IT Staffing Firm Settles with the Department of Justice After Creating a ‘Whites Only’ Job Posting

Arthur Grand Technologies Inc., a Virginia based IT staffing firm, created a job posting that included race and citizenship requirements and explicitly stated to not share that with candidates. This resulted in a settlement agreement between the minority-owned federal contractor and the U.S government. The company will have to pay a civil penalty of $7,500 and will be regulated to ensure their compliance with U.S. anti-discrimination laws. Additionally, 31 people that complained about the job posting will be receiving $31,000.

The job posting made by Arthur Grand Technologies last year stated: “Only Born US Citizens [White] who are local within 60 miles from Dallas, TX [Don’t share with candidates].” The staffing firm was searching for someone to fill a Salesforce Business Analyst and Insurance Claims position in Dallas, Texas. The potential hire would be serving two clients, HTC Global and Berkshire Hathaway.

The Department of Justice’s Civil Rights Division and the Labor Department investigated the staffing company’s job posting in March 2023 and found that it had violated the Immigration and Nationality Act. It also violated Executive Order 11246 which prohibits federal contractors from discriminating based on race, national origin, and other protected characteristics. Arthur Grand was also accused of not posting a notice of workers’ equal employment opportunity rights and failed to keep records tracking demographic characteristic of job applicants including gender, race, and ethnicity.

Arthur Grand has not denied or admitted any violations. The company’s CEO, Sheik Rahmathullah, claims that the job posting was made by an unknown employee that did not have authorization and has also denied any wrongdoing. According to NPR, the company agreed to the Department of Justice and Department of Labor’s deals to avoid the financial toll and disruption that litigation would cause. Once Arthur Grand became aware of the situation, they immediately terminated the employee responsible for the post and took action to ensure that an incident like this would never happen again. The CEO issued an apology and included their commitment to making necessary changes to foster the trust and confidence of their community.

According to U.S. government records, Arthur Grand is certified as a Small Disadvantaged Business in the roster of federal contractors. To qualify for that status, most of the company must be owned by “one or more disadvantaged persons,” who must also be “socially disadvantaged and economically disadvantaged.” The Small Business Administration states that the Federal Government awards about 10% of all federal contract dollars, or roughly $50 billion in contracts to these businesses.

Of course, a “whites only” or “citizens only” job requirement violates state and federal anti-discrimination laws, including California’s Fair Employment and Housing Act (“FEHA”).