American State Bank Settles Lawsuit Alleging Discrimination - KCBD NewsChannel 11 Lubbock

5/23/08

American State Bank Settles Lawsuit Alleging Discrimination

American State Bank has agreed to pay $225,000 to settle allegations of hiring discrimination.   The Department of Labor alleges the bank engaged in hiring discrimination against minority applicants during a specific two year period.

American State Bank released a statement Friday saying: 

"After five years of litigation, American State Bank has settled a dispute with the Office of Federal Contract Compliance Programs (OFCCP) relating to ASB's hiring for office and clerical positions in its Lubbock branches during 2001 and 2002."

"During a routine compliance audit, OFCCP conducted a statistical analysis of ASB's hiring patterns in 2001 and 2002.  Based solely on that analysis, OFCCP claimed that there was a statistical shortfall in hiring of minority applicants for office and clerical positions.  ASB disputed, and continues to dispute, the validity and accuracy of OFCCP's analysis, especially considering that no employee, applicant, or any other person actually complained of discrimination or wrongdoing by ASB."

"Based on the latest data from the U.S. Census Bureau, the percentage of minority and female employees at American State Bank currently meets or exceeds the percentages employed by other banks in its service area.  The ASB workforce is currently composed of 27% minority employees while the banking industry as a whole in ASB's service area has 26% minority employees.  Similarly, 71% of the ASB workforce is comprised of female employees while the banking industy as a whole in ASB's service area has 69% female employees.  Based on facts such as these, ASB concluded, and continues to assert, that no discrimination took place."

"Over the past five years, OFCCP failed to find any individual complaints or intentional acts of discrimination and more importantly, OFCCP admitted that no applicant, employee or any other person complained of discrimination or wrongdoing by ASB.  But after five years of litigation, ASB made a business decision to buy peace by providing 547 minority applicants located by OFCCP, who had applied during 2001 and 2002 as well as meet certain conditions during the settlement process, an offer of just over $400.00 each, regardless of individual circumstances, and to include up to 21 minorities, who applied during 2001 or 2002, in its job offers for office and clerical positions over the next two years."

"ASB takes pride in the quality and diversity of its workforce whose abilities and experience allows ASB to provide the high level of service to its customers which meets the highest standards in the banking industry.  As an equal opportunity employer and a long time supporter of the communities in which it serves, ASB will continue its mission of being a responsible and committed community partner through employment as well as financial and service opportunities."

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