‘Culture of Harassment and Discrimination': NYC Bar Owner Settles Complaint for $500K

The owner of a Manhattan bar will pay $500,000 to more than a dozen current and former employees who were subjected to sexual harassment, discrimination and wage theft, New York Attorney General Letitia James announced Wednesday.

Employees of the bar, called Sweet & Vicious, endured inappropriate comments about their race, sexuality and bodies and suffered unwelcome sexual advances from managers and customers, James said in announcing the settlement with the bar and its owner, Hakan Karamahmutoglu.

The settlement is the culmination of a 16-month investigation into allegations against Karamahmutoglu and Sweet & Vicious. According to James, documents, records, and interviews with current and former workers revealed a pervasive culture of discrimination and continuous harassment. The attorney general said that the owner not only didn't stop the mistreatment when he heard it, but al actively participated in it.

The settlement was announced at a news conference where James played voice memos she said were from Karamahmutoglu, including one saying, “We need pretty girls, we need lean girls.”

Karamahmutoglu also insulted female employees, calling them “b------” and “cows,” according to James, who also said the owner also scrutinized their appearance, commenting on their bodies and clothing.

"It is time to change the conversation and focus on de-normalizing inequality and harassment in the hospitality industry," said former employee Katy Guest. "This case is a success story that I hope will inspire others to recognize their own self-worth,"

According to the investigation, female employees were sexually harassed by male managers who made unwanted sexual advances, including a manager who repeatedly would find opportunities to rub himself up against a female employee. Additionally, according to James, female bartenders experienced frequent harassment by violent customers who would threaten to stab, rape and beat them.

Karamahmutoglu also called Black security guards “gangsters” and called a Puerto Rican manager “a terrorist” as well as "Puerto Rican trash," James said. The owner and managers also frequently used anti-gay slurs, according to James.

In a comment to NBC New York, the owner said he is "deeply distressed by the allegations...Many of the claims are simply untrue, or grossly misleading. I fully cooperated… to bring closure to this episode and to allow all parties to move on."

Sweet & Vicious, which has operated in the Nolita neighborhood since 1998, can remain open, but Karamahmutoglu must go through anti discrimination and harassment training, tell employees their rights and is now subject to monitoring by the attorney general's office.

James said the bar owner laughed at female employees’ complaints about harassment and forced them to work eight-hour shifts on their feet with no breaks. The bartenders also worked unpaid overtime and saw their tips stolen, James said.

“At every turn the owner demeaned and degraded Sweet & Vicious employees,” she said. "None of this work, let me be clear, would be possible without the bravery of these women."

The Sweet & Vicious announcement came one year after James announced a $600,000 settlement with celebrity chefs Mario Batali and Joe Bastianich over harassment at their restaurant empire.

“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. “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.”