The Bahama Breeze restaurant chain will pay $1.2 million to 37 employees of its Beachwood location after settling a harassment lawsuit filed by the Equal Employment Opportunity Commission.

E.E.O.C. attorney Debra Lawrence says the investigation began after one employee came forward claiming he had been called names and denied breaks based on his race. Lawrence says through the course of the investigation other employees said they had the same experience.

Lawrence says the black employees were called racially offensive names, and allegedly were denied breaks while non-black employees were granted breaks over the course of five years.

"They lost their feeling of self worth they were afraid if they complained they were mistreated even more, and it was pretty much this silence where they did what they had to do because they needed the job," Lawrence said.

In a written statement, Bahama Breeze representative Mike Bernstein said, "It's important to understand that this settlement is not an admission of any wrong-doing on the part of that restaurant. Our company has zero tolerance for any type of discriminatory behavior and continues to believe our policies and practices in the Cleveland Bahama Breeze were and always have been lawful, and we have strong defenses to the E.E.O.C.'s charges."

None of the management staff accused in the lawsuit works at the restaurant now.

Aside from the $1.2 million settlement, Bahama Breeze is also required to update its policies nationwide and to put all of the employees at the Beachwood through anti-discrimination and diversity training.

The Bahama Breeze in Beachwood is one of 21 Bahama Breeze locations in the United States, and the only one in Ohio.