Nearly three years after allegations surfaced that Kung Fu Saloon denied entry to patrons based on race, the popular party spot has agreed to implement changes after reaching a settlement with the U.S. Justice Department.

The feds alleged that Kung Fu Saloon violated Title II by barring African-American and Asian-American patrons at locations in Houston, Austin and Dallas. Businesses cannot discriminate based on "race, color, religion or national origin," as protected under Title II of the Federal Civil Rights Act.

"The suit alleges that in dozens of instances, the defendants denied African-American patrons entry into Kung Fu Saloon locations based on a dress code when similarly dressed white patrons were permitted to enter," according to a press release from the Department of Justice. "The complaint also alleged that the defendants engaged in other practices to limit the number of African-American and Asian-American patrons at Kung Fu Saloon's locations."

Discrimination allegations

The first publicized incident of discrimination at Kung Fu Saloon took place at its Houston location in October 2012 when Doogie Roux, an African-American, was told that his high-top sneakers were against the establishment's dress code and he was refused entry.

In August 2013, Stephen Robinson, an African-American man, reported that he was denied entry to Kung Fu Saloon's Austin location because he was wearing basketball shorts. His white friend who was clad in similar attire was allowed inside.

In May 2014, DeAndre Upshaw was denied entry to Kung Fu Saloon in Dallas as he was told his high-top Converse sneakers were "against the dress code." This statement was puzzling to Upshaw, an African-American, as several white members of his party were wearing similar shoes and they were admitted to the bar. The next day, Upshaw also posted the following video of a group of black men reportedly being denied entry for not wearing socks:

Upshaw publicized the incident and began a social media campaign against the establishment using the hashtag #NoKungFu. Just days after being denied entry to the arcade bar, Upshaw and hundreds of supporters participated in a silent walk past the Dallas location in a peaceful protest.

The settlement

Tuesday's settlement requires Washington Guys LLC, Routh Guys LLC and Grand Guys LLC, which operate Kung Fu Saloon locations in Houston, Dallas and Austin, respectively, to implement changes to policies and practices in order to prevent discrimination.

The Austin American Statesman reports that the terms include:

• All Kung Fu Saloon employees must undergo civil rights training within 90 days; training sessions must be at least two hours long and will be paid for by bar management.
• Within 15 days, signs must go up at the front door of all three Kung Fu Saloon locations “stating that the establishment is open to all members of the public without regard to race, color, or national origin.”
• The signs will direct patrons who feel they’ve been discriminated against to contact a manager. If the manager’s resolution isn’t satisfactory, the signs will direct customers to call the U.S. Department of Justice.
• Non-discrimination notices must go up on Kung Fu Saloon’s website and Facebook pages, as well, and must be included in any advertisements.
• Reservations for private events must be accepted from customers of all races, and Kung Fu Saloon must make its reservation logs available for inspection by the federal government at any time.
• A contractor will be hired, at Kung Fu Saloon’s expense, to test each location for compliance with the federal consent decree. Each location will be tested three times a year for the next three years.

Kung Fu Saloon denies the allegations in court documents but entered into the consent decree “to avoid protracted and costly litigation,” the Statesman reports. An attorney for the defendants told the Houston Business Journal by e-mail, "We want everyone to feel welcome at Kung Fu Saloon, which is why we worked closely with officials to find a mutually beneficial way to settle this matter."