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Leopalace Guam Corp. has agreed to pay $1.4 million to settle a U.S. Equal Employment Opportunity Commission (EEOC) lawsuit, which accused the resort of granting Japanese employees better pay and job conditions than their non-Japanese counterparts, according to court documents filed Wednesday.

Settlement Finalized Amid Discrimination Allegations

U.S. District Judge Ramona V. Manglona signed off on the settlement, closing a case that claimed Leopalace Resort violated Title VII by engaging in national origin discrimination. The lawsuit, filed Friday, alleged that the resort systematically paid non-Japanese workers less and assigned them less desirable job roles.

Despite agreeing to the settlement, Leopalace denies violating Title VII, arguing that a bilateral treaty between the U.S. and Japan allows citizens from both nations to work within each other's borders. However, the EEOC strongly rejected this defense in its filing.

American Workers Allegedly Targeted

The lawsuit was filed on behalf of Christopher Adams, Thomas Lee, Donald Gueniot Jr., and a class of other non-Japanese employees. According to the EEOC, the resort’s hiring and compensation policies disadvantaged American workers and others based on national origin bias.

As part of the agreement, the EEOC will determine how the $1.4 million settlement will be distributed among those who faced discrimination or retaliation.

The deal also mandates that Leopalace:

• Reconsider for reemployment any workers who filed discrimination complaints.
• Cease awarding better wages or work conditions based on national origin.
• Appoint an Equal Employment Opportunity (EEO) monitor to audit employment practices.
• Implement anti-discrimination training for management and HR personnel.

EEOC Chair Signals Crackdown on National Origin Bias

EEOC Acting Chair Andrea Lucas, recently appointed by President Donald Trump, linked the case to a recent executive order that eliminated federal diversity, equity, and inclusion (DEI) programs.

“This case serves as a stark reminder that national origin discrimination includes favoritism toward foreign workers over American employees,” Lucas stated in a Tuesday press release.

She followed up Wednesday with a firm warning: the EEOC will prioritize cases where American workers are allegedly disadvantaged in favor of immigrants, visa holders, and migrant laborers.

“If your company is part of the immigration crisis pipeline or exploiting the legal immigration system to suppress American employment opportunities, you must stop,” Lucas declared.

No Immediate Comment from Resort

Neither Leopalace Resort nor its legal representatives have responded to requests for comment.

The EEOC legal team includes Anna Y. Park and Nakkisa Akhavan, while Genevieve P. Rapadas of Calvo Jacob & Pangelinan LLP represents Leopalace.