One viral job post advertising for “white” candidates only has led to a civil lawsuit against the company that posted it.
Tech Company vs. DOJ
A tech company based in Virginia is facing civil penalties via the US Justice Department, after circulating a job post that called for only “white” candidates.
A Controversial Job Post
Arthur Grand Technologies, an information technology services firm based in Ashburn, Virginia, went viral in March 2023 due to their job advertisement, which was posted on the job-seeking and recruitment site Indeed.
Advertising a New Position
The company was seeking a new business analyst for their sales and insurance claims team. But what really stirred up concern was a ‘note’ on the job description.
“US Born Citizens [White]”
“Note: US Born Citizens [white] who are local within 60 miles from Dallas, TX [Don’t share with candidates]”, the description reads.
Spreading Through the Internet
The post was circulated online due to its racial overtones, eventually prompting an investigation by the US Department of Labor and DOJ, with investigations beginning in April and May respectively. A lawsuit was then filed against the company.
Close to $40,000 in Fines
Now the firm has agreed to settle, according to a statement from the DOJ on Thursday. Arthur Grand Technologies will pay a civil penalty of $7,500, as well as an additional $31,000 in compensation for the 31 jobseekers who laid a formal complaint after reading the post.
Compliance Checks and Company Changes
The company will also undergo compliance monitoring to ensure that the company reforms its hiring practices and does not violate anti-discrimination laws for a second time.
Laws and Orders
The dual investigations found that Arthur Grand Technologies had violated the Immigration & Nationality Act, as well as an executive order that barred federal contractors from discrimination against protected groups.
Committed to Holding Them Accountable
“We are committed to holding federal contractors accountable for outrageous discriminatory practices like this advertisement,” said Michele Hodge, the Acting Director of the Labor Department’s Office of Federal Contract Compliance Programs (OFCCP).
No “Whites Only” Hiring Processes
“Companies like Arthur Grand, that accept federal contracts, cannot have a ‘whites only’ hiring process,” she continued.
“Shameful” and “Appalling”
Kristen Clarke, the Attorney General of the Justice Department’s Civil Rights Division, announced the resolution to the case, calling the incident “shameful” and “appalling.”
Sharing the Public Outrage
“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,” Clarke wrote. “I share the public’s outrage at Arthur Grand’s appalling and discriminatory ban on job candidates based on citizenship status, national origin, color, and race.”
Company Contradicts Labor Department
While the Labor Department also claimed that Arthur Grand had not admitted or denied any legal violations, the company itself has a different story to tell.
Arthur Grand “Vehemently” Denies It
In an email to reporters, CEO Sheik Rahmathullah made it clear that the company “vehemently denies any guilt or wrongdoing in relation to the discriminatory job posting that appeared in March 2023.”
Pinned on a Rogue Employee
Rahmathullah went on to blame the discriminatory post on a rogue employee who had been “upset” with the company.
“Made by An Upset Employee”
“This unauthorized posting was made by an upset employee on a Performance Improvement Plan (PIP) from their personal email address and account,” he continued. “Upon discovering this, 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.”
Complainants Required to Sign
Part of their agreement with the Labor Department stipulates that all 31 people who formally complained in the case will have to sign a document with the words: “I understand that AGT denies that it treated me unlawfully or unfairly in any way.”
Other Violations Found
In their investigations, the Labor Department also discovered that the technology firm had violated several separate labor requirements.
Two Serious Oversights
These included a failure to document the demographic traits of their job applicants, and a failure to display a notice of workers’ equal employment opportunity rights in visible areas around the workplace.
Minority-Owned Company
Despite the racial discrimination suit filed against them, Arthur Grand Technologies is a minority-owned company, with 80% of staff being “people of color” according to Rahmathullah.
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