The EEOC’s 2023 lawsuit accused Swami’s of allowing what it described as a “highly sexualized work environment,” alleging that teenage and young female employees were subjected to unwanted touching, offensive comments, and retaliation when they complained. According to the agency, the case began with a complaint from a teenage girl fired from the Encinitas location after reporting harassment by a manager - prompting an investigation that led the EEOC to issue two “reasonable cause” letters before ultimately filing suit. The agency also alleged that similar conduct occurred at other Swami’s stores throughout the county.
In announcing the settlement, EEOC officials praised the young employees who came forward. “We commend these young women for their bravery in coming forward, asserting their rights, and giving a voice to others,” said Jacquelyn Famber, director of the EEOC’s San Diego office, calling the case a reminder that employers must protect young and vulnerable workers. EEOC Regional Attorney Anna Park added that the consent decree represents “an excellent step forward for Swami’s Café and Honey’s Bistro.”
Swami’s, which did not admit wrongdoing, said in a statement that it “cooperated fully with the EEOC throughout this process” and implemented proactive measures “as soon as concerns were raised.” Still, the decree mandates significant changes: the chain must adopt robust new anti-discrimination and anti-retaliation policies, create a complaint hotline, revamp internal reporting procedures, post notices of the settlement at all locations, and hire an independent monitor with expertise in preventing workplace harassment. The monitor will conduct audits, help oversee training for all employees, and ensure the chain complies with every provision of the decree. Swami’s must also remove negative references from personnel files and offer reinstatement to those who were fired or quit.
Settlement funds will be distributed between the original complainant and additional eligible claimants identified by the EEOC, which is now required to contact current and former female employees to determine eligibility.
But even as the legal case enters its enforcement phase, longtime former Swami’s manager John Nolan - who ran the flagship Encinitas location for more than 20 years - continues to forcefully reject the narrative presented by federal investigators. Nolan says he was never contacted, interviewed, or named in the lawsuit, despite being widely assumed by the public to be the manager referenced in the complaint. Speaking to SanDiegoVille, he described the EEOC’s characterization as “false, exaggerated, and devastating,” insisting he became a scapegoat in a larger dispute between investigators and 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.”
Nolan maintains that allegations involving underage workers were inaccurate and that most staff at the time supported him. He says the fallout has left him facing harassment, defamation, death threats, and severe professional harm. “My ability to work has been destroyed,” he said, adding that he is still seeking counsel to pursue potential libel actions and has begun writing a book to tell what he calls “the real story.”
A current Swami’s representative, who requested anonymity, echoed Nolan’s claims that the case expanded far beyond its origins. They described the years-long litigation as financially devastating for the small chain and alleged that investigators contacted former employees repeatedly with what they viewed as leading questions. They continued to insist the matter stemmed from “one isolated incident” that “snowballed” once the prospect of payouts entered the discussion. They reiterated that recent restaurant closures were tied to rising rent, not the EEOC case.
The EEOC strongly disputes these accounts, maintaining that misconduct was widespread and that the chain repeatedly failed to remedy dangerous working conditions for young employees. “Employers must protect young workers,” the agency said, noting that harassment protections are especially critical in restaurants, where many employees are in their first jobs.
Swami’s - once celebrated for its longevity, surfer-friendly culture, and family-run ethos - now faces the task of rebuilding trust under the weight of a consent decree that will remain in force for two years. And for Nolan, the matter remains deeply personal. “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 restaurants in Encinitas, Vista, Carlsbad, Escondido, Oceanside, La Mesa, North Park, Hillcrest, downtown San Diego, and Del Sur. Honey’s Bistro remains open on South Coast Highway 101 in Encinitas. For more information, visit swamiscafe.com.
Originally published on December 2, 2025.