Arizona senior living company pays $250K to settle EEOC sexual harassment lawsuit

A recent consent decree resolving an Equal Employment Opportunity Commission (EEOC) sexual harassment lawsuit against a senior living operator in Arizona offers important lessons for employers, particularly those in residential care, home health, hospitality, and other client service industries. The case underscores that employers can face significant liability for harassment committed by nonemployees.

Background and underlying allegations

In September 2024, the EEOC filed suit against Christian Care Management Inc. (CCMI), which does business as Christian Care Companies/Fellowship Square, in the U.S. District Court for the District of Arizona. CCMI operates senior living and retirement communities across Arizona under the name Fellowship Square.

The EEOC alleged that beginning in at least 2020, a 90-year-old resident named Elmer Parsons engaged in pervasive sexual harassment of female employees, including housekeepers, servers, dishwashers, and a transportation driver, at CCMI’s Mesa, Arizona, facility. CCMI employee Terilynn Keo alleged that while she was transporting Parsons to a medical appointment in April 2021, he made numerous vulgar and explicit sexual comments and physically groped her, including squeezing her breast and forcing his hand between her legs.