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Now employees are accusing Schnatter of inappropriate sexual behavior. "His behavior ranges from spying on his workers to sexually inappropriate conduct, which has resulted in at least two confidential settlements," reads a new Forbes investigation.
The report is based on 37 interviews with current and former employees of the company. Schnatter denied numerous accusations. One woman said he asked about her bra size and if she’d slept with her former boss. Other employees also allege that Schnatter, executive Tim O'Hern, and current CEO Steve Ritchie created a toxic work environment at the fast-food chain. "Female employees were mocked and asked if they were menstruating. Male executives made references to 'gangbangs' and comments about whether women wanted 'to jump on the train.'"
In a comment emailed to Business Insider, Papa John's said: "A special committee of the Board of Directors, comprised solely of independent directors, has retained an outside firm to oversee an audit and investigation of the culture at the company and to make recommendations for whatever changes may be necessary. We take this matter seriously. If anything is found to be wrong, we are determined to take appropriate action."
One of the company's operations leaders, Dustin Couts, has also been accused of engaging inappropriate behavior with employees. He reportedly talked about porn with a woman employee, and asked another if she was on her period, among other gross things.
Since the controversy about Schnatter's comments broke, he is no longer permitted to use office space at the company's corporate headquarters in Louisville, Kentucky, and is also being scrubbed from marketing materials. However, he still owns about 30 percent stake in the business.