
throughoutthe United States and Canada,approxim ately 90% ofwhich are franchised.
M cDonald'sUSA,LLC isanéçemployer''or''person''subjecttosuitunderTitleVIl,42U.S.C.j
2000e,and 42 U.S.C.j 1981.
15.
D efendantsM cD onald's Corporation and M cD onald'sU SA ,LLC are together
referred to ast'M cDonald'sC orporate.''
16.
DefendantSowevaCo.('ésoweva'')isaVirginiacorporationwhoseprincipal
place ofbusiness is4021 Halifax Rd.,Suite F,South Boston,V A 24592. Pursuantto a franchise
agreem entw ith M cDonald's Cop orate,Sow eva operatesthree M cDonald'sfranchises in
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Halifax and M ecklenburgCounty,Virginia:(1)theitcenterville''M cDonald'slocated atRoute
501 and Cherry Avenue,South Boston,Virginia;(2)the kkRiverdale''M cDonald'slocated at
1010 PhilpottRoad,South Boston,Virginia'
,and (3)the téclarkesville''M cDonald'slocated at
200 VirginiaAvenue,Clarkesville,Virginia.Sowevaisan ttemployer''orçtperson''subjectto
suitunderTitleVII,42 U .S.C.j2000e,and 42 U.S.C.j 1981.
D efendantM ichaelSim on isthe ow ner and sole shareholderofSow eva. Sim on is
thehighestrankingmanagerwithin Soweva.Simonisapersonsubjectto suitunder42U.S.C.j
1981.
18.
PlaintiffW illie Betts is a 34-year-old A frican-A m erican m ale. Bettsbegan
working atthe Centerville M cD onald's in M ay 2009.H e w orked as a crew m em ber,prim arily
as a cook. Betts'em ploym entw as term inated on M ay 12,2014. Atthe tim e ofthisterm ination,
hewasearning $7.75perhourandusuallyworked 35-40hoursperweek. Bettsresidesin
H alifax County,V irginia.
19.
PlaintiffCrystalBoyd isa 3l-year-old A frican-A m erican fem ale. Boyd began
w orking atthe Riverdale M cD onald'sin Decem ber2012. She w orked as a cashier. Boyd's
em ploym entw asterm inated on M ay 12,2014. Atthe tim e ofthisterm ination,she w as earning
$7.25 perhourand usually worked 28-40 hoursperweek.Boyd residesin Halifax County,
V irginia.
20.
PlaintiffChristina Chadw ick is a 53-year-o1d H ispanic fem ale. She hasw orked at
M cD onald's restaurantsforabout25 years,including in A rkansas,A rizona,Texas,and V irginia.
In Jtm e 2013,she began working atthe Riverdale M cD onald's as a shiftm anager,m aking
$10.20 perhour.Shewastransferred to theCentervilleM cDonald'son oraboutApril6,2014.
She w asinvoluntarily transferred to the Clarksville M cD onald'sabouttwo weekslater.
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Chadwick wasconstm ctively discharged on July 5,2014.Atthetime ofherconstnlctive
discharge,shewasearning $10.20 anhour,working about30 hoursperweek. Chadwick resides
in H alifax C ounty,V irginia.
PlaintiffA lkeisha J.Lea is a 39-yem=old A frican-A m erican fem ale. She hasone
daughterand one granddaughter. She began w orking fora M cD onald'srestaurantin Chatham ,
V irginia,in 2011. In M ay 2012,Lea transferred to the Centerville M cD onald's. ln A pril2014,
shetransferred totheRiverdale M cDonald's. Sheworked continuously asa shiftmanagersince
aboutDecem ber2011. Lea'sem ploym entw asterm inated on M ay l2,2014. A tthe tim e ofher
termination,shewasearning $9.25 perhour,working forty hoursperweek. Learesidesin
M ecklenburg C ounty,N orth C arolina.
PlaintiffPam elaM .M arable isa4o-year-old African-American female.She
began w orking as a shiftm anageratthe C enterville M cD onald's in aboutJuly 2013. She had
previously w orked atthe Riverdale M cD onald's,the Centerville M cD onald's,and another
M cD onald's restaurant. M arable'sem ploym entwastenninated on M ay 12,2014. A tthe tim e of
herterm ination,she waseam ing $9.00 perhourand working about40 hoursperweek.M arable
residesin H alifax County,Virginia.
23.
PlaintiffK irk M orris isa 35-year-old A frican-A m erican m ale. H e hastw o
daughters. H e began w orking as a cook atthe R iverdale M cD onald'sin M ay 2012. M onis'
em ploym entw asterm inated on M ay 12,2014. A tthe tim e ofhisterm ination,he was earning
$7.75 perhourand working about30 hotlrsperweek. M orrisresidesin Halifax County,
V irginia.
24.
PlaintiffSheina Robinson isa sl-year-old African-A m erican fem ale. She has tw o
daughters. She began w orking atthe Centerville M cD onald's in N ovem ber 2013 as a cashier.
6
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Shehad previously worked attheCenterville M cDonald's.Robinson'sem ploymentwas
terminated on M ay 12,2014.Atthetime ofhertermination,shewaseam ing $7.50 perhour,
w orking about15 hoursperw eek.Robinson residesin Halifax County,V irginia.
PlaintiffKatrinaD .Stanfield isa32-year-old African-American female. She
began w orking atthe Riverdale M cD onald'sin aboutM arch 2012. She transferred to the
Centerville M cD onald's in 2013. She w orked continuously as a shiftm anagersince Decem ber
2012. Stanfield'sem ploym entw asterm inated on M ay 12,2014. A tthe tim e she w as
term inated,shewaseam ing $9.00 perhourand working about45hoursperweek. Stanfield
resides in H alifax County,V irginia.
26.
PlaintiffBrian M .Tucker is a 29-year-old A frican-Am erican m ale. H e began
working atthe Centerville M cD onald's in 2012 asa crew m em ber. H e had previously worked at
the R iverdale M cDonald'safterbeing hired through a NationalH iring D ay eventorganized by
M cD onald'sC orporate. Tucker's em ploym entw as term inated on M ay 12,2014. A tthe tim e of
histermination,hewasearning $7.50 and working about20-30 hoursperweek.Tuckerresides
in H alifax County,V irginia.
27.
PlaintiffTam ika K ing W illiam s is a zm -year-old A frican-A m erican fem ale. She
hasthree daughters and a son. She began w orking atthe Riverdale M cDonald's in O ctober2012
and w as eventually prom oted to shiftm anager. She had previously w orked atthe Riverdale
M cD onald's. K ing W illiam s'em ploym entw asterm inated on M ay 12,2014. A tthe tim e ofher
term ination,she wasearning $9.00 perhour,working aboutfortyhoursperweek.Sheresidesin
Halifax County,V irginia.
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M CDONALD 'S COX PORATE AND ITS FRAN CIX SES
-
28.
There are over 15,500 M cDonald's restaurantsoperating in the United Statesand
Canada. Approxim ately 90% ofthese restaurants in the U nited Statesare operated as
M cDonald'sfranchised restaurantsand the rem ainderare owned and operateddirectly by
M cDonald'sCorporate.Asdiscussed below,M cDonald'sCorporatehascontrolovernearly
every aspeetofitsfranchised restaurants'operations.
A.
M cDonald'sCorporate M aintainstheRightto ControlAIlOperationsat
Franchised RestaurantsT hrough ItsFranchise A greem ent.
M cD onald's Corporate requires thateach franchisee sign a franchise agreem ent
setting forth som e ofthe term softhe franchise relationship. M cD onald'sCop orate's franchise
agreem entw ith Soweva isreferred to as the t<Franchise A greem ent.''
30.
The Franchise A greem entrequires Sow eva to operate the South Boston
restaurants4tinaclean,wholesomemalmerincompliancewith prescribedstandardsofQuality,
Service,and Cleanliness''and to ''com ply w ith allbusiness policies,practices,and procedures
im posed by M cD onald's.''
The Franchise A greem entstates thatttevery com ponentofthe M cD onald's
System isim portantto M cDonald'sand totheoperation ofthe RestaurantasaM cDonald's
restaurant,including a designated m enu offood and beverage products'
,uniform ity offood
specifications,preparation m ethods,quality,and appearance'
,and uniform ity offacilities and
serviCe.''
32.
The Franchise A greem entrequiresSow eva to pay M cD onald's Corporate 4% of
Sow eva's gross sales as a tiservice fee-''
8
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33.
M cDonald'sCorporateownsthephysicalfacilitiesin which franchised
restaurantsare operated and rents those facilities to franchisees,including Soweva. The am ount
ofrentSoweva paysto M cD onald'sCop orate to lease the facilities is an additionalpercentage
ofSow eva's gross sales.
34.
In 2013,M cDonald'sCorporatereceived $4.339 billion in revenuefrom its
franchised restaurants in the United States.
35.
The Franchise Agreem entincorporates by reference any 'ibusinessm anual''issued
by M cD onald'sCorporate. These m anualscontain detailed instructionsforfranchisees in areas
including operationsprocedures,bookkeeping and accounting procedures,business practicesand
policies,personnelm anagem ent,and any otherarea M cD onald's Corporate w ishesto control.
The agreem entgivesM cD onald'sCorporate the rightto am end any ofthese business m anualsat
any tim e,in its sole discretion. In effect,these provisionsgive M cD onald's Corporate the ability
to controlallaspectsofits franchisees'operations.
36.
The Franchise A greem entestablishes thatM cD onald'sCorporate retainsthe
ability to send corporate representatives w ho provide oversightto the restaurants operated by
Soweva.
The Franchise A greem entrequires Sow eva to enrollallm anagerialem ployees at
ttllam burgerU niversity''orany othertraining centerdesignated by M cD onald's Corporate.
M cD onald'sC om orate controls the contentofallsuch trainings.
The Franchise A greem entrequires Sow eva to spend a certain portion of its gross
saleson advertising provided by or approved by M cD onald's Corporate. Soweva isnot
perm itted to spend m oney on advertising thatwasnotprovided or approved by M cDonald's
Corporate.
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39.
M cD onalds Corporate determ ines,in its sole discretion,standards forpurchasing,
distribtltion,preparation,and service ofgoods,services,supplies,fixtures,equipm ent,inventory,
and com puterhardw are and software atrestaunm ts operated by Sow eva. M cD onald's Corporate
requires Sow eva to contractonly w ith suppliers thatM cD onald'sCorporate hasapproved.
The Franchise A greem entrequires Sow eva to provide M cDonald's Corporate
regularsalesreports,along with any additionalinformation requested by M cDonald'sCorporate.
The agreem entgives M cD onald'sCorporate the rightto inspectand auditSoweva's accounts,
books.records,and tax returns.
The Franchise A greem entlim its Soweva'srightto transferitsownership interest
in the restaurants.
42.
The Franchise A greem entgrants M cDonald's Corporate the rightto term inate
Sow eva'sfranchise ifitfailsto operate restaurants%tin a good,clean,wholesom e m nnnerand in
com pliance w ith the standards prescribed by the M cDonald's System .''
43.
Upon the term ination ofSow eva's franchise,the Franchise Agreem entgives
M cD onald's Corporate the im m ediate rightto enterand take possession ofthe restaurants in
orderto m aintain their continuous operation.
44.
M cD onald'sCop orate m aintains significantly m ore controloveritsfranchisees,
including Sow eva,than isreflected in theirfranchise agreem ents.
B.
M cDonald'sCorporate Im posesCom prehensivePolkieson FranchiseesThrough
ItsBusiness M anuals.
45.
The Franchise A greem entincorporates by reference the contentsof anum berof
ttbusinessm anuals''provided to Sow eva.
10
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46.
M cDonald'sCorporate providesitsfranchisees,including Soweva,am anual
giving franchiseesspecific instrttctions on how to m anage,supervise,and retain m anagersand
crewm em bers.
47.
M cDonald'sCorporateprovidesitsfranchisees,including Soweva,am anualthat
instructsfranchisees on how to predicttheir staffing needsforboth m anagers and line
em ployees.
48.
M co onald'sCorporate provides itsfranchisees,including Soweva,a m anualthat
includes detailed instructions abouttopicssuch as how a franchisee should conductintervuew s
and reference checks in the hiring process.
M cDonald'sCorporateprovidesitsfranchisees,includingSoweva,a::QSC
Playbook''establishingstandardsfor<touality,Service,andCleanliness''applicabletoall
M cDonald'srestaurants.
50.
M cD onald'sC orporate provides its franchisees,including Sow eva,an
''OperationsandTrainingM anual''(%4O&T M anual'').TheO&T manualsetsforthM cDonald's
Corporate's policieson m any topics,including training,discipline,diversity,nondiscrim ination,
and sexualharassm ent. The O& T M anualis referred to asthe 4<B ible''by som e M cD onald's
em ployeesbecause itprovides a com prehensive setofrequirem ents.
51.
The O& T M anualstatesthatM cD onald'shas a kçzero tolerance''policy for
discrim ination and harassm ent.
The O & T M anualestablishesthati'allM cDonald'srestaurantsm ustprovide
employeeswith arespectfulworkplacel.l''
53.
The O & T M anualstates thattlM cD onald's willnottolerate any form of
harassment,jokingremarks.orotherabusiveconduct...thatdemeansorshowshostilitytoward
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an individualbecause ofhisorherrace,color,sex,religion,nationalorigin,age,disability,
veteranstatus,sexualorientation,orotherprohibitedbasisg.l''
54.
The O & T M anualdirectsem ployeesto reportincidents ofunlawful
discrim ination orharassm ent,and states thatEtM cD onald'sw illinvestigate any report
thoroughly,with seasitivitytowardsconfidentiality. lfthereportha:m erit,M cDonald'swill
takecorrective action,including,butnotlim ited to,disciplinary action againstthe offender
ranging from a w arning to term ination.''
55.
M cD onald's Corporate provides its franchisees,including Sow eva,a docum ent
entitled tto urPolicies,a guide to actionsand behaviors atM cD onald's.'' The ito urPolicies''
m anuallists em ploym entrules forem ployees atfranchised restaurants,and notesthatem ployees
who failto follow these rulesw illbe atrisk fordiscipline.
56.
The ççourPolicies''m anualstatesthatfranchises such asSow eva prohibit
discrim ination and harassm ent. Itstates thatwhen em ployees atfranchises such as Soweva
w itnessdiscrim inatory or harassing conduct,they are required to follow certain reporting
protocols in orderto notify theirfranchise operator.
57.
Both M cD onald'sC orporate and Soweva understand thatthe policiescontained in
the O &T M anualand the 'r urPolicies''m anualare m andatory,notw ithstanding any disclaim ers
to the contrary.
M cD onald's Com orate retainsthe rightto unilaterally am end the O &T M anual
and the tr urPolicies''m anualatany tim e,in its sole discretion. A ssuch,M cD onald's
Cop orate retainstherightto imposeon Sowevathem anuals'em ploym entand personnel
policies,orany other setofpolicies itelects to prom ulgate.
12
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59.
M cDonald'sCop oratecontrols,andhastherightto control,Soweva'spolicies
regarding personnelm anagem ent,including butnotlim ited to Soweva's policies regarding
discrim ination,harassm ent,training,and discipline.
C.
M cDonald'sCorporateEnsuresCom pliance W ith ItsPoliciesUsing Corporate
R epresentatives.
60.
M cD onald's Cop orate regularly sendsa corporate representative to every
franchised restaurant,including those operated by Soweva. Corporate representativesensure that
franchise-operated restaurantsoperate in fullcom pliance w ith the com prehensive M cDonald's
System . There are atleasttw o typesofcorporate representatives:çtBusiness Consultants''and
46M ystery Shoppers.''
6l,
Every franchise-operated restaurantis assigned a cop orate BusinessConsultant.
BusinessC onsultants are responsible forw orking directly w ith each franchise operatorto address
allareasin itsrestaurants,including personnelm atters such ashiring,training,and com pliance
w ith em ploym entlaw s.
62.
Btlsiness Consultants w ork with franchise operators and restaurantm anagersto
develop ai'RestaurantOperationslmprovementProeess''C:ROIP'')forevery franchised
restaurant.TheQSC Playbookidentifiestwelvesystemsthataretobeaddressed in theROIP.
These system s include lçservice,''ttshiftM anagem ent,''Atpeople Practices,''tt-l-raining,''''Crew
and M anagem entScheduling,''and 'ilnternalCom m unication.''
63.
Business Consultants physically inspectfranchised restaurants,ind uding those
operated by Soweva,by periodically conductingtwo-day :4FullOperationsReviews,''two-hotlr
tlshol'
tOperations Review ss''and additionaldtsupportV isits.''
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64.
W hen conducting Fulland ShortOperationsReviews,BusinessConstlltants
ensure franchised restaurants'com pliance w ith the M cD onald's System and the RO IP by grading
restaurants'pedbrm ancein alloftheRO1P'stwelve system s,and by directingrestaurantsto
m ake specific changesafld im provem ents in order to com ply w ith the M cD onald'sSystem .
65.
AccordingtotheQSC Playbook,SupportVisitsgivetheBusinessConsultantthe
opportunity to work tsside-by-side''with afranchiseoperatortohelp Stbuild thebusiness.''
AccordingtotheQSC Playbook,when conductingSupportVisits,BusinessConsultantswork
w ith franchises on topics including ''Staffing,Scheduling,and Positioning.''
66.
BusinessConsultantsalso engagein tton-goingStatusReview,''whichtheQSC
Playbook describesas<'an on-going conversation between the (franchiselOwnerOperatorand
theConsultantregarding the statusoftheirgplansl.''
67.
A tfranchised restaurants,including those operated by Soweva,Business
Consultants seek to ensure com pliance with the RO IP and the M cD onald's System by:
Review ing whetherfranchiseesfollow the policies prom ulgated by
M cDonald'sCorporate;
b.
R eview ing whetherfranchiseesfollow em ploym entlaw s;
Requiringthatfranchiseesusethesoftware systemsprovided by
M cD onald'sCorporate;
Requiring thatfranchisees follow the latestversion ofthe O& T M anual;
C.
D ireeting m anagers to take specific actions to addressany pereeived
deficiencies'
,
D irecting m anagersto take em ploym entactionsagainstem ployees w ho
are notcom plying w ith the M eD onald's System '
,
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g.
Reviewing corporate-generated staffing sheets and position charts;
h.
Instrud ing allfranchiseeson how to controlcrew m em bers'hours in
relation to the volum e ofsales in the restaurant'
,and
Review ing franchisees'operating data.
68.
M cD onald'sCorporate and franchise operators,including Sow eva,understand
thatdirectionsgiven by BusinessConsultantsare m andatory,notw ithstanding any corporate
disclaim ersto the contrary.
69.
The sam e Btlsiness Consultantw as assigned to the South Boston and Clarksville
M cDonald's before and after Sow eva becam e the franchise operatorforthose restaurants. A fter
Soweva becam e the franchise operator,the assigned BusinessConsultantbegan visiting and
inspecting the restaurants m ore frequently. A ttim es,the Business Consultantw ould visitand
inspectthe restaurants m ultiple tim esperm onth.
70.
M ystery Shoppersare corporate representatives who pose as custom ersto
determ ine iffranchised restaurants.including those operated by Sow eva,adhere to the
M cD onald'sSystem .
71.
M ystery Shoppers grade restatlrants on theircom pliance w ith the M cD onald's
System ,ineluding the details ofem ployees'perform ance such astheirtone ofvoice and eye
contactw ith custom ers,facialexpressions,exactw ordsused,and assem bly of food item s.
M ystery Shoppersthen send detailed evaluations ofrestaurants to M cD onald'sCop orate.
During the applicable tim e period,M ystery Shoppers inspected each restaurant
operated by Sow eva approxim ately once per m onth.
15
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73.
Em ployeesattheserestaurantswere disciplined when aM ystery Shoppergavc
theirrestaurantanegativereport,and received $10 bonuseswhen aM ystery Shoppergavetheir
restauranta 100% rating.
D.
M cDonald'sCorporateControlstheDetailsofW hen Em ployeesW ork and W hat
TasksThey Perform Through ltsM andatory Com puterSystem s.
M cD onald'sCorporate requiresfranchisees,including Soweva,to use an E'in-store
processor''(4%1SP'')andacomputersoftwareprogram calledçEstaffing,Schedulingand
Positioning forO perationalExcellence.''
75.
M cD onald'sCorporate'sm andatory softw are program s prescribe restaurants'
staffing levels,generate weekly em ployee schedules,and position crew m em bers w ithin
restaurants. M cD onald's Corporate instructs allfranchisees,including Sow eva,to use the
softw are's positioning toolto ensure the num berofpeople working on each shiftand in each
position is notgreaterthan the num bersprescribed by M cD onald'sCorporate.
76.
M cD onald'sCorporate evaluatesfranchisees on whetherthey are using this
softw are properly and requiresthem to use the softw are asM cD onald'sC orporate intends.
M cD onald's Corporate's m andatory softw are program s also engage in a real-tim e
m onitoring ofeach restaurant's labor expensesand salesreceipts. M cDonald's Corporate
establishes acceptable ratios oflaborexpensesto sales receipts. W hen the softw are show s thata
restaurant'slaborcostratio exceeds levels approved by M cD onald'sCorporate atany tim e,
franchise operatorsare instnlcted by M cD onald's Corporate to reduce laborcosts. M cD onald's
Corporate providesdetailed instrtlctions to franehise operatorson how to respond to excess labor
costs by prom ptly taking worket'sofftheir shifts.
16
Case 4:15-cv-00002-JLK Document 1 Filed 01/22/15 Page 17 of 41 Pageid#: 17
78.
M cDonald'sCorporateevaluatesfranchiseeson whetherthey follow their
eom puterprogram s'staffing dictates. In practice,M cD onald's Corporate requires franchise
operators,including Sow eva,to follow the program 's directions.
M cD onald's Corporate's software generatesa çr aily A ctivity R eport''for al1
restaurants in the M cDonald's system ,including those operated by Sow eva. D aily A ctivity
Reportsinclude information aboutem ployeehoursworked on the clock,salesm ade,the
custom er count,the drive-thrtlwindow sales count,transactionsper worker-hour,and the labor
costasa percentage ofsales. These D aily A ctivity R eports are updated atleastonce perhour.
80.
M cD onald'sC orporate's software com pilesrestaurant-levelinventory,labor,and
payrollinform ation aboutfranchised restaurants,including those operated by Soweva. D ata
from the softw are is transferred to M cD onald's Corporate. D ata isreviewed regularly by
M cDonald'sCorporate.
E.
M cD onald'sCorporate Controlsthe OperationsatFranchised Restaurants
Through M andatory Trainingsfor AIIM anagers.
81.
M cD onald's Corporate requires franchise ow ners,including M ichaelSim on,to
attend and com plete detailed training program s atH am burgerU niversity on how to operate,
staff,and m anage M cD onald'srestaurants. M cD onald'sCorporate operates Ham burger
U niversity and directs alltraining program s there.
82.
M cDonald's Corporate trains franchise ow ners,including M ichaelSim on,about
how to hire,fire,discipline,and train em ployees'
,how to instructrestaurantm anagersto hire,
fire.discipline,and train em ployees'
,and how to recognize and address diversity,discrim ination,
and harassm entissues.
Case 4:15-cv-00002-JLK Document 1 Filed 01/22/15 Page 18 of 41 Pageid#: 18
83.
M cD onald'sCorporate requiresstore m anagers,including D evin Snead and Zina
Lam bert,to attend m anagem enttraining atHam burger University orotherdesignated training
centersl'
un by M cDonald'sCorporate. They receive detailed training on how to operate,staff,
and m anage M cD onald's restaurants.
84.
M cD onald's Corporatetrainsrestaurantm anagers,including Snead and Lam bert,
abouthow to hire,fire,discipline,and train em ployees,and how to recognize and address
diversity,discrim ination,and harassm entissues.
85.
M cDonald's Corporate requires shiftm anagers,including severalofthe plaintiffs,
to attend m anagementtrainingatHam burgerUniversity orotherdesignated trainingcentersl'un
by M cD onald's Com orate. A tthis training,shiftm anagersreceive detailed instructionson
topics including how to preparefood produets,how to directem ployeesto com plete specific
tasks w ithin theirassigned work area,and how to handle problem atic custom ers.
86.
A tthistraining,shiftm anagersalso receive training aboutdiversity in the
workforce,discrim ination,and harassm ent. M cD onald'sCorporate instructsshiftm anagers
abouthow to recognize and address diversity,discrim ination,and harassm entissues.
87.
M cD onald's Corporate instructs shiftm anagers,incltlding severalofthe
plaintiffs,to reportinstancesofharassm entand discrim ination up the itchain ofcom m and.''
Em ployees were instructed to firstreportsuch conductto theirsupervisors. lfthey were not
satisfied w ith theirsupervisor's response,they w ere instructed to reportthe conductto theirstore
m anagers,and,subsequently,to the franchise's operator. Ifthey were dissatisfied w ith their
franchisee's response to a com plaintofdiscrim ination,em ployees were instructed to contact
M cD onald'sCorporate w ith theircom plaint. Em ployees w ere provided contactinform ation for
a num berofM cD onald's Corporate's offices,indtlding hum an resources.
18
Case 4:15-cv-00002-JLK Document 1 Filed 01/22/15 Page 19 of 41 Pageid#: 19
88.
M cDonald'sCorporaterequiresshiftm anagers,ineluding severaloftheplaintiffs,
to participate in online training produced by M cD onald'sCorporate. Shiftm anagers'online
training gave specific instructions on topics such ashow to prepare every item on the
M cDonald'smenu,how to dealwith problem aticcustomers,and how to dealwith conflicts
between em ployees.
89.
Shiftm anagers'online training also gave specific instrtlctions aboutdiversity,
discrim ination,and harassm ent.
90.
M cDonald'sCorporate evaluates franchisees,including Sow eva,on w hether their
em ployees participate in trainings conducted orproduced by M cD onald's Corporate,including
corporate orientation videos.
F.
M cD onald's Corporate M onitors Em ployee Relations Through Em ployee Surveys
atFranchised R estaurants.
M cD onald's Corporate requires thatem ployees atfranchised restaurants com plete
an alm ualem ployee satisfaction survey.
92.
ln this survey,em ployees are instnlcted to inform M cD onald'sCorporate about
topics including whether m anagers treatem ployees respectfully regardless ofrace or gender,
whetherthey aresatisfiedw ith theirpay and benefits,whetherthey are satisfied with theirwork
svhedule,and w hethe:w orkplac.
e rules are applied eonsistently.Em ployees are asked to provide
dem ographic infonnation.
93.
M cD onald's Corporate also instructs em ployeesto inform them ofany concerns
abouttopicsincludingjobtraining,theirworkschedule,theirrestaurant'smanagers,andthe
environm entatthe restaurant.
Case 4:15-cv-00002-JLK Document 1 Filed 01/22/15 Page 20 of 41 Pageid#: 20
94.
M cDonald'sCorporatecomm unicatessurvey resultsto franchiseoperators,along
w ith descriptions ofw hatthe franchise does welland whatpractices the franchises should
change. M cDonald's Corporate also sendsdem ographic inform ation aboutthe franchise's
w orkforce to the franchise operator.
95.
M cD onald's Corporate gradesfranchisees,including Sow eva,on w hetherthey
adm inisterthe m andatory employeesurvey.
96.
M cD onald'sCorporate requires franchises,including Sow eva,to regularly
conductperform ance and w age reviews ofem ployees,and to repol'tthe resultsofthese review s
to M cD onald'sCorporate.
G.
M cDonald'sCorporate AssessesAllJob ApplicantsatFranchised Restaurants
Before They A re H ired.
97,
M cDonald'sCorporaterequiresmanyfranchisees,including Soweva,to usean
onlineassessmenttoolforjobapplicantscreening,specificinstnlctionsforusingthescreening
results,and other criteria and instructionsforinterview ing applicants.
98.
M cD onald's Corporate m aintains a w ebsite thatlists allM cD onald's System
restaurantsin Virginia,whetherfranchisedorcorporate-owned,andjobopportunitiesatthe
restaurants. The w ebsite is w ww .m cvirigina.com .
99.
M cD onald's Corporate uses w ww .m cvirginia.com to recruitm anagers and hourly
em ployeesto its restatlrants,including franchised restaurants operated by Sow eva. Forexam ple,
inJanuary2015,M cDonald'sCorporate'sM cvirginawebsiteadvertisedjobopeningsata1l
three restaurantsoperated by Sow eva.
M cDonald'sCorporate'sMevirginiawebsiterequiresjobapplicantstocomplete
a questiolm aire aspartofthe application process. M cDonald's Corporate developed the
Case 4:15-cv-00002-JLK Document 1 Filed 01/22/15 Page 21 of 41 Pageid#: 21
questiorm aire. M cDonald'sCorporate assignsa score to the applicantbased on the answ ers
provided. M cD onald'sC om orate then inform s m anagem entoffranchised restaurants,ineluding
those operated by Soweva,whetherthe applicantiswell-qualified forvariouspositionsand what
interview questionsshould beasked oftheapplicant.
101. M cDonald'sCorporate provides franchises,including Soweva,detailed
instructions on how to interview applicantsfora1lpositionsw ithin every restaurant. The
instructions include specific questions and hypotheticalsto ask applicants,and give franchisees
tim e lim its on how long each intelwiew should last. M cDonald's Corporate directsfranchisees,
including Sow eva,to ask applicantsspecific sets ofquestionsbased on the applicant'sresponses
on M cD onald'sCorporate'squestionnaire.
102. M cD onald's Corporate evaluates franchisees on theiruse ofan éteffective hiring
process,''includingwhetherjobsarepostedin awaythatwillattractthebestapplicantsandcites
the tkM cstate''websites.stlch asM cvirginia,as the optim alm ethod.
103. Em ployees atfranchised restaurants can participate in an insurance program
sponsored by M cD onald's Corporate providing optionsforhealth,disability,and life insurance.
H.
M cDonald'sCorporateSum ciently ControlsEm ploym entPracticesto beLiable
underTitleVIIand 42 U.S.C.j 1981.
104. M cDonald's Corporate had the authority to controlhow em ployees atthe South
Boston andClarksvilleM cDonald'srestaurantsperformedtheirjobs.
105. M cD onald'sCorporate had the authority to controlthe hiring,firing,training,and
supervision ofem ployees atthe South Boston and Clarksville M cD onald's restaurants.
106. M cDonald's Corporate exercised significantcontroloverthe day-to-day
operations ofthe South Boston and Clarksville M cD onald'srestaurants.
Case 4:15-cv-00002-JLK Document 1 Filed 01/22/15 Page 22 of 41 Pageid#: 22
107. M cD onald's Corporate exercised significantcontroloverhow em ployeesatthe
SouthBostonandClarksvilleM cDonald'srestaurantsperformedtheirjobs.
108. M cD onald's Corporate exercised significantcontroloverthe persolm elpoliciesat
the South Boston and Clarksville M cD onald'srestaurants.
109. M eD onald'sC orporate delegated in partto Sow eva the authority to m ake
decisions on itsbehalfregarding em ployees and em ploym entpracticesatthe South Boston and
Clarksville M cDonald's restaurants.
M cD onald's Corporate is liable as Plaintiffs'em ployerforthe claim sbelow under
Title VIIand 42 U.S.C.j 1981.
111. Sow eva acted asM cD onald'sCorporate'sagentw ith regard to em ploym ent
practices atthe South Boston and Clarksville M cD onald'srestaurants. M cDonald's Corporate is
liable forthe conductofits agent,Sow eva,giving rise to the claim sbelow underTitle V l1and 42
U.S.C.j 1981.
112. M cD onald's Corporate acquiesced in and ratified Sow eva's conductgiving rise to
the claim sbelow underTitleVl1and 42 U.S.C.j 1981.
FA CTS
A.
Sow eva's M anagers H ave a H istory ofD iscrim ination and H arassm ent.
Untilaround D ecem ber 2013,the R iverdale M cD onald's,Centerville
M cD onald's,and Clarksville M cD onald's were operated by anotherM cD onald's franchisee,
TCR Enterprises.
114. U nderthis franchise operator,the store m anager forthe R iverdale M cD onald's
w asD evin Snead,a white m ale. Underthis franchise operator,untilaround the stlm m erof2013,
the store m anagerforthe Centerville M cDonald'sw as Zina Lam bert,a w hite fem ale.
Case 4:15-cv-00002-JLK Document 1 Filed 01/22/15 Page 23 of 41 Pageid#: 23
115. Asstorem anager,Devin Snead sexuallyharassed thefem ale employeesatthe
R iverdale M cD onald's. H is harassm entincluded the follow ing conductaallof which w as
unw elcom e:
a
Snead m ade inappropriate com m ents aboutfem ale em ployees'bodies.
b
Snead touched fem ale em ployees on their legsand buttocks.
Snead sentfem ale em ployees picturesofhis genitalia.
Snead regularly discussed hissexualactivities with em ployees. For
exam ple,he regularly m ade statem entsto em ployees such as,ttm y dick m ay notbe big,
but1m ake up for itw ith m y tongue.''
Snead regularly show ed em ployeeslew d pictures ofhisw ife,discussed
herbreastim plants,and discussed having sexualintercourse w ith her.
Snead directly or indirectly solicited sexualrelationsfrom fem ale
em ployees. H e offered fem ale em ployeesbetterw orking conditions in exchange for
sexualfavors.
116. A sstore m anager,Lam bertracially harassed African-A m ericmlem ployees and
gave preferentialtreatm entto w hite em ployees.
Lam bertm ade racistcom m ents to A frican-A m erican em ployees. Forexam ple,
she w ould callA frican-A m erican em ployees i*bitch,''16ghetto,''and ttratchet.''
118. Lam bertwould regularly say thatitw as4étoo ghetto''in the store.
119. % en she w as a store m anager,Lam bertinform ed PlaintiffLea thattûas
M cDonald's,ifwehaveblack people in the front(drive-thnllw indow,weneed awhitein the
second kdrive-tht'u windowl. So weneed to coneentrateon hiring qualified whitepeople.''
Case 4:15-cv-00002-JLK Document 1 Filed 01/22/15 Page 24 of 41 Pageid#: 24
120. In 2013,Lam bertw asdating RobertIrby,w ho,like Lam bert,w as an em ployee at
the Centerville M cDonald's. lrby,who is white,repeatedly m ade racist,threatening com m ents
to African-Am erican em ployees.
121. ln oraboutJuly 2013,lrbypulled aknife onPlaintiffTuckerand toldhim dtl
don'tcare how big and black you are,l'm trained to take dow n people like you.'' Tucker
com plained to Lam bertaboutlrby'sracistbehavior and workplace assault.Lam bertresponded
by term inating Tucker.
Tuckercom plained to TCR Enterprises. Lam bertw asultim ately term inated asa
resultofTucker'scom plaint.Tuckerw asreinstated two m onths afterhis term ination,with a
reduction in pay. H e received no com pensation forthe tw o m onthshe was outofw ork.
123. ln em ployee surveys subm itted to M cD onald'sCorporate,em ployees,including
som e ofthe plaintiffs,com plained aboutbeing m istreated.
B.
SowevaBecom esthe FranchiseOperator.
In oraround Decem ber2013,D efendatltSow eva because the franchise operator
forthe C enterville,Riverdale,and C larksville M cD onald's. DefendantM ichaelSim on w asthe
ow nerofSoweva and controlled itsfranchise operations. Initially,each of the restaurants'
em ployeescontinued theirem ploym entunderSoweva.
125. Shortly afterbecom ing the operatorforthethree M cD onald'srestaurants,Sim on
prom oted Snead to be the ççsupervisor''over allthree restaurants. Snead reported directly to
Sim on and had m anagem entauthority over allthree restaurants.
126. Sim on rehired Lam bertto be the t4assistantsupervisor''overa11three restaurants.
Lam bertreported directly to Snead and had m anagem entauthority over allthree restaurants.
Case 4:15-cv-00002-JLK Document 1 Filed 01/22/15 Page 25 of 41 Pageid#: 25
127. Sim on selected Liz Daniels,who iswhite,to bethe new storem anagerforthe
Riverdale M cD onald's. Sim on hired D ave Chisholm ,who is white.to be the new store m anager
fortheCentervilleMcDonald's.InoraroundApril2014,SimonselectedTommyBenjamin,
w ho isA frican-A m erican,to be the store m anagerfor the Clarksville M cD onald's.
128. M ultiple em ployeesinform ed Sim on aboutSnead's pattern ofsexualharassm ent.
Sim on,however,did nothing to address Snead's abuse.
129. A fterSnead and Lam bertstarted theirsupervisory positions,they told a11
em ployees thatthey w ere prohibited from going directly to Sim on w ith any com plaints. A 11
employeeswere instead told to takeanycomplaintsto theirstorem anagerfirst,and then to
Snead and Lam bert.
C.
Lam bertand Snead Engage in Ram pantRacialand SexualH arassm ent.
130. A s supervisorsovera1lthree stores,Snead and Lam bertregularly m ade racist
com m entsto A frican-A m erican and Hispanic w orkers,including the Plaintiffs.
Shortly afterthey becam e supervisors,Lam berttold Snead ttnow w e can getrid of
the niggers and the M exicansa'' Both Lam bertand Snead then laughed.
132. Lam bertw ould regularly say Aithere are too m any black people in the store.''
W hen the em ployees on staffw ere prim arily A frican-A m erican,Lam bertwould say itw asçitoo
dark in the store.''
Lam berttold African-A m erican workersthatcustom ersw ere com plaining about
how m any Afriean-Am eçiean workersw ere on staff,butPlaintiffs neverheard these alleged
com plaintsthem selves.
Case 4:15-cv-00002-JLK Document 1 Filed 01/22/15 Page 26 of 41 Pageid#: 26
Aftershebecam eassistantsupervisor,Lam bertwould regularlycallAfrican-
American workersftbitch,''64ghettos''andttratchet.''Lambertoftenmadejokesaboutwhatttblack
People''w ould do.
135. Lam berttold African-A m erican workers with colorfulhairorfancy nails thatthey
were ttghetto''and thatttthis isn'tthe hood.'' She w ould notsim ilarly criticize w hite w orkers
w ith brightly colored hair.
Lam bertregularly referred to the Clarksville M cDonald's as the ttghetto store.''
On one occasion,she transferred an A frican-Am erican em ployee to the C larksville M cD onald's,
saying thatétshe w as too ghetto.''
137. Snead criticized African-Am erican w orkers'appearance by m aking statem entsto
them such as,dtyou're notTupac and Biggie,''or ttthis isn'tthe hood,you're notselling dope.''
Snead w ould notm ake sim ilarcom m entsto white em ployees.
Snead often called PlaintiffChadw ick ttdirty M exican''or 'éhotM exican.''
Chadw ick repeatedly told Snead she found thisdeeply offensive - asshe w as an H ispanic nativeborn A m erican and w asnotofM exican descent- and asked him to stop. Snead ignored her
requests and continued calling hert'M exican.''
Lam bertdisciplined African-A m erican em ployeesforrule infractionsthatwere
forgiven w hen com m itted by white em ployees. Forexam ple,on one occasion both an A fricanA m erican em ployee and a white em ployee w ere notw earing theirM cD onald'shatwhile
w orking atthe frontcounter. Lam bertinstructed PlaintiffM arable to suspend the AfricanA m erican em ployee,butto take no action againstthe w hite em ployee. W hen M arable told
Lam bertthatdoing so w ould notbe fairto the A frican-A m erican em ployee,Lam bertdisciplined
M arable.
Case 4:15-cv-00002-JLK Document 1 Filed 01/22/15 Page 27 of 41 Pageid#: 27
140. Lamberthum iliated African-Am erican workers. Forexam ple,PlaintiffLeaonce
stated thatshe did notlike wearing brightcolorsbecause they clashed w ith her dark skin tone.
Lam bertresponded by buying three extrem ely brightshirts and forcing Lea to w ear them .
141. Lam bertdem eaned A frican-A m erican w orkers. For exam ple,w hen an AfricanA m erican em ployee did som ething wrong,she w ould criticize the em ployee in frontof
custom ers and otherem ployees. W hen a white em ployee did som ething wrong,she would pull
the em ployee to the side to m ore discreetly correctthem .
142. Lam bertm ade inappropriate sexualcom m ents. Forexam ple,she w ould rem ove
herfalse teeth and discuss perform ing oralsex on m ale em ployees.
143. Lam berttold PlaintiffTucker,who used to be m arried to a white w om an,thatshe
çtknew he liked white wom en,''and thathe shotlld i6go back to w hite.'' Lam bertputa piece ofice
up PlaintiffTucker's shirtafterm aking sexualcom m ents to him on one occasion.
144. Lam berttold a gay em ployee thathe could be a shiftm anagerifhe w ould ittone
his gayness down.''
145. Lam bertm ade m any ofherracialcom m ents when she and Snead were together in
arestaurant.SneaddidnotchallengeLambert'scomments,andgenerallyjoinedinwhen she
w asharassing w orkers.
146. A s supervisor,Snead sexually harassed the fem ale em ployees atboth the
R iverdale and Centerville M cDonald's. H isharassm entincluded the follow ing conduct,al1
unw elcom e:
Snead m ade inappropriate com m ents aboutfem ale em ployees'bodies.
Snead touched fem ale em ployeeson their legsand buttocks.
Snead sentfem ale em ployees pictures ofhisgenitalia.
27
Case 4:15-cv-00002-JLK Document 1 Filed 01/22/15 Page 28 of 41 Pageid#: 28
d
Snead regularlydiscussedhissexualactivitieswith employees.
e
Snead showed employeeslewd picturesofhiswife,discussedherbreast
im plants,and discussed having sexualintercourse w ith her.
f
Snead directlyorindirectly solicited sexualrelationsfrom female
em ployees. H e offered fem ale em ployeesbetterw orking conditions in exchange for
sexualfavors.
147. Riverdale Store M anagerLiz D aniels cooperated w ith Snead and Lam bert'sracist
behavior. She would schedule and position workersatthe Riverdale store so thatwhite
em ployeesw ere working in the frontand African-Am erican em ployees w ere w orking in the
back.
148. Ifan em ployee did notw itness a particularincidentofracialorsexualharassm ent
firsthand,they generally becam e aw are ofitthrough otherem ployees.
D.
M anagem entDecidestoReducetheNum ber ofM rican-Am erican Em ployees.
149. Shortly afterSow eva becam e the franchise operatorforthe Centerville,R iverdale,
and C larksville M cD onald's,D efendantSim on,Snead,and Lam bertdecided thatthe Riverdale
and C enterville restaurants should have few erA frican-A m erican em ployees. They decided they
w ould achieve this goalby trying to hire as m any w hite w orkers as possible,and then
term inating m any ofthe restaurants'A frican-Am erican em ployees.
150. Sim on,Snead,and Lam bertdid nothide this strategy. O n one occasion,Lam bel't
and Snead w alked into the Centerville Store w hen itw asstaffed alm ostentirely by AfricanA m erican em ployees. Lam bertsaid itit's dark in here and needs m ore lightening.'' Snead
responded by saying ltY eah,w e've gotto do som e hiring.''
Case 4:15-cv-00002-JLK Document 1 Filed 01/22/15 Page 29 of 41 Pageid#: 29
t51. Atam anagers'meeting in aboutFebruary orM arch 2014,Lambertstated that
they were going to hire new em ployees because they ç4need to getthe ghetto outofthe store.''
152. PlaintiffM arable,who w asin the m eeting,w as offended by Lam bert'scom m ents,
and complained directly to Simon in person. Simon,however,admitted thathewantedm ore
white em ployees relative to A frican-A m erican em ployees. He explained thattçthe ratio wasoff
ineachofthestores,''andthathejustwantedt:theratiotobeequal.''Butheapologizedto
M arable,sayingthatthe supervisors'shad no rightto say thattheway they did.'' He said thathe
would talk to Lam bertabouthow she had phrased her com m ents.
153. AfterM arablecomplained to Simon,Snead and Lambertgotangry atM arablefor
violating theirinstructionsprohibiting any em ployee from com plaining to Sim on w ithoutfirst
com plaining to Lam bertand Snead.
Sow eva hired a large num berofnew em ployeesin oraboutM arch 2014,m any of
whom w ere white. Before the round ofnew hiring,the South Boston and Clarksville
M cDonald'swerepredominantly staffed with African-American workers. Aftertheround of
new hiring,there w ere m ore white w orkerson staffateach ofthe restaurants.
155. Som eAfrican-American employees'hourswerereduced following the round of
new hiring.
E.
Num erousAfrican-Am erican Em ployeesareTerm inated in M ay 2014.
156. ln oraround M ay 2014,Sim on instructed Lam bertand Snead to prepare a listof
African-A m erican em ployeesto fire atthe C enterville,Riverdale,and Clarksville M cDonald's.
The Riverdale em ployees included on the listw ere allA frican-A m erican. The Centerville
em ployees on the listw ere predom inantly A frican-A m erican and included two white w orkers
who w ere seen as associating too heavily w ith A frican-A m erican workers.
29
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Case 4:15-cv-00002-JLK Document 1 Filed 01/22/15 Page 31 of 41 Pageid#: 31
out'profile atthistime.''W hen Leaasked Siwhatprofile,''Simon responded Ssthekind I'm
building form y com pany.'' Sim on offered Lea tw o weeksofseverance pay. PlaintiffLea was
term inated because ofherrace.
PlaintiffM arable m etw ith Sim on and Lam berton M ay 12. M arable wastold she
wasbeingfired because she didn'tEtfittheprofile.''Simon told M arablehe would givehera
good referencebecauseshe wasa good worker. Sim on offered M arabletwo weeksofseverance
pay. PlaintiffM arable w asterm inated because ofherrace.
165. PlaintiffM orrism etwith Sim on lm d Lam berton M ay 12. Lam berttold M onis
thathe w asbeing fired because he ttdidn'tfitthe profile them anagem entistrying to build.''
Lam bertalso told him thathe w as 4tm aking shortcuts''atw ork. M orrishad neverbeen w ritten up
for 44m aking shortcuts''atw ork. Plaintiff M orris wasterm inated because ofhisrace.
166. PlaintiffR obinson m etw ith Sim on,Snead,and Lam berton M ay 12. Sim on said
he was sorry thatshe w asbeing fired,butthatshe w asnotbeing fired foranything thatshe did.
HeexplainedthatshejusttAdidn'tfittheprofile.''Robinson askediiwhatprofile,''butSimon
w ould notsay. Robinson asked fora letterexplaining w hy she w as fired so thatshe could show
itto prospective em ployers'
,Snead refused to give her such a letter. PlaintiffRobinson was
term inated because ofherrace.
167. PlaintiffStanfield metwith Simon and Lamberton M ay 12. Simon toldherthat
she w as being fired. Sim on adm itted thatStmzfield w asa good w orker,and gave hertw o w eeks
ofseverance pay. Stanfield w as too upsetto ask any questions. Plaintiff Stanfield w as
term inated because ofherrace.
168. PlaintiffTuckerm etw ith Sim on and Snead on M ay 12. B ased on com m entsfrom
m anagers,Tuckerthoughtthe pup ose ofthe m eeting w as to prom ote him to shiftm anager.
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Simon,however,told him thathewasfiredbecausehedidn'tfEfitthe profile.''W hen Tucker
asked whatthatm eant,Sim on said l4you're nice,butyou cam e on a list.'' PlaintiffTuckerw as
term inated becauseofhisrace.
169. PlaintiffKing W illiam smetwith Simon and Lam berton M ay 12. Sim on toldher
thatshe w as fired because she didn'titfitthe profile thatIam trying to build.'' Sim on
acknowledged thatshe had w orked atthe store for years,had no w rite-ups,no custom er
com plaints,and alw ayscam e in to covershiftsw hen she w asasked. W hen she told Lam bertand
Sim on thatthey w ere firing herforno reason,Lam bel'tsaid ççw e're notgoing to change our
m ind.'' Plaintiff King W illiam s w as term inated because ofherrace.
170. Sowevacontested each tenninatedemployee'seligibility forunem ploym ent
benefits. During the unem ploym entphone hearings,Sim on represented Soweva and w as still
unable to produce a reason forthe term inations. D uring Tucker'sunem ploym enthearing,Sim on
told the hearing officerthathe could go back ç6and m aybe find som ething to fire him for.''
Sow eva fired approxim ately 18 em ployeeson M ay 12,2014.
F.
ChadwicklsForced toResign byBeingSubjected toM onthsofRacialAbuse.
172. PlaintiffChadw ick w as firstem ployed atthe Riverdale M cDonald's in 2013. In
addition to the factsdescribed above,alm ostevery tim e Snead saw Chadw ick,he called her
tedirtyM exican''ortihotM exican''instead ofusing hername.Chadwick told Snead shefound
this deeply offensive,as she wasan H ispanic native-bom Am erican,and w as notofM exican
descent. Snead did notstop his m isconduct.
Chadw ick repeatedly com plained aboutSnead's m isconductto Sim on. Sim on did
nothing to address the problem .
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174. In oraboutFebrtlary 2014,StoreM anagerLiz Danielstold Chadwick thatshe
wastoooldforherjob.ChadwickthenaskedSimontotransferhertotheCenterville
M cD onald's because she w asconcem ed D aniels would find a way to term inate her. Chadw ick
wastransfen-ed to the Centerville M cDonald's on oraboutApril6,2014.
175. Snead w as angry thatChadw ick w entoverhishead to Sim on in seeking the
transfer.Aftertwo weeksonthejobin Centerville,hepunishedChadwick forspeakingto
Sim on by transferring herto the C larksville M cD onald's. Chadw ick had to com m ute
approxim ately fifty m inutes each w ay to the Clarksville M cD onald's.
AttheClarksvilleMcDonald's,StoreM anagerTommyBenjaminfollowed
Snead'sexampleandregularlycalledChadwickilM exican.''Chadwick objectedandtold
Benjamintostop,butherefused.W henChadwickcomplainedtoSimon,hetoldhertotçstop
being adrama queen.''
177. OnJuly2,2014,BenjamingotveryclosetoChadwick andagaincalledher
kkM exican.'' Chadw ick could no longertolerate the abuse and quit.
Benjamin,Snead,andSimon intendedtoforceChadwick toquitwhenthey
harassed her,transferred her,ignored hercom plaints ofharassm ent,and dem eaned herfor
challenging unlaw fuldiscrim ination.
G.
PlaintiffsObjecttoTheirTerm inations.
179. Follow ing his term ination,PlaintiffTuckercalled M cD onald'sCorporate. H e
described the M ay 12,2014 term inations alld stated thatthe term inationsw ere based on race.
The individtlalTucker spoke to said thathis reportwould be forw arded to the appropriate people.
180. Follow ing his term ination,PlaintiffBetts called M cD onald's Corporate and
described the situation w ith the M ay 12,2014 term inations. H e w as told to callSow eva.
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181. Followinghertennination,PlaintiffStanfield called M cDonald'sCorporateand
lefta voicem ailstating thatshe feltthatshe had been discrim inated against. N o one returned her
call.
182.
Severalofthe plaintiffsreported the situation with the M ay 12,2014 term inations
to the localpress. On M ay 15,2014,the South Boston N ew s & Record published an article
entitled 'ûNotLovin'It,''describing the M ay 12 term inations.
183. The M cDonald'sCorporate representative who regularly review ed operations at
the restaurants rtln by Soweva leam ed ofthe M ay 12 term inations soon after they occuaed.
M cD onald'sC orporate could have required Sow eva to reinstate the term inated
em ployees.
185. M cD onald'sC orporate took no actionsto rem edy the M ay 12 term inations.
M cD onald's Corporate thusratified the M ay 12 term ination decisions.
186. PlaintiffsBetts,Boyd,Chadwick,M arable,M orris,Robinson,Stanfield,Tucker,
and K ing W illiam sfiled charges ofdiscrim ination w ith the EqualEm ploym entO pportunity
Conunission (ttEEOC''),alleging theviolationsofTitle VlIsetforth in Claims1V,V,VI,and
V IIbelow .
187. On October24,2014,the EEO C issued plaintiffs right-to-sue notices fortheir
charges ofdiserim ination againstM eD onald'sC orporate and Sow eva.
FIRST CAUSE O F ACTION
-
(42 U.S.C.j 1981 Claim - M ay 12,2014 Term inations)
188. The allegationsin the preceding paragraphsareincorporated by reference.
189. Thisclaim under42 U.S.C.j 1981isbroughtagainsta1ldefendants.
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190. PlaintiffsBetts,Boyd,Lea,M arable,M onis,Robinson,Stanfield,Tucker,and
K ing W illiam s w ere each term inated on M ay 12,2014,because oftheirrace.
There w as no legitim ate nondiscrim inatory reason to term inate these plaintiffs'
em ploym entin M ay 2014.
192. Defendants'term ination oftheseplaintiffs'employm entbecause oftheirrace
violates42 U.S.C.j 1981.
193. A sa proxim ate resultofdefendants'wrongfulconduct,these plaintiffshave each
suffered lossofwagesand benefits,emotionaldistress,hum iliation,lossofreputation,and other
dam ages.
194. D efendants'actions w ere done m aliciously,w illfully,or wantonly,or illa m alm er
thatdem onstrates areckless disregard forplaintiffs'rights. A sa resultofdefendants'conduct,
plaintiffs are entitled to recoverpunitive dam ages.
SECO ND CAUSE OF ACTION
(42 U.S.C.j 1981Claim - Constructive Discharge)
195. The allegations in the preceding paragraphs are incorporated by reference.
196. Thisclaim under42 U .S.C.j 1981isbroughtagainstalldefendants.
197. PlaintiffChadw ick w as forced to resign on July 2,2014.because she w as
repeatedly harassed based on herrace. The harassm entw as offensive,severe,and pervasive,
w asundertaken w ith the intentto force Chadw ick to resign,and rendered Chadw ick's w orking
conditions so intolerable thata reasonable person w ould have feltcom pelled to resign.
198. This forced resignation w as tantam ountto a discharge.
199. There w as no legitim ate nondiscrim inatory reason to term inate Chadw ick's
em ploym entin July 2014.
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200. Defendants'term ination ofChadw ick's em ploym entbecause ofherrace violates
42U .S.C.j 1981.
A s a proxim ate resultofdefendants'wrongfulconduct,Chadw ick has suffered
lossof wages and benefits,em otionaldistress,hum iliation,lossofreputation,and other
dam ages.
202. D efendants'actionsw ere done m aliciously,w illfully,orw antonly,orin a m anner
thatdem onstrates a recklessdisregard forplaintiffs'rights. A s a resultof defendants'conduct,
Chadw ick is entitled to recoverpunitive dam ages.
THIRD CAUSE OF ACTION
(42 U.S.C.j 1981Claim - RacialHarassm ent)
203. The allegations in the preceding paragraphsare incop orated by reference.
204. Thisclaim under42 U.S.C.j 1981isbroughtagainstal1defendants.
205. D efendants'em ployees racially harassed each ofthe plaintiffsin violation of42
U.S.C.j 1981. The racialharassmentwasoffensive,severeand pervasive,and unwelcomeby
plaintiffs. Defendants are liable forthe racialharassm entcom m itted by theiragents.
206. As a proxim ate resultofdefendants'w rongfulconduct,plaintiffshave suffered
loss ofwagesand benefits,em otionaldistress,hum iliation,loss ofreputation,and other
dam ages.
D efendants'actionsw ere done m aliciously,willfully,orw antonly,orin a m anner
thatdem onstrates a recklessdisregard forplaintiffs'rights. A s aresultofdefendants'conduct,
plaintiffsare entitled to recoverpunitive dam ages.
Case 4:15-cv-00002-JLK Document 1 Filed 01/22/15 Page 37 of 41 Pageid#: 37
FOURTH CAUSE OF ACTION
-
(TitleVIIClaim -M ay12,2014Terminations)
208. The allegations in the preceding paragraphs are incorporated by reference.
209. This claim underTitle V 1Iis broughtagainstdefendants M cD onald's Corporate
and Sow eva.
210. PlaintiffsBetts,Boyd,M arable,M onis,Robinson,Stanfield,Tucker,and King
W illiam s were each term inated on M ay 12,2014,because oftheirrace.
211. There w as no legitim ate nondiscrim inatory reason to term inate these plaintiffs'
em ploym entin M ay 2014.
D efendants'term ination ofthese plaintiffs'em ploym entbecause oftheir race
eonstitutesaviolation ofTitle VlI,42 U .S.C.j2000e-2(a)(1).
213. Plaintiffshave satisfied al1the proceduraland adm inistrative requirem ents ofTitle
V l1by filing a tim ely w ritten charge w ith the EEO C ,receiving a notice ofrightto sue from the
EEO C,and filing thiscom plaintw ithin 90 days from the receiptofthe notice ofrightto sue.
A s a proxim ate resultofdefendants'wrongfulconduct,these plaintiffshave each
suffered loss ofw agesand benefits,em otionaldistress,hum iliatiom loss ofreputation,and other
dam ages.
215. D efendants'actionsw ere done m aliciously,willfully,orw antonly,orin a m anner
thatdem onstrates a reekless disregard forplaintiffs'rights. A s aTesultofdefendants'conduct,
plaintiffs are entitled to recoverpunitive dam ages.
FIFTH CAUSE O F AC TION
-
-
-
-
(TitleV1IClaim - ConstructiveDischarge)
The allegations in the m eeeding paragraphs a<e incorporated by reference.
Case 4:15-cv-00002-JLK Document 1 Filed 01/22/15 Page 38 of 41 Pageid#: 38
This claim underTitle V lIisbroughtagainstdefendants M cD onald'sCorporate
and Sow eva.
218. PlaintiffChadw ick w asforced to resign on July 2,2014,beeause she w as
repeatedly harassed based on herrace. The harassm entw as offensive,severe,and pervasive,
w as undertaken with the intentto force Chadw ick to resign,and rendered Chadw ick'sw orking
conditions so intolerable thata reasonable person w ould have feltcom pelled to resign.
Thisforced resignation wastantam ountto a discharge.
220. There w as no legitim ate nondiscrim inatory reason to term inate Chadw ick's
em ploym entin July 2014.
D efendants'tennination ofChadw ick'sem ploym entbecause ofherrace
constitutesaviolation ofTitleVII,42 U.S.C.j 2000e-2(a)(1).
222. Chadw ick has satisfied al1the proceduraland adm inistrative requirem ents ofTitle
V IIby filing a tim ely written charge w ith the EEO C,receiving a notice ofrightto sue from the
EEO C,and filing this com plaintw ithin 90 days from the receiptofthe notice ofrightto sue.
A sa proxim ate resultof defendants'wrongfulconduct,Chadw ick has suffered
loss ofw agesand benefits,em otionaldistress,hum iliation,loss ofreputation,and other
dam ages.
224. Defendants'actions w ere done m aliciously,w illfully,orw antonly,orin a m alm er
thatdem onstrates a recklessdisregard forplaintiffs'rights. A s a resultofdefendants'condtlct,
Chadw ick isentitled to recoverpunitive dam ages.
SIX TH CA U SE O F A C TIO N
(TitleVlIClaim - RacialHarassm ent)
The allegationsin the preceding paragraphs are incorporated by reference.
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This claim underTitle V ll isbroughtagainstdefendantsM cD onald'sCorporate
and Sow eva.
227. D efendants'em ployeesracially harassed plaintiffsB etts,Boyd,M arable,M orris,
Robinson,Stanfield,Tucker,and King W illiam sin violation ofTitleVl1,42 U.S.C.j 2000e-
2(a)(1). Theracialharassmentwasoffensive,severe andpervasive,and unwelcom eby
plaintiffs. D efendantsare liable forthe racialharassm entcom m itted by theiragents.
Plaintiffshave satisfied al1the proceduraland adm inistrative requirem ents ofTitle
VIlby filing a tim ely written charge with the EEO C,receiving a notice ofrightto sue from the
EEO C,and filing thiscom plaintw ithin 90 days from the receiptofthe notice ofrightto sue.
229. A s a proxim ate resultofdefendants'wrongfulconduct,plaintiffs have suffered
loss ofwages and benefits,em otionaldistress,hum iliation,loss ofreputation,and other
dam ages.
230. D efendants'actionsw ere done m aliciously,w illfully,orw antonly,orin a m alm er
thatdem onstratesa reckless disregard for plaintiffs'rights. A sa resultofdefendants'conduct,
plaintiffs are entitled to recoverpunitive dam ages.
SEVENTH CAUSE OF ACTION
(Title VIIClaim - SexualHarassm ent)
231. The allegationsin the preceding paragraphs are incorporated by reference.
232. Thisclaim underTitleVlIisbroughtagainstdefendantsM cDonald'sCorporate
and Sow eva.
233. Defendants'em ployeessexually harassed plaintiffsTucker and K ing W illiam s in
violation ofTitle V11,42 U.S.C.j 2000e-2(a)(l).Thesexualharassmentwasoffensive,severe
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and pervasive,and unwelcom eby plaintiffs. Defendantsare liableforthesexualharassm ent
com m itted by their agents.
234. Plaintiffs have satisfied allthe proceduraland adm inistrative requirem entsofTitle
V llby filing a tim ely w ritten charge with the EEOC ,receiving anotice ofrightto sue from the
EEO C.and filing this com plaintw ithin 90 days from the receiptofthenotice ofrightto sue.
A s aproxim ate resultof defendants'wrongfulconduct,plaintiffshave suffered
loss ofw agesand benefits,em otionaldistress,hum iliation,lossofreputation,and other
dam ages.
236. D efendants'actions w ere done m aliciously,w illfully,or w antonly,or in a m anner
thatdem onstrates a reckless disregard forplaintiffs'rights. A sa resultofdefendants'conduct,
plaintiffs are entitled to recoverpunitive dam ages.
PRAYER FOR RELIEF
Based on the foregoing,Plaintiffs pray forthe follow ing relief:
Thatthe Courtded are thatdefendants'practices com plained ofherein are
unlawfulunderTitleVlland 42U .S.C.j 1981)
ThattheCourtenterjudgmentinfavorofplaintiffsand againstdefendantsfor
plaintiffs'lostw ages,benefits,em otionaldistressahum iliation,lossofreputation,and other
compensatorydamagesin anamounttobedeterminedbyajury,andfrontpayandinterestas
determ ined by the Court;
ThattheCourtenterjudgmentin favorofplaintiffsandagainstdefendantsfor
pttnitivedamagesinanamounttobedeterminedbyajury;
Thatthe costs ofthisaction be taxed againstdefendants;
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Thatthe Courtaw ard plaintiffs reasonable attom eys'fee asprovided in Title VlI,
42 U.S.C.j 2000e-5(k),and in 42 U .S.C.j 1988;
6.
ThattheCourtgranttheplaintiffsatrialbyajury;and
Such otherand furtherlegaland equitable reliefasthis Courtdeem snecessary,
just,andproper.
Thisthex c dayofJanuary, 2015.
PA TTERSON HA RK AVY LLP
BY
:
c
N arendra K .G hosh,NC B arN o.37649
+rohacviceapplicationforthcoming)
nghosh@ pathlaw .com
PaulE.Sm ith,N C BarN o.45014
(prohacviceapplicationforthcoming)
psm ith@ pathlaw .com
100 Europa D r.,Suite 420
ChapelH ill,N orth C arolina 27517
(919)942-5200
A SH CRAFT & GEREL,LLP
BY :
z'
VirginiaDiamond,Va.BarN .20992
vdiam ond@ ashcraftlaw .com
4900 Sem inary Rd.,Suite 650
A lexandria,V A 22311
(703)627-5510
CounseljbrPlaintiys
41