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Office of Federal Contract Compliance Programs entered into a conciliation agreement to resolve allegations of hiring discrimination by FedEx Ground Package System Inc. and FedEx SmartPost Inc., both subsidiaries of Memphis, Tenn.-based FedEx Corp. FedEx found itself in compliance reviews wthat lasted seven years at numerous FedEx facilities, and is the largest single financial settlement negotiated by OFCCP since 2004.
The OFCCP did not disclose any practice which resulted in discrimination, but rather, only stated that it "found evidence that FedEx's hiring processes and selection procedures violated Executive Order 11246 by discriminating on the bases of sex, race and/or national origin against specific groups identified at 23 facilities in 15 states."
Under the conciliation agreement, the FedEx companies pay a total of $3 million in back wages and interest to 21,635 applicants for entry-level package handler and parcel assistant positions 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. The 21,635 rejected job seekers represent one of the largest classes of victims of any case in OFCCP's history.
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