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U.S. and General Motors reach settlement in discrimination case

Published 18/04/2023, 20:34
© Reuters
GM
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By Michael Elkins

The U.S. Justice Department announced Tuesday that it has reached a settlement with General Motors Co (NYSE:GM) to resolve the department's determination that the American automaker discriminated against non-U.S. citizens in violation of the Immigration and Nationality Act (INA).

Under the terms of the agreement, the company will pay $365,000 in civil penalties.

An investigation led by the Justice Department determined that until at least September 2021, GM's export compliance assessments unnecessarily required lawful permanent residents to provide an unexpired foreign passport as a condition of employment, imposing a discriminatory barrier on them in the hiring process, the department said.

The agreement also requires GM to train its personnel on the INA’s requirements, revise its employment policies and be subject to departmental monitoring and reporting requirements. Specifically, GM must separate its process to verify permission to work in the United States from its export compliance assessment process and stop requiring lawful permanent residents to present foreign passports as a condition of employment.

“Export control laws do not justify or authorize an employer to discriminate against non-U.S. citizens in violation of the Immigration and Nationality Act,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When employers commit unlawful discrimination, the Civil Rights Division will continue holding them accountable. The Civil Rights Division is issuing a new fact sheet to help educate employers and promote greater compliance with anti-discrimination law going forward.”

Shares of GM are up 0.78% near end-of-day trading on Tuesday.

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