McKesson Corp. subsidiary to pay $448K in back wages, interest to resolve alleged systemic racial hiring discrimination in Grapevine

GRAPEVINE, TX – The U.S. Department of Labor’s  Office of Federal Contract Compliance Programs has entered into an agreement with McKesson Medical-Surgical Inc., one of the nation’s largest distributors of medical supplies, to resolve alleged systemic hiring discrimination against nearly 900 Black, Hispanic and white applicants at its Grapevine distribution facility.

A routine compliance evaluation by the Office of Federal Contract Compliance Programs found the employer’s hiring practices allegedly discriminated against the applicants for associate material handler positions in Grapevine from Sept. 24, 2019, to Sept. 24, 2021, in violation of Executive Order 11246, which prohibits federal contractors from discriminating in employment based on race, color, religion, sex, sexual orientation, gender identity or national origin. OFCCP determined the alleged discrimination affected 472 Black, 226 Hispanic and 186 white applicants. 

To resolve the allegations, McKesson Medical-Surgical will pay $448,578 in back wages and interest, and make job offers to 32 eligible applicants. The federal contractor will also ensure its hiring procedures do not discriminate and they will train management who oversee hiring decisions. McKesson Medical-Surgical currently has more than $32 million in federal contracts with the U.S. Department of Veterans Affairs.

“Federal contractors must not engage in discriminatory hiring practices, it is the responsibility of the employer to ensure its selection practices comply with federal law,” said Office of Federal Contract Compliance Programs’ Southwest and Rocky Mountain Regional Director Ronald W. Sullivan II in Dallas.

McKesson Medical-Surgical Inc. is a subsidiary of the Irving-based McKesson Corp., a global healthcare services provider that partners with biopharma companies, care providers, pharmacies, manufacturers, governments, and others to deliver products and services.

OFCCP launched the Class Member Locator to identify job applicants and/or workers who have been impacted by OFCCP’s compliance evaluations and complaint investigations and who may be entitled to a portion of monetary relief and/or consideration for job placement. In addition to Executive Order 11246, OFCCP enforces Section 503 of the Rehabilitation Act of 1973, and the Vietnam Era Veterans' Readjustment Assistance Act of 1974. Together, these laws prohibit employment discrimination by federal contractors.