Settlement reached between company that advertised ‘whites only’ job and federal government

According to officials, a company that published a job advertisement discriminating against non-white candidates has been fined by the federal government. The company has also reached separate agreements with the U.S. Department of Justice and Department of Labor as a form of punishment.

Arthur Grand Technologies, a Virginia-based information technology services firm, came under fire in March 2023 for posting a discriminatory job advertisement. The ad explicitly stated that only “US Born Citizens [white]” who lived within a 60-mile radius of Dallas, TX were eligible to apply. The United States Department of Justice released a statement on Thursday condemning the company’s discriminatory hiring practices.

The Department of Justice stated that an investigation conducted by OFCCP (Office of Federal Contract Compliance Programs) found that in April 2023, Arthur Grand Technologies posted a job opening for a business analyst position within their sales and insurance claims team in Dallas on a public online hiring website. The advertisement included a bolded note specifying that only born US citizens who are white and local within 60 miles from Dallas, TX should apply, with a request not to share this information with candidates. The position was intended to serve two clients, namely HTC Global, an information technology company based in Troy, Michigan, and Berkshire Hathaway, a multinational holding company based in Omaha, Nebraska.

The Department of Justice also mentioned another case that involved Arthur Grand Technologies and alleged discriminatory practices.

The Department of Justice (DOJ) announced in May 2023 that it had initiated an investigation into Arthur Grand. The investigation, conducted by the Civil Rights Division’s Immigrant and Employee Rights Section (IER), found evidence of discrimination based on citizenship status and national origin. The investigation stemmed from an advertisement posted on the job website Indeed by a recruiter working for Arthur Grand’s subsidiary in India.

The DOJ revealed that the advertisement had gained significant traction on social media and had even been featured in multiple news articles. As a result, the actions taken by Arthur Grand had a detrimental impact on individuals who had the legal right to work in the United States. This included both U.S. citizens born outside of the country and certain non-U.S. citizens. By unlawfully deterring these individuals from applying to the job advertisement, Arthur Grand had violated their rights.

As part of the settlement reached with the Justice Department, Arthur Grand Technologies, an IT company, has been directed to pay a civil penalty to the United States. Additionally, the agreement mandates that Arthur Grand train its personnel on the requirements of the Immigration and Nationality Act (INA), revise its employment policies, and be subjected to ongoing monitoring by the department. This step aims to ensure compliance with the INA’s provisions.

As part of the conciliation agreement reached with the Labor Department, Arthur Grand has agreed to provide compensation to individuals who lodged complaints with its Office of Federal Contract Compliance Programs (OFCCP). Additionally, the company has made a commitment to offer workplace-specific training to all employees involved in recruiting, candidate selection, and tracking expressions of interest for open positions. The Department of Justice (DOJ) has confirmed these developments.

The Department of Labor has reached an agreement to resolve the violation of Executive Order 11246 by Arthur Grand. This order strictly prohibits federal contractors from engaging in any form of employment discrimination based on race, color, religion, sex, sexual orientation, gender identity, or national origin. The Department of Justice (DOJ) stated that this agreement effectively addresses the Labor Department’s determination regarding Arthur Grand’s violation.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division expressed her outrage at the use of discriminatory job postings that exclude candidates of color based on their citizenship status, national origin, color, and race. She described it as shameful and appalling that such practices still exist in the 21st century. Clarke emphasized the commitment of the Justice Department, along with other government agencies, to hold employers accountable for violating federal civil rights laws.

Acting Director Michele Hodge from the Department of Labor’s Office of Federal Contract Compliance Programs expressed her commitment to protecting workers and job seekers from workplace discrimination. She emphasized the importance of holding federal contractors accountable for discriminatory practices, such as the offensive advertisement by Arthur Grand. Hodge firmly stated that companies accepting federal contracts cannot engage in a hiring process that discriminates against any race.

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MBS Staff
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