Walmart, Inc. to Pay $20 Million to Settle EEOC Nationwide Hiring Discrimination Case

LOUISVILLE, Ky. – Walmart, Inc. will pay $20 million, stop using a pre-employment test, and furnish other relief to settle a companywide, sex-based hiring discrimination lawsuit filed by the U.S. Equal Employ­ment Opportunity Commission (EEOC), the federal agency announced today.

According to the EEOC’s lawsuit, Walmart conducted a physical ability test (known as the PAT) as a requirement for applicants to be hired as order fillers at Walmart’s grocery distribution centers nationwide. The EEOC said the PAT disproportionately excludes female applicants from jobs as grocery order fillers.

This alleged conduct violates Title VII of the Civil Rights Act of 1964, prohibits employment discrimination based on sex, including the use of tests administered to all applicants and employees regardless of sex but that cause a discriminatory effect or impact on persons of a particular sex or any other demographic category. Employers using such tests must prove the practices are necessary for the safe and efficient performance of the specific jobs. Even if this necessity is proven, such tests are prohibited if it is shown there are alternative practices that can achieve the employer’s objectives but have a less discriminatory effect.

The EEOC filed suit in the U.S. District Court for the Eastern District of Kentucky, London Division. (EEOC v. Walmart, Inc., Case No. 6:20-cv-00163-KKC) on Aug. 3, 2020, after first attempting to reach a settlement through its prelitigation voluntary conciliation process. The parties reached agreement and filed a joint motion to approve a consent decree that same day. The motion was approved by the court and the consent decree was entered on Sept. 9, 2020.

The consent decree requires Walmart to cease all physical ability testing currently being used for purposes of hiring grocery distribution center order fillers. The decree also requires Walmart to pay $20 million into a settlement fund to pay lost wages to women across the country who were denied grocery order filler positions because of the testing.   

Michelle Eisele, EEOC Indianapolis district director said, “One of the EEOC’s six national priorities is eliminating barriers in recruitment and hiring. Employers need to ensure their testing and screening practices do not discriminate against any group.”

“The parties were able to reach an early resolution of this case due to Walmart’s willingness to engage in settlement discussions. Distribution center jobs provide good career opportunities for women when sex-based barriers to hiring for those jobs are removed,” said EEOC Regional Attorney Kenneth L. Bird.

“Walmart operates 44 grocery distribution centers nationwide. Elimination of the PAT will allow more women to obtain a relatively high-paying entry-level position at one of these centers – a necessary first-step toward advancement,” added EEOC Senior Trial Attorney Aimee L. McFerren.

The Louisville Area Office of the EEOC is part of the EEOC’s Indianapolis District, with jurisdiction over Indiana, Kentucky, Michigan, and parts of Ohio.

The EEOC advances opportunity in the workplace by enforcing federal laws prohibiting employment discrimination. More information is available at www.eeoc.gov. Stay connected with the latest EEOC news by subscribing to our email updates.