Culver’s, the Wisconsin-based butter burger and frozen custard chain, has been the subject of several lawsuits and controversies in recent years, nearly all involving its independently owned franchise locations rather than the corporate parent. Federal discrimination lawsuits in Michigan and Minnesota, child labor fines in two states, a race discrimination case brought by a former franchisee, and a viral 2026 incident with teenagers in Illinois account for most of the attention. Culver Franchising System, Inc., headquartered in Prairie du Sac, Wisconsin, oversees more than 1,000 restaurants across 26 states, almost all franchised.1Entrepreneur. Culver’s Franchise
Transgender Discrimination Case in Clarkston, Michigan
On October 25, 2024, the U.S. Equal Employment Opportunity Commission sued five related entities operating a Culver’s in Clarkston, Michigan. The case, EEOC v. Brik Enterprises, Inc., et al. (Case No. 24-cv-12817), was filed in the U.S. District Court for the Eastern District of Michigan.2EEOC. EEOC Sues Culver’s for Discriminating Against Transgender Employee and Retaliating Against Him
According to the complaint, Asher Lucas, a transgender man working as a shift manager, was repeatedly misgendered and deadnamed by two coworkers. Lucas and three colleagues reported the harassment to the general manager, but no action was taken. After they filed a second complaint, the restaurant fired all four the next day. The EEOC alleged violations of Title VII of the Civil Rights Act of 1964, covering both sex-based harassment and retaliation.2EEOC. EEOC Sues Culver’s for Discriminating Against Transgender Employee and Retaliating Against Him
The case took a sharp turn in 2025. After President Donald Trump issued an executive order directing federal agencies to recognize only biological sex, the EEOC under Acting Chair Andrea Lucas moved to withdraw from the lawsuit it had filed months earlier.3Bloomberg Law. Culver’s Transgender Bias Suit to Proceed Without EEOC Defense Judge Brandy R. McMillion granted the motion on April 28, 2025. The Culver’s case was one of six gender identity discrimination cases the agency dropped around that time.4PBS NewsHour. EEOC Moves to Drop One of Its Own Gender Discrimination Cases to Comply With Trump’s Order
The workers kept the case alive. The ACLU of Michigan intervened on behalf of two of Lucas’s former coworkers, Regina Zaviski and Savannah Nurme-Robinson, and Lucas was separately allowed to continue as a plaintiff.5ACLU of Michigan. ACLU Seeks to Intervene in Transgender Employment Discrimination Lawsuit After Trump Renamed Lucas v. Brik Enterprises, the case settled after conferences in July 2025. Judge McMillion signed orders dismissing it with prejudice on August 22, 2025. Settlement terms were not publicly disclosed.6Civil Rights Litigation Clearinghouse. Lucas v. Brik Enterprises, Incorporated
$261,000 Harassment Settlement in Cottage Grove, Minnesota
In May 2023, the EEOC filed two lawsuits against R & G Endeavors, Inc., the franchisee running a Culver’s in Cottage Grove, Minnesota, in the U.S. District Court for the District of Minnesota.7EEOC. Culver’s Restaurants Franchisee Settles Two EEOC Race, Sex, and Disability Harassment and Discrimination Lawsuits
The Title VII suit alleged that a gay, African American employee faced frequent racial and homophobic slurs from managers and coworkers, including one manager who referred to him as the restaurant’s “adopted African child.”8Star Tribune. Lawsuits: Cottage Grove Culver’s Subjected Workers to Hostilities Based on Race, Gender, Disability The same suit alleged that female employees, some as young as 14, were subjected to unwelcome touching, sexual propositions, stalking-like behavior, and what the EEOC called “creepy gifts” from adult coworkers.9Insurance Journal. Culver’s Franchise to Pay $261K to Settle EEOC Suits A second lawsuit under the Americans with Disabilities Act alleged that an employee with an intellectual disability was bullied, called slurs, and paid less than nearly all coworkers without disabilities.10CBS News Minnesota. Cottage Grove Culver’s Restaurant Faces EEOC Lawsuits for Worker Harassment, Discrimination
R & G Endeavors settled both cases in June 2025 for a combined $261,000, with $186,000 going to individuals in the Title VII case and $75,000 to the disability case. The consent decrees required policy changes, staff and management training, employee notices, and reporting of future complaints to the EEOC. The franchisee denied violating Title VII or the ADA.11HR Dive. Slurs, Stalking, Shoddy Pay: Culver’s EEOC Settlement
Child Labor Fines in Michigan and Georgia
Two separate franchise operations have been penalized under federal child labor law. In February 2023, the U.S. Department of Labor fined Union Pacific Foods Inc., which runs the Culver’s in Wixom, Michigan, $13,212 over violations affecting 18 workers aged 14 and 15. Investigators found that the restaurant scheduled minors to work more hours than permitted on school days and non-school days, and let them work later than allowed during both the school year and summer.12U.S. Department of Labor. Wage and Hour Division News Release
A larger enforcement action hit two Georgia locations owned by Ali Adabi, operating as Adabi Investment LLC and Adabi’s Diner LLC. In September 2025, the Department of Labor filed a civil action after an investigation covering June 2021 through June 2023 documented 73 instances of minors under 16 working prohibited hours at the Suwanee location, and three minors permitted to operate a deep fryer, work classified as hazardous for young workers. Three additional minors at the Dawsonville location worked past allowable hours. Adabi agreed to pay $60,116 under a consent decree that also required hazardous-equipment labeling, emergency contact and school records for employees under 19, and child labor training for any minors hired. Adabi said he would no longer hire anyone under 16.13Miami Herald. Two North Georgia Culver’s Fined for Child Labor Violations
Race Discrimination Suit Against the Corporate Franchisor
One case reached the corporate parent itself. In 2013, former franchisee Michael Wilbern sued Culver Franchising System, Inc., alleging racial discrimination in how the company approved franchise locations. Wilbern, who is Black, claimed that between 2003 and 2012 the company refused to let him open restaurants in predominantly Black neighborhoods on Chicago’s South Side, despite available tax incentives, and instead steered him toward the mostly white suburb of Franklin Park. That location failed, according to the suit, in part because Culver’s authorized competing restaurants within a five-to-six-mile radius.14Eater. Culver’s Discrimination Lawsuit, Chicago Franchise
In September 2015, U.S. District Judge Thomas Durkin denied Culver’s motion to dismiss, letting the case proceed. Culver Franchising System “strongly and categorically” denied the discrimination charges, said it “embraces diversity in race, religion, age and sexual orientation,” and expressed confidence it would be exonerated.15Nation’s Restaurant News. Judge Allows Culver’s Discrimination Lawsuit to Proceed
Matteson, Illinois: Teen Takeover and Viral Response
In April 2026, a Culver’s franchise in Matteson, Illinois, made national news after owner Dawndria Murray posted surveillance footage of teenagers vandalizing bathrooms, throwing food, walking on tables, and cursing at staff. Murray, described as the first Black woman to own a Culver’s franchise, said earlier attempts to work through school administrators had failed.16People. Culver’s Franchise Owner Banned Teenagers From Store After Disruptive Behavior
On April 7, 2026, Murray banned unaccompanied minors from the restaurant. After businessman and philanthropist Early Walker amplified her post, several parents recognized their children in the footage and came to apologize. One father reportedly brought his son in “by the collar.”17V103/iHeart. South Suburban Culver’s Owner Starts Positive Change No criminal charges or municipal sanctions followed. Matteson Mayor Sheila Chalmers-Currin said village officials were working with local schools and families, and a community event was held at the restaurant on April 11, 2026, to support Murray and her staff.18NBC Chicago. Restaurant Owner’s Viral Message on Teen Takeovers Gets Unexpected Response From Parents
Craig Culver’s Political Donations
Co-founder Craig Culver has periodically drawn online scrutiny for his political giving. Federal and state campaign finance records show contributions to candidates in both major parties over roughly two decades, including Republican governors Scott Walker and Tommy Thompson as well as Democrats such as Michigan Governor Gretchen Whitmer and former Wisconsin Governor Jim Doyle. Culver has never donated to Donald Trump. Individual contributions have ranged from $50 to $2,900.19Up North News. Let’s Talk About Culver’s Political Donations