New York Attorney General Letitia James announced a settlement of a half-million dollars with a Manhattan bar and its owner over allegations of discrimination, sexual harassment and wage theft.

“Our mental health was tested during a global pandemic that left us wounded and vulnerable,” Katy Guest, a former employee at Sweet & Vicious, said. “Allowing harassment to continue is detrimental to our emotional capacity and well-being.”


What You Need To Know

  • New York Attorney General Letitia James announced a $500,000 settlement Wednesday with a Manhattan bar and its owner over claims of sexual harassment and discrimination

  • The settlement has been divided among 16 current and former employees

  • In a statement to NY1, the bar owner calls many of the claims "untrue" and "grossly misleading"

Guest is one of 16 current and former employees of Sweet & Vicious, a bar on Spring Street in Manhattan’s Nolita neighborhood, splitting the $500,000 settlement.

The 16-month investigation, led by the New York Attorney General’s Office, discovered that Guest and others consistently endured inappropriate comments about their sexuality, race and appearance well as sexual advances and harassment from patrons and their superiors.

“These male managers repeatedly rubbed themselves up against them behind the bar and elsewhere,” James said during a press conference Wednesday.

James said the workplace culture at the bar was perpetuated by owner Hakan Karamahmutoglu, who she said often insulted women workers and frequently tolerated harassment by male managers and violent customers.

“In one instance, a male employee loudly announced the color of the bartender’s underwear and then graphically and crudely stated his intention to engage her sexually,” James said.

During the press conference, James played audio recordings depicting what she referred to as the owner’s verbal abuse.

“You see how pretty, these girls like, here’s a normal… they all handpicked,” Karamahmutoglu said in the recording. “What’s the name of the girl I don’t like who dress like a retard, don’t talk to customers and stuff?”

James said female employees were treated more harshly than male workers. Multiple employees also reported not being paid wages or tips they were owed.

As part of the settlement, Karamahmutoglu must provide his employees with updated anti-discrimination and anti-harassment materials and submit to monitoring by the Attorney General’s Office.

“This case is a success story that I hope will continue to inspire others to recognize their own self-worth and the power of fighting for what’s right,” Guest said.

In a statement to NY1, Karamahmutoglu called many of the claims “untrue” and “grossly misleading.”

“I am deeply distressed by the allegations as they do not reflect my perspective or character, and they do not reflect the attitude of the bar to its employees or customers,” he wrote in the statement.

Editor's Note: A previous version of this story misstated the amount of the settlement.