In a case that sounds more like a throwback than 2020s workplace policy, three former employees of Statesville's Third Creek Wastewater Treatment Plant have filed a federal lawsuit claiming a supervisor set up a "whites only" bathroom and that the city punished them for speaking up. The suit says the practice started in 2023 and that the men, Anthony Gilbert, Stephen Moore and Terry Smith Jr., were all fired at the end of 2024. They are asking for a jury trial, back pay, front pay and punitive damages.
Inside the lawsuit
According to the complaint filed in U.S. District Court, supervisor Scott Austin allegedly began locking the plant's main bathroom after the day shift, leaving only a second, smaller restroom that was unheated, cramped and lacking modern fixtures for use at night, as detailed in Scribd. The filing quotes Austin as saying he did not "want to sit my white ass on the toilet after a black ass," and alleges that Anthony Gilbert, a Black night-shift operator, was forced to use the inferior facility.
Workers say their complaints backfired
The three men say they raised concerns about the bathroom setup with Austin and other supervisors in 2024. Instead of fixing the problem, the lawsuit claims, the city opened what it calls a "sham" performance investigation, then fired all three in December 2024. WBTV first reported on the lawsuit and said the station had reached out to the City of Statesville for comment but had not heard back by the time of publication.
The legal playbook
The complaint lays out a battery of claims, including federal race discrimination claims under Title VII and 42 U.S.C. 1981, a Monell claim against the city, and state-law claims for wrongful discharge and retaliation under the North Carolina Retaliatory Employment Discrimination Act, according to Scribd. The plaintiffs say they filed charges with the Equal Employment Opportunity Commission in 2025 and later received notices of right to sue. They are asking the court for back pay, reinstatement or front pay, and punitive damages.
What the city is saying, or not saying
WBTV reports that it contacted the City of Statesville for a response, but had not received one by the time of its story. The lawsuit names City Manager Ron Smith, Director of Public Utilities William Vaughan and several supervisors as defendants, putting top city leadership directly in the legal crosshairs.
Why this case resonates
Allegations that a supervisor created segregated facilities and then retaliated against employees who objected are unusual, but not unheard of. The EEOC pursued a similar issue in a high-profile 2005 case, which drew national attention. For Statesville, the new suit raises uncomfortable questions about oversight at city-run utilities, workplace culture inside critical infrastructure sites and how discrimination complaints are handled once they hit the chain of command.
What happens next
The lawsuit, filed Monday in the Western District of North Carolina, is in its early stages. The plaintiffs have demanded a jury trial and punitive damages. Future court filings, along with any formal response from the city, will determine whether the case is quietly settled or heads toward a full-blown public trial.
