Arizona Discount Movers will also write an apology letter and a positive letter of reference for its former employee, Clinton Lee, who said his supervisor made racist comments and gestures toward him that included using the N-word and discussing "Klan" meetings.
The EEOC's lawsuit, filed on Lee's behalf in June 2018, tells a story of a racist work environment that resulted in Lee's harassment "nearly every day of his employment" over the course of nine months in 2013 and 2014.
When Lee picked up his paychecks, the lawsuit said, Carpenter would tell him, "get out of here, we're having a Klan meeting."
The lawsuit also describes more graphic threats the supervisor is accused of waging against Lee.
On one occasion, according to the lawsuit, Carpenter placed a horse jockey statue on his desk with a noose-like whip around the horse's neck, and labeled the statue "Clint."
Another time, it said, Carpenter spray-painted a troll doll black, hung it from a hook in full view of the office, and attached a sticky-note labeled "Clint King." Later, according to the EEOC, Carpenter pointed to the doll and said, "Hey Clint look! That's you!"
When Lee reported the troll doll to the company's owner, Amy Hannah, she told Lee to take it down himself "if he did not like it," the EEOC said.
The incessant harassment eventually led to Lee's resignation, according to EEOC regional attorney Mary Jo O'Neill. At that point, Lee reached out to the EEOC to file a charge of discrimination, and the agency conducted an investigation.
O'Neill says Lee and her team are satisfied with the settlement amount to Lee, $4,000 of which makes up for Lee's lost wages and $50,000 of which represents compensatory damages.
Through O'Neill, Lee declined to comment on the case. O'Neill said the ordeal has "traumatized him."
"He just never experienced this kind of conduct in a workplace before, and it really altered his view of the world, and altered his sense of safety at work," O'Neill said. "He was so shocked by this conduct. It is shocking conduct. But he's doing better."
Lee has tried to move the incidents behind him, and has gotten a new job, O'Neill said.
EEOC District Director Elizabeth Cadle said in a statement that workplace harassment against black people is disproportionately high in Arizona.
“Unfortunately, a disturbingly large number of the charges that we receive in Arizona involve discrimination like this against African Americans, despite the fact that African-Americans make up only 4.1% of the population in Arizona,” she said.
Arizona Discount Movers is still in business in Phoenix. It offered no comment on the allegations or the settlement.