FedEx Reaches $3M Discrimination Settlement

The U.S. Department of Labor has reached a $3 million class action lawsuit settlement with FedEx to resolve allegations that the company discriminated against 21,635 female and minority job applicants.

The FedEx discrimination settlement was reached after the DOL announced it had found evidence of discrimination in hiring on the basis of sex, race and national origin at two dozen FedEx facilities in 15 states. A spokesman for FedEx Ground said the company admits no wrongdoing, but has agreed to the settlement to “avoid what would have been a prolonged and much more costly resolution process.”

FedEx has agreed under the class action settlement to make wide-ranging changes to correct any discriminatory hiring practices and to extend job offers and back pay to certain people rejected for jobs.

The DOL says it first uncovered evidence of discrimination at FedEx seven years ago during a regularly scheduled review, finding discrimination against African American, Hispanic, Asian-American and Native American applicants compared to white applicants. The evidence also showed that women faced discrimination and were sometimes automatically ruled out for jobs requiring the lifting of heavy objects.

Of the 21,635 rejected applicants covered by the FedEx discrimination settlement, 61 percent were female, 52 percent African-American, 14 percent Hispanic, 2 percent Asian and 1 percent Native American.  

“When you do business with the government, we expect you to do the right thing,” said Labor Secretary Hilda L. Solis in a statement. “That includes giving all Americans an equal shot at a good job. It’s about more than just the law — diversity is smart for business.”