Investing.com -- Macy’s Inc (NYSE:M) and the U.S. Department of Justice reached an agreement on Wednesday to settle allegations that the department chain store discriminated against work-authorized, non-U.S. citizens at a Los Angeles-area location.
As part of the settlement, Macy's agreed to pay a civil penalty of $8,700 and provide additional employee training. The allegations stem from charges filed by a legal permanent resident whose employment at a Macy's store last October in Glendale, California was delayed even as she provided sufficient work permits. At the time, her hiring was delayed after a company human resources employee incorrectly assumed that such residents were required to provide unexpired permanent resident cards. A subsequent investigation from the Department of Justice determined that four other lawful permanent residents faced similar requirements from members of Macy's human resources department.
Under the Immigration and Nationality Act (INA), lawful permanent residents are not required to show their permanent resident cards when they begin working, the Department of Justice said in a statement. Alternatively, workers are allowed to present other forms of identifications such as a driver's license and social security card.
"Macy’s did the right thing by immediately resolving the charging party’s delayed hiring and by giving her full back pay," said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department's Civil Rights Division. "All employers should take care not to impose unlawful burdens on employees because of their citizenship or immigration status and address issues promptly when they make mistakes."
In June, 2013, Macy's paid the government $175,000 in civil penalties to resolve charges that the company acted unfairly with its documentation practices in the hiring of work-authorized immigrant employees. Macy's was also required to spend $100,000 to create a back fund to compensate individuals who suffered lost wages or a loss in seniority due to the company's actions.
Shares in Macy's closed at 32.81, down 0.23 or 0.70% on the session.