53 Fair empl.prac.cas. 267, 53 Empl. Prac. Dec. P 40,018 Equal Employment Opportunity Commission v. Susan Ratliff, F/k/a Susan Matastasio, and Smart, Inc. John Keriotis Akropolis Enterprises, Inc. Darrin Armstrong Fortune 600, Inc., All D/B/A Grecian Spa

906 F.2d 1314 53 Fair Empl.Prac.Cas. 267 , 53 Empl. Prac. Dec. P 40,018 EQUAL EMPLOYMENT OPPORTUNITY COMMISSION, Plaintiff-Appellant, v. Susan RATLIFF, f/k/a Susan Matastasio, Defendant-Appellee, and Smart, Inc.; John Keriotis; Akropolis Enterprises, Inc.; Darrin Armstrong; Fortune 600, Inc., all d/b/a Grecian Spa, Defendants. Nos. 89-15017, 89-15184. United States Court of Appeals, Ninth Circuit. Argued and Submitted March 16, 1990. Decided June 21, 1990. Lorraine C. Davis, Asst. Gen. Counsel, E.E.O.C., Washington, D.C., for plaintiff-appellant. Patricia J. Finley, Greengard & Finley, Phoenix, Ariz., for defendant-appellee. Appeal from the United States District Court for the District of Arizona. Before FLETCHER, PREGERSON and NELSON, Circuit Judges. FLETCHER, Circuit Judge: 1 The underlying cause of action in this case is a claim of sexual harassment and retaliatory discharge in violation of Title VII of the Civil Rights Act of 1964, 42 U.S.C. Secs. 2000e et seq. brought by the Equal Employment Opportunity Commission (EEOC) on behalf of female employees at the Grecian Spa (the Spa), a fitness center in Tempe, Arizona. This appeal, however, presents two narrow issues only:…