Taco Bell Operators Settle Sexual Harassment Lawsuit

Detroit-area franchisees pay $100,000 to resolve EEOC claims involving underage workers

Feb. 5, 2026 at 3:15pm

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Sundance, Inc. and Black River Bells, operators of several Taco Bell restaurants in the Detroit area, have agreed to pay $100,000 and provide other relief to settle a sexual harassment lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC). The lawsuit alleged that an area coach at the franchises frequently sexually harassed a group of female employees, including underage workers, through inappropriate comments, touching, and requests. The companies also terminated an assistant manager the same day she reported the harassment, according to the EEOC.

Why it matters

This case highlights the ongoing problem of sexual harassment, especially involving minors, in the fast-food industry. It also underscores the importance of effective sexual harassment policies, training, and accountability measures to protect vulnerable workers. The settlement sends a strong message that such behavior will not be tolerated.

The details

According to the EEOC's lawsuit, the area coach at Sundance and Black River Bells' Taco Bell locations frequently made inappropriate sexual comments, asked underage employees about their sexual activity, and engaged in unwanted touching over a period of several months in 2022. The companies also allegedly retaliated against an assistant manager who reported the harassment by terminating her employment the same day.

  • The harassment incidents occurred over several months in 2022.
  • The EEOC filed the lawsuit in 2025 after attempting to reach a pre-litigation settlement.
  • The three-year consent decree resolving the lawsuit was reached on January 29, 2026.

The players

Sundance, Inc.

A Taco Bell franchise operator in the Detroit metropolitan area.

Black River Bells

A Taco Bell franchise operator in the Detroit metropolitan area, operating in conjunction with Sundance, Inc.

U.S. Equal Employment Opportunity Commission (EEOC)

The federal agency responsible for enforcing laws against workplace discrimination, including sexual harassment.

Assistant Manager

An employee who reported the harassment by the area coach and was subsequently terminated, leading to separate retaliation and harassment claims.

Area Coach

A managerial-level employee who allegedly engaged in frequent sexual harassment of female employees, including underage workers, at the Taco Bell locations operated by Sundance and Black River Bells.

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What’s next

The assistant manager who reported the harassment will continue to litigate her separate retaliation and harassment claims against the companies.

The takeaway

This settlement underscores the importance of robust sexual harassment policies, effective training, and accountability measures to protect vulnerable workers in the fast-food industry and beyond. Employers must take proactive steps to foster safe and inclusive workplaces.