Tech Firm Faces Major Backlash After Posting ‘Whites Only’ Job Listing

By: Lauren Fokas | Published: Sep 04, 2024

In March 2023, a tech company in Virginia went viral for publishing a job posting that stated it was only looking for White candidates.

Over the past 18 months, they have faced several civil lawsuits from candidates and an extensive investigation by the Department of Justice. The company has finally agreed to settle and pay the fines imposed by the DOJ, but many say it’s not nearly enough for the egregious and racist posting.

The Post That Started It All

Tech firm Arthur Grand Technologies posted on the popular job site and hiring platform Indeed in March of last year that they were looking for a Business Analyst [Salesforce & Insurance Claims] in Dallas, Texas.

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A photograph of the Arthur Grand job post on Indeed that says “only born US citizens [White]”

Source: Reddit

The post included a “note” that read, “Only born US Citizens [White] who are local within 60 miles from Dallas, TX [Don’t share with candidates].”

Whoever Wrote the Posting Made a Big Mistake

Clearly, the “note” was not supposed to be included in the public posting on Indeed. Instead, it was an instruction from the executives to the hiring manager to ensure they only hired a White, American-born applicant.

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A photograph of Indeed.com open on a computer

Source: Indeed

Whoever wrote the post made a mistake that likely cost them their job, but the damage was done. The post clearly showed that the company was practicing discriminatory and illegal hiring, and the DOJ immediately began an investigation.

What Is Arthur Grand Technologies?

According to its website, “Arthur Grand (AG) is an IT services firm specializing in Digital Transformation initiatives for Federal, Commercial, State & local customers.”

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The Arthur Grand Technologies logo in purple

Source: @Arthur Grand Technologies/Facebook

The company also boasts that its “culture of excellent delivery, combined with a commitment to bringing the best talent to provide services, has earned our company an unparalleled reputation for delivering transformative results.”

The DOJ Investigation

While any company that published such a clearly discriminatory job posting would certainly have been investigated, the DOJ was even more inclined to perform an in-depth audit of Arthur Grand’s practices because the company works on several federal contracts.

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A photograph of the sign at the US Department of Justice

Source: iStock

As Michele Hodge, the Acting Director of the Labor Department’s Office of Federal Contract Compliance Programs (OFCCP), explained, “Companies like Arthur Grand, that accept federal contracts, cannot have a ‘whites only’ hiring process.”

What Laws Did Arthur Grand Break?

Throughout the inquiry, the DOJ found that, with this post and other internal discriminatory practices, Arthur Grand Technologies had broken several federal laws.

A photo of several hands of a variety of races against an American flag

Source: @2Windspa/Getty Images Signature/Lebank-bbk22

First, the tech company violated Executive Order 11246, which “requires affirmative action and prohibits federal contractors from discriminating on the basis of race, color, religion, sex, sexual orientation, gender identity, or national origin.”

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Violating the Immigration and Nationality Act

Additionally, Arthur Grand had violated the Immigration and Nationality Act, which “prohibits employers (when hiring, discharging, or recruiting or referring for a fee) from discriminating because of national origin against U.S. citizens, U.S. nationals, and authorized aliens or discriminating because of citizenship status.”

A book with the words “Immigration and Nationality Act” next to a judge’s gavel

Source: iStock

Violating two US laws was enough to ensure Arthur Grand would have to pay for its mistake. However, even more than the legality of the issue, Americans were simply appalled by the fact that a federally contracted company was using discriminatory hiring practices.

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Arthur Grand: Absolutely “Shameful”

Kristen Clarke, the Attorney General of the Justice Department’s Civil Rights Division, said in a statement, “It is shameful that in the 21st century, we continue to see employers using ‘whites only’ and ‘only US-born’ job postings to lock out otherwise eligible job candidates of color.”

A woman holds a homemade sign at a protest that reads, “We will not be silenced”

Source: iStock

She continued, “I share the public’s outrage at Arthur Grand’s appalling and discriminatory ban on job candidates based on citizenship status, national origin, color, and race.”

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Arthur Grand Maintains They’ve Done Nothing Wrong

Throughout this mess, Arthur Grand has maintained that the company did nothing wrong. The company “vehemently denies any guilt or wrongdoing in relation to the discriminatory job posting that appeared in March 2023.”

An African-American man typing on a laptop

Source: Freepik

Company CEO Sheik Rahmathullah continued, “Upon discovering this, we took immediate and decisive action to ensure that this type of incident will never happen again, including the immediate termination of the responsible employee.”

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Americans Who Saw the Posting Filed Civil Lawsuits Against Arthur Grand

While the DOJ was conducting its investigation, 31 people who saw the posting decided to file a civil lawsuit against Arthur Grand, stating they were personally targeted and excluded from applying because of the “Whites only” note.

Lawsuit paperwork next to a book and a pen

Source: Adobe Stock

The firm has since agreed to settle with the plaintiffs. However, as part of the settlement, they each had to sign a document stating, “I understand that AGT denies that it treated me unlawfully or unfairly in any way.”

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Arthur Grand Only Has to Pay $40,000 in Fines

The settlement only included a $31,000 payout to the 31 plaintiffs affected by the discriminatory job posting.

One hand gives several $100 bills to another hand

Source: Freepik

As well, the DOJ only charged Arthur Grand with only $7,500 for violating the Executive Order and Immigration and Nationality Act, making the total payout a mere $40,000. However, the company is far from out of the woods.

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The DOJ Noticed Several Other Issues in Their Investigation

In addition to the post, the DOJ also found several other examples of labor requirement violations during its investigation, including failure to document applicants’ demographic traits and failure to display equal opportunity rights in the workplace.

A faceless businessman writes on a clipboard at a meeting

Source: Freepik

The Department of Labor will continue to monitor Arthur Grand Technologies and its hiring practices to ensure that this does not happen again. As Michele Hodge said, “We are committed to holding federal contractors accountable for outrageous discriminatory practices.”

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