Daikin Industries Settles Hiring Discrimination Allegations, Agrees to Pay $100,000 in Back Wages

HVAC system maker Daikin Industries has reached a resolution with the Department of Labor regarding alleged race-based hiring discrimination at its facility in Verona, Virginia. The agreement comes after a review conducted by the agency found that the company had discriminated against 98 Black applicants for assembler positions from January 1, 2020, to December 31, 2020.

Alleged discrimination and violation of executive order

During the review, the Department of Labor discovered evidence suggesting that Daikin Industries had engaged in discriminatory practices by favoring non-Black applicants for assembler positions at its Verona plant. This alleged discrimination violated an executive order that prohibits federal contractors from engaging in discriminatory hiring practices.

Resolution and payment

To resolve the allegations, Daikin Industries has agreed to pay $100,000 in back wages and interest. Of this amount, $88,734.20 will be distributed as back pay, while $11,265.80 will be allocated as interest among the eligible class members. The payment aims to compensate the affected individuals for the wages they would have earned if they had been hired.

Company Statement on Equal Opportunities

Daikin Industries, in response to the allegations, emphasized its commitment to providing equal employment opportunities for all individuals. According to the company, it has long cultivated an environment where employees have equal opportunities for employment and advancement. The HVAC system maker acknowledges the importance of addressing any violations and ensuring a fair hiring process.

Please provide the specific changes and modifications you would like to make

In addition to the monetary compensation, the agreement requires Daikin Industries to modify its employment practices and thoroughly evaluate its selection process for assembler positions. The company is obligated to address any biases or discriminatory elements in its hiring procedures. Furthermore, Daikin Industries is explicitly instructed to discontinue the use of pre-employment tests as part of its selection process, as these tests have been identified as potentially perpetuating discrimination.

Priority hiring for class members

As part of the resolution, class members who were affected by the alleged discrimination will be prioritized over other candidates for the assembler position. This priority will continue until three individuals from the impacted applicant list have been hired, or until the list has been exhausted, ensuring that those who suffered from discrimination are given a fair chance at employment.

Record keeping and auditing

To ensure compliance with anti-discrimination regulations, Daikin Industries must retain personnel and employee records. This requirement enables the company to demonstrate its commitment to fair and equal employment practices. Additionally, the HVAC system maker is required to implement an auditing system for its affirmative action program, allowing for ongoing assessment and improvement of its hiring and employment processes.

Progress Reports and Oversight

To monitor Daikin Industries’ progress in rectifying the alleged discrimination and implementing the necessary changes, the company is obligated to submit progress reports to the Department of Labor until the end of the following year. These reports will provide insights into the company’s efforts to promote diversity, inclusion, and equal opportunities within its workforce.

The resolution reached between Daikin Industries and the Department of Labor highlights the importance of addressing and remedying discrimination in the workplace. By agreeing to pay $100,000 in back wages and interest, implementing changes to its employment practices, and prioritizing class members for assembler positions, Daikin Industries is taking steps to rectify the harm caused by the alleged discrimination. The company’s commitment to equal employment opportunities for all individuals will be closely monitored through progress reports and oversight. It is hoped that this resolution will serve as a reminder to all employers of the importance of fair and unbiased hiring practices and the eradication of discrimination in the workplace.

Explore more

Unlock Success with the Right CRM Model for Your Business

In today’s fast-paced business landscape, maintaining a loyal customer base is more challenging than ever, with countless tools and platforms vying for attention behind the scenes in marketing, sales, and customer service. Delivering consistent, personalized care to every client can feel like an uphill battle when juggling multiple systems and data points. This is where customer relationship management (CRM) steps

7 Steps to Smarter Email Marketing and Tech Stack Success

In a digital landscape where billions of emails flood inboxes daily, standing out is no small feat, and despite the rise of social media and instant messaging, email remains a powerhouse, delivering an average ROI of $42 for every dollar spent, according to recent industry studies. Yet, countless brands struggle to capture attention, with open rates stagnating and conversions slipping.

Why Is Employee Retention Key to Boosting Productivity?

In today’s cutthroat business landscape, a staggering reality looms over companies across the United States: losing an employee costs far more than just a vacant desk, and with turnover rates draining resources and a tightening labor market showing no signs of relief, businesses are grappling with an unseen crisis that threatens their bottom line. The hidden cost of replacing talent—often

How to Hire Your First Employee for Business Growth

Hiring the first employee represents a monumental shift for any small business owner, marking a transition from solo operations to building a team. Picture a solopreneur juggling endless tasks—client calls, invoicing, marketing, and product delivery—all while watching opportunities slip through the cracks due to a sheer lack of time. This scenario is all too common, with many entrepreneurs stretching themselves

Is Corporate Espionage the New HR Tech Battleground?

What happens when the very tools designed to simplify work turn into battlegrounds for corporate betrayal? In a stunning clash between two HR tech powerhouses, Rippling and Deel, a lawsuit alleging corporate espionage has unveiled a shadowy side of the industry. With accusations of data theft and employee poaching flying, this conflict has gripped the tech world, raising questions about