Caterpillar to Pay $800,000 to Resolve Allegations of Racial Hiring Discrimination

By Ben Glickman

Caterpillar has agreed to pay $800,000 to resolve allegations of racial hiring discrimination at one of its facilities.

The Labor Department said Tuesday that a conciliation agreement with the industrial equipment maker resolves alleged systemic hiring discrimination against 60 Black applicants.

The company will pay back wages and interest to the affected applicants and offer jobs to 34 eligible class members, the Labor Department said.

A routine compliance review of Caterpillar's practices found the company discriminated against the 60 applicants, who applied for fabrication specialist/welder positions at the company's Decatur, Ill., facility, officials said. The allegations span from March 2018 to March 2020.

The company also agreed to ensure hiring policies and procedures are free from discrimination and provide training to those involved with hiring decisions, according to the Labor Department.

Caterpillar provides machinery to U.S. government entities through federal contracts.

Write to Ben Glickman at [e-mail]

(END) Dow Jones Newswires

05-21-24 1236ET