FedEx Corp. has agreed to pay out $53.5 million to settle a class action lawsuit charging that the company’s express delivery unit, FedEx Express, discriminated against African-American and Latino workers. The settlement, which is believed to be among the 10 most expensive discrimination settlements in U.S. history, affects about 20,000 employees in the company’s Western region. The region encompasses California and 13 other states.
The suit, filed in the federal court in San Francisco, alleged that FedEx violated federal and state antibias laws by discriminating against black and Latino workers with respect to promotions, pay, evaluation, and discipline. Plus, the suit charged that a “Basic Skills Test” administered for employment had a discriminatory impact on workers of color.
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In addition to the hefty payout, the company will also make changes in its selection, evaluation, and discipline procedures. FedEx has denied that it violated the law, stating that it voluntarily entered into this [settlement] because it believes the actions it has agreed to undertake demonstrate its strong commitment to diversity and equal employment opportunity.”
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