Janitorial Services Company to Pay $3M for Hiring Bias

December 2, 2010 (PLANSPONSOR.com) - A federal magistrate judge in Chicago has entered a $3 million consent decree ending litigation by the U.S. Equal Employment Opportunity Commission (EEOC) against a janitorial services company, Scrub, Inc. of Chicago.

The EEOC’s lawsuit charged that Scrub failed to recruit African-American applicants and failed to hire black applicants for entry-level janitorial positions. The EEOC brought its lawsuit after its administrative investigation revealed that substantial numbers of African-Americans were applying to Scrub, but being denied the opportunity to work because of racial discrimination.    

According to a press release, the investigation revealed that Scrub relied on a subjective decisionmaking process without clear objective criteria for hiring employees.  

In addition to providing for the distribution of $3 million in monetary relief to victims of discrimination, the consent decree prohibits the company from discriminating in the future and mandates the hiring of certain claimants who still want jobs at Scrub. The EEOC said that approximately 550 African-American applicants may receive relief under the decree.  

The decree has additional measures to prevent discrimination including that Scrub revise its hiring policy, use its best efforts to reach certain hiring goals of African-Americans, train its human resource staff on the law prohibiting race discrimination, and hire an outside monitor to review its compliance with the decree. Scrub is also required to increase its recruitment efforts in the African-American community.