Luihn Food Systems, Inc. will pay $277,000 and furnish other relief to resolve a sexual harassment lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the EEOC announced Tuesday.

According to the lawsuit, Tina Underwood, Sheila Mungin, Sabin Sheridan, Barbara Nowlin and a class of similarly situated female employees were sexually harassed between February 2007 and January 2008 while working at a Kentucky Fried Chicken restaurant owned and operated by Luihn Food Systems in Raleigh, N.C.

The sexual harassment included unwelcome touching by a male employee at the restaurant. The male employee rubbed his body against the women, touched their buttocks and breasts, and walked into the restroom while the females were using it.

Luihn Food Systems received several complaints about the harassment and failed to take action to stop it, said the EEOC.

Sexual harassment violates Title VII of the Civil Rights Act of 1964. The EEOC originally filed suit in August 2009 in U.S. District Court, Eastern District of North Carolina, after first attempting to reach a pre-litigation settlement through its conciliation process.

In addition to monetary damages, the two-year consent decree requires Luihn to revise its sexual harassment policy to include, among other things, procedures for reporting sexual harassment and procedures for the prompt investigation of employee complaints about it. Luihn is also required to post a copy of its sexual harassment policy at all of its facilities and conduct an annual training program for all employees on its policy and Title VII’s prohibition against sexual harassment.

“Once an employer is put on notice that any of its employees, male or female, are being subjected to sexual harassment, it must take prompt corrective action to stop it,” said Lynette A. Barnes, regional attorney for the EEOC’s Charlotte District, which includes the Raleigh Area Office, where the original charges of discrimination were filed. “We are pleased that, in resolving this case, Luihn is taking action to encourage the prompt reporting and investigation of sexual harassment complaints.”

The EEOC is responsible for enforcing federal laws prohibiting discrimination in employment. More information about the EEOC is available on its website at www.eeoc.gov.