Xerox and representatives of current and former black sales representatives have settled a class action lawsuit accusing the office equipment manufacturer of race discrimination. The settlement has received preliminary approval from a U.S. District Judge in Brooklyn, New York. Xerox will pay $12 million to 1,100 former and current employees. The company also agreed to establish a task force of Xerox employees to ensure that black sales representatives are compensated in a non-discriminatory manner by assessing how sales territories are assigned and other issues.
The lawsuit, filed in 2001 in federal court in Brooklyn, was brought on behalf of black sales representatives from New York, California, Georgia and Texas. The court approved class action status in March 2004. The workers said they were assigned to less profitable territories than white co-workers or were assigned to territories based on their race. They also contend they were passed over for more lucrative territories, promotions, and were denied commissions they had earned.
Source: USA Today and Associated Press
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