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New York City restaurant must pay $500,000 in sexual harassment and discrimination settlement

New York Attorney General Letitia James secured a settlement for current and former employees of Sweet & Vicious in Manhattan

Joanna Fantozzi, Senior Editor

July 13, 2022

3 Min Read
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Joanna Fantozzi

New York City restaurant Sweet & Vicious will have to pay $500,000 to 16 current and former employees and victims of sexual harassment and discrimination, following an investigation by New York Attorney General Letitia James’ office. The 16-month investigation found that owner Hakan Karamahmutoglu and 5 Spring Street Corp. subjected his staff to a hostile working environment that included sexual and gender-based harassment, explicit comments about employees’ gender, race and bodies, unwanted advances from staff and customers, and wage theft.

“For far too long, workers in the hospitality industry have been forced to weather a pervasive culture of sexual harassment and discrimination that has gone unreported,” James said in a statement. “Every New Yorker should be able to go to work free from fear of abuse and degradation regardless of industry, and I pledge to continue to stand with all workers in the face of these harmful practices. I am grateful to the former and current employees of Sweet and Vicious for using their voices to fight for safe, harassment-free workplaces for all.”

This is the third case of sexual harassment at a restaurant that the New York Attorney General’s office has settled over the past few years, following the $240,000 paid to victims of sexual harassment by Ken Friedman of The Spotted Pig in 2020, and the $600,000 settlement to survivors of sexual harassment at restaurants owned by Mario Batali and Joseph Bastianich in 2021.

Related:Mario Batali, Joseph Bastianich, B&B Hospitality to pay $600,000 in settlement of sexual harassment claims

In this case, the attorney general’s office said that phone calls, documents, messages and interviews with employees revealed a workplace culture that allowed for and did not protect employees from harassment of all kinds. Karamahmutoglu routinely insulted female employees, commented on their appearance, bodies and clothing. Records found that employees engaged their coworkers in a sexual manner and female bartenders were also frequently threatened by customers.

Employees also cited instances where Karamahmutoglu used racist and anti-gay slurs and took insufficient action to address complaints of harassment from his staff. Interviews with employees also found evidence of gender-based discrimination, where female employees were held to a stricter code of conduct (including no bathroom breaks) during their shifts, while male employees were not held to the same standard.

Employees also reported instances of not being paid for overtime shifts and gratuity theft.

“I wish I could say this was the first time I was harassed by my employer in the service industry, or even the first time I've received a settlement for nonpayment of wages,” Veronica Leventhal, a former Sweet and Vicious employee, said in a statement. “This case is emblematic of intersecting national problems: the subjugation of workers, and sexual harassment of women in the workplace. I would encourage anyone in the service industry to consider unionizing, as it is the only way to create anything close to equitable or safe working conditions. Sweet and Vicious is not an anomaly — it is a prime example of how men with unchecked power take advantage of their employees.”

Related:Report: Restaurant workers are seeing an uptick in wage theft, harassment and hostility in 2021

In addition to the $500,00 settlement being split among the 16 victims of harassment and wage theft, the restaurant will be subject to monitoring and oversight and will have to change its anti-discrimination and harassment training policies and improve the display and distribution of notices regarding anti-discrimination and harassment rights and responsibilities.

Contact Joanna Fantozzi at [email protected]

Follow her on Twitter: @JoannaFantozzi

About the Author

Joanna Fantozzi

Senior Editor

Joanna Fantozzi is a Senior Editor for Nation’s Restaurant News and Restaurant Hospitality. She has more than seven years of experience writing about the restaurant and hospitality industry. Her editorial coverage ranges from profiles of independent restaurants around the country to breaking news and insights into some of the biggest brands in food and beverage, including Starbucks, Domino’s, and Papa John’s.  

Joanna holds a bachelor’s degree in English literature and creative writing from The College of New Jersey and a master’s degree in arts and culture journalism from the Craig Newmark Graduate School of Journalism at CUNY. Prior to joining Informa’s Restaurants and Food Group in 2018, she was a freelance food, culture, and lifestyle writer, and has previously held editorial positions at Insider (formerly known as Business Insider) and The Daily Meal. Joanna’s work can also be found in The New York Times, Forbes, Vice, The New York Daily News, and Parents Magazine. 

Her areas of expertise include restaurant industry news, restaurant operator solutions and innovations, and political/cultural issues.

Joanna Fantozzi has been a moderator and event facilitator at both Informa’s MUFSO and Restaurants Rise industry events. 

Joanna Fantozzi’s experience:

Senior Editor, Informa Restaurant & Food Group (August 2021-present)

Associate Editor, Informa Restaurant & Food Group (July 2019-August 2021)

Assistant Editor, Informa Restaurant & Food Group (Oct. 2018-July 2019)

Freelance Food & Lifestyle Reporter (Feb. 2018-Oct. 2018)

Food & Lifestyle Reporter, Insider (June 2017-Feb. 2018)

News Editor, The Daily Meal (Jan. 2014- June 2017)

Staff Reporter, Straus News (Jan. 2013-Dec. 2013)

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