Staffing agency to pay $1M to resolve racial discrimination allegations

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MORENO VALLEY - An Orange County-based staffing agency and a transportation and supply chain solutions company with a facility in Moreno Valley will pay $1 million each to resolve a lawsuit alleging they violated federal law by subjecting Black employees to racial discrimination, harassment and retaliation, the U.S. Equal Employment Opportunity Commission announced today.

According to the EEOC's lawsuit, which was filed in federal court in Los Angeles, Black employees assigned by Kimco Staffing Services to Ryder Integrated Logistics in Moreno Valley, along with Black workers directly hired by Ryder, were subjected to ongoing and unwelcome harassment based on their race.

The EEOC alleged that Ryder and Kimco created a hostile working environment by allowing employees to use racial slurs and epithets toward their Black colleagues. After a Black employee complained about racial harassment, neither Ryder nor Kimco corrected the situation, instead firing the employee within days of reporting the harassment, according to the lawsuit.

The EEOC also alleged that Ryder and Kimco discriminated against Black workers in the terms and conditions of employment in assignment, training, promotion, discipline and termination.

"This case underscores the unfortunate reality that racial harassment and retaliation remain a problem in American workplaces," said EEOC Chair Charlotte A. Burrows. "Confronting these issues is of critical importance to the EEOC and our nation. The EEOC will continue to use outreach, education and enforcement when necessary to ensure that employers -- and staffing agencies -- understand their obligation to prevent and correct unlawful harassment and ensure that workers can raise concerns without fear of reprisal."

Kimco has also entered into a consent decree with the EEOC, which includes providing neutral references for the claimants along with the re- hiring of the claimants who desire to return to Kimco. The company also will retain a bilingual third party EEO monitor, create and implement policies and procedures to prohibit discrimination and harassment, which will then be disseminated to all employees, establish a complaint procedure, and train all employees on discrimination and harassment.

In addition to monetary relief, Ryder will provide injunctive relief aimed at preventing workplace harassment, discrimination and retaliation. The consent decree includes the selection of an equal employment opportunity coordinator; the creation of a centralized tracking system for race-based harassment, discrimination and retaliation complaints; the review and revision of policies prohibiting discrimination; and the distribution of those policies to all employees. Additionally, Ryder will create an internal complaint process and discrimination training for all employees.

Kimco and Ryder will both develop protocols for handling discrimination and harassment complaints raised by temporary employees on assignment, according to the EEOC.

The decrees will remain under the court's jurisdiction for the two- year term.

According to its website, Ryder manages fleet, transportation and supply chain functions for more than 50,000 customers. The company is headquartered in Miami.

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