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FEDEX AGREES TO SETTLE HIRING PRACTICES LAWSUIT

March 24, 2012

Federal Express (FedEx) has agreed to pay $3 million to settle a hiring practices lawsuit that it discriminated against 21,635 job applicants based on their sex and national origin.

Under the terms of a conciliation agreement signed March 21 between FedEx Corp. and DOL’s Office of Federal Contract Compliance Programs, the Memphis, Tenn.-based company will pay back wages and interest to applicants that two of its subsidiaries—federal contractors FedEx Ground Package System Inc. and FedEx SmartPost Inc.—rejected for entry-level package handler and parcel assistant jobs, according to DOL’s statement.

The signing of the conciliation agreement ended a seven-year investigation and represents the largest single financial settlement negotiated by OFCCP since 2004. In signing the agreement, Fedex admitted no wrongdoing and stated that it believed the DOL’s position was not supported by law. Fedex further stated that the allegations made by the DOL were based on computer statistical analysis rather than individual complaints or investigations.

The conciliation agreement calls for the two FedEx companies to pay a total of $3 million in back wages and interest to 21,635 applicants who were rejected for jobs at 22 FedEx Ground facilities and one FedEx SmartPost facility. FedEx also has agreed to extend job offers to 1,703 of the affected workers as positions become available, according to DOL. In addition to the financial remedies and job offers, FedEx Ground has committed to correcting discriminatory hiring practices, implementing equal employment opportunity training and self-monitoring.  03.24.2012