Two logistics and distribution companies have agreed to pay a combined $2 million to resolve federal employment discrimination cases involving allegations that women and other applicants were denied jobs based on sex, race or national origin.
The U.S. Equal Employment Opportunity Commission announced Monday that Birchstone Management, a Dallas-based warehousing and logistics management company, agreed to pay $500,000 after an investigation found the company rejected qualified women seeking pallet repair jobs.
The settlement comes less than two weeks after the EEOC announced Denver-based Mile Hi Companies would pay $1.5 million to resolve a federal lawsuit alleging discriminatory hiring practices involving Black, female and Afghan applicants.
EEOC says Birchstone rejected women for pallet repair jobs
The EEOC said its investigation found that Birchstone Management turned away a qualified woman who applied for a pallet repairer position at the company’s Spokane Valley, Washington, location solely because of her sex.
The agency said the practice extended beyond one applicant and location. Since at least May 2020, Birchstone allegedly rejected other qualified female applicants for pallet repair jobs in Spokane Valley; Amarillo and Houston, Texas; Lakewood, Washington; and Las Vegas.
Instead, according to the EEOC, Birchstone hired men with similar or fewer qualifications or continued looking for male applicants.
“I showed up ready to demonstrate my ability to do the job, only to be told that the company only hires men,” the applicant who filed the charge said in the EEOC announcement. “I hope this case helps employers stop labeling jobs as ‘women’s work’ or ‘men’s work.’”
Birchstone agreed to provide $55,000 to the woman and establish a $445,000 settlement fund for other affected applicants.
The agreement resulted from the EEOC’s pre-litigation conciliation process rather than a lawsuit.
Along with monetary relief, Birchstone must revise its hiring and recruitment policies, provide training to personnel involved in hiring at several locations, audit its employment recordkeeping annually and report to the EEOC for two years.
Mile Hi Foods settles EEOC lawsuit for $1.5M
The Birchstone settlement follows a Sept. 25 announcement that Mile Hi Companies, a Denver-based distributor of food and paper products, agreed to pay $1.5 million to settle an EEOC lawsuit filed in 2024.
The allegations in that case extended beyond sex discrimination.
The EEOC alleged Mile Hi denied employment opportunities to Black, female and Afghan applicants beginning in 2015.
According to the agency’s lawsuit, the company’s CEO directed employees to limit the percentage of Black applicants hired, not hire women for warehouse positions and stop hiring Afghan applicants for bakery jobs.
When the company’s human resources manager opposed those directives, the EEOC alleged Mile Hi retaliated against her by harassing and eventually firing her.
The EEOC filed the lawsuit in September 2024 after the agency said efforts to reach a settlement through its administrative conciliation process were unsuccessful.
Under a three-year consent decree, Mile Hi must provide monetary relief to the former HR manager and affected applicants. The company also must review its employment policies, train employees and managers on anti-discrimination laws, maintain applicant records and periodically report its compliance efforts to the EEOC.
Women remain underrepresented in transportation
The cases come as the transportation industry continues to grapple with attracting and retaining women in jobs historically dominated by men.
A 2024 American Transportation Research Institute study found significant barriers for women entering and remaining in trucking, ranging from negative stereotypes and company culture to inadequate facilities and gender harassment.
ATRI surveyed nearly 1,500 current and former truck drivers and also conducted interviews and focus groups with drivers, motor carriers and truck-driving schools. Women accounted for roughly half of the driver survey respondents.
Women reported experiencing 11 of 12 problems examined by researchers more frequently than men. About 17% of female respondents said they encountered harassment or discrimination daily, roughly twice the rate reported by male drivers.
Why it matters: The settlements highlight persistent barriers for women seeking jobs in traditionally male-dominated freight and logistics occupations, an issue also documented in transportation industry research.
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now