The suit, filed in May 2023 in the U.S. District Court for the Southern District of California, alleged that teenage and young female employees were repeatedly harassed at multiple locations and retaliated against for reporting the misconduct. While settlement details have not been disclosed, the resolution closes a high-profile case that centered on workplace culture at one of North County’s most visible restaurant groups.
The EEOC complaint claimed that Swami’s and Honey’s operated a “highly sexualized work environment,” accusing a longtime manager of inappropriate touching, sexual comments, and favoritism toward female staff who tolerated his alleged advances. The agency said some employees were underage and that complaints to management were ignored or punished. The agency also claimed Swami’s owner Jaime Osuna failed to act when witnessing inappropriate remarks. At the time, Osuna denied wrongdoing, and one Swami’s entity entered into limited injunctive relief while litigation continued against others.
Now, in statements to SanDiegoVille, John Nolan is publicly defending himself, saying he was never charged, never named as a defendant, and never contacted by any law enforcement agency. “I was guilty of nothing,” Nolan said. “They made me sound like a danger to society that had committed felonies, but I never received even a phone call or letter from any authority.” Nolan believes he became collateral damage in a broader effort to pressure Swami’s ownership. “It was simply pressure applied to the owner to get rid of me legally to appease the EEOC,” he said. “It was vindictive, cruel, and not honest.”Nolan, who managed the original Swami’s in Encinitas for more than two decades, maintains that the EEOC exaggerated claims, alleging some complainants fabricated stories for money. “We didn’t even have underage girls working there,” he said. “The ones who did work there, most sided with me.” He said he declined a $50,000 wage settlement offer because he believes he is owed closer to $200,000, and instead chose to keep his freedom to speak publicly. “I’ve had everything thrown at me—from truth to lies to mythology—but I’m not afraid to tell the facts as they happened.”
He also says the fallout has been personally devastating. “Because of false reports and media coverage, I’ve faced harassment, defamation, and even death threats,” Nolan said, adding that he is still trying to find an attorney to help him pursue defamation and libel claims. “I’ve received threats in public and online based on this made-up issue. It’s destroyed my reputation and my ability to work.” Despite this, he says he is writing a book chronicling his time at Swami’s and his version of events. “I created much of the Swami’s menu and style that people know today. I want to tell the real story - not for profit, but for posterity.”
In a separate statement, a Swami’s representative who requested anonymity said the company’s decision to settle the EEOC case was based purely on financial limitations rather than guilt. “It made more sense to settle than to keep fighting,” they explained, calling the years-long litigation “devastating for a small business like ours.” They described the dispute as originating from “one isolated incident” that the EEOC “turned into a fishing expedition,” claiming investigators “went looking for others to join” and “called employees repeatedly, asking leading questions.” According to their account, when they defended Swami’s during her interview, “they said thank you and hung up on me.”
The representative said no employees involved were underage, and that many details in the EEOC’s complaint were “fabricated on multiple levels.” They alleged that investigators failed to interview neutral or supportive employees, instead focusing on “people who saw dollar signs once potential payouts were mentioned.”
The EEOC has not yet released a final statement on the settlement or whether further compliance or monitoring provisions will be imposed. The agency’s Los Angeles District Office, which brought the case, had previously urged victims or witnesses to come forward, calling the matter “important for the public good.”
Though the court case has concluded, the fallout continues to affect both the individuals and the business involved. Nolan says he is focused on clearing his name and preserving his legacy with the brand he helped shape. “For me, it’s about telling the truth for posterity,” he said. “I was there every day for years - Swami’s Café was my life’s work.”
For Nolan, the case remains an emblem of what he describes as “reputation destruction through public pressure.” “I wish I had stayed and fought,” he reflected. “But at least now, I can speak freely and tell the truth.”
As with many EEOC suits, the government’s complaint sought monetary relief for affected workers and court-ordered reforms to prevent future misconduct. With the case now resolved, attention turns to what compliance measures, if any, may follow at the company’s remaining locations and to whether any related wage-and-hour issues raised by current or former employees are pursued in separate forums.
SanDiegoVille has requested additional information about the settlement and will update this report if further details or statements become available.
Originally published on November 6, 2025.
