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Summary of Developments:

  • Deere & Co. willpay $1.1 million to address claims of discrimination against Black and Hispanic job applicants at three of its production sites located in Illinois and Iowa, as announced by the Department of Labor on June 6.
  • The Office of Federal Contract Compliance Programs, part of the Labor Department, identified discrepancies in hiring practices at Deere’s facilities in Milan, Illinois, and Ankeny and Waterloo, Iowa, following compliance reviews conducted in 2021 and 2022.
  • In total, the agricultural machinery company will distribute over a million dollars in back pay and interest to 277 Black and Hispanic individuals who applied for various roles, including warehouse and assembly positions.

Analysis and Insights:

This settlement marks Deere’s largest reported case of workplace discrimination this year, as highlighted by the Labor Department.

Significant disparities were observed in the hiring rates of Black and Hispanic applicants at the three production sites, with practices dating back to June 2019 at the Ankeny facility and continuing until December 31, 2021, at the Milan facility, based onDeere’s agreement with the Labor Department.

As part of the settlement, Deere has committed to extending job offers to 53 eligible individuals and will conduct a review of its employment practices, which includes enhancements to recordkeeping and internal audit processes.

“As an equal opportunity employer, we remain dedicated to our workforce and continuously aim to ensure that our hiring and talent strategies promote and uphold diversity, equity, and inclusion,” stated Jen Hartmann, Deere’s Director of Public Relations.

Deere is involved in federal contracting work for various government agencies, including the Departments of Agriculture, Interior, and Transportation, as well as the U.S. Army and the Defense Logistics Agency.

This agreement follows similar resolutions reached by the Labor Department with other federal contractors accused of discriminatory practices this year. For example, Caterpillar settled for $800,000 in May over allegations of racial discrimination, whileGE Aerospace agreed to pay $443,000 in February related to gender discrimination claims against female applicants.

So far this year, the Office of Federal Contract Compliance Programs has reported a total of $2.7 million in agreements to resolve discrimination allegations against federal contractors.

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