By Dave Sebastian

FedEx Corp.'s ground-delivery arm will pay the Equal Employment Opportunity Commission $3.3 million to settle a disability discrimination lawsuit alleging the company denied deaf and hard-of-hearing package handlers reasonable accommodations, the commission said.

The EEOC said FedEx Ground also discriminated against deaf and hard-of-hearing applicants for package-handler jobs. Package handlers load, unload, scan and route packages at FedEx's distribution centers.

FedEx said it denies the EEOC's allegations.

"FedEx Ground remains committed to the fair and equal treatment of all team members, including our deaf and hard-of-hearing employees, for whom we strive to provide every opportunity for success," the company said. "We are pleased to put this litigation behind us as we continue to provide essential services to our customers and communities."

Employers are required to make reasonable accommodations for disabled individuals to enable them to perform essential parts of their jobs and to have equal employment benefits and privileges, according to the EEOC, citing the American with Disabilities Act.

As part of the settlement, 229 individuals could receive payment, and FedEx Ground must provide deaf and hard-of-hearing package handlers with American Sign Language interpreting, captioned videos and scanning equipment with non-audible cues such as vibration, the EEOC said.

FedEx Ground will also equip tuggers, forklifts and similar motorized equipment with visual warning lights and provide personal notification devices to deaf package handlers for emergencies, the EEOC said.

The company will train managers and human-resources representatives on ADA compliance and create written guides for identifying and providing accommodations for the package handlers, the EEOC said.

The commission said a FedEx Ground vice president will oversee the company's implementation of the two-year consent decree and reporting to the EEOC.

Write to Dave Sebastian at dave.sebastian@wsj.com