Caterpillar must pay $800,000 in back wages and interest as part of a conciliation agreement with the U.S. Department of Labor. The agreement resolves alleged systemic hiring discrimination against 60 Black applicants, according to DOL.
In addition to the back pay for the 60 applicants, Caterpillar must offer jobs to 34 eligible applicants. The alleged discrimination occurred at the company’s Decatur, Illinois, manufacturing plant. The company also agreed to ensure its hiring policies and procedures are free from discrimination and provide training to all managers, supervisors, and other company officials who oversee hiring decisions, according to DOL.
According to a DOL press release, a routine compliance review by the Office of the Federal Contract Compliance Programs (OFCCP) found that Caterpillar discriminated against 60 Black applicants who applied for fabrication specialist/welder positions at its Decatur facility from March 30, 2018, to March 30, 2020.
“Our agreement with Caterpillar exemplifies the Office of Federal Contract Compliance Programs’ commitment to addressing and remedying preliminary indicators of discrimination in our compliance evaluations,” said Carmen Navarro, regional director of OFCCP, in a statement. “This agreement provides meaningful compensation and job opportunities to affected individuals and aims to ensure that all applicants, irrespective of their race, are considered equally for employment.”
