EEOC sues "99 Ranch" chain for racial discrimination against non-Chinese employees

The Asian supermarket chain "99 Ranch" has become the target of a federal lawsuit after the company was accused of racial discrimination against its non-Chinese employees. According to the filed complaint, some staff were wrongfully terminated, while their Chinese counterparts kept their jobs.

What the EEOC alleges in its claim

The Equal Employment Opportunity Commission (EEOC) has filed a lawsuit against the parent company "Tawa Supermarket Inc.", which owns the "99 Ranch" chain. According to the allegations, the discriminatory practices began as early as 2016, when non-Chinese employees were not promoted or received lower pay than their Chinese counterparts in similar positions.

The complaint states that several non-Chinese workers were fired "for no reason," while employees of Chinese descent remained employed. Thus, the EEOC claims the company systematically preferred Chinese personnel at the expense of other nationalities and ethnicities.

The EEOC's position: "cultural preferences" are no excuse

In an official statement, EEOC Acting General Counsel Katherine Eschbach emphasizes that the chain's Asian ownership does not grant a right to discriminate against non-Chinese workers. "The EEOC will not hesitate to file suit to make clear to employers that cultural preferences regarding the composition of the workforce do not exempt them from liability," she says.

Eschbach adds: "Preferences based on protected characteristics are simply a form of illegal discrimination." With this, she clearly highlights the fact that even when an employer attempts to comply with "customer expectations," the law does not allow for differential treatment based on ethnicity, race, or national origin.

"Tawa's" response: accusations are "without merit"

In a written statement to SFGATE, a spokesperson for "Tawa Supermarket Inc." rejects the EEOC's allegations as lacking "merit" and states that the company will actively defend its position in court. "Tawa is committed to providing equal employment opportunities and does not tolerate discrimination or retaliation of any kind. We take these matters seriously and remain committed to treating all employees fairly and in accordance with the law," the statement says.

An atypical move by the EEOC

Employment attorney Anthony Sperber from Berkeley comments that it is unusual for the EEOC itself to file a lawsuit against an employer, rather than simply directing the victimized workers to seek private counsel. According to him, it is equally rare for the commission to take legal action for alleged violations that occurred nearly a decade ago—though he notes that the EEOC has likely been investigating the case since at least 2022.

The EEOC was established by the Civil Rights Act of 1964, which aimed to counteract the widespread discrimination against Black Americans at the time. Under the Donald Trump administration, however, the agency has increasingly targeted cases of discrimination against white employees and Christians, including lawsuits against diversity and inclusion ("DEI") programs, which are alleged to have harmed white workers.

Criticism of the EEOC's new priorities

Economist Valerie Wilson of the "Economic Policy Institute" think tank told the "Washington Post" that Trump's directives "turn the EEOC's mission upside down in a way that weaponizes it against the very people it was originally intended to protect." Sperber believes the lawsuit against "99 Ranch" is likely part of this new line of action.

"I have heard that the EEOC has become much more conservative under Trump, for example by attacking diversity and inclusion initiatives and focusing more on 'reverse discrimination' than traditional discrimination," the attorney says in an email. "This case seems to fit into that approach."

Not the first such case of discrimination against non-Chinese workers

Although the current lawsuit is indicative of the new priorities, this is not the first time the EEOC has filed a case for alleged discrimination against non-Chinese employees. In 2010, the commission reached a $500,000 settlement with the "San Gabriel Hilton" after primarily Latino employees in the banquet department were not hired during a management change and were replaced by "less qualified Chinese workers," as stated in the official announcement at the time.

What is specifically alleged about "99 Ranch"

According to the current lawsuit, "99 Ranch" began hiring non-Chinese employees in 2015 to "meet perceived customer preferences." Just a year later, however, those workers were fired and replaced with Chinese managers.

In 2017, the company laid off several non-Chinese managers hired between 2015–2016, despite their good performance. In one instance, an employee decided to resign voluntarily after receiving lower pay than Chinese colleagues in the same position and was not promoted to "assistant store manager" "based on his national origin," despite his many years of experience.

About the "99 Ranch" chain and what the EEOC wants

"99 Ranch" was founded in 1984 in Orange County and is today among the largest Asian supermarket chains in the U.S., with stores in ten states and dozens of locations in California. The San Francisco Bay Area has 16 of the chain's locations. The company, headquartered in Buena Park, is known for its wide assortment of hard-to-find fruits and vegetables and its dim sum culinary area.

The EEOC is demanding that "Tawa Supermarket Inc." maintain policies that prevent "illegal practices" and pay compensation to the affected employees. The commission is demanding that the case be heard by a jury. Media reports state that SFGATE sought further comment from "Tawa," but did not receive a response by the time of publication.