Restaurant Chain Pays 39 to Settle Racial Bias Case

The Red Onion restaurant chain has agreed to a settlement with 39 people who complained that they were kept out of its nightclubs because they are black, Middle Eastern or Latino.

Under terms of the negotiated settlement with the state Department of Fair Employment and Housing, the Red Onion admitted no wrongdoing. However, restaurant attorney and vice president Stephen Solomon said Wednesday that each of the 39 complainants who signed the agreement will receive $500 from the restaurant.

Solomon said the restaurant chain also will establish a $20,000 fund for people who may yet file complaints with the state through July 15, 1987.

But he said he does not expect a need for the additional money because the restaurant chain has recently adopted non-discrimination policies regarding admissions, hiring and training and has begun documenting all incidents of patrons being turned away.

The settlement also calls for the Red Onion to publish an apology in newspapers.

“In light of the agreement reached, there is no reason to pursue the matter further,” said Carol Schiller, assistant deputy director of the Fair Employment and Housing Department. She added that the restaurant’s practices will be monitored.

Schiller said the complainants have the right to accept or reject the settlement. “If they reject, (they may) file a private lawsuit,” she said.

The Carson-based chain, with 14 restaurants in Southern California, has been the target of three lawsuits as well as the racial discrimination complaints filed by people charging that they had been denied entrance to Red Onions in Santa Ana, Fullerton, Riverside and Palm Desert on the basis of race.

Former and current employees of the company’s outlets have told reporters that their bosses instructed them to “clean up the crowd” when it became “too dark” by finding something ostensibly wrong with prospective minority customers’ identification or clothing as an alibi for denying entry.