In December 2010, the claimant, a Latina sales clerk at Peters’ Bakery, a family-owned business that has been operating for over 75 years at its East San Jose location, allegedly began to be verbally abused with frequent racial and ethnic epithets. The owner then fired the sales clerk on Aug. 22, 2011. The former sales clerk complained to plaintiff Equal Employment Opportunity Commission about the incidents. The owner subsequently filed a frivolous defamation lawsuit in small-claims court. A union arbitrator determined that the sales clerk was terminated without just cause, and ordered the bakery to reinstate the sales clerk with back pay and benefits. The court also issued a preliminary injunction, prohibiting Peters’ from firing the sales clerk. However, the bakery removed the sales clerk from the work schedule while continuing to pay her. The EEOC attempted to first engage in a conciliation process with Peters’ Bakery, but when that failed, it sued Peters’ Bakery. The EEOC alleged that Peters’ Bakery’s actions constituted national origin harassment, wrongful termination, and retaliation., The EEOC sought recovery of unspecified damages on behalf of the Latina sales clerk.