The consent decree settles the department's allegations that Whirlpool engaged in hiring discrimination from March 1, 1997 to February 28, 1998

The U.S. Department of Labor announced that Whirlpool Corp. has agreed to settle findings of discrimination against about 800 African-American job applicants. The company will pay a total of $850,000 in back wages as part of the settlement.

"Federal contractors should be upholding the highest standards of fairness in employment and compliance with the law," said Secretary of Labor Elaine L. Chao. "In addition to the financial settlement in this case, I am pleased that 48 applicants will now be receiving jobs."

During a routine compliance evaluation, investigators from the Labor Department's Office of Federal Contract Compliance Programs (OFCCP) found that Whirlpool's hiring practices had a disparate impact on African-Americans applying for entry-level assembler positions at the Tulsa manufacturing facility.

The consent decree settles the department's allegations that Whirlpool engaged in hiring discrimination from March 1, 1997 to February 28, 1998, although the company admits no liability. In addition to paying the back wages, Whirlpool will hire 48 of the rejected African-American applicants.

Whirlpool has contracts with the federal government. Part of the company's applicant screening process was the administration of the Test of Adult Basic Education (TABE) which disproportionately eliminated African-American applicants from job consideration. Although an employer can use a test as a screening tool, if the test disproportionately eliminates applicants in a protected group, such as females or minorities, then the employer must conduct a validity study to ensure that the test is job-related and consistent with company needs.