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The Bahama Breeze restaurant chain has agreed to pay $1.26 million to settle a racial harassment lawsuit filed by the Equal Employment Opportunity Commission.

The lawsuit stemmed from the alleged mistreatment of 37 black employees at the Bahama Breeze restaurant located in Cleveland, Ohio.

According to the agency, the employees were allegedly subjected to repeat harassment including being called racially offensive names and they were also denied breaks while non-black employees were granted breaks.

The company denies any wrongdoing and agreed to post anti-discrimination policies and provide anti-discrimination training.

A spokesman for Bahama Breeze says the company won’t tolerate discriminatory behavior. He says the complaints were limited to one location and most emerged more than five years ago.

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