The Fastenal Company (Nasdaq: FAST), Winona, MN, has agreed to pay $1.25 million to settle a discrimination complaint filed with the U.S. Department of Labor's Office of Federal Contract Compliance Programs. The OFCCP found that Fastenal discriminated against job applicants who sought general warehouse positions at two of its distribution facilities in Indianapolis and Atlanta.

Fastenal did not admit liability as part of the settlement.

The $1.25 million is back wages plus interest for the 7,398 African American and 1,055 female job applicants covered by the class action lawsuit. Fastenal has committed to hire 154 African American and 17 female class members.

Investigators from OFCCP's Indianapolis and Atlanta offices found that the company engaged in screening and testing practices that discriminated against African Americans and women. As part of the settlement, Fastenal has agreed to discontinue use of its written test and to revise its hiring and recordkeeping practices to ensure they fully comply with the laws and regulations that apply to federal contractors.