Two Houston adult entertainment clubs this week agreed to settle a federal age discrimination case with a former waitress who alleged younger, male managers called her "old" and said she showed symptoms of memory loss.

The owners of Centerfolds and Cover Girls agreed to pay $60,000 to Mary Bassi. She was 56 when she was fired in 2006 "without provocation or explanation," according to a lawsuit the U.S. Equal Employment Opportunity Commission filed on Bassi's behalf.

At the time, she was working for Cover Girls, said Connie Wilhite, the senior EEOC trial attorney in the case.

Bassi previously had worked at Centerfolds, whose principal owners — Ali and Hassan Davari - also own Cover Girls.

Managers in their 30s

The EEOC alleged that two male managers at Cover Girls, both in their 30s, began harassing Bassi.

On several occasions, the managers allegedly referred to Bassi as "old" and made other disparaging remarks, including that she was exhibiting signs of Alzheimer's disease, according to the EEOC.

Cover Girls also began hiring younger female waitresses and scheduling them for shifts instead of Bassi, according to the agency.

The corporate entities, AHD Houston and W.L. York, deny all allegations that they violated the federal age discrimination act, according to the consent decree signed this week by U.S. District Judge Kenneth Hoyt.

People over 40 work there

"The settlement was made to quickly resolve our differences in the most economical fashion," said Lauren Serper, an attorney in Houston who is representing AHD Houston and W.L. York.

Both companies employ waitresses and other workers older than 40, Serper said.

Bassi, now 60, is working as a waitress at another sexually oriented business not owned by the Davari brothers, said Wilhite.

Bassi can't comment because of a confidentially agreement with her former employer, Wilhite said.

lm.sixel@chron.com