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Arizona Logistics, Inc. doing business as DSI Arizona, and its management company, Norlyn Enterprises, Inc., agreed to pay $175,000 to five former employees and to implement preventive measures as part of a settlement of a sexual harassment lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC).

In its suit in U.S. District Court for the District of Arizona (Civil Action No.CV-09-02057 SRB), the EEOC charged that DSI Arizona and Norlyn subjected female employees to egregious sexual harassment by then-Regional Director Mark Berault. The EEOC’s allegations included that Berault sexually assaulted several of the women and engaged in unwelcome touching and indecent exposure. Berault made sexually explicit comments to the women and showed pictures of his private parts to several of them. Although DSI Arizona and Norlyn knew about the sexually hostile work environment caused by its regional director, the company failed to take prompt and effective corrective action.

Sexual harassment violates Title VII of the Civil Rights Act of 1964. The EEOC filed suit after first attempting to reach a pre-litigation settlement through its conciliation process.

In addition to the settlement requiring DSI Arizona and Norlyn to pay $175,000 to the female victims, the company will provide significant remedial relief. DSI Arizona and Norlyn must not rehire Mark Berault; must investigate any further complaints of sexual harassment promptly; provide training for managers and supervisors on conducting sexual harassment investigations; post a notice that harassment of DSI Arizona and Norlyn employees will not be tolerated; and provide a letter of regret to each of the victims.