3 tour companies settle lawsuit for $570K

Three tour companies have agreed to pay $570,000 to settle a federal sexual harassment lawsuit.

In addition to paying the money, Discovering Hidden Hawaii Tours, Hawaii Tours and Transportation, and Big Kahuna Luau have agreed to other terms that include submitting to U.S. Equal Employment Opportunity Commission oversight for three years and removing the accused harasser’s authority over operations and personnel matters over that same period.

The settlement terms are included in a consent decree filed in U.S. District Court Wednesday and signed by lawyers for the companies and EEOC. It was the EEOC that filed the lawsuit against the related tour companies in February last year on behalf of at least five then-current and former male employees.

The lawsuit accuses Discover Hawaii Tours owner Leo Magallon of at least 10 years of sexually harassing male employees by inviting them to sex parties; showing them pornographic videos and photographs; requiring them to show him their private parts to be considered for employment; telling them that promotions and their continued employment required them to have sex with him; and performing unwanted sexual acts.

Magallon is listed in Hawaii business registration records as the president, treasurer and sole director of Discovering Hidden Hawaii Tours, and was listed as such when the lawsuit was filed. The lawsuit says Magallon also had control of Hawaii Tours and Transportation and managed events for Big Kahuna Luau, both of which are owned by his wife.

The tour companies will pay the settlement money to 18 claimants and any other claimant the EEOC identifies within the next year, in amounts determined by the EEOC. The companies also have agreed to pay each claimant $250 for a lawyer to advise them on separate agreements between them, independent of what the companies have agreed to with the EEOC.