The Cost of Discrimination: Analyzing Recent Legal Settlements in Staffing Agencies
Two recent high-profile settlements have spotlighted workplace discrimination, reminding staffing agencies of their legal obligations and encouraging employees to take a stand against unlawful behaviors.
Robert Canino, regional attorney for the EEOC Dallas District Office said, “Unfortunately, when a group of job seekers with certain disabilities is relegated to ‘For Future Consideration’ status, opportunities can be lost indefinitely. We are encouraged to see NTI’s earnest interest in committing to a more proactive effort, including working closely with other organizations that specialize in increasing opportunities for persons who simply need accommodations already known to be effective for blindness and low vision.”
In the first case, the National Telecommuting Institute (NTI), a Massachusetts staffing support company, has agreed to a $1.25 million settlement in a lawsuit alleging disability discrimination. NTI was accused of failing to accommodate and hire blind and low-vision job applicants, specifically those who used assistive technology such as screen readers. The ADA prohibits employment decisions based on an individual’s disability or need for reasonable accommodation.
In the suit, it was charged that NTI did not pursue placement or referrals for these individuals and also denied disability-related accommodations during pre-employment application processes. As part of the settlement agreement, NTI is committed to providing internal training on ADA rights, revising its policies regarding reasonable accommodations, and appointing an internal ADA coordinator and external monitor.
“The customer is not always right and, as EEOC’s guidance for employment agencies makes clear, staffing agencies violate the law when they comply with a client’s sex-based preference, or a preference based on any other prohibited characteristic,” said Nancy Sienko, director of the EEOC’s San Francisco District, which includes Washington. “Hiring and referrals should be based on a worker’s merits, not stereotypes.”
The second recent settlement involves SmartTalent LLC, a Washington-based staffing agency. The company will pay $875,000 to settle a sex discrimination lawsuit. The allegations involved SmartTalent complying with clients’ requests for male workers. This has resulted in a pattern of discrimination against women in hiring and job assignments since 2015, which infringes Title VII of the Civil Rights Act of 1964. SmartTalent will draft and implement anti-discrimination policies as part of the settlement, train staff on Title VII requirements, and actively monitor compliance.
These cases underscore the importance of equal employment opportunity rights and shed light on the severe implications of violating these rights. If you believe you have been discriminated against due to your gender or disability, it’s essential to consult an experienced employment lawyer to understand and protect your rights. Discrimination has no place in the employment sector, and together, we can strive for fairer, more inclusive workplaces.