FedEx pays $3 million discrimination fine - WMC Action News 5 - Memphis, Tennessee

FedEx pays $3 million discrimination fine

The U.S. Department of Labor accused FedEx of discriminating against job applicants at 23 facilities and while the company continues to deny the claims, it's cutting its losses to avoid costly litigation. The U.S. Department of Labor accused FedEx of discriminating against job applicants at 23 facilities and while the company continues to deny the claims, it's cutting its losses to avoid costly litigation.

(WMC-TV) - The U.S. Department of Labor accused FedEx of discriminating against job applicants at 23 facilities and while the company continues to deny the claims, it's cutting its losses to avoid costly litigation.

He was recently ranked one of the happiest CEO'S in America, but not everyone was happy with the hiring practices at Fred Smith's company FedEx.

The Department of Labor says the ground delivery unit of FedEx will pay $3 million to settle federal charges of hiring discrimination.

The money will provide wages and back interest to more than 21,000 job applicants who were rejected for positions.

The agreement stems from a seven year investigation which resulted in allegations of discrimination based on race, sex and national origin as well as record keeping violations.

"The company admitted no wrongdoing and believes the DOL's position was not supported by the law," said a FedEx spokesperson. "The allegations were based on computer statistical analysis rather than individual complaints or investigations. We agreed to pay $3 million to avoid what would have certainly been a prolonged and much more expensive resolution process."

But the fourth happiest CEO in America still has a lot to be happy about.

A $3 million settlement pales in comparison to his company's third quarter performance. Third quarter profit more than doubled compared to the same time last year and an extra $290 million goes a long way.

FedEx ground also says it will continue to review and enhance its hiring practices to promote its commitment to diversity and equal employment opportunity.

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