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Federal contractor agrees to pay more than $448,000 to resolve hiring discrimination stemming from a Grapevine facility

McKesson Medical-Surgical Inc. will pay $448,578 in back wages for alleged hiring discrimination.
Credit: Jake Dean

GRAPEVINE, Texas — McKesson Medical-Surgical Inc. has agreed to pay $448,000 in back wages to resolve systemic hiring discrimination allegations that stemmed from a Grapevine distribution facility, officials said.

The Irving-based government contractor is accused of discriminating against applicants for associate material handler positions at its Grapevine distribution facility, according to a press release from the Department of Labor. The alleged discrimination took place between Sept. 24, 2019, to Sept. 24, 2021 and violates an executive order prohibiting federal contractors from discriminating in employment based on race, color, religion, sex, sexual orientation, gender identity or national origin, the release states. 

The alleged discrimination impacted 472 Black, 226 Hispanic and 186 white applicants, the Office of Federal Contract Compliance Programs

To resolve the complaints, the company paid $448,578 in back wages and interest and made job offers to 32 eligible applicants, the release states. The contractor also must ensure its hiring procedures do not discriminate and will train management who oversee hiring decisions.

McKesson Medical-Surgical Inc. is a subsidiary of the Irving-based McKesson Corp., a global healthcare services provider. 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,” Ronald W. Sullivan II, Office of Federal Contract Compliance Programs’ Southwest and Rocky Mountain Regional Director in Dallas, said.

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