The incident began when an African-American hostess employed by Malibu Beach Inn was terminated while hospitalized for a medical condition. Malibu Beach Inn’s HR department, under the direction of Lili Burgos, justified the termination by claiming they needed someone “more reliable.” This decision, however, violated the employee’s rights under the Americans with Disabilities Act (ADA).
After the termination, Malibu Beach Inn instructed the staffing agency to find a replacement. The agency complied by presenting a candidate, but internal emails later revealed that the decision to terminate the original employee—and the justification for doing so—were entirely the responsibility of Malibu Beach Inn.
When the terminated employee filed a civil complaint for wrongful termination, Malibu Beach Inn made a calculated move to deflect accountability. Despite clear evidence that the decision rested with Malibu Beach Inn, the company falsely claimed that the staffing agency was responsible.
This act of deflection devastated the small family-owned agency. Without the resources to mount a robust legal defense, the agency pleaded with Malibu Beach Inn for support. Their requests were ignored. Instead, Malibu Beach Inn severed ties with the agency, leaving them to face legal and financial ruin.
Malibu Beach Inn’s actions destroyed the livelihood of a trusted small business partner and exemplify the harm caused when powerful entities refuse to take responsibility for their actions
This case is an example of unethical behavior that demands accountability. The facts are clear:
- Malibu Beach Inn terminated the employee under circumstances that likely violated ADA protections.
- Internal emails prove that Malibu Beach Inn—not the staffing agency—made the decision to terminate the employee.
- Despite this evidence, Malibu Beach Inn falsely blamed the staffing agency, destroying a small business in the process.
