The two-year litigation - centered on allegations that teenage and young female employees were subjected to unwanted touching, offensive comments, and retaliation - has now concluded with a court-approved consent decree covering all nine locations, according to new filings and confirmation this week from federal authorities. While the settlement imposes sweeping reforms, former longtime manager John Nolan continues to vehemently deny the EEOC’s portrayal of events and says the fallout has upended his life.
The EEOC first filed the lawsuit in 2023, accusing Swami’s and Honey’s of fostering what it described as a “highly sexualized work environment” dating back to 2019. According to the complaint, young women at nine locations reported inappropriate touching, “frequent and offensive remarks,” and advances by male co-workers and supervisors. When some complained, the agency alleged they were ignored, punished, or pushed out. In its announcement of the settlement, the EEOC said it “commends these young women for their bravery in coming forward,” and emphasized the need for stronger workplace protections in the restaurant industry—particularly for young workers in their first jobs.
The newly approved two-year consent decree requires Swami’s and Honey’s to overhaul internal policies, hire an independent EEO monitor, establish a complaint hotline, implement new reporting and anti-retaliation procedures, and remove negative references from personnel files. The company must also offer reinstatement to affected workers who wish to return. The announcement comes after years of stops, starts, and conflicting narratives as the case unfolded publicly and in court.
But while the settlement moves the legal case toward closure, Nolan - the manager widely assumed by the public to be the central figure in the allegations - says he was never charged, never sued, and never contacted by any agency throughout the investigation. Speaking to SanDiegoVille, he called the EEOC’s characterization “false, exaggerated, and devastating,” insisting he was used as leverage to pressure ownership. “I was guilty of nothing,” Nolan said. “They made me sound like a danger to society. I never received a call, a letter, anything.” He maintains that some claims were fabricated and says that allegations about underage staff were inaccurate. “We didn’t even have underage girls working there,” he said. “Most of the people who did work there sided with me.”
Nolan, who managed the original Encinitas location for more than two decades, says the damage to his reputation has been irreversible. “Because of false reports and media coverage, I’ve faced harassment, defamation, and death threats,” he said, noting that he is still searching for an attorney to pursue libel claims. “My ability to work has been destroyed.” He declined a settlement offer he says would have restricted him from speaking publicly, explaining that he is instead writing a book documenting his version of events. “I created much of the Swami’s menu and style people know today,” he said. “I want to tell the real story.”
A current Swami’s representative, who requested anonymity due to concerns about backlash, echoed Nolan’s claims that the lawsuit ballooned far beyond its origins. They described the years-long litigation as financially devastating for the small chain and alleged investigators “went looking for others to join,” calling former employees repeatedly and asking leading questions. They maintain the allegations were driven by “one isolated incident” that “snowballed” once potential payouts were mentioned. They emphasized that recent Swami’s closures were driven by rising rent, not the lawsuit, and expressed frustration that the company “never had a fair chance to defend ourselves publicly.”
The EEOC disputes these characterizations, asserting that the conduct was widespread and that employers have a duty to maintain safe workplaces. “Employers must protect young workers,” EEOC regional attorney Anna Park said in announcing the settlement, calling the consent decree a step toward accountability.
For Swami’s - once a North County institution praised for its longevity and family-run ethos - the case leaves behind a fractured reputation and lingering questions that no settlement check can fully resolve. For Nolan, the fight is far from over. “This has been reputation destruction through public pressure,” he said. “I wish I had stayed and fought. But at least now, I can speak freely and tell the truth.”
Swami’s operates locations in Vista, Oceanside, La Mesa, Escondido, Encinitas, Carlsbad, and San Diego’s Del Sur, downtown, and North Park neighborhoods. Honey’s Bistro remains open in Encinitas. For more information, visit swamiscafe.com.
The EEOC first filed the lawsuit in 2023, accusing Swami’s and Honey’s of fostering what it described as a “highly sexualized work environment” dating back to 2019. According to the complaint, young women at nine locations reported inappropriate touching, “frequent and offensive remarks,” and advances by male co-workers and supervisors. When some complained, the agency alleged they were ignored, punished, or pushed out. In its announcement of the settlement, the EEOC said it “commends these young women for their bravery in coming forward,” and emphasized the need for stronger workplace protections in the restaurant industry—particularly for young workers in their first jobs.
The newly approved two-year consent decree requires Swami’s and Honey’s to overhaul internal policies, hire an independent EEO monitor, establish a complaint hotline, implement new reporting and anti-retaliation procedures, and remove negative references from personnel files. The company must also offer reinstatement to affected workers who wish to return. The announcement comes after years of stops, starts, and conflicting narratives as the case unfolded publicly and in court.
But while the settlement moves the legal case toward closure, Nolan - the manager widely assumed by the public to be the central figure in the allegations - says he was never charged, never sued, and never contacted by any agency throughout the investigation. Speaking to SanDiegoVille, he called the EEOC’s characterization “false, exaggerated, and devastating,” insisting he was used as leverage to pressure ownership. “I was guilty of nothing,” Nolan said. “They made me sound like a danger to society. I never received a call, a letter, anything.” He maintains that some claims were fabricated and says that allegations about underage staff were inaccurate. “We didn’t even have underage girls working there,” he said. “Most of the people who did work there sided with me.”
Nolan, who managed the original Encinitas location for more than two decades, says the damage to his reputation has been irreversible. “Because of false reports and media coverage, I’ve faced harassment, defamation, and death threats,” he said, noting that he is still searching for an attorney to pursue libel claims. “My ability to work has been destroyed.” He declined a settlement offer he says would have restricted him from speaking publicly, explaining that he is instead writing a book documenting his version of events. “I created much of the Swami’s menu and style people know today,” he said. “I want to tell the real story.”
A current Swami’s representative, who requested anonymity due to concerns about backlash, echoed Nolan’s claims that the lawsuit ballooned far beyond its origins. They described the years-long litigation as financially devastating for the small chain and alleged investigators “went looking for others to join,” calling former employees repeatedly and asking leading questions. They maintain the allegations were driven by “one isolated incident” that “snowballed” once potential payouts were mentioned. They emphasized that recent Swami’s closures were driven by rising rent, not the lawsuit, and expressed frustration that the company “never had a fair chance to defend ourselves publicly.”
The EEOC disputes these characterizations, asserting that the conduct was widespread and that employers have a duty to maintain safe workplaces. “Employers must protect young workers,” EEOC regional attorney Anna Park said in announcing the settlement, calling the consent decree a step toward accountability.
For Swami’s - once a North County institution praised for its longevity and family-run ethos - the case leaves behind a fractured reputation and lingering questions that no settlement check can fully resolve. For Nolan, the fight is far from over. “This has been reputation destruction through public pressure,” he said. “I wish I had stayed and fought. But at least now, I can speak freely and tell the truth.”
Swami’s operates locations in Vista, Oceanside, La Mesa, Escondido, Encinitas, Carlsbad, and San Diego’s Del Sur, downtown, and North Park neighborhoods. Honey’s Bistro remains open in Encinitas. For more information, visit swamiscafe.com.
Originally published on December 2, 2025.
