Fastenal to pay $1.25 million to settle discrimination suit
Fastenal will pay $1.25 million and offer positions to 171 job applications to settle a discrimination lawsuit concerning hiring practices at two distribution facilities.
The U.S. Department of Labor's Office of Federal Contract Compliance Programs has found that Fastenal Company, a distributor of fastening products and a federal government contractor, discriminated against 171 job applicants who sought general warehouse positions at two of its distribution facilities in Indianapolis and Atlanta.
OFCCP also found that, during its investigation, the company destroyed or failed to provide various employment records from both facilities in an alleged attempt to hinder the investigation.
Under the conciliation agreements with OFCCP, Fastenal has committed to hire 154 African American and 17 female class members and will pay $1,253,611 in back wages and interest to the 7,398 African American and 1,055 female job applicants in the affected class. The company did not admit liability. The violations occurred while Fastenal received more than $35 million in government contracts for its products.
"Fastenal has taken a step in the right direction by working closely with our agency to resolve these issues," said OFCCP Director Patricia Shiu. "Together, we will ensure that the company continues to maintain all required employment records and only uses employment tests that are job related to the position for which they are applying."
Investigators from OFCCP's Indianapolis and Atlanta offices found that the company engaged in screening and testing practices that discriminated against African Americans and women. As part of the settlement, Fastenal has agreed to discontinue use of its written test and to revise its hiring and recordkeeping practices to ensure they fully comply with the laws and regulations that apply to federal contractors.
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