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

The EEOC stated that the carrier repeatedly overlooked qualified female driver applicants over the past decade, allegedly choosing less qualified male applicants instead and subjecting female applicants to different hiring procedures than males. According to the EEOC's press release, Central Transport's facilities in Phoenix and El Paso, Texas, despite receiving numerous applications from women, hired no female truck drivers for years.

"Unfortunately, sex discrimination in hiring remains a problem in some industries," said Mary Jo O'Neill, regional attorney for the EEOC's Phoenix District Office, in a statement. She added that the agency recognizes Central Transport's willingness to resolve the case through a settlement.

According to court documents, the allegations date back to 2016. Central Transport operates more than 200 facilities in the U.S., but denied the allegations in court documents. Documents signed by the company's attorney, Kevin Kalczynski, indicate that the company stated it would ensure that in all areas of its operations and employment practices, no employee or candidate would be discriminated against based on race, color, religion, sex, pregnancy, national origin, age, disability, or genetic information.

Nevertheless, the EEOC determined 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 the District of Arizona after administrative conciliation efforts failed to reach a settlement.

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 to a class of other qualified female truck driver applicants who were not hired. Under the settlement terms, 25% of the damages are back pay and 75% are compensatory damages. Eligible recipients must be women who applied, held a commercial driver's license, and were denied employment.

The EEOC stated that the company must also allow affected applicants to apply for positions and participate in the company's hiring and selection process, without discrimination based on sex or retaliation for their involvement in the lawsuit. Additionally, 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 regarding employment discrimination. The company must also appoint a monitor to oversee its compliance with the decree's terms.

The EEOC also noted that the company is expected to provide training on its anti-discrimination policies, including record-keeping obligations, and to submit mandatory annual data reports for larger employers as required by EEO-1 reporting requirements.