CHICAGO (Legal Newsline) — The U.S. Equal Employment Opportunity Commission (EEOC) announced May 30 that Rosebud Restaurants Inc. will pay $1.9 million after allegations of class race discrimination.
"Although it has been several years since the EEOC filed suit, the case was resolved after a lengthy negotiation process that occurred before any depositions were taken in the case and without significant pre-trial motions, sparing both sides from incurring substantial litigation expenses," said Julianne Bowman, the EEOC Chicago District director.
According to EEOC allegations, 13 Rosebud-operated Italian restaurants in Chicago and its suburbs committed race discrimination in their hiring practices by refusing to hire African-Americans.
The EEOC also said the company failed to maintain employment applications for one year and file employer information reports that break down employment data by job category, race, ethnicity and gender. Purported conduct of this nature violates Title VII of the 1964 Civil Rights Act.
"African-Americans have faced and still face barriers in being hired at upscale restaurants, especially in visible, and often well-paid, positions such as server,” said EEOC Chicago Regional attorney Gregory Gochanour. “That is why the recruiting and hiring relief in this decree is so important. It will lead directly to qualified blacks being hired for front- and back-of-the-house positions, helping to remedy past discrimination by Rosebud and ensuring equal employment opportunities for future African-American applicants."