Fast-food chain Shake Shack on Monday agreed to pay $20,000 to a former employee who alleged that co-workers engaged in harassment and discrimination on the basis of gender identity.
The compensation is part of the settlement in the case, in which the disgruntled staff member, who identified as a man but was born a woman, claimed to experience misgendering in the workplace, according to a California Civil Rights Department press statement released Monday.
The unnamed employee filed a complaint with the department detailing accusations of “discrimination, harassment and retaliation based on gender identity and gender expression.” In the complaint, the employee said Shake Shack also “failed to take reasonable steps to correct the behavior” of misgendering staff, who allegedly continued the habit after management was made aware of the issue.
Management allegedly urged the employee to explain their gender identify to misunderstanding coworkers, according to the complaint. The employee quit working at Shake Shack after one month.
After first receiving training at a San Francisco-area location, the unidentified employee was transferred to work at the Oakland location, where the alleged mistreatment occurred. In addition to forking out $20,000, Shake Shack also agreed to revise its policies dealing with retaliation and discrimination in the workplace. The company pledged to impose gender-inclusivity employee training.
“Creating a welcoming and fulfilling environment for all our employees and guests is critical,” a Shake Shack spokesperson told Business Insider. “We are constantly taking steps to ensure our policies and culture reflect our commitment to diversity and inclusion in the workplace.”
Kevin Kish, the director of the California civil rights department, told the publication that state law outlaws “intentional misgendering” in the workplace.
“Intentional misgendering and other forms of discrimination based on gender identity and gender expression can be stressful and traumatic,” Kish said. “CRD appreciates Shake Shack’s acknowledgement of its responsibility to provide a discrimination-free environment to its workforce.”