The lawsuit, filed this week in U.S. District Court in Los Angeles, names Buena Park-based Tawa Supermarket Inc., the parent company of 99 Ranch Market, as the defendant. According to the EEOC, the alleged discriminatory practices began no later than 2016 following a change in company leadership and continued for years across multiple store locations.
Federal regulators allege that Tawa terminated recently hired non-Chinese managers and replaced them with Chinese managers while also favoring Chinese employees for promotions, higher wages, and work schedules. The complaint further claims that some non-Chinese employees ultimately resigned because they believed they had no opportunity for advancement within the 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," EEOC Acting General Counsel Catherine Eschbach said in a statement. "Preferences based on protected characteristics are simply a form of illegal discrimination."
According to the complaint, the alleged practices included firing non-Chinese district managers, store managers, safety managers, and loss prevention personnel despite satisfactory job performance reviews, while replacing many of those employees with Chinese workers. The EEOC also alleges that some non-Chinese employees were paid less than Chinese colleagues performing the same work and were scheduled for fewer hours.
The federal agency contends it attempted to resolve the matter through confidential pre-litigation negotiations before filing suit. Tawa Supermarket has denied the allegations. In a statement provided to multiple media outlets, a company spokesperson said the claims are without merit.
"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 reads.
Founded in 1984 by Taiwanese immigrant Roger Chen, 99 Ranch Market has grown into the largest Asian supermarket chain in the United States, operating more than 66 locations nationwide, including more than 40 throughout California. The stores are known for their expansive selection of Asian groceries, fresh seafood, produce, bakeries, prepared foods, and food courts.
San Diego County is home to three 99 Ranch Market locations: one on Clairemont Mesa Boulevard in Kearny Mesa, another on Balboa Avenue in Clairemont, and a third on East H Street in Chula Vista. The markets have become popular destinations for shoppers seeking Chinese, Taiwanese, Japanese, Korean, Vietnamese, and other Asian food products that are often difficult to find at traditional supermarkets.
The lawsuit comes amid a shifting enforcement approach at the EEOC under the Trump administration. Legal observers have noted an increased emphasis on cases involving alleged discrimination against majority-group employees, including claims sometimes described as "reverse discrimination."
The EEOC is seeking monetary damages for affected employees, back pay, policy changes to prevent future discrimination, and a jury trial.
The allegations remain unproven, and Tawa Supermarket will have the opportunity to contest the claims as the case proceeds through federal court.
Originally published on July 2, 2026.
