Pāʻia Inn owner faces federal lawsuit over allegations of sexual harassment

A federal lawsuit accuses Pāʻia Inn owner Michael Baskin of “rampant sexual harassment” of young female employees, including some teenagers, since at least 2015. Through a representative, Baskin denied the allegations filed Thursday in US District Court by the US Equal Employment Opportunity Commission.

The commission’s news release says Baskin violated federal law when he “regularly preyed on a class of young female employees” with “repeated, frequent and offensive touching, along with sexual advances and comments” and terminated those who complained or tried to address the “rampant sexual harassment.”

The EEOC lawsuit does not refer to Baskin by name, only as the Pāʻia Inn owner. It reports that “the owner demanded massages while he was naked, propositioned female employees for sexual encounters and inappropriately touched female employees.”

Via email Saturday afternoon, Baskin’s representative said: “The allegations against Mr. Baskin are completely untrue and lack any merit whatsoever. We are confident that the truth will fully clear Mr. Baskin’s name, and we look forward to sharing more details when we are able.”

“The Baskin family is deeply rooted in their island home, proudly running a family business that reflects Hawaiian values of aloha and kōkua. For 20 years they’ve been honored to employ and support the local community through their work and dedication to Maui’s causes. Mahalo for your continued support and understanding as we navigate this process together,” the representative said.

According to the EEOC news release, Baskin “frequently commented on the female employees’ looks and bodies in front of male friends who patronized the hotel, and he insisted on hiring attractive female applicants after requiring their photos as part of the application process,” according to the EEOC lawsuit.

On one occasion, “the owner immediately fired an employee who stood up for other female employees to stop the sexual harassment, while other employees who complained about the sexual harassment were terminated or forced to quit their jobs,” the suit alleges.

Such alleged conduct violates Title VII of the Civil Rights Act of 1964. The federal law prohibits discrimination on the basis of sex, including sexual harassment, as well as retaliation against individuals who complain about sexual harassment or engage in other protected activity.

The EEOC filed suit in US District Court for the District of Hawaiʻi (Case No.: 1:25-cv-00199).

The lawsuit allegations echo those of about a dozen residents who protested in Pāʻia town in June 2021.

According to a June 5, 2021, article published in The Maui News, the rally was in support of former Pāʻia Inn employees who alleged they were subjected to sexual harassment by Baskin. Erin McCargar, former controller and acting human resources manager for Pāʻia Inn, told the newspaper that at least five employees, not including her, had alleged that Baskin sexually harassed them through inappropriate text messages, verbal comments and physical contact.

McCargar told the newspaper Baskin fired her after she had employed for about six months when she met him to discuss multiple allegations of sexual harassment from employees.

At the time of the protest, Baskin was quoted in the newspaper as saying: “I am surprised and deeply bothered by these allegations, as Pāʻia Inn and our sister companies are committed to a workplace atmosphere that is free of discrimination and harassment of any kind.”

According to its news release, the commission first tried to reach a pre-litigation settlement through its voluntary conciliation process, according to its news release.

“The EEOC seeks monetary damages for the claimants, including compensatory and punitive damages, and injunctive relief against the employer to prevent such unlawful conduct in the future,” it says.

“Employers have a responsibility to create a safe working environment for their employees, especially when the company hires young employees who may not know their rights and may be particularly vulnerable to harassment in the workplace,” said Anna Park, regional attorney for the EEOC’s Los Angeles District, which includes Hawaiʻi. “The EEOC remains steadfast in its mission to combat sexual harassment in the workplace.”

Laura Ishida, acting director for the EEOC’s Honolulu Local Office, said: “The allegations set forth in this lawsuit are despicable. The owner of a company sets the tone for the entire workforce, and by openly harassing employees in front of other staff and patrons he created a hostile workplace. Retaliation against those who are brave enough to stand up for themselves and others also sends a chilling message to anyone else in the workplace. This behavior is unacceptable and the EEOC stands ready to defend the civil rights of employees.”

For more information on retaliation, click here. For more information on sexual harassment, visit here.

The EEOC’s Youth@Work website presents information for teens and other young workers about employment discrimination, including curriculum guides for students and teachers and videos to help young workers learn about their rights and responsibilities.

This lawsuit was initiated by the EEOC’s Honolulu Local Office.

This is not the first time Baskin has found himself in hot water.

In July 2015, the Maui County Department of Planning levied $500,000 in fines against Baskin, the owner and operator of three vacation rentals in Pāʻia, after issuing 30 notices of violation. It was then the largest fine leveled by the department in its history, resulting from numerous violations of short-term rental home, special management area, zoning and building code laws.

In April 2018, Baskin faced a community backlash when he applied for a special use permit for the nine-room Pāʻia Inn and café. An online “No Hotels in Pāʻia” petition against the project drew more than 2,000 signatures.

More recently, Baskin was involved in a land contract dispute with EC Paia involving 330 acres in Pāʻia.

According to a statement from the law firm of Cades Schutte LLP, Baskin entered a contract with Alexander & Baldwin in 2016 to purchase the land in Pāʻia. “Baskin found himself unable to close on the contract on his own and sold the contract to our client, EC Paia. EC Paia paid Mr. Baskin for the contract and agreed to other obligations. EC Paia purchased the land from A&B,” the law firm said.

“In 2020, Mr. Baskin sued EC Paia claiming that EC Paia had breached the agreements,” the firm said. “EC Paia denied the breach and counterclaimed for fraud related to statements that were made by Mr. Baskin when the parties were discussing the terms of their contract.”

EC Paia eventually prevailed in the case, Cades Schutte said.