BILOXI, MS – August 13, 2026 (STL.News) Ground Zero Biloxi LLC, operator of the Ground Zero Blues Club in Biloxi, Mississippi, has agreed to pay $35,000 and provide other relief to settle a federal lawsuit alleging sexual harassment and retaliation against a former assistant manager, according to the U.S. Equal Employment Opportunity Commission.
The EEOC announced the settlement Wednesday, Aug. 12, resolving litigation that accused the music venue and restaurant of failing to protect an assistant manager from alleged sexual harassment by one of the company’s co-owners and later firing her after she reported the conduct.
The federal agency’s allegations included repeated unwanted sexual comments and physical contact. The settlement resolves the lawsuit without requiring the allegations to be decided at trial.
EEOC alleged harassment by company co-owner
According to the EEOC, one of Ground Zero Biloxi’s co-owners allegedly subjected the assistant manager to repeated sexual comments and unwelcome physical contact.
The agency further alleged that company managers failed to protect the employee from the co-owner’s conduct. The assistant manager reported the alleged harassment to the company’s chief financial officer, according to the EEOC.
The EEOC said the company subsequently fired the assistant manager in September 2023. Federal regulators alleged that the termination constituted retaliation for reporting the alleged harassment.
The allegations ultimately led the EEOC to file a federal lawsuit against Ground Zero Biloxi LLC on June 5, 2025. The original lawsuit described the alleged behavior as a continuing campaign that included unwanted sexual comments and multiple instances of unwanted physical contact. The agency said the employee repeatedly complained, but no effective action was taken to stop the alleged conduct.
The EEOC also alleged that the employee was terminated shortly after submitting written complaints about the co-owner to the company’s chief financial officer.
Federal lawsuit followed unsuccessful conciliation
The case was filed as EEOC v. Ground Zero Biloxi LLC, Case No. 1:25-cv-00173-TBM-RPM, in the U.S. District Court for the Southern District of Mississippi.
Before filing an employment discrimination lawsuit against a private employer, the EEOC generally conducts an administrative process that may include attempts to resolve the dispute voluntarily.
In this case, the EEOC said it filed the lawsuit after first attempting to reach a pre-litigation settlement through its administrative conciliation process.
When the lawsuit was originally announced in June 2025, the agency said it was seeking back pay, compensatory and punitive damages, and injunctive relief intended to prevent similar alleged conduct in the future.
More than a year after the complaint was filed, the parties have now reached a settlement.
Ground Zero Biloxi will pay $35,000 and provide additional relief under the resolution announced by the EEOC.
EEOC points to employer responsibility
Marsha Rucker, regional attorney for the EEOC’s Birmingham District, emphasized employers’ responsibilities to prevent and address sexual harassment.
“Employers are responsible for preventing and remedying sexual harassment in their businesses,” Rucker said in announcing the settlement.
Rucker also noted the power imbalance that can exist when an alleged harasser is a business owner, saying such circumstances can leave employees without an effective internal remedy.
The case highlights an important issue for restaurants, bars, entertainment venues and other businesses where an owner or senior manager may work directly alongside employees.
Title VII not only prohibits certain forms of workplace discrimination. Federal law also protects workers from retaliation for opposing conduct they reasonably believe violates anti-discrimination laws or for participating in certain protected processes.
Acting EEOC Birmingham District Director Linda Sales-Long said employees must be able to exercise those rights without facing retaliation.
“Standing up against sexual harassment at work takes courage to defend your rights,” Sales-Long said. She added that the EEOC is prepared to act when an employer retaliates against a worker for defending those rights.
Title VII at center of Ground Zero case
The EEOC brought its claims under Title VII of the Civil Rights Act of 1964, one of the nation’s principal federal employment discrimination laws.
Title VII prohibits employment discrimination based on race, color, religion, sex, and national origin. Sexual harassment can constitute unlawful sex discrimination when the conduct meets the applicable legal standards.
Federal law also prohibits retaliation against employees for engaging in protected activity, including opposing unlawful employment discrimination.
In the Ground Zero Blues Club case, the EEOC’s lawsuit combined both issues: alleged sexual harassment and alleged retaliation after the assistant manager complained.
The settlement means those allegations will not have to proceed through a trial to reach a resolution.
Importantly, a settlement should not be characterized as a judicial finding that every allegation in the EEOC’s complaint was proven. The agency’s descriptions of the alleged conduct are allegations made as part of the federal enforcement action, and the resolution of the case should be distinguished from a court verdict following a trial.
EEOC continues enforcement in hospitality industry
The Ground Zero case is one of several recent EEOC enforcement actions involving allegations of harassment and retaliation in restaurants and hospitality-related businesses.
Federal regulators have repeatedly emphasized that owners, managers and supervisors are subject to workplace anti-discrimination requirements and that employers need effective procedures for employees to report harassment.
The EEOC’s Birmingham District Office has jurisdiction over Alabama, most of Mississippi and the Florida Panhandle.
The EEOC is the federal agency responsible for enforcing federal laws prohibiting employment discrimination by covered private-sector employers. It investigates discrimination charges, attempts to resolve certain disputes, and can bring litigation when the agency determines legal action is warranted.
For employers, the Ground Zero settlement serves as another reminder that responding to a harassment complaint can be as legally significant as preventing the underlying conduct. An employer facing a complaint must consider both the substance of the allegation and federal protections against retaliation.
For employees, the case illustrates that federal anti-discrimination protections extend beyond prohibiting workplace harassment itself. Workers who report alleged discrimination or harassment may also have legal protection against retaliatory employment actions.
Ground Zero Biloxi LLC’s $35,000 settlement concludes the federal lawsuit filed in 2025, following the EEOC’s allegations arising from the assistant manager’s employment and September 2023 termination.
The settlement resolves the litigation while avoiding a trial over the EEOC’s allegations.
You can also view this news story at USPress.News
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