Shake Shack Will Pay A $20K Settlement For Misgendering A Former Employee

According to a statement from the California Civil Rights Department, Shake Shack has reached a settlement with an unnamed former employee who claimed he was repeatedly misgendered in the workplace. In order to avoid protracted litigation, the burger and milkshake chain agreed to pay $20,000 to the former employee, who quit after just a month of working for the chain. The complainant stated that not only was he misgendered by co-workers multiple times, but the solutions offered to him by management were discriminatory in nature — among which included a suggestion by the management team that he "explain his gender to co-workers."

Shake Shack and the complainant resolved the legal dispute through voluntary mediation specifically for discrimination complaints, which involves facilitation by a neutral third party. The result of this mediation included the $20,000 settlement and an agreement from Shake Shack to update its policies on retaliation, harassment, discrimination, and bullying in the workplace. The restaurant also agreed to provide additional anti-discrimination training to employees, specifically in regard to discrimination based on gender identity and expression.

Although some employers are becoming more aware of the laws surrounding gender-based discrimination, this type of discrimination is still a serious, prevalent problem – especially for members of the LGBTQ+ community.

Under California law, the intentional misgendering of employees in the workplace is explicitly prohibited. While cisgender employees may not face misgendering all that often, being misgendered is a common issue for people who are transgender, non-binary, or gender-nonconforming — and intentional misgendering comes with significant repercussions for members of the LGBTQ+ community.

The issue of misgendering employees at work is far greater than simply being illegal in many states. A June 2022 report by One Fair Wage and the UC Berkeley Food Labor Research Center stated that restaurant workers who belong to the LGBTQ+ community faced higher levels of sexual harassment, homophobia, and transphobia than their non-LGBTQ+ peers. Additionally, 25% of LGBTQ+ restaurant workers reported experiencing discrimination based on sexual orientation or gender identity. Of those respondents, half said that the discrimination they faced negatively impacted their work environment. 

After the announcement of the settlement, Shake Shack released a statement. "Creating a welcoming and fulfilling environment for all our employees and guests is critical," the restaurant told TODAY. "We are constantly taking steps to ensure our policies and culture reflect our commitment to diversity and inclusion in the workplace."