In March 2023, Arthur Grand Technologies Inc., a Virginia-based IT staffing firm, faced backlash after a job advertisement was posted on Indeed. The ad specified that the position was open only to “Born US Citizens [White]” within 60 miles of Dallas and included a note instructing not to share the posting with candidates. The job posting was for a business analyst position intended to serve two clients, HTC Global in Michigan and Berkshire Hathaway in Nebraska. This discriminatory requirement quickly circulated on social media, leading to public outrage and prompting an investigation by federal authorities.
Federal Investigation and Findings
The Justice Department’s Civil Rights Division initiated an investigation in May 2023. The investigation concluded that the job posting violated the Immigration and Nationality Act and an executive order that prohibits federal contractors from discriminating based on race, national origin, and other protected characteristics. The Department of Labor found additional violations, including the absence of records tracking job applicants’ demographic characteristics and the failure to post workers’ equal employment opportunity rights notices in conspicuous places.
Penalties and Settlement
Arthur Grand Technologies agreed to a settlement with the U.S. Department of Justice (DOJ) and the Department of Labor (DOL). The company will pay a total of $38,500 in penalties, comprising a $7,500 civil penalty to the U.S. Treasury and $31,000 to compensate 31 individuals who filed complaints about the job posting. As part of the settlement, Arthur Grand will also provide workplace training on federal discrimination laws, revise its employment policies, and undergo monitoring by the Justice Department to ensure compliance with anti-discrimination regulations.
Company’s Response and Actions Taken
Arthur Grand Technologies, represented by its CEO Sheik Rahmathullah, denied any wrongdoing or intent to discriminate. Rahmathullah claimed that the job posting was unauthorized and created by a disgruntled employee from their subsidiary in India, using a personal email account. He stated, “We took immediate and decisive action to ensure that this type of incident will never happen again, including the immediate termination of the responsible employee.” The company emphasized that the posting was not reflective of its policies or values, asserting that the firm prides itself on its diversity.
Statements from Officials
Assistant Attorney General Kristen Clarke of the DOJ’s Civil Rights Division condemned the discriminatory job posting, stating, “It is shameful that in the 21st century, we continue to see employers using ‘whites only’ and ‘only US born’ job postings to lock out otherwise eligible job candidates of color.” Acting Director Michele Hodge of the Department of Labor’s Office of Federal Contract Compliance Programs added, “Companies like Arthur Grand, that accept federal contracts, cannot have a ‘whites only’ hiring process.”
Additional Company Information
Arthur Grand Technologies, headquartered in Ashburn, Virginia, with additional offices in Canada and India, provides information technology services, including to federal government clients. The company is certified as a Small Disadvantaged Business, meaning it is primarily owned and operated by individuals who are socially and economically disadvantaged. Rahmathullah highlighted that all senior leadership positions at Arthur Grand are held by persons of color, and over 80% of its staff are also people of color.
Settlement Agreements
The DOJ and DOL agreements with Arthur Grand require the company to send form letters to the complainants, offering compensation while stating, “I understand that AGT denies that it treated me unlawfully or unfairly in any way.” By signing the document and receiving payment, complainants agree not to file lawsuits against the company. Rahmathullah explained that the company agreed to the settlements “solely to avoid the significant financial toll and prolonged disruption that litigation would impose on our company.”
This article is based on the following articles:
https://www.washingtonpost.com/dc-md-va/2024/05/27/employment-discrimination-arthur-grand
Background Information
1. Anti-Discrimination Laws in the United States
Civil Rights Act of 1964:
- Title VII: This section of the Act prohibits employment discrimination based on race, color, religion, sex, or national origin. Employers cannot make hiring, firing, or promotion decisions based on these characteristics.
Immigration and Nationality Act (INA):
- Section 274B: This section prohibits employment discrimination based on citizenship status and national origin. It applies to employers with four or more employees and protects both U.S. citizens and legal immigrants.
Executive Orders:
- Federal contractors, like Arthur Grand Technologies, must adhere to additional non-discrimination requirements. These orders prohibit employment discrimination based on race, color, religion, sex, sexual orientation, gender identity, or national origin.
2. Roles and Responsibilities of the Department of Justice (DOJ) and Department of Labor (DOL)
Department of Justice (DOJ):
- Civil Rights Division: This division enforces federal statutes prohibiting discrimination. It investigates complaints of discrimination in various areas, including employment.
Department of Labor (DOL):
- Office of Federal Contract Compliance Programs (OFCCP): This office ensures that employers doing business with the federal government comply with laws and regulations requiring non-discrimination. It conducts compliance evaluations and investigates complaints of discrimination.
3. Understanding Job Posting and Recruitment Practices
Job Posting:
- A job posting is an announcement by an employer about an available position within the company. It typically includes information about the job title, duties, qualifications, location, and how to apply. Employers use job postings to attract qualified candidates.
Recruitment Policies:
- Recruitment policies must comply with anti-discrimination laws. Employers must ensure their job postings and hiring practices are free from discriminatory language or requirements. This includes avoiding specifications that exclude candidates based on race, nationality, or other protected characteristics.
4. The Role of Social Media in Accountability
Social Media:
- Platforms like Reddit and LinkedIn can quickly disseminate information, including problematic job postings. Social media allows for public scrutiny and can prompt swift responses from companies and regulatory bodies.
Public Outrage and Activism:
- When discriminatory practices are exposed, public outrage on social media can lead to pressure on companies and regulatory bodies to take action. This form of digital activism can drive changes in corporate policies and enforcement of anti-discrimination laws.
5. Federal Contractors and Small Disadvantaged Business (SDB) Certification
Federal Contractors:
- Companies that enter into contracts with the federal government must comply with specific non-discrimination requirements. They are subject to more rigorous scrutiny regarding their hiring and employment practices.
Small Disadvantaged Business (SDB):
- The SDB program is designed to help small businesses owned by socially and economically disadvantaged individuals compete in the marketplace. To qualify, a business must be at least 51% owned by one or more disadvantaged persons, who must also control the management and daily operations of the company.
6. Understanding the Consequences of Non-Compliance
Penalties and Settlements:
- Companies found in violation of anti-discrimination laws can face financial penalties, mandatory training requirements, policy revisions, and ongoing monitoring by regulatory bodies. Settlements may also include compensation to individuals affected by the discriminatory practices.
Corporate Reputation and Trust:
- Discriminatory practices can severely damage a company’s reputation and erode trust among employees, clients, and the public. Companies must address such issues promptly and transparently to restore confidence and ensure compliance with legal and ethical standards.
7. Key Terminology
Discrimination:
- Unfair treatment of individuals based on characteristics such as race, color, religion, sex, national origin, age, disability, or genetic information.
Civil Penalty:
- A financial penalty imposed by a government agency as punishment for violating laws or regulations. It is different from criminal penalties, which involve prosecution and potential jail time.
Performance Improvement Plan (PIP):
- A plan implemented by employers to help underperforming employees improve their job performance. It sets specific goals and provides support to meet those goals.
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