Walmart to Pay $20M to Resolve EEOC Sex Bias Claims

Walmart will pay $20 million to end an Equal Employment Opportunity Commission (EEOC) claim that the company used a physical abilities test that amounted to hiring discrimination when it came to female applicants. 

The EEOC filed its lawsuit after two prospective Walmart employees filed hiring discrimination charges with the commission. The women alleged Walmart’s physical activities test denied them employment opportunities because they were female, in violation of Title VII.

In its initial complaint, the EEOC said it had communicated with the retailer, asking it to take part “in informal methods of conciliation” to try to correct the alleged discriminatory practices related to hiring Walmart employees; however, the EEOC says, the two parties were unable to come to an agreement that was acceptable to the commission. 

The EEOC’s lawsuit said Walmart’s physical abilities test, which it has used since 2010, requires grocery order-filler applicants to score at least 792.8. Applicants who did not reach the minimum score are unable to be hired as order fillers and are barred from reapplying for six months. 

But the test is not related to the position or consistent with business necessity, the EEOC claimed.

The EEOC had asked the Court to stop prospective Walmart employees from being subjected to the test as a requirement for the position of grocery order filler; for an injunction prohibiting Walmart from implementing practices that have a disparate effect on female applicants; for an order that the defendant carry out training and practices providing equal opportunities based on sex; for appropriate backpay and interest for the complainants and a nationwide Class of female applicants; and other appropriate relief.

Under the terms of the hiring discrimination settlement, Walmart has agreed to stop using all physical ability testing as part of the hiring process for order fillers at grocery distribution centers no later than 120 days from the settlement’s effective date. The company will not subject prospective Walmart employees applying for positions as grocery fillers to any physical testing for five years.

The settlement also restricts the retailer from engaging in discrimination against employees or prospective Walmart employees who oppose any practice made unlawful by Title VII. 

Walmart also may not engage in any employment practice that discriminates against anyone who “made a charge, or participated, testified or assisted the Commission in any manner, or sought or received relief under this Consent Decree, the administrative proceedings preceding this action, or in any other proceeding under Title VII,” the hiring discrimination settlement says.

Walmart must also provide annual Title VII training to any employees responsible for hiring or supervising grocery order fillers and, for the duration of the settlement period, must include a notice on its Career Preference intranet stating that the company does not require physical ability testing for the hiring of order fillers at grocery distribution centers. 

The $20 million will go into a qualified settlement fund and will constitute the backpay that is to be distributed to eligible claimants, the settlement says. The criteria for awarding monetary relief will be at the sole discretion of the EEOC.

Within 30 days of stopping the physical abilities test, Walmart must submit a spreadsheet to the EEOC that contains information on each individual prospective Walmart employee who did not self-identify as male; who applied to be a grocery order filler between Feb. 1, 2010, and the date of the company’s cessation of the testing; and who did not move forward in the hiring process because their test score was not high enough, according to the settlement.

A claims administrator will notify each of those individuals of the settlement and instruct them on how to submit a claim on the settlement fund. Those individuals will also receive a questionnaire to be returned to the claims administrator and a notice that Walmart is no longer requiring the physical abilities test for the role of grocery filler.

In order to receive a monetary payment, all eligible claimants must agree to release their rights to recover any other Title VII claims they had against Walmart. 

Once a distribution list is finalized, the claims administrator will send out checks via the U.S. Postal Service.

Were you given a physical abilities test while applying for a job at Walmart? Tell us about your experience in the comments.

The plaintiff is represented by Sharon Fast Gustafson, Robert A. Canino, Gwendolyn Young Reams, Kenneth L. Bird and Aimee L. McFerren of the Equal Employment Opportunity Commission.

The Walmart EEOC Hiring Discrimination Lawsuit is U.S. Equal Employment Opportunity Commission v. Walmart Inc., Case No. 6:20-cv-00163-KKC, in the U.S. District Court for the Eastern District of Kentucky, London Division.

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