McKesson Medical-Surgical Inc., a subsidiary of the Irving, Texas-based McKesson Corp., will pay $448,578 in back wages and interest to settle allegations of discriminatory hiring practices at its distribution center in Grapevine, Texas.

The settlement follows a compliance review by the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP), which found evidence suggesting that nearly 900 Black, Hispanic, and white applicants were affected by hiring practices that violated federal nondiscrimination guidelines.

The OFCCP review focused on hiring practices for associate material handler positions between Sept. 24, 2019, and Sept. 24, 2021, revealing that 472 Black, 226 Hispanic, and 186 white applicants were allegedly disadvantaged. According to OFCCP, these practices breached Executive Order 11246, which prohibits race- and ethnicity-based discrimination in hiring by federal contractors.

As part of the agreement, McKesson Medical-Surgical will extend job offers to 32 qualified applicants who were affected by the hiring process. The company has also agreed to reassess its hiring protocols to prevent discriminatory practices and implement training for management responsible for recruitment decisions.

“Federal contractors must not engage in discriminatory hiring practices. It is the responsibility of the employer to ensure its selection practices comply with federal law,” said Ronald W. Sullivan II, OFCCP’s regional director for the Southwest and Rocky Mountain region, in a statement.

McKesson Medical-Surgical holds over $32 million in federal contracts, primarily with the U.S. Department of Veterans Affairs. As a federal contractor, the company is subject to compliance with multiple nondiscrimination laws, including the Rehabilitation Act of 1973 and the Vietnam Era Veterans' Readjustment Assistance Act of 1974, in addition to Executive Order 11246.

The OFCCP has also implemented the Class Member Locator initiative to assist workers and applicants affected by similar compliance reviews, providing them with resources for obtaining relief and job consideration.

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