BaronHR LLC, a defunct Southern California staffing firm, will pay $2.2 million to settle a hiring discrimination lawsuit brought by the US Equal Employment Opportunity Commission. The agency announced the settlement on April 9.
BaronHR declined to recruit or refer workers to low-skill positions based on race and national origin, according to the EEOC. It also claimed the company illegally steered candidates to certain positions based on their gender and screened out workers with disabilities.
The lawsuit was brought on behalf of a class of Black, Asian, white and non-Hispanic workers as well as workers with disabilities who were discriminated against in hiring, according to the EEOC.
“Protecting individuals seeking entry-level or temporary jobs from discrimination in recruitment and hiring is a key enforcement priority for the Commission as set forth in the EEOC’s most recent strategic enforcement plan,” said EEOC General Counsel Karla Gilbride.
In a court filing, BaronHR said that as of Jan. 26, 2024, it no longer had employees and no longer operated as a staffing firm. The company’s headquarters were in Anaheim, California, according to the complaint. Incidents happened since at least 2015, the EEOC said.
In one incident, on March 4, 2015, according to the complaint in the lawsuit, a person visited BaronHR’s Carson, California, office to inquire about jobs and saw a group of workers training for an assignment. A BaronHR representative said the workers were training to work at a laundry contract client but that the client does not hire Black workers, according to the complaint.
Although the company is now defunct, the settlement also prohibits future discrimination in recruitment and hiring practices if it should restart operations, according to the EEOC. BaronHR will also have to hire a third-party monitor, provide training and put reporting mechanisms in place.
SIA has reached out to BaronHR’s attorneys for comment.
Court records indicate that the EEOC is also reaching a settlement with client firm Radiant Services Corp.