SACRAMENTO, Calif. — The California Civil Rights Department reached multiple settlements this week addressing allegations of discrimination in both a public school district and a private business, highlighting the state’s enforcement of civil rights protections for students and customers across California.
The department reached a settlement with the Yuba City Unified School District following reports of alleged violations of the Ralph Civil Rights Act involving discrimination against Black students.
According to the Civil Rights Department, the complaint outlined “repeated threats and acts of violence and anti-Black comments by students at two different elementary schools.” The misconduct allegedly occurred “across multiple school years” and involved students using racial slurs while repeatedly kicking, slapping or taunting the student who filed the complaint.
In another instance, the complaint alleged that a teacher pulled the student’s hair and used disparaging comments.
The complaint was brought to the department’s attention after the student’s family reported the incidents to school officials multiple times. However, the district allegedly did not put a stop to the behavior or otherwise take action to make the schools safer for the student and other Black students.
After conducting an investigation, the Civil Rights Department offered the district an opportunity to voluntarily resolve the allegations through mediation. The district agreed, and a settlement was reached.
Under the terms of the settlement, the district is required to complete a comprehensive list of actions, including implementing mandatory training for all staff on discrimination policies, conducting a survey on school climate and culture, and paying $30,000 in compensation to the family that filed the complaint.
The department noted that the settlement does not require the district to admit liability.
“There is no place in our schools for anti-Black harassment or discrimination,” said Kevin Kish, director of the California Civil Rights Department. “I applaud our team at the Civil Rights Department for ensuring the Yuba City Unified School District takes action to protect the civil rights of its students.”
In a separate settlement announced the same day, the Civil Rights Department also reached an agreement with Folsom Lake Hyundai and a former employee following allegations that a customer was denied full and equal services based on Native American ancestry.
According to the department, the complaint alleged that in 2024 a customer was subjected to derogatory anti-Native remarks and that dealership management failed to act after being notified. The complaint stated that a former employee left a voicemail for the customer and, believing the call had ended, commented that the customer could pay the dealership “in skins and feathers.”
Despite the customer reporting the incident to various members of management, the dealership allegedly ignored the concerns. As a result, the customer claimed they were effectively denied full and equal access to the dealership’s services.
The Folsom Lake Hyundai settlement is formalized in a non-housing, non-employment settlement agreement executed in January 2026 and filed with the Civil Rights Department. Under the agreement, Hyundai of Folsom, LLC, doing business as Folsom Lake Hyundai, does not admit liability, wrongdoing or the truth of the allegations but agrees to binding corrective actions enforceable under California law .
As part of the agreement, the dealership is required within 30 days to update its policies to ensure clear procedures for receiving, investigating, responding to and resolving discrimination or harassment complaints made by members of the public. The revised policies must identify responsible personnel and include a checklist and timeline to ensure complaints are properly handled .
The dealership must also implement or revise an employee code of conduct explicitly stating that employees are expected to provide equal service to all customers and use respectful and inclusive language when interacting with colleagues, customers and members of the public. Copies of the updated policies and code of conduct must be provided to the Civil Rights Department and all existing employees within 60 days .
Within 120 days of the agreement taking effect, all employees who interact with the public must complete at least 90 minutes of training on addressing racial bias, harassment and discrimination in the workplace, with confirmation of completion submitted to the department. The agreement also requires that at least two dealership representatives, including the general manager, visit the Shingle Springs Band of Miwok Indians Museum and participate in a guided tour to better understand the tribe’s history and experiences .
The settlement requires the dealership to compensate the complainant within 30 days of the agreement’s effective date, though the complainant’s identity and the amount of the payment remain confidential to the extent permitted by law. The agreement is a public document, and the Civil Rights Department retains authority to monitor compliance, reopen the complaint, or pursue enforcement if the terms are breached .
After an initial investigation in the Hyundai case, the Civil Rights Department offered the parties an opportunity to voluntarily resolve the allegations through mediation. The dealership and the former employee agreed to the settlement without admitting liability.
“Whether it’s at a local business or an apartment complex, people can experience hate and discrimination in nearly every part of their lives,” Kish said. “We also know that Native American communities in particular experience elevated rates of hate and discrimination. In fact, a recent survey showed that roughly 1 in 8 Native Americans in our state had experienced hate in the past year. California has strong civil rights laws in place to make sure everyone in our state is protected. This settlement shows what can be done when people speak out.”
Under California law, including the Unruh Civil Rights Act, businesses are prohibited from discriminating against individuals based on protected characteristics such as ancestry, race, disability, gender identity and sexual orientation. The protections apply to all businesses open to the public.
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