DHL to Pay $8.7 Million in EEOC Race Discrimination Settlement

Background:

CHICAGO – Delivery company DHL has agreed to pay $8.7 million and submit to oversight by a court-appointed monitor to settle a class race discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC).

Allegations:

The lawsuit alleged that DHL discriminated against its Black employees by assigning them to delivery routes in neighborhoods with higher crime rates compared to their white counterparts. Black drivers frequently encountered dangerous situations and, in some instances, were victims of crime. Additionally, the lawsuit claimed that DHL disproportionately assigned Black employees to perform the most physically demanding dock work, such as moving large, heavy packages, while white employees were often given less strenuous tasks, like sorting letters. This not only placed Black employees at greater risk but also subjected them to more physically taxing labor without any justifiable reason related to job requirements.

The EEOC further charged that DHL’s practices created a racially segregated work environment where Black and white employees were systematically divided based on race. Black employees reported enduring discriminatory remarks and being likened to stereotypes that perpetuated a hostile work atmosphere. This segregation and unequal treatment based on race were in direct violation of Title VII of the Civil Rights Act of 1964, which prohibits discrimination in employment practices. The EEOC’s lawsuit highlighted that such discriminatory practices undermined the principles of equality and fairness that are mandated by federal law.

Settlement:

This conduct violated Title VII of the Civil Rights Act of 1964, which prohibits discrimination based on race. The EEOC filed the lawsuit in the U.S. District Court for the Northern District of Illinois (Civil Action No.10-cv-6139) after attempts to reach a settlement through the conciliation process failed.

As part of the consent decree resolving the lawsuit, DHL will compensate 83 Black employees who were subjected to these discriminatory practices, with 20 of these employees represented by private counsel. The court appointed former EEOC Commissioner Leslie Silverman to monitor DHL's compliance with the decree. The decree mandates DHL to train its workforce on federal laws prohibiting race discrimination and to provide periodic reports on work assignments and complaints. Silverman will oversee the effectiveness of DHL’s complaint procedures, quality of investigations, and the status of mandatory training. Her monitoring will extend for four years to ensure DHL’s compliance and equal treatment of employees.

Conclusion:

The resolution of this case underscores the importance of eliminating racial discrimination in the workplace and ensuring fair treatment for all employees. The measures put in place aim to prevent future instances of race-based segregation and unfair work assignments, promoting a more equitable work environment at DHL.