The case alleged racial discrimination practices at FedEx Express. Insurance will cover the $55 million payment, which includes class counsel and compensation to about 23,000 participants in the class action suit, administrative costs associated with the settlement, and $15 million attorneys' fees.
Larry Brown, senior vice president and chief human resources officer for FedEx Express, said. "We are gratified that the court granted final approval of the settlement which draws this matter to a close and allows the company to move forward and avoid the expense and uncertainty of protracted litigation.”
FedEx continues to maintain that it does not tolerate discrimination of any sort in the workplace.
Part of the agreement calls for FedEx Express to no longer administer its Basic Skills Test (BST), which the company says was designed to test employees’ ’’map reading, listening, reading comprehension, and sorting skills. While the overnight carrier says it believes the test is a "lawful and valid selection tool," eliminating it "removes the perception by some that this test was a barrier to advancement for minority employees."