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:
