Central Transport will pay $5.5 million to settle a federal lawsuit. The U.S. Equal Employment Opportunity Commission (EEOC) announced on May 15 that the settlement aims to resolve allegations that the company failed to hire qualified female drivers nationwide.

The EEOC stated that the Michigan-based transportation company was accused of repeatedly overlooking qualified female driver applicants over the past 10 years. According to the press release, the company allegedly selected less qualified male applicants and used different recruitment procedures for female applicants compared to males.

According to the EEOC, Central Transport's branches in Phoenix and El Paso, Texas, despite receiving a large number of female applications, did not hire any female truck drivers for years.

"Unfortunately, gender-based discriminatory hiring issues persist in certain industries," said Mary Jo O'Neill, regional attorney for the EEOC's Phoenix District Office, in a statement, adding that the agency recognizes the company's willingness to resolve the case through the settlement.

According to case documents, the allegations date back to 2016.

Central Transport operates more than 200 facilities nationwide. According to case documents, the company denied the allegations, and the documents were signed by the company's attorney, Kevin Kalczynski. The company stated that it is committed to ensuring that no employee or candidate is discriminated against on the basis of race, color, religion, sex, pregnancy, national origin, age, disability, or genetic information in all areas of its operations and employment practices.

Nevertheless, the EEOC noted that the company's hiring practices violated the Civil Rights Act of 1964 and the Civil Rights Act of 1991, as the company allegedly intentionally discriminated against female truck drivers and refused to hire them because of their sex.

The EEOC filed suit in the U.S. District Court for Arizona after administrative conciliation efforts failed to reach a resolution.

The consent decree, signed by Central Transport, the EEOC, and Arizona federal judge John Tuchi, requires Central Transport to pay damages to the four original complainants and a class of other qualified female truck driver applicants who were not hired, the press release said.

Under the settlement, 25% of the payment is back pay and 75% is compensatory damages. Eligibility criteria for recipients include: the applicant was female, submitted an application, held a commercial driver's license, and was denied employment.

The company must also allow affected applicants to apply for positions and participate in the company's hiring and recruitment process, without discrimination based on sex or retaliation for participating in the lawsuit, the press release said.

Central Transport will retain an external consultant to review its hiring policies, practices, and procedures to ensure compliance with Title VII of the Civil Rights Act of 1964, which addresses employment discrimination. The EEOC stated that the company must also designate a monitor to oversee its compliance with the terms of the decree.

The EEOC also stated that the company is expected to provide anti-discrimination policy training, including training on recordkeeping obligations, as well as submitting mandatory annual data reports for large employers under EEO-1 reporting.