Heavy equipment manufacturer Caterpillar agreed to pay $800,000 to settle allegations it discriminated against Black job seekers at a factory in Illinois, the U.S. Labor Department said Tuesday.
The money will cover back wages and interest to 60 people who were allegedly rejected due to their race when they applied to work as welders at the plant in Decatur from March 30, 2018, to March 30, 2020.
Caterpillar will also offer jobs to 34 of them, the Labor Department said.
The publicly held company didn't admit any wrongdoing and said in a prepared statement that the allegations and settlement "are not a reflection of the current state of our hiring practices."
"Caterpillar remains committed to creating a workforce that respects and celebrates diverse backgrounds, experiences, and perspectives," the statement added.
The alleged racial discrimination was uncovered during what the Labor Department called a routine review by its Office of Federal Contract Compliance Programs.
The OFCCP enforces a federal executive order, first signed in 1965, that prohibits federal contractors from engaging in employment discrimination based on race, sex, color, religion, sexual orientation, gender identity or national origin.
Caterpillar supplies the Army with machinery and has held more than $481 million worth of federal contracts since 2018, according to the Labor Department.
"Companies that accept federal contracts must monitor their hiring processes to ensure applicants are not rejected based on unlawful practices," OFCCP acting director Michele Hodge said in a prepared statement.
Hodge also said the OFCCP "was committed to tackling employment policies and practices that create barriers to opportunity and perpetuate inequality."
Caterpillar's stock price fell 1.01%, to close at $359.07 per share during Tuesday's trading on the New York Stock Exchange.
