The EEOC brought suit on behalf of two servers who alleged sexual harassment under Title VII, resulting in a hostile work environment. The trial court found in their favor, and the employer appealed, relying on the Faragher/Ellerth affirmative defense. 

1. What were the legal issues in this case? What did the appeals court decide?

2. Why does the court agree that the employer failed to exercise reasonable care to prevent harassment? Why was its harassment policy not sufficient?

3. Why does the court agree that the employer failed to exercise reasonable care to correct harassment? That the employees did not unreasonably fail to take advantage of he employer’s preventive and corrective measures?

4. The restaurant industry seems to produce more than its share of sexual harassment cases. What things about this industry might be conducive to problems with sexual harassment?

5. What should this employer have done differently?