January 9, 2025
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Caterpillar, Inc. agrees to an $800K settlement for racial discrimination against Black applicants at its Decatur, Illinois facility. This settlement includes back wages and job offers following a U.S. Department of Labor review from 2018-2020. Learn more about the case and Caterpillar's commitment to revising hiring policies and anti-discrimination training.
Caterpillar, Inc. will be paying $800,000 in response to allegations that they participated in systemic hiring discrimination against Black applicants. Dozens of Black applicants in Decatur, Illinois were looked over during the hiring process for the production facility there.
The U.S. Department of Labor performed a compliance review which discovered discriminatory hiring practices. At least 60 Black applicants who applied for fabrication specialist and welder positions were affected by these hiring practices. These discriminatory practices occurred between March 30, 2018, and March 30, 2020.
Caterpillar, Inc. will have to pay $800,000 in back wages and interest to the affected applicants. Additionally, Caterpillar plans to offer employment opportunities to 34 eligible applicants from the affected class.
Office of Federal Contract Compliance Programs Acting Director Michele Hodge stated “We are committed to tackling employment policies and practices that create barriers to opportunity and perpetuate inequality… Companies that accept federal contracts must monitor their hiring processes to ensure applicants are not rejected based on unlawful practices.”
Caterpillar has begun revising its hiring policies and will be providing comprehensive anti-discrimination training to all employees involved in the hiring process.
As one of the world’s leading producers of heavy machinery, Caterpillar has multiple federal contracts, including contracts with the U.S. Army. Since 2018, the company has held nearly $500 million in these federal contracts.
Racial discrimination is still prevalent throughout many hiring practices. Caterpillar is one of many companies that need to update their hiring practices to help fight systemic racism. Federal laws prohibit discrimination based on national origin, race, color, religion, disability, sex, and familial status. Racial discrimination in particular became illegal in 1964, when Congress passed Public Law 88-352 (78 Stat. 241). The Civil Rights Act of 1964 prohibits discrimination on the basis of race, color, religion, sex or national origin.
Those who think they have been affected by Caterpillar’s discriminatory hiring practices when applying for a position as a fabrication specialist or welder at the Decatur facility from 2018-2020 are encouraged to visit the Office of Federal Contract Compliance Programs website.
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