PMT Corporation, a medical device manufacturer in Minnesota, will pay $1 million (£703,012) to settle a gender and age discrimination lawsuit
The US Equal Employment Opportunity Commission (EEOC) said PMT violated federal civil rights laws by refusing to hire otherwise qualified applicants for outside sales positions because they were female or over the age of 40.
According to EEOC's lawsuit, PMT engaged in a pattern or practice of systemic hiring discrimination when, between 2007 and 2010, it hired over 70 individuals as sales representatives, but not a single applicant who was female or over 40 years of age.
The lawsuit further alleged that this result was intentional and directed by PMT's owner and president.
Under the terms of the settlement, PMT will pay $1,020,000 (£716,621)to a class of job applicants who were rejected for sales positions because they were women or over the age of 40, and to a former human resources employee who notified EEOC that she believed PMT was engaging in discriminatory practices.
In addition to the monetary damages, PMT will be monitored by EEOC for the next four years and will be required to revise its hiring practices for sales representatives to ensure that applicants are considered for employment based on merit, not their age or gender, in the future.
PMT will also be required to submit regular reports to EEOC, conduct extensive training for all employees involved in the hiring process, and retain an external human resources consultant to review and recommend changes to their workplace policies.
John Hendrickson, EEOC's regional attorney in Chicago, said: "We are extremely pleased to reach the result announced today.
“This litigation has produced important legal decisions, ensuring the protection of women and older workers from discriminatory hiring practices and represents yet another significant example of EEOC's focus on systemic discrimination."