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.