Founders Brewing faces another racial discrimination lawsuit as Detroit taproom permanently closes
(CBS DETROIT) – The timing of a brewery in Midtown Detroit permanently closing is raising some eyebrows.
Founders Brewing Company posted on Facebook Monday that slow business was the reason they were doing so. But a few hours before that announcement, a lawsuit was filed in federal court alleging racial discrimination.
Despite Founders Brewing Company touting its commitment to diversity, equity and inclusion, one employee claims they didn't live up to it.
According to a 17-page complaint filed in federal court, an African-American employee states she had no choice but to resign because working at the Detroit taproom had become racially hostile.
She alleges the company promoted her to a part-time management position for the optics of it and wasn't actually given any management responsibilities instead, she says founders' leadership allowed white servers to do that work at a higher pay rate.
"I think everyone's pretty cordial with everyone for the most part, but I haven't personally seen any of that kind of behavior," Zach, a Founders employee of six months, told reporters Tuesday.
The Black employee also claims she suffered racial harassment, including the intentional mispronouncing of her name, telling her she has "not struggled enough to be Black." And one time, when she brought her child to work, they warned her to be careful that the toddler does not "steal any money"
"Last week, she spoke openly about the discrimination she was subjected to in her exit interview. It appears that Founders would rather end its relationship with Detroit than solve its deeply rooted issues," Jack Schulz, her attorney, said in a statement to CBS News Detroit.
This is the second time the Grand Rapids-based brewery has faced such allegations.
In 2019 Founders settled a case with another Black employee who said his coworkers would blatantly use racial slurs around him.
"The way that Founders represented themselves in court, it was kind of gross, and then the accusations before that, it not a business I want to support," a resident who lives and works near the taproom said.
After the first case became public, Founders closed the Detroit taproom for several months.
This time in just a few hours, they announced they were closing for good, citing slow business after the pandemic.
"It's definitely gonna affect me financially for a little bit. I mean, because I believe it's more expensive now," Zach said.
In this most recent case, the employee is seeking a jury to award her lost wages and issue punitive damages.
Founders Brewing Company sent the following statement to CBS News Detroit:
"We are deeply saddened and concerned to learn of the recent accusations that have been brought against the Detroit Taproom. We take these claims very seriously, and we are conducting a thorough internal investigation.
Since 2019, we have instituted mandatory bias, discrimination and harassment training throughout our organization. We have reexamined our policies and enacted new policies, along with implementing new procedures for the reporting of workplace concerns.
Closing a business is a difficult decision, and this decision was made after a several year evaluation of the Detroit Taproom's financial performance that began prior to COVID and was made worse by the pandemic. During the closure of our Detroit facility on Monday, we were unaware of the filing. We announced the closing to all of our Detroit staff on Monday morning, and did not learn about the lawsuit filed against Founders until that evening when a reporter contacted us. As with any closure, there was a lot of work that needed to be done to prepare for the loss of this extension, including redistribution of internal assets, conversations with our landlord and pulling together a comprehensive severance plan, all of which take time.
As to the pending lawsuit, we are sorry that this individual did not have a good experience with us, and to the extent it was due to our actions or inactions that contributed to that, we are deeply sorry."
