Macy’s (M) has agreed to a settlement in a government probe of its hiring practices relating to immigrant workers.
On Thursday, the Department of Justice announced that the iconic retailer would pay a $175,000 fine and set up a $100,000 fund to compensate workers who were affected by “unfair documentary practices.” The government alleged that Macy’s discriminated against immigrant workers who were eligible to work in the U.S. by imposing improper requirements to provide documentation of their work-status during verification procedures, Reuters notes.
The government claimed that due to the improper practices, some workers were wrongly suspended or lost their jobs.
In addition to the financial penalties, Macy’s has agreed to two year’s of government oversight in its hiring practices. The company must also increase training in the use of the E-Verify system for assessing worker eligibility to work in the U.S.
Macy’s says it did not violate workers’ rights or discriminate against immigrant workers.
Earlier this year, a typographical error in a Macy’s advertisement inadvertently reduced the price of a necklace on sale from $479 to $47.
Shares of Macy’s rose slightly in Friday mid-day trading.