Fed Ex, OFCCP In $3 Million Settlement Over Hiring Discrimination Charges

It’s going to cost Federal Express a bundle to settle federal government charges of hiring discrimination. The Department of Labor announced Friday that two subsidiaries of the the package delivery company agreed to pay $3 million to close the case.

The contractor allegedly ran afoul of Department of Labor nondiscrimination regulations that apply to contractors as a condition of doing business with the government.

From the OFCCP’s announcement:

“During a series of regularly scheduled reviews, OFCCP  compliance officers found evidence that FedEx’s hiring processes and selection  procedures violated Executive Order 11246 by discriminating on the bases of  sex, race and/or national origin against specific groups identified at 23  facilities in 15 states. The affected workers include men and women as well as  African-American, Caucasian and Native American job seekers, as well as job  seekers of Hispanic and Asian descent. The reviews also uncovered extensive  violations of the executive order’s record-keeping requirements.”

“Under the terms of the conciliation agreement, the companies  will pay a total of $3 million in back wages and interest to 21,635 applicants  who were rejected for entry-level package handler and parcel assistant  positions at 22 FedEx Ground facilities and one FedEx SmartPost facility. FedEx  also has agreed to extend job offers to 1,703 of the affected workers as  positions become available. The 21,635 rejected job seekers represent one of  the largest classes of victims of any case in OFCCP’s history.”

It’s the largest financial settlement negotiated by OFCCP since 2004, and culminates compliance reviews spanning seven years and  numerous FedEx facilities in multiple states.

Read more.

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