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OFCCP negotiates largest financial settlement since 2004

2012-03-24

OFCCP and FedEx Ground Package Systems Inc. and FedEx SmartPost, Inc, both subsidiaries of FedEx Corporation has negotiated a settlement with the OFCCP.  The companies will pay a total of $3 million in back wages and interest to 21,635 applicants who were rejected for entry-level package handler and parcel assistant positions at 22 FedEx Ground facilities and one FedEx SmartPost facility.  Under the terms of the agreement, the companies will extent job offers to 1,703 of the affected individuals as positions become available.

The settlement resolves allegations of hiring discrimination based on sex, race and/or national origin identified at 23 facilities in 15 states.  The affected individuals include men and women as well as African-American, Caucasian, and Native American job seekers and individuals of Hispanic and Asian descent.

During regularly scheduled compliance reviews, spanning seven years, the compliance officers found evidence that the companies hiring and selection procedures violated Executive Order 11246.  

The 21,635 rejected job seekers represent one of the largest classes of victims in OFCCP's history.