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

What Is Robotic Process Automation and Its Business Impact?

Diving into the world of Robotic Process Automation (RPA), we’re thrilled to sit down with Dominic Jainy, an IT professional whose deep expertise in artificial intelligence, machine learning, and blockchain offers a unique perspective on how emerging technologies are reshaping industries. With a passion for exploring innovative applications, Dominic has been at the forefront of integrating cutting-edge solutions into business

How Can Customer Onboarding Balance Security and Experience?

I’m thrilled to sit down with Aisha Amaira, a renowned MarTech expert whose passion for blending technology with marketing has revolutionized how businesses harness customer insights. With her extensive background in CRM marketing technology and customer data platforms, Aisha brings a unique perspective on customer onboarding and fraud prevention. In this interview, we dive into the critical role of onboarding

Maybank and Microsoft Transform Banking with $238M Deal

What happens when a banking giant in Southeast Asia joins forces with a global tech titan to revolutionize the financial landscape? Picture millions of customers experiencing seamless digital transactions, employees empowered by cutting-edge tools, and a bank fortified against ever-evolving cyber threats. Maybank, a leading financial institution in the ASEAN region, is making this vision a reality through a transformative

How Is Alipay+ and Grab Redefining Travel in Southeast Asia?

What happens when millions of travelers step into a vibrant region like Southeast Asia, only to struggle with unfamiliar apps and fragmented payment systems? The answer lies in a groundbreaking collaboration that’s changing the game. Announced on September 15 in Singapore, the partnership between Alipay+, Ant International’s global wallet gateway, and Grab, the region’s leading superapp, integrates ride-hailing into digital

How Is PayPal Revolutionizing Crypto Payments with Links?

Imagine a world where sending cryptocurrency is as easy as sharing a link through a text message, seamlessly blending digital assets with everyday transactions. PayPal has turned this vision into reality with its innovative feature, PayPal Links, launched to integrate cryptocurrencies like Bitcoin, Ethereum, and its own stablecoin, PYUSD, into peer-to-peer payments. This development has sparked widespread discussion among fintech