$350,000 Settlement in Race Discrimination Lawsuit Against Automotive Re-Delivery Service Firm, Training Ordered

 
Thursday, June 16, 2016
 

Question:  Would race discrimination training have prevented this case?  See our trainings at http://www.hrclassroom.com.

 FAPS, Inc., one of the country's largest automotive re-delivery service firms, operating in the port area of Newark, will pay $350,000 and undertake significant remedial measures to settle a race discrimination lawsuit brought by the U.S. Equal Employment Opportunity Commission (EEOC).

EEOC's suit charged that FAPS engaged in a pattern or practice of discrimination against African-Americans in recruitment and hiring by relying on word-of-mouth recruiting that deterred them from applying; refusing to hire qualified African-American applicants; and falsely telling black applicants that no positions were available when in fact FAPS was hiring.

Such alleged conduct violates Title VII of the Civil Rights Act of 1964, which prohibits discrimination in hiring based on race. EEOC's lawsuit also charged that FAPS's employment application contained improper pre-employment medical inquiries, in violation of the Americans with Disabilities Act (ADA). EEOC filed suit in June 2010 in U.S. District Court for the District of New Jersey (Civil Action No. 2:10-cv-03095) after first attempting to reach a pre-litigation settlement through its conciliation process.

In addition to the monetary relief to be distributed to the qualified but rejected African-American applicants, the five-year consent decree settling the suit, entered on June 14, 2016 by U.S.

District Judge John Michael Vazquez, provides substantial non-monetary relief to insure non-discrimination in the company's future recruiting and hiring. Specifically, FAPS will:

  • make good-faith efforts to meet designated hiring goals for African-Americans;
  • use recruiting methods that target black candidates in the local area;
  • give priority in future hiring to persons whom EEOC identified as having been harmed by its past hiring practices;
  • not discourage black candidates from applying, such as by falsely telling them that they are unlikely to be hired if they have a criminal record;
  • hire an equal employment opportunity coordinator to ensure that the company's recruiting and hiring practices comply with Title VII; and
  • provide annual non-discrimination training.
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