Manufacturer Meyer Tool will pay $325k (£200k) to 60 over-qualified African-American job applicants having reached an agreement with the US Department of Labor’s (DOL’s) Office of Federal Contract Compliance Programs (OFCCP) over alleged racism in its hiring process.

Investigators from the OFCCP found in a compliance review of Meyer Tool’s Cincinnati plant that the company had failed to ensure qualified job applicants received equal consideration for employment without regard to race.

Meyer Tool, which held contracts worth nearly $300k with the US Army during the time of the review, will pay compensation comprising of back wages and interest, after the applicants were rejected for entry-level machinist positions.

OFCCP director Patricia A Shiu says: "Workers should never be denied a fair shot at employment because of factors that have absolutely nothing to do with their ability to do the job.

"I am pleased that we were able to reach a fair settlement with Meyer Tool — one that will provide remedies to the affected workers and guarantee that, going forward, qualified applicants of all races and backgrounds will have the opportunity to compete on a level playing field for good jobs."