A Virginia tech firm has agreed to pay fines after being found guilty of posting a racially discriminatory job advertisement last year, according to the Department of Justice (DOJ). Arthur Grand Technologies Inc. settled with the DOJ and the Department of Labor, agreeing to pay a $7,500 civil penalty to the U.S. Treasury and $31,000 in compensation to affected individuals.
The ad, which appeared on Indeed, specified that only white U.S. citizens within 60 miles of Dallas, Texas, were eligible for a business analyst position, violating the Immigration and Nationality Act.
The Labor Department’s investigation revealed that this action contravened Executive Order 11246, which prohibits discrimination by federal contractors. The company was found to have discriminated against applicants based on race and national origin during the recruitment process.
An ad posted by a recruiter in India discouraged certain individuals from applying, resulting in the findings released in May. As part of a conciliation agreement, Arthur Grand agreed to corrective measures to avoid legal action.
Assistant Attorney General Kristen Clarke of the DOJ Civil Rights Division condemned the use of racially exclusive job postings and vowed to enforce civil rights laws. Arthur Grand claimed the unauthorized posting was made by a former employee, asserting its commitment to diversity.
The settlements require minimum payments of $1,000 to eligible individuals. The company, without admitting or denying violations, agreed to implement training, revise policies, and undergo monitoring to prevent future discrimination.
The controversy echoes a similar incident involving the Kraft Group, which sought BIPOC candidates for a sports management position, sparking allegations of discrimination against white applicants. Congressional inquiry ensued, with the House Oversight Committee investigating the Equal Employment Opportunity Commission’s enforcement of anti-discrimination laws.
The inquiry followed concerns raised by attorneys general and highlighted alleged racial discrimination in hiring practices by certain companies, in violation of Title VII of the Civil Rights Act of 1964.
