Monday, November 9th, 2026 — An Illinois roofing contractor has agreed to pay $700,000 to resolve a federal lawsuit involving allegations of racial and sexual harassment, including repeated misconduct by a company vice president and management's failure to address employee complaints.
The U.S. Equal Employment Opportunity Commission (EEOC) announced the settlement Nov. 6 against Anthony Roofing Tecta America LLC, an Aurora-based roofing services company. The lawsuit alleged violations of Title VII of the Civil Rights Act of 1964, which prohibits workplace discrimination, harassment and retaliation.
According to federal officials, a company vice president repeatedly directed racial slurs and degrading remarks toward a Black employee, including referring to the worker as his "slave." The employee objected to the treatment, but the harassment allegedly continued and escalated to unwanted physical contact. The employee eventually resigned to escape the abusive environment.
The EEOC also alleged that other Black employees experienced racial harassment from supervisors and coworkers. Female employees reportedly faced sexually inappropriate comments, offensive remarks about their bodies and intrusive questions about sexual activities.
Multiple workers brought their concerns to company management and human resources, but the complaints went unaddressed, according to the lawsuit. In one instance, an employee who objected to the harassment was allegedly encouraged by a manager to submit a resignation notice.
The EEOC initially filed its lawsuit against Anthony Roofing and Tecta America Corporation in November 2025 in the U.S. District Court for the Northern District of Illinois after unsuccessful efforts to reach a settlement through the agency's administrative process.
In addition to the $700,000 payment, a two-year consent decree requires the company to provide harassment prevention training for managers and human resources employees. The agreement also mandates workplace notices, record-keeping and compliance reporting to federal regulators.
EEOC Deputy General Counsel Christopher Lage emphasized that employers have an obligation to address harassment throughout their organizations, particularly when allegations involve corporate officers.
For insurance professionals handling employment practices liability claims, the case illustrates the potential consequences of harassment allegations involving senior leadership. Management's knowledge of employee complaints, the organization's response and the circumstances surrounding an employee's resignation can become significant considerations in evaluating liability and potential financial exposure.
The EEOC's announcement did not identify any insurance carrier or indicate whether insurance contributed to the settlement.
