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Dollar General Pays $6 million to Settle Class Action Race Discrimination Lawsuit

OutSolve

Dollar General enters into a three-year consent decree and can only use a criminal background check under specific terms

In settling a class action lawsuit with the EEOC, Dollar General will pay $6 million into a settlement fund to be distributed through a claims process directed by the Agency to African Americans who were not hired between 2004 and 2019. EEOC alleged that the company denied employment to African Americans at a significantly higher rate than white applicants for failing the company’s broad criminal background check.

EEOC’s initial attempt to reach a voluntary settlement failed through the conciliation process and a lawsuit was filed in U.S. District Court for the Northern District of Illinois in Chicago.

If the company decides to use a criminal background check during the three-year consent decree, they must hire a criminology consultant to develop a new criminal background check based on several factors including the time since conviction, the number of offenses, the nature and gravity of the offense(s), and the risk of recidivism.

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