N.Y. Landmark Pays $2M to Settle Sex Claims

June 3, 2008 — -- One of New York City's most famous restaurants will pay $2.2 million to settle a lawsuit over sexual harassment and racism allegations.

Tavern on the Green, the 74-year-old café overlooking Manhattan's Central Park, is accused of "severe and pervasive harassment," including one manager's grabbing of an employee's breasts and buttocks and his repeated use of racial slurs and lewd sexual references.

The U.S. Equal Employment Opportunity Commission filed a lawsuit against the restaurant in September 2007. The EEOC announced the settlement on Tuesday.

EEOC lawyer Kam S. Wong said that some 50 former and current employees will be eligible for compensation from the settlement.

"Even a high-end establishment is not an exception to the world of harassment and retaliation, unfortunately," Wong, a senior trial attorney with the EEOC, told ABC News. "A settlement as significant as this one should send a message to all employers that EEOC takes seriously and will strenuously enforce the laws against discrimination in the workplace."

The settlement also requires the restaurant to adopt an anti-discrimination policy and provide anti-discrimination training to its employees. According to a court document, the settlement is not an admission of wrongdoing.

In a statement e-mailed to ABC News, the restaurant said it was "pleased this long-pending matter has been amicably settled" and maintained that "Tavern on the Green always has been and will continue to be committed to providing a safe, non-discriminatory and non-retaliatory work environment for its employees."

According to the statement, the management staff cited in the lawsuit "have not been associated with the restaurant for years."

The complaint filed against Tavern on the Green revolved largely around allegations against Leon Drogy, the restaurant's former director of operations. According to the complaint, Drogy engaged in "repeated sexual touching" of restaurant hostess Martha Nyakim Gatkuoth, including grabbing her breasts and buttocks.