Labor Ready Mid-Atlantic Inc. violated federal law when it subjected two female laborers to sexual and racial harassment and then retaliated against them for complaining about it, the US Equal Employment Opportunity Commission charged in a lawsuit announced last week.

Labor Ready is a brand of industrial staffing firm TrueBlue Inc. (NYSE: TBI).

According to the EEOC, Labor Ready assigned Crystal Cole and Fetema Johnson to work as laborers at a client’s construction project in Metz, W.V. The federal agency’s lawsuit alleges that two male employees at the worksite subjected Cole and Johnson to sexual and racial harassment. The EEOC also alleges that one coworker made a racist comment to Johnson, who is biracial, and also loudly played music containing racial epithets, despite Johnson's complaints.

Cole and Johnson complained to Labor Ready's branch manager in Washington, Pa., who had placed them on the work assignment, and to the corporate hotline, but no one responded to their harassment complaints, the lawsuit alleges. It claims Labor Ready's Washington branch manager removed Cole and Johnson from another job assignment and terminated their employment in retaliation for the complaints about the harassment.

TrueBlue said in a statement that is has not seen the claim yet but values diversity and inclusion and has a code of conduct against harassment and retaliation.

The EEOC filed suit in US District Court for the Western District of Pennsylvania, Pittsburgh Division, after first attempting to reach a pre-litigation settlement through its conciliation process.