Aaron Thomas Company to Pay $450,000 to Settle EEOC Race Discrimination Lawsuit

MEMPHIS, Tenn. – Aaron Thomas Company, Inc., a national contract packaging company, will pay $450,000 and provide other relief to resolve a federal lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the federal agency announced today.

The EEOC alleged Aaron Thomas routinely failed to select or retain Black workers for placement at Aaron Thomas’ Memphis, Tennessee locations. Aaron Thomas used multiple secret phrases and techniques when requesting temporary employees from a staffing agency, including requesting Spanish-speaking employees to fill roles that did not require such language skills. The company also segregated employees by race and generally provided Hispanic workers better pay, working conditions, and financial opportunities than Black workers.

Aaron Thomas’ alleged conduct violates Title VII of the Civil Rights Act of 1964 which prohibits an employer from denying employment, failing to refer employees, segregating employees, and paying them less, all because of their race. The EEOC filed suit (EEOC v. Aaron Thomas Co. et al., Case No. 2:23-cv-02599) in U.S. District Court for the Western District of Tennessee, Western Division, after first trying to reach a pre-litigation settlement through its administrative conciliation process.

The two-year consent decree, entered by U.S. District Judge Jon P. McCalla, requires Aaron Thomas to create and distribute an anti-discrimination policy, develop a recruitment plan designed to attract diverse applicants, and provide specialized anti-discrimination training to managerial employees. Aaron Thomas will also provide the EEOC with periodic reports of any future employee complaints of discrimination and Aaron Thomas’ response to the complaint(s).

“Over 61 years ago, Americans marched on Washington for jobs and freedom.  Yet, we continue to confront race discrimination in the workplace. Employers break the law when they discriminate against applicants and employees because of race,” Faye Williams, Regional Attorney for EEOC’s Memphis District Office, said. “All employees have a right to work in an environment free from race discrimination. We commend Aaron Thomas for its resolution of this case and its commitment to eradicating discrimination in the workplace.”

Acting Director of EEOC’s Memphis District Office Edmond Sims, Jr., said, “Memphis has the highest concentration of Black supply chain and logistics talent of any major U.S. metro. These workers must receive equal consideration for jobs and the EEOC remains committed to ensuring that becomes a reality rather than a dream.”

For more information on race discrimination, please visit https://www.eeoc.gov/racecolor-discrimination.

The EEOC’s Memphis District Office has jurisdiction over Arkansas, Tennessee, and 17 counties in Northern Mississippi.

The EEOC prevents and remedies unlawful employment discrimination and advances equal opportunity for all. More information is available at www.eeoc.gov. Stay connected with the latest EEOC news by subscribing to our email updates.