The EEOC filed the sexual harassment lawsuit in U.S. District Court for the Southern District of Illinois after the agency's administrative conciliation process failed to reach a pre-litigation settlement. The complaint alleges that Ascend violated Title VII of the Civil Rights Act of 1964 by allowing a hostile work environment for female employees at the cannabis company's Illinois facility.
According to the lawsuit, beginning at least as early as February 2021, the facility manager and other male employees continually harassed female workers through inappropriate touching, sexual comments and advances, requests for sexual relations, and remarks about the appearances and bodies of female employees and customers. The EEOC alleges that numerous women complained to Ascend's human resources department about the harassment, but the company failed to stop the conduct, with at least one employee forced to resign due to the intolerable work environment.
"When workers complain to managers or human resources personnel about sexual harassment, employers must act promptly with effective actions to stop the harassing conduct," said Andrea G. Baran, regional attorney for the EEOC's St. Louis District Office. The agency has not yet disclosed what monetary damages or other relief it is seeking in the litigation.
The case represents another enforcement action by the EEOC against companies in the emerging cannabis industry, which has faced various workplace compliance challenges as legalization expands across states. Cannabis companies have increasingly come under federal employment law scrutiny despite the ongoing federal prohibition on marijuana, with courts applying traditional workplace discrimination and harassment standards to the industry.
"The alleged harassment in this case was particularly egregious because the facility manager himself engaged in the conduct and comments at issue, making it even more difficult for employees to complain and obtain relief," said David S. Davis, director of the EEOC's St. Louis District Office. The involvement of management-level employees in harassment can complicate companies' legal defenses and increase potential liability exposure.
The lawsuit comes as the EEOC has stepped up enforcement of sexual harassment claims across industries. The case will proceed through federal court litigation unless the parties reach a settlement agreement. Ascend Wellness Holdings will need to respond to the complaint and could face significant monetary damages if the EEOC proves its allegations at trial.
The EEOC's St. Louis District Office handles discrimination charges and litigation across Missouri, Kansas, Oklahoma, Nebraska and southern Illinois. The agency encourages employees facing workplace harassment to file charges within 180 or 300 days of the alleged discrimination, depending on state law protections.