Denny’S Hit With Discrimination Suit

The Denny’s chain launched a $2 million anti-racism campaign on the same day employees at one of its restaurants were accused of racial discrimination in a lawsuit.

The suit filed Tuesday in Superior Court accuses employees at a San Jose Denny’s of making a group of 17 people, all but one of whom is Hispanic, wait as other patrons were seated, refusing them service and summoning the police to have them ejected.

The lawsuit seeks unspecified punitive damages for the April incident.

Also Tuesday, Denny’s announced that it would run three racial diversity ads on broadcast networks and cable television.

Denny’s has been haunted by charges of racism for years. In 1994, the chain paid $45.7 million to settle a discrimination lawsuit by black customers. Denny’s employees now are required to undergo anti-discrimination sensitivity training.

The lawsuit claims the group watched as non-Hispanic customers who arrived later were seated before them. Denny’s has not received a copy of the lawsuit, spokeswoman Karen Randall said.