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Feds hit OSI with sex-bias suit

Outback Steakhouse executives are trying hard to win back female customers. But a government lawsuit filed Thursday accuses the Tampa chain of discriminating against its own female employees.

By SCOTT BARANCIK
Published September 30, 2006

Outback Steakhouse executives are trying hard to win back female customers. But a government lawsuit filed Thursday accuses the Tampa chain of discriminating against its own female employees.

The suit, filed by the Equal Employment Opportunity Commission on behalf of two Colorado women and others like them, claims Outback and parent company OSI Restaurant Partners have, since at least 2000, failed to hire or promote women for management positions, offered them less training and opportunity for advancement, and given them worse job assignments.

The EEOC, which investigates employee complaints of racial and sexual discrimination in the workplace, attributed a number of troubling statements to local management. Restaurant manager Ben Martinez allegedly said that women could not work in the kitchen, that he wouldn't let his own wife work and that one of the two Colorado women should turn to teaching. Joint-venture partner Tom Flanagan allegedly said that women managers lose focus when they have children and that "cute girls" should work as servers. According to the lawsuit, an Outback employee cannot become a restaurant manager without some kitchen management experience.

OSI denied the accusations.

"We simply do not discriminate against women," general counsel Joe Kadow said in a statement. "Outback Steakhouse is proud of its commitment to diversity and of our record of providing to all our employees full and fair opportunity to advance and succeed in our organization."

Thursday's suit was the ninth federal discrimination case filed this year against OSI, but the first filed by the EEOC instead of an aggrieved employee. It comes at a time when the restaurant company, which has just one woman on its 11-person board, is trying to reverse a loss in same-store sales at the Outback chain. Branding and marketing experts hired by the company have concluded that female diners have grown weary of its food and decor, and OSI is responding with menu changes, store renovations, a new marketing campaign and other improvements.

Thursday's lawsuit asked the court to reinstate all female Outback employees who have allegedly faced discrimination, award them back pay with interest, and compensate them for pain and suffering, among other damages.

Scott Barancik can be reached at barancik@sptimes.com or 727 893-8751.

[Last modified September 29, 2006, 23:25:44]