Buffalo Grove firm paying $8 million to settle sexual harassment case

International Profit Associates has agreed to pay $8 million to 82 female employees who said they were sexually harassed in what was described by the government as an outrageous, male-dominated culture that existed at the Buffalo Grove company in the late 1980s and early 1990s.

The case, filed in federal court by the U.S. Equal Employment Opportunity Commission, took 10 years to resolve. It became one of the longest-running sexual harassment cases in EEOC history because IPA’s attorneys used countless arguments and motions to delay the case, only to agree to a tentative settlement last June as the case was about to go to trial, EEOC attorneys said.

On Monday, the EEOC announced a settlement had been reached and the victims have started receiving initial payments of anywhere from $30,000 to $70,000. Compensation will be made in installments over three years, with the average payout per victim being about $100,000. The amount received depends on the severity and duration of the harassment, which ranged from attempted sexual assault to name calling, officials said.

“This is, by far, the most egregious sexual harassment that our Chicago office has ever seen,” said EEOC attorney Diane Smason.

IPA’s corporate attorney, Ronald Bell, said the last sexual harassment complaint filed against the company was in 1998, and IPA has since cleaned up its act and isn’t the same company it used to be.

Bell said the company now employs a competent human resources staff, regularly holds training sessions about what constitutes inappropriate conduct, and has wall signs warning that sexual harassment is not tolerated and should be immediately reported.

“It’s unfortunate that these allegations occurred. We can blame it on the youth of the business,” Bell said. “We agree with the EEOC that such behavior should not be tolerated in any workplace, certainly not ours.”

The company’s owner, John Burgess of North Barrington — whom EEOC attorneys say allowed that business culture to exist — remains at the helm of the company, which employs about 1,300 people. However, many of the male employees who worked there during that time are now gone, Bell said.

Burgess was not available for comment because he is recuperating from bladder cancer, Bell said.

According to the main complaint filed by the employees: “Women at IPA were regularly propositioned for sex, offered job benefits contingent on the performance of sexual acts (and threatened with negative consequences if they did not agree), and even offered money for sex. More than 40 women reported being sexually assaulted in one manner or another — the behavior complained of consists of everything from slapping, pinching, touching and grabbing to outright attempted rape.

“Women were regularly subjected to offensive sexual comments in the workplace, including explicit observations regarding their appearance and sexual jokes.

“Sexually offensive and derogatory language was commonly used by male employees, both in general and directed at female employees. Male employees exposed themselves to female employees.

“Strippers and prostitutes were hired to perform for male employees’ birthday parties at IPA’s offices during business hours. In short, the EEOC alleges that severe sexual harassment was part of the culture at IPA.”

The suit charged the harassment was “pervasive and existed at all levels and departments of the company,” and that “a great deal of the most abhorrent conduct … was allegedly committed by IPA’s upper-level management.”

Under the settlement, the company made an initial payment of $2.5 million and future payments are personally guaranteed by Burgess and secured by mortgages on certain of his personal real estate interests.

IPA will be required to pay for two monitors who will review its policies and practices, assess its compliance with required training and prevention measures, and accept sexual harassment complaints from employees.

The company, a telemarketer of small business consulting services, was founded about 20 years ago by Burgess. It grew rapidly and within a few years was featuring major figures, including former presidents, as speakers at its annual success dinners.