The parent company of the 99 Ranch Market chain was sued Tuesday in Los Angeles by employment regulators for allegedly violating federal law by firing and otherwise discriminating against non-Chinese workers based on their national origin, officials announced Tuesday.
The U.S. Equal Employment Opportunity Commission alleged that Tawa Supermarket Inc. terminated recently hired non-Chinese managers at multiple locations. Tawa also allegedly subjected non-Chinese store-level employees to discrimination by failing to promote them because they are not Chinese, paying them less than Chinese workers, and scheduling them for fewer work hours than Chinese counterparts, according to the suit filed in federal court.
As a result, regulators contend, some non-Chinese workers felt they had no choice but to resign.
A Tawa Supermarket representative could not immediately be reached for comment.
According to the EEOC’s lawsuit, the alleged violations occurred since at least 2016, following a leadership change.
The family owned supermarket chain has at least 66 locations across multiple states, including many in Southern California, according to the Buena Park-based company.
“The EEOC will not hesitate to bring litigation to make clear to employers that cultural preference regarding the composition of their workforce does not insulate them from liability,” Catherine Eschbach, acting general counsel for the EEOC, said in a statement.
“Preferences based on protected characteristics are simply a form of illegal discrimination under Title VII,” she said. “That the employer here is a Chinese supermarket chain does not provide license to terminate non-Chinese managers or otherwise discriminate against non-Chinese workers in employment terms and conditions.”
According to the EEOC, the conduct alleged in the complaint violates Title VII of the Civil Rights Act of 1964, which prohibits discrimination based on national origin. The EEOC said it filed suit in Los Angeles federal court after first attempting to reach a pre-litigation settlement.
“Customer preference or beliefs that workers from certain groups are more productive do not justify national origin discrimination,” said Christine Park-Gonzalez, director of the EEOC’s Los Angeles bureau. “Employers must follow federal law and not exclude workers due to national origin.”
99 Ranch Market was established in 1984 by Taiwanese immigrant Roger Chen.