TKO Construction Services to Pay $300,000 to Settle EEOC Sex, Race and Age Discrimination Lawsuit

MINNEAPOLIS – TKO Construction Services, a staffing company that provides temporary employees for commercial, residential, restoration, heavy industrial and energy construction companies, will pay $300,000 and provide other equitable relief to settle a discrimination lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC), the federal agency announced today.

The EEOC’s suit alleged that an employee, who worked for TKO as a recruiter, was told by TKO employees that the company did not hire women for construction jobs, Black workers in certain areas, or individuals who were over 40 years old, because some clients supposedly did not want them. The recruiter later spoke with TKO’s president, who confirmed that it was TKO’s practice to not hire women, Black workers and older workers, according to client preferences or requests. The recruiter felt forced to resign her employment because she was expected by TKO to engage in unlawful conduct, the EEOC said.

The lawsuit also alleged that TKO failed to recruit, hire, assign or refer a class of aggrieved individuals for employment because of their sex, female; race, Black; and age, 40 years or older. The EEOC further alleged that TKO referred employees by sex and race, which resulted in women being referred to fewer hours and receiving less pay than men, and Black employees being referred to fewer hours and receiving less pay than White employees.

Such alleged conduct violates Title VII of the Civil Rights Act of 1964, which makes it unlawful to discriminate against employees because of their sex or race. The alleged conduct also violates the Age Discrimination in Employment Act of 1967 (ADEA), which prohibits discrimination against employees 40 years of age or older. The EEOC filed suit in U.S. District Court for the District of Minnesota (Equal Employment Opportunity Commission v. TKO Construction Services, Civil Action No. 23-cv-3010 JRT TNL) after first attempting to reach a pre-litigation settlement through its conciliation process.

The consent decree settling the suit requires TKO to pay $300,000 in monetary damages to be distributed to the employee and a class of aggrieved individuals who were discriminated against because they are women, Black or age 40 or older.

The decree also requires that TKO implement a hiring process that provides equal employment opportunities to women, Blacks and individuals 40 years old and over. TKO must use objective, job-related criteria in hiring decisions going forward, and provide training on anti-discrimination laws to employees involved in the hiring and recruitment process.

Additionally, TKO is required to identify and report to the EEOC information regarding all clients who made or make discriminatory requests for employees based on a protected status such as sex, race or age, and TKO must provide reports to the EEOC regarding complaints of discrimination based on sex, race or age.

“Employers cannot refuse to hire or assign individuals for employment based on sex, race or age because their clients tell them to engage in discrimination,” said Gregory Gochanour, regional attorney for the EEOC’s Chicago District. “The continued underrepresentation of women and workers of color in construction is an area of particular concern for the EEOC, and the agency will enforce the laws to ensure that hiring decisions and job assignments are made without discrimination.”

The director of the EEOC’s Chicago District Office, Amrith Aakre, said, “Eliminating barriers in recruitment and employment in the construction industry is a strategic enforcement priority that the EEOC will continue to address to make sure equal opportunity is available to all qualified workers.”

The EEOC’s Chicago District Office has jurisdiction over Illinois, Wisconsin, Minnesota, Iowa and North and South Dakota, with Area Offices in Milwaukee and Minneapolis.

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.