PRC Industries Pays $400,000 to Settle EEOC Racial Harassment, Retaliation Lawsuit

RENO, Nev. — PRC Industries, Inc., an E-commerce remanufacturing company, will pay two former employees of its Reno, Nevada, location $400,000 and implement company-wide preventative measures to resolve a racial harassment and retaliation lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the agency announced today. 

According to the EEOC’s lawsuit, two Black workers endured months of racial taunts and slurs, including the “n-word,” and hostility from their supervisors at PRC’s Reno, Nevada, facility. The harassment occurred openly. Despite the employees’ reports to multiple levels of PRC leadership, the employer failed to intervene, the EEOC said. Shortly after the workers escalated their complaints to a vice president, one of the harassers fired the workers via text message.

Such conduct violates Title VII of the Civil Rights Act of 1964 which prohibits racial harassment and retaliation and requires employers to take prompt action to investigate and stop the misconduct after they become aware of it. After first attempting to reach a pre-litigation settlement through conciliation, the EEOC filed its lawsuit (EEOC v. PRC Industries, Inc. Corp Case No. 3-27-2023 JJO-VSC) in U.S. District Court for the District of Nevada.

Under the three-year consent decree settling the suit, PRC Industries will pay $400,000 to the two former employees; retain a consultant to improve and implement policies and procedures prohibiting racial harassment and retaliation; establish a comprehensive and effective complaint process; and hold supervisors and managers accountable for their compliance with these measures. The company will train its employees, supervisors and managers on anti-discrimination laws and PRC’s revised EEO policies and procedures and will ensure that employees designated to conduct racial discrimination and harassment investigations receive investigative training as well.

“Employers who ‘know or should know’ of harassment must take action that is prompt, appropriate and effective,” said EEOC San Francisco District Director Nancy Sienko. “Respond to reports of harassment with all due consideration, check your policies, and invest in staff training to ensure they properly implement those policies.”

Trial Attorney Kena Cador said, “Employers have an obligation to stop workplace harassment and to create a culture where employees can speak up about misconduct without fear of retaliation. Hopefully this settlement will signal to employers and employees alike the importance of taking harassment and discrimination seriously.”

For more information on race and color discrimination, please visit https://www.eeoc.gov/racecolor-discrimination. For more information on harassment, please visit https://www.eeoc.gov/harassment

The EEOC’s San Francisco District has jurisdiction over Northern Nevada, Northern California, Washington, Alaska, Oregon, Idaho and Montana.

The EEOC advances opportunity in the workplace by enforcing federal laws prohibiting employment discrimination. More information is available at www.eeoc.gov. Stay connected with the latest EEOC news by subscribing to our email updates.