Employment Discrimination Suit Settled for $2.5 Million

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Minneapolis, MN: A tentative settlement is set to be approved in a discrimination class action brought by Latino employees against Mulcahy Inc., a major commercial construction company. The suit alleges that the construction company and its owner, Gary Mulcahy, discriminated against the workers based on their race and national origin, paying them less than their white contemporaries.

Under the terms of the agreement, the company will pay between $2.5 million and $6 million, depending on the timing of the payment. The lower amount applies if payment is made by January 15, 2011. The amount can rise to $6 million if payment takes longer.

The case began in 2007 when eight Latino construction workers filed discrimination charges with the U.S. Equal Employment Opportunity Commission. The following year, the workers filed their class-action lawsuit . The litigation has so far taken 16 months. The preliminary settlement was approved by a federal judge on Monday.

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