Week in Review : MAJOR EVENTS, IMAGES AND PEOPLE IN ORANGE COUNTY NEWS : CITIES : Red Onion Chain Settles With 39 in Bias Case

The Red Onion restaurant chain, under attack for allegedly making racial distinctions about who is admitted into its nightclubs in Santa Ana, Fullerton and other Southland communities, agreed to a settlement with 39 people who had been turned away.

The restaurant chain agreed to pay each of the 39 blacks, Latinos and Middle Easterners $500 and to set aside $20,000 for complaints that may be filed.

The settlement was negotiated by the state Department of Fair Employment and Housing and does not rule out private lawsuits by individuals. The state considers the matter settled, a spokesman said, but the restaurants’ practices “will be monitored.”

Under the settlement, the Red Onion does not admit any wrongdoing. Former and current employees have told reporters that they were instructed by their bosses to “clean up the crowd” when it became “too dark,” but company officials have said they had no such policy. They have referred instead to a “perception of a problem.”

Stephen Solomon, attorney and vice president for the chain, said the firm has specified non-discriminatory policies for employees and has begun to document all incidents in which patrons are turned away. The firm is also trying to hire more minorities, he said.