Tech Firm Fined for 'Whites Only' Job Ad

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Key Takeaways:

Arthur Grand Technologies faced backlash for a “whites only” job ad, violating ethical principles and federal laws.
U.S. Justice and Labor Departments fined the company and implemented corrective measures for the discriminatory job posting.
The job ad was blamed on a rogue recruiter; the company denied wrongdoing and traced the ad back to a subsidiary.

What Led to Arthur Grand Technologies’ ‘Whites Only’ Job Ad Controversy?

Tech Firm Fined for 'Whites Only' Job Ad

In March 2023, a Virginia-based tech firm, Arthur Grand Technologies Inc., faced backlash for a job ad explicitly asking for “whites only.” The ad also restricted applications to “US Born Citizens [white]” living within 60 miles of Dallas, TX. This discriminatory job posting not only violated basic ethical principles but also breached federal laws, including the Immigration and Nationality Act (INA) and Executive Order 11246.

How Did Authorities Respond to the Discriminatory Job Ad?

Following the controversial job ad, both the U.S. Justice Department and the Department of Labor intervened. They fined Arthur Grand Technologies $7,500 as a civil penalty and ordered the company to pay $31,000 to 31 affected individuals who complained about the discriminatory posting.

Assistant Attorney General Kristen Clarke from the Justice Department’s Civil Rights Division was vocal in condemning the ad. She stated:

“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.”

Similarly, Michele Hodge, Acting Director of the Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP), emphasized the responsibility of federal contractors to uphold non-discriminatory hiring practices:

“Companies like Arthur Grand, that accept federal contracts, cannot have a ‘whites only’ hiring process.”

Who Was Responsible for Posting the Job Ad?

The discriminatory job ad was traced back to a recruiter from Arthur Grand’s subsidiary in India. The job, intended for a business analyst role at clients HTC Global and Berkshire Hathaway, swiftly garnered attention on social media and news platforms.

Despite the evidence, Arthur Grand Technologies CEO Sheik Rahmathullah denied any wrongdoing. In an email to CNN, Rahmathullah explained:

“Arthur Grand Technologies vehemently denies any guilt or wrongdoing in relation to the discriminatory job posting that appeared in March 2023.”

Furthermore, he informed NPR that the offensive job ad was the action of a rogue employee.

What Measures Were Taken To Address the Issue?

The settlements with the Justice and Labor Departments included several corrective measures. As part of the agreement with the Justice Department, Arthur Grand Technologies agreed to:

Pay a civil penalty.
Train their staff on the INA’s anti-discrimination requirements.
Revise their employment policies.
Undergo departmental monitoring.

Additionally, in the agreement with the Labor Department, Arthur Grand Technologies committed to:

Compensate the individuals who filed complaints.
Provide specific workplace training for employees involved in recruiting and hiring.

These steps reflect the dedication of both the Justice Department and the Department of Labor to safeguarding workers from discriminatory practices and enforcing civil rights laws.

Where Can Employers Learn About Non-Discriminatory Hiring Practices?

Employers looking to align their hiring practices with federal regulations can refer to USA.Gov for authoritative information. This resource offers guidance on legal hiring practices, ensuring compliance with the Immigration and Nationality Act and other relevant laws.

In summary, the hefty fines and mandatory corrective actions underscore the essential need for tech firms and other contractors to exercise fair and lawful hiring practices. This incident serves as a significant reminder of the serious consequences associated with discriminatory job postings.

Learn Today:

Glossary

Immigration and Nationality Act (INA):
A federal law that regulates immigration and citizenship in the United States, including anti-discrimination provisions related to hiring practices.
Executive Order 11246:
An order that prohibits federal contractors and federally-assisted construction contractors from discriminating in employment decisions based on race, color, religion, sex, sexual orientation, gender identity, or national origin.
Civil Penalty:
A financial penalty imposed by a governmental agency as punishment for violating laws or regulations, such as the anti-discrimination provisions in hiring practices.
Federal Contractor:
A company or individual that has entered into a contract with the government to provide goods or services. Federal contractors are subject to specific regulations, including non-discriminatory hiring practices.
Office of Federal Contract Compliance Programs (OFCCP):
A division of the U.S. Department of Labor responsible for ensuring that employers doing business with the Federal government comply with laws and regulations requiring non-discriminatory hiring and employment practices.

This Article In A Nutshell:

Arthur Grand Technologies faced major backlash in March 2023 after a job ad specified “whites only.” It violated federal laws and ethics. Authorities fined the firm $7,500 and ordered $31,000 in compensation. The ad was traced to a rogue employee, prompting mandatory corrective measures, including anti-discrimination training.
— By VisaVerge.com

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