DOJ Settlement
Tech Staffing Firm Settles with DOJ and Labor Over 'Whites Only' Job Posting
Arthur Grand Technologies settles with DOJ and Labor after posting a 'whites only' job ad
In a significant development, Arthur Grand Technologies Inc., a Virginia-based IT staffing firm, has reached settlement agreements with the U.S. Department of Justice (DOJ) and the Department of Labor (DOL) following the fallout from a discriminatory job advertisement. The ad, which specified that only "US Born Citizens [White]" within a 60-mile radius of Dallas, Texas, should apply, sparked widespread outrage and led to federal investigations.
The controversial job posting, which appeared on a public online hiring platform in March 2023, was for a Salesforce Business Analyst and Insurance Claims position. The role was intended to serve two major clients: HTC Global, an information technology company based in Troy, Michigan, and Berkshire Hathaway, a multinational holding company headquartered in Omaha, Nebraska. The ad's explicit racial and citizenship requirements, coupled with the instruction "Don't share with candidates," quickly drew public ire and accusations of discrimination.
Assistant Attorney General Kristen Clarke of the DOJ's Civil Rights Division expressed her dismay, stating, "It is disgraceful that in the 21st century, we continue to encounter employers who employ 'whites only' and 'only US born' job postings to exclude otherwise eligible candidates of color." Clarke emphasized the DOJ's commitment to holding employers accountable for such violations of federal civil rights laws.
The DOJ's investigation, conducted by the Office of Federal Contract Compliance Programs (OFCCP) and the Civil Rights Division's Immigrant and Employee Rights Section (IER), determined that the job posting violated the Immigration and Nationality Act (INA) and Executive Order 11246. These regulations prohibit federal contractors from discriminating in employment based on race, color, religion, sex, sexual orientation, gender identity, or national origin.
Arthur Grand Technologies, which is minority-owned and certified as a Small Disadvantaged Business, denied any wrongdoing. CEO Sheik Rahmathullah attributed the job posting to a "disgruntled recruiter" from the company's subsidiary in India, who allegedly intended to embarrass the firm. Rahmathullah stated, "We vehemently deny any guilt or wrongdoing in relation to the discriminatory job posting. The job notice was an unauthorized posting." He added that the company took immediate action upon discovering the incident, including terminating the responsible employee.
Despite denying any intentional discrimination, Arthur Grand Technologies agreed to the settlements to avoid the financial burden and prolonged disruption of litigation. Under the terms of the agreements, the company will pay a civil penalty of $7,500 to the U.S. Treasury and $31,000 in total to 31 individuals who filed complaints about the job posting. Additionally, the firm will be subject to monitoring to ensure compliance with anti-discrimination laws and will be required to train its personnel on the INA's requirements and revise its employment policies.
Acting Director Michele Hodge of the OFCCP highlighted the importance of holding federal contractors accountable, stating, "Over the past 58 years, OFCCP has protected workers and job seekers from workplace discrimination. We are committed to holding federal contractors accountable for outrageous discriminatory practices like this advertisement."
The settlement agreements also mandate that Arthur Grand Technologies provide workplace-specific training for all employees involved in recruiting, selecting candidates, or tracking expressions of interest for open positions. The company must also send a letter to the complainants, requiring them to sign a document acknowledging that Arthur Grand denies any unlawful or unfair treatment. By signing the document and receiving payment, the complainants agree not to file a lawsuit against the company.
Arthur Grand Technologies, headquartered in Ashburn, Virginia, is situated in a two-story office complex about 10 miles north of Dulles International Airport. The firm takes pride in its diverse workforce, with all senior leadership positions held by persons of color and over 80% of its staff also being people of color. Rahmathullah emphasized the company's commitment to maintaining the trust and confidence of its community and stakeholders, stating, "We sincerely apologize for any harm caused by this incident and are committed to making meaningful changes."
The case of Arthur Grand Technologies serves as a stark reminder of the ongoing challenges in combating workplace discrimination and the importance of vigilance in upholding civil rights in employment practices.