Lenoir company folded–but must still pay bias settlement — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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Lenoir company folded–but must still pay bias settlement

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in Discrimination and Harassment,Hiring,Human Resources

The management team behind what’s left of Lenoir-based Caldwell Freight Lines just learned a harsh lesson: The EEOC will come after you even if you are no longer in business.

The defunct company has been ordered to pay $120,000 to settle a race discrimination complaint stemming from its alleged refusal to hire black applicants to work on its loading dock.

Desmond Burch and 50 other blacks applied for jobs, but none was hired. Many, including Burch, had previous dock experience and were qualified for the positions. An EEOC investigation revealed that the company hired no black dock workers during the period studied. The EEOC uncovered evidence that one high-level manager as saying he “didn’t want any blacks on the dock.”

The company has since ceased operations, but will pay the settlement money. Should the company resume operations, it will have to implement an anti-discrimination policy and report all discrimination complaints directly to the EEOC.

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