$1.9 Million to Settle Race Discrimination Suit; Training Required

 
Tuesday, June 13, 2017
 
Rosebud Restaurants, Inc. will pay $1.9 million and furnish other relief to settle a class race discrimination lawsuit filed by the U.S. Equal Employment Opportunity (EEOC), the federal agency announced.

According to the EEOC's lawsuit, 13 Italian restaurants operated by Rosebud in Chicago and the surrounding suburbs refused to hire African-Americans because of their race. The EEOC also charged that managers used racial slurs to refer to blacks. The EEOC also asserted that Rosebud violated federal regulations by failing to maintain employment applications for one year and by failing to file employer information reports providing employment data by job category, race, ethnicity, and gender.

The consent decree settling the suit, approved by Magistrate Judge Mary Rowland, calls for Rosebud to pay $1.9 million to African-American applicants who were denied jobs. Additionally, Rosebud has agreed to hiring goals for qualified black applicants, with the aim that 11% of Rosebud's future workforce be African-American. In addition, the decree enjoins Rosebud from engaging in race discrimination or retaliation in the future. It also requires Rosebud to recruit African-American applicants, train employees and managers about race discrimination and retaliation, provide periodic reports to EEOC on compliance with the decree's terms for four years, and post notices informing employees of the decree's terms.
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