Famous Chicago Restaurant Chain settles $1.9 million racial discrimination claim

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Chicago Race Discrimination – Rosebud Restaurant’s, Inc. has settled a racial discrimination case for over $1.9 million dollars as a result of their discriminatory policy of refusing to hire African American job applicants. The suit was filed by the U.S. Equal Employment Opportunity Commission in September of 2013.  The suit charged managers, including Alex Dana, the owner of the Rosebud, with discriminatory practices and using racial slurs when referring to African Americans.  The New York City, New Jersey and Philadelphia employment discrimination attorneys at the Derek Smith Law Group, PLLC, have years of experience litigating racial discrimination cases, recovering millions for our clients.

The EEOC first investigated Rosebud’s hiring practices when it was noted that a number of its restaurants didn’t have any black employees. In some cases, applications from black individuals were discarded immediately by restaurant managers. During their investigation the EEOC sent letters to over 25, 000 applicants and were only able to identify 320 black applicants. The EEOC feels there are many more black applicants who were affected by Rosebud’s discriminatory policies, however only a few individuals have come forward. The EEOC is only able to provide relief to those applicants that have come forward.

The $1.9 million settlement was announced last Tuesday, May 20, 2017. In an emailed statement Wednesday, Rosebud announced that the consent decree was in the interest of their employees, staff and patrons. The company has agreed to implement various hiring goals. Once such goal is that 11 percent of Rosebud’s future workforce will be African American. Rosebud is also required to recruit African- American applicants and train employees and managers about discrimination. Rosebud currently has eight restaurants under its corporate umbrella: The Rosebud, Carmine’s, Rosebud on Rush, Rosebud Prime, Mama’s Boy, Rosebud Deerfield and Rosebud in Naperville.

Racial discrimination is a violation of Title VII of the Civil Rights Act of 1963. Under Title VII it is illegal for a company to discriminate against an applicant because of their race. An individual must first establish a prima facie case of discrimination. This is most often shown when an individual makes comments related to an applicant’s race, like those made by Rosebud’s managers. Once an individual establishes a prima facie case of discrimination by the employer they applied with, then it is falls on the employer to show a non-discriminatory reason for rejecting the person application. If the employer is not able to establish a prima facie case then the EEOC picks up the case and attempts to settle the case in mediation with the individual and the employer. If the case is not able to settle in mediation, then the case may be taken to trial.

The experienced New York City, New Jersey and Philadelphia sexual harassment attorneys at the Derek Smith Law Group, PLLC litigate claims ranging from sexual harassment to employment discrimination. We work closely with EEOC attorneys to ensure our clients get the representation they deserve. We have recovered millions in damages for racial discrimination in the workplace. If you feel you have been discriminated against in the workplace based on your race please give our talented NYC-NJ-PA attorneys a call, toll free at 1-877- 4NYLAWS.


Call today to schedule a FREE sexual harassment or employment discrimination legal Consultation in NY, NJ & PA with one of our top rated employment law or sexual harassment attorneys here at the Derek Smith Law Group. You can reach us online or by calling 877.469.5297. Our New York City, New Jersey and Philadelphia labor & employment law attorneys handle a variety of cases involving sexual harassment, racial discrimination, pregnancy discrimination, age discrimination, disability discrimination, national origin discrimination, sexual orientation discrimination, weight discrimination, Ethnic discrimination,  and other employment-related claims. We serve clients throughout New York, including Manhattan, Brooklyn, Queens, the Bronx, and Staten Island. We also have offices in New Jersey and Philadelphia to serve you.

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