Caterpillar fined $800K over racial hiring discrimination

The company discriminated against 60 Black applicants who applied for fabrication specialist/welder positions at its Decatur, Illinois, facility.

The U.S. Department of Labor (DOL) has reached an agreement with Caterpillar Inc. to resolve allegations of hiring discrimination. A compliance review conducted by the DOL’s Office of the Federal Contract Compliance Programs (OFCCP) found that the company, which manufactures heavy equipment, had discriminated against 60 Black applicants who applied for fabrication specialist/welder positions at its Decatur, Illinois, facility. This discrimination occurred from March 30, 2018, to March 30, 2020. Under Executive Order 11246, which is enforced by OFCCP, federal contractors can not discriminate against employees based on race, sex, color, religion, sexual orientation, gender identity or national origin.

As part of the agreement, Caterpillar must pay $800,000 in back wages and interest to affected job applicants, as well as offer jobs to 34 eligible class members. To prevent this from happening in the future, Caterpillar will also make sure its hiring policies and procedures are free from discrimination and ensure its managers, supervisors, and other company officials are given proper training. 

What people are saying

In a recent quote, Office of Federal Contract Compliance Programs Acting Director Michele Hodge said, “Over the past 58 years, OFCCP has helped define and defend equal employment opportunity in the American workplace. We are committed to tackling employment policies and practices that create barriers to opportunity and perpetuate inequality. Companies that accept federal contracts must monitor their hiring processes to ensure applicants are not rejected based on unlawful practices.”

Office of Federal Contract Compliance Programs Regional Director Carmen Navarro added, “Our agreement with Caterpillar exemplifies the Office of Federal Contract Compliance Programs’ commitment to addressing and remedying preliminary indicators of discrimination in our compliance evaluations. “This agreement provides meaningful compensation and job opportunities to affected individuals and aims to ensure that all applicants, irrespective of their race, are considered equally for employment.”

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About the Author

Alexis Gajewski

Alexis Gajewski

Senior Content Strategist

Alexis Gajewski is a manufacturing writer and editor with nearly 20 years of experience covering the people, practices, and technologies that keep industrial facilities running. For more than a decade, she served as Senior Content Strategist for Plant Services, creating content for plant managers, engineers, and maintenance professionals on a variety of industrial topics.

During her tenure, Alexis worked to develop the brand’s digital strategy and helped launch and produce Great Question: A Manufacturing Podcast. She also created The Lighter Side of Manufacturing, a weekly blog that explored the inventive and sometimes humorous side of the industry. 

Alexis co-founded Influential Women in Manufacturing, a recognition program that honored 49 women in its first two years, earned an industry award for Best Product Launch, and received a proclamation from Illinois Governor JB Pritzker and a commendation from U.S. Senator Tammy Duckworth.

She also led newsroom operations and development at a large media company where she set editorial standards, developed training curriculum, and helped support AI adoption for more than 150 editors across 80+ brands spanning manufacturing, industrial processing, automation, and more.

Additionally, Alexis works as a freelance writer and editor, and her areas of interest include continuous improvement, the skilled workforce, and the role of emerging technology on the plant floor.

Connect with Alexis on LinkedIn

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