Equal Employment Opportunity Commission v. CCR Wellness Investments, LLC.

Filing 32

CONSENT DECREE. Signed by Senior Judge Graham Mullen on 08/05/2015. (jlk)

IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF NORTH CAROLINA
CHARLOTTE DIVISION
)
EQUAL EMPLOYMENT
)
OPPORTUNITY COMMISSION,
)
)
Plaintiff,
)
)
v.
)
)
CCR WELLNESS INVESTMENTS, LLC, )
d/b/a MASSAGE ENVY,
)
)
)
Defendant.
)
)

CIVIL ACTION NO.
3:14-CV-00340-GCM

CONSENT DECREE
The Equal Employment Opportunity Commission (the “Commission”) instituted this
action pursuant to Section 706(f)(1) and (3) of Title VII of the Civil Rights Act of 1964, as
amended, 42 U.S.C. Section 2000e-5(f)(1) and (3) (“Title VII”), and Section 102 of the Civil
Rights Act of 1991, 42 U.S.C. § 1981a. The Commission’s complaint alleged that CCR
Wellness Investments, LLC d/b/a Massage Envy violated Title VII by discharging Morgan P.
McCloskey because of her sex, female (pregnancy). Defendant denies the allegations contained
in the Complaint. Likewise, the EEOC does not disavow the allegations contained the
Complaint. The Commission, and the Defendant, CCR Wellness Investments, LLC d/b/a
Massage Envy (the “Defendant”), hereby stipulate to jurisdiction of the Court over the parties
and agree that the subject matter of this action is properly before the Court.
The parties have advised this Court that they desire to resolve the allegations in the
Complaint without the burden, expense, and delay of further litigation.
1

It is therefore the finding of this Court, made on the pleadings and the record as a whole,
that: (1) the Court has jurisdiction over the parties and the subject matter of this action; (2) the
purpose and provisions of Title VII will be promoted and effectuated by the entry of the Consent
Decree; and (3) this Decree resolves all matters in controversy between the parties as provided in
paragraphs 1 through 16 below.
IT IS THEREFORE ORDERED, ADJUDGED AND DECREED as follows:
1.

Defendant shall not discriminate against any female by terminating her

employment because of her pregnancy.
2.

Defendant shall not discriminate or retaliate against any person because of

opposition to any practice made unlawful under Title VII of the Civil Rights Act of 1964 or
because of the filing of a charge, the giving of testimony or assistance, or the participation in any
investigation, proceeding or hearing under that statute.
3.

Defendant shall pay Morgan P. McCloskey the sum of seven thousand dollars

($7,000.00) in settlement of the claims raised in this action. Defendant shall make payment by
issuing a check payable to “Morgan P. McCloskey.” Payment shall be made within thirty (30)
days after the Court approves this Consent Decree, and Defendant shall mail the check to
Morgan P. McCloskey at an address provided by the Commission. Within ten (10) days after the
check has been sent, Defendant shall send to the Commission, a copy of the check and proof of
its delivery to Morgan P. McCloskey.
4.

Within ten (10) days of the entry of this decree by the Court, Defendant shall

eliminate from the employment records of Morgan P. McCloskey any and all documents, entries,
or references of any kind relating to the facts and circumstances which led to the filing of EEOC
Charge Number 430-2013-01527 and the related events that occurred thereafter, including this
2

litigation, and any reference to termination for cause. Defendant shall also remove from the
employment records of Morgan P. McCloskey any reference to termination for cause and shall
replace such language with “voluntary termination of employment.” Defendant shall also
remove from the employment records of Morgan P. McCloskey any documents related to
discipline purportedly taken against Ms. McCloskey for absenteeism. Within fifteen (15) days of
the entry of this decree by the Court, Defendant shall report compliance with this provision to the
Commission.
5.

Within ninety (90) days of the entry of this decree by the Court, Defendant shall

revise its written anti-discrimination policy at its University location to include the following: an
explanation of the requirements of the federal equal employment opportunity laws, including
Title VII and its prohibition against discrimination based on pregnancy; procedures for reporting
discrimination; and a procedure for the thorough and immediate investigation of employee
complaints of discrimination. Defendant shall keep its revised written anti-discrimination policy
with the aforementioned terms in place throughout the term of the Consent Decree. Defendant
shall distribute to each current employee a copy of the policy within the aforementioned 90 day
time period at its University location. Within one hundred (100) days of the entry of this decree,
Defendant shall report compliance to the Commission. During the term of this Decree,
Defendant shall distribute the policy to all new employees at its University location and review it
with them at the time of hire.
6.

During the term of this Decree, Defendant shall provide an annual training

program to all of its managers, supervisors and employees at its University location. Each
training program shall include an explanation of the requirements of Title VII of the Civil Rights
Act of 1964, specifically, its requirement that employers not terminate, discipline, or otherwise
3

make adverse personnel actions against an employee based on her pregnancy. Each training
program shall also include an explanation of Defendant’s policy referenced in paragraph 5
above, and an explanation of the rights and responsibilities of employees and managers under the
policy.
The first training program shall be completed at its University location within one
hundred (100) days after entry of the decree by the Court. Each subsequent training program
shall be conducted at approximately one-year intervals.

Within ten (10) days after completion

of each training program, Defendant shall certify to the Commission the specific training which
was undertaken and shall provide the Commission with a roster of all employees in attendance.
7.

Beginning within seven (7) days after the entry of this Decree by the Court, and

continuing throughout the term of this Decree, Defendant shall conspicuously post the attached
Employee Notice at its University location, marked Exhibit A, hereby made a part of this Decree,
in a place where it is visible to employees at its University location. If the Notice becomes
defaced or unreadable, Defendant shall replace it by posting another copy of the Notice. Within
forty-five (45) days after entry of this Decree, Defendant shall notify the Commission that the
Notice has been posted pursuant to this provision.
8.

During the term of this Consent Decree, Defendant shall provide the Commission

with reports at six (6) month intervals, with the first being due four (4) months after approval by
the Court of this Decree. The reports will include the following information:

A.

the identities of all applicants or employees who have notified Defendant
of their pregnancy or of whose pregnancy Defendant otherwise became
aware, including by way of identification each person’s name, address,
telephone number, position, and social security number;

B.

for each individual identified in 8.A. above, explain whether the
4

individual’s employment status has changed in any respect since the time
Defendant became aware of her pregnancy (for example, including but not
limited to, termination, firing, demotion, promotion, or to part-time from
full-time); and
C.

for each individual whose employment status has changed as identified in
8.B. above, a detailed statement explaining why the individual’s
employment status has changed.

In the event there is no activity to report pursuant to this paragraph, Defendant shall send
the Commission a “negative” report indicating no activity. This paragraph only applies to
Defendant’s University location.
9.

With three (3) business days notice via email to attorneys John Cole

([e-mail]) and Jonathan Schulz ([e-mail]), the Commission
may review compliance with this Decree. As part of such review, the Commission may inspect
Defendant’s facilities, interview employees and examine and copy documents. The Commission
will not be required to give such prior notice before inspecting the University location to ensure
compliance with the posting requirement in Paragraph 7 of this Consent Decree.
10.

If anytime during the term of this Decree, the Commission believes that

Defendant is in violation of the Decree, the Commission shall give notice of the alleged violation
to Defendant. Defendant shall have ten (10) days in which to investigate and respond to the
allegations. Thereafter, the parties shall then have a period of ten (10) days or such additional
period as may be agreed upon by them, in which to engage in negotiation regarding such
allegations before the Commission exercises any remedy provided by law.
11.

The term of this Decree shall be for two (2) years from its entry by the Court.

12.

All reports or other documents sent to the Commission by Defendant pursuant to

this Consent Decree shall be sent to Lynette A. Barnes, Regional Attorney, Equal Employment
5

Opportunity Commission, 129 West Trade Street, Suite 400, Charlotte, NC 28202.
13.

Each party shall bear its own costs and attorneys’ fees.

14.

This Court shall retain jurisdiction of this cause for purposes of monitoring

compliance with this Decree and entry of such further orders as may be necessary or appropriate;
provided, however, that the Court shall retain jurisdiction only during the term of the Decree.
Defendant shall disclose the terms of this Decree to any potential successor prior to sale, and the
Decree shall be binding on any such successor.

SO ORDERED.
Signed: August 5, 2015

6

The parties jointly request that the Court approve and enter the Consent Decree:
EQUAL EMPLOYMENT OPPORTUNITY
COMMISSION, Plaintiff
P. DAVID LOPEZ
General Counsel
JAMES L. LEE
Deputy General Counsel
GWENDOLYN YOUNG REAMS
Associate General Counsel

s/Lynette A. Barnes____________________________
LYNETTE A. BARNES
Regional Attorney
129 West Trade Street, Suite 400
Charlotte, N.C. 28202
YLDA MARISOL KOPKA
Supervisory Trial Attorney

s/Yolanda W. Brock_____________________________
YOLANDA W. BROCK (N.C. Bar No. 36651)
Email: [e-mail]
U.S. EQUAL EMPLOYMENT OPPORTUNITY COMMISSION,
Charlotte District Office
129 West Trade Street, Suite 400
Charlotte, N.C. 28202
Telephone: [phone] (direct dial)
Facsimile: [phone]
ATTORNEYS FOR PLAINTIFF

7

CCR WELLNESS INVESTMENTS, LLC
D/B/A MASSAGE ENVY, Defendant
s/John Cole____________________________
JOHN COLE
NEXSEN PRUET, PLLC
227 W. Trade St. Ste. 1550
Charlotte, NC 28202
Telephone: [phone]
Facsimile: [phone]
[e-mail]
JONATHAN E. SCHULZ
NEXSEN PRUET, PLLC
227 West Trade Street, Suite 1550
Charlotte, NC 28202
Telephone: [phone]
Facsimile: [phone]
[e-mail]
ATTORNEYS FOR DEFENDANT

8

EXHIBIT A
IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF NORTH CAROLINA
CHARLOTTE DIVISION
EQUAL EMPLOYMENT OPPORTUNITY
COMMISSION,
Plaintiff,

)
)
)
)
)
)
)
)
)
)
)

v.
CCR WELLNESS INVESTMENTS, LLC,
d/b/a MASSAGE ENVY
Defendant.

Civil Action No. 3:14-cv-00340-GCM

EMPLOYEE NOTICE

1.
This Notice is posted pursuant to a settlement between the U.S. Equal Employment Opportunity
Commission and Defendant CCR Wellness Investments, LLC d/b/a Massage Envy (“Defendant”) in a case
alleging pregnancy discrimination.
2.
Federal law requires that employers not discriminate against any employee or applicant for
employment because of the individual’s race, color, religion, sex, national origin, age (40 or older) or
disability. Federal law also prohibits retaliation against employees because they have opposed unlawful
employment discrimination, or because they gave testimony, provided assistance in, or participated in an
employment discrimination investigation, proceeding, or hearing, or otherwise asserted their rights under
the laws enforced by the EEOC.
3.
Defendant will comply with such federal laws in all respects. Furthermore, Defendant will not take
any actions against employees because they have exercised their rights, reported an alleged violation under
the law, or given testimony, assistance, or participation in any investigation, proceeding, or hearing
conducted by the U.S. Equal Employment Opportunity Commission.
An employee has the right, and is encouraged to exercise that right, to report allegations of employment
discrimination in the workplace. An employee may contact their local U. S. Equal Employment
Opportunity Commission field office for the purpose of filing a charge of employment discrimination. To
locate the nearest field office, contact:
Equal Employment Opportunity Commission
131 M. Street, NE
Washington, DC 20507
TEL: [phone]
TTY: 1-800-669-6820
This Notice will remain posted for at least two (2) years by agreement with the U.S. Equal Employment
Opportunity Commission. DO NOT REMOVE THIS NOTICE UNTIL: _____________________, 2017.

9