Facts

The U.S. Equal Employment Opportunity Commission (EEOC) filed a class action complaint against Scully Distributions Services Inc. (now known as SDS Fontana Holdings Inc.), and Ryder Transportations Services Inc., a successor entity by virtue of its 2011 purchase of Scully, alleging widespread harassment and discrimination against African-American, Latino, East Indian and perceived Muslim workers, most of whom were truck drivers.

The class action complaint alleged that management and employees at Scully used racist names when referring to African-American drivers, called East Indian drivers "Taliban" and "camel jockey," and referred to Latino managers in derogatory terms as well.

The complaint further alleged that non-white drivers were given less favorable assignments and provided less favorable working conditions than their White counterparts.

SDS Fontana Holdings disputed liability, and contends that it did not engage in any type of discrimination, harassment, or retaliation.

Result

The matter was mediated, and a settlement was reached. SDS Fontana Holdings, Inc. and Ryder Transportation Services Inc. agreed to settle the matter with the EEOC for $630,000 and injunctive relief outlined in a consent decree. The consent decree requires SDS Fontana Holdings to distribute monetary relief to all class members in amounts instructed by EEOC and the designation of an EEOC monitor to ensure compliance with Title VII and the terms of the decree. Ryder Systems Inc. agrees to maintain multiple injunctive remedies to ensure compliance with the decree in Title VII.