Manhattan Bar to Pay $500K to Employees in Disturbing Discrimination Suit

The employees alleged they suffered unwelcomed sexual advances from managers and customers.

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New York Attorney General Letitia James speaks during a press conference at the office of the Attorney General on July 13, 2022 in New York City. NY AG James announced today that her office has reached a settlement of $500,000 for more than a dozen current and former employees of the Sweet and Vicious, a bar in Manhattan, after a 16-month investigation into allegations of sexual harassment, discrimination and wage theft at the establishment.
New York Attorney General Letitia James speaks during a press conference at the office of the Attorney General on July 13, 2022 in New York City. NY AG James announced today that her office has reached a settlement of $500,000 for more than a dozen current and former employees of the Sweet and Vicious, a bar in Manhattan, after a 16-month investigation into allegations of sexual harassment, discrimination and wage theft at the establishment.
Photo: Michael M. Santiago (Getty Images)

A Manhattan bar, Sweet and Vicious, agreed to pay $500,000 to current and former employees who claimed managers were sexually inappropriate with them as well as racist, according to ABC 7 News. The Attorney General’s Office called the bar a “hostile and discriminatory workplace” that subjected employees to sexual harassment and racial discrimination.

Bar owners Hakan Karamahmutoglu and 5 Spring Street Corp. were accused of making absolutely disgusting comments on employee’s race, sexuality and their bodies. Attorney General Letitia James said the employees also suffered from unwelcomed sexual advances from both managers and customers. The investigation into the bar and the allegations lasted for 16 months, per ABC’s report.

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“This settlement is a reminder that no matter the perpetrator, we will not tolerate sexual harassment, discrimination, or wage theft of any form in the workplace,” said James in a statement.

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More on the incident from ABC 7 News:

According to investigators, Karamahmutoglu routinely insulted female employees, calling them “bitches,” and “cows,” and scrutinized their appearance, commenting on their bodies and clothing.

Officials said multiple female employees were sexually harassed by male managers who made unwanted sexual advances, including an instance of an employee announcing the color of a female bartender’s underwear and saying he wanted to engage her in a sexual manner, as well as a manager repeatedly finding opportunities to rub himself up against a female employee.

Several female bartenders said they experienced frequent harassment by violent customers who would threaten to stab, rape, and beat them.

Karamahmutoglu allegedly called Black employees “gangsters” and referred to a Puerto Rican manager as a “terrorist,” and “Puerto Rican trash.”

The owner and managers also frequently used anti-gay slurs, officials said.

Former employee Veronica Leventhal called the situation a prime example of how “men with unchecked power” take advantage of their workers. An anonymous former employee said the experiences at Sweet and Vicious had reinforced traumas they’d have to overcome through therapy.

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“It was, without a doubt, the most abusive company that I have ever had the misfortune of working for. The racial, sexual and gendered humiliation and degradation that myself and my coworkers silently endured is more than anyone should ever have to experience while trying to earn a livable wage,” they said, via The Attorney General’s Office.

Karamahmutoglu released a statement following the settlement insisting the bar was always a welcoming and inclusive environment, per ABC 7. However, no apologies were offered to the employees who claimed they received abuse from him.

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“I am deeply distressed by the allegations as they do not reflect my perspective or character, and they do not reflect the attitude of the bar to its employees or customers. Many of the claims are simply untrue, or grossly misleading,” read the statement. “I’ve given back to the community and city that I love and have employed hundreds of employees across all backgrounds. We will continue to welcome everyone into a positive and inclusive environment. Those who know me will know that to be true, and I ask those who do not know me to not rush to judgment.”