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Press Release 03-28-2008

Judge Approves $1.278 Million Consent Decrees in Suits Against Minnesota Manufacturer, Staffing Agency

EEOC Alleged Discrimination Against Latino Employees

MINNEAPOLIS - A Minnesota federal judge approved consent decrees in related suits brought against Faribault Foods, Inc. and The Work Connection for discrimination against Latino employees, the U.S. Equal Employment Opportunity Commission (EEOC) announced today.  

Under the decrees, Faribault Foods and The Work Connection will pay a combined total of over $1.278 million to resolve claims that their Latino employees were subjected to discrimination in the terms and conditions of employment. Faribault Foods is a food processing company with manufacturing operations in Faribault, Minn.  The Work Connection is a staffing agency that places temporary employees at client facilities.  It placed temporary employees at Faribault Foods during the relevant period.

According to the suit against Faribault Foods (EEOC v. Faribault Foods, Inc., Civil No. 07-3976 RHK/AJB (D. Minn.), the EEOC alleged the company had discriminated against named claimants and a class of Hispanic employees and applicants in hiring, promotion, job assignment, testing, discipline, and discharge.  In its suit against The Work Connection (EEOC v. The Work Connection, Civil No. 07-3977 RHK/AJB (D. Minn.), the EEOC alleged that the staffing firm had discriminated against Hispanic employees in hiring by enforcing English proficiency demands that were not job-related or consistent with business necessity. 

Suits raising similar claims were also initiated by individual applicants and employees of Faribault Foods and The Work Connection, and were resolved through these Consent Decrees.

Under the Faribault Foods decree, the company will pay a total of $1,118,600.  Of this amount, $500,000 will be distributed to 45 persons identified in the suits, another $218,600 will be paid to 232 persons who submitted claim forms and who were found to be qualified to receive a distribution, and $60,000 will be used to pay for costs and expenses incurred in bringing the litigation, including the claims process and administering the settlement funds.  The court also approved a distribution of $400,000 to the private attorneys representing the Latino employees. 

The Work Connection decree provides for a payment of $160,000.  Of that amount, $100,000 will be distributed to 148 claimants, $48,000 will be allocated for attorneys' fees, and $12,000 will go to pay for the costs of the investigation and litigation, the claims process, and administering the settlement.

The consent decrees also provide broad and very important equitable relief.   Thus, the decree with Faribault Foods provides, among other things, that the company will evaluate which, if any, of its jobs require English proficiency, and will review any contemplated requirement that a job require English proficiency under federal regulations regarding employee selection procedures.  It will also allow its employees to receive reimbursement for language courses under its tuition reimbursement program, and it will regard such courses as a positive factor in evaluations.  Faribault Foods will establish a Diversity Committee made up of employees to promote and provide feedback regarding diversity efforts of Faribault Foods.  

Similarly, The Work Connection will review its tests and qualification standards under federal regulations regarding employee selection procedures, and will not disclose the results of its tests if it has reason to believe that client intends to use the results to screen out a staffing firm worker on the basis of national origin and/or race. 

"This was a case identified during investigation as one presenting systemic issues of discrimination based upon national origin.  The EEOC responded proactively in the investigation and through these consent decrees to try to get at the basis of the problems and prevent them from reoccurring," said John Rowe, the director of the EEOC's Chicago District.  "The non-monetary relief is especially important in these settlements, because it looks to the future instead of dwelling on the past."

John Hendrickson, regional attorney for the Chicago District of the EEOC, said, "The EEOC and the private parties sat down and hammered out the settlements that not only resolve the pending issues, but which provide for concrete steps to be taken by the employers. Other companies should take a look at the steps that Faribault Foods and The Work Connection are taking and try to emulate them."

The EEOC enforces federal laws prohibiting discrimination in employment.  Further information about the Commission is available on its web site at www.eeoc.gov.