Wal-Mart settles racial discrimination lawsuit for $17.5 million
21 Feb 2009
Wal-Mart Stores Inc., the world's largest retailer, will pay $17.5 million to settle a lawsuit claiming that the company discriminated against African Americans in recruiting and hiring truck drivers. The lawsuit was filed in 2004 by Daryal Nelson, who claimed that he was rejected for a truck driver position because of his race. The lawsuit was given class-action status in May 2007.
Wal-Mart denied allegations that it had discriminated "on the basis of race in recruitment and hiring for the position of over-the-road truck driver in Wal-Mart's private fleet," according to a joint statement.
The suit, settled on 22 January, was submitted by attorneys for formal approval today by the US district court in the eastern district of Arkansas, Carney, Williams, Bates, Bozeman & Pulliam PLLC said today in a statement.The settlement is subject to court approval.
In legal documents, Nelson had claimed that besides a commercial drivers' license, a good record and good work history, he was required by Wal-Mart to have a good credit rating to qualify for a position as a truck driver. Nelson's lawsuit stated that this unwritten work requirement was selectively applied to favour white applicants.
According to the original lawsuit, a human resources director told Nelson that he would be hired as a laborer, rather than a truck driver because of his "gut feeling" that the applicant had falsified his credit and driving records. After Nelson filed a complaint with the Equal Employment Opportunity Commission, the agency said there was reasonable cause to believe a violation had occurred.
Under terms of the settlement, the world's largest retailer is required to establish benchmark hiring goals so that the composition of future hires by race is proportionate to the racial makeup of the applicant pool. It would also have to select a diversity recruiter and enhance its recruitment efforts and advertising to African Americans, among other prerequisites, under the terms.
The settlement averts a trial set to begin from 16 March. Bentonville, Arkansas-based Wal-Mart denied that it engaged in any pattern of wrongful discrimination. The company agreed to provide priority placements for 23 black applicants and to establish benchmark hiring goals to ensure diversity.