Ken Friedman, the principal owner of the Spotted Pig restaurant in Manhattan, has agreed to pay $240,000 and a share of his profits to 11 former employees who have accused him of sexual harassment, retaliation and discrimination, as part of a settlement brokered by the New York State attorney general’s office.

The office investigated the allegations, which were first reported two years ago by The New York Times, and determined that since at least 2005, the restaurant had violated state and city human-rights laws by maintaining a hostile and highly sexualized workplace where female employees were subjected to severe and pervasive incidents of unwanted touching and sexual advances by Mr. Friedman and some guests. When they reported the abuse, the investigation showed, Mr. Friedman retaliated by firing employees or trying to blackball them in the industry.

Image Ken Friedman Credit... Brent N. Clarke/Invision, via Associated Press

The former employees will share a $240,000 settlement paid out by Mr. Friedman and the restaurant over two years and, for the next 10 years, 20 percent of Mr. Friedman’s profits, including any money he makes if he sells the business, of which he owns 75 to 80 percent. The West Village restaurant, which opened in 2004, became a magnet for V.I.P.s drawn by its clubby ambience and exclusive third-floor party room; its other investors, including celebrities like Jay-Z and Fatboy Slim, are not involved in the case.