FedEx Freight East has agreed to pay $500,000 to settle a lawsuit in which the U.S. Equal Employment Opportunity Commission (EEOC) accused the trucking company of denying 20 qualified African American employees promotions and assignments based on their race.

The EEOC alleged in the lawsuit that American Freightways, which was subsequently acquired by FedEx, discriminated against African Americans in making promotions from part-time to full-time dockworker positions, promotions to dock supervisor positions, and work assignments at its St. Louis terminal.

In addition to $500,000 in monetary relief, the consent decree resolving the litigation--pending approval by the U.S. District Court in St. Louis--also requires reporting by FedEx on promotions from part-time to full-time dockworker positions and to dock supervisor positions.

"We are pleased that FedEx corrected the problems at its St. Louis terminal after it acquired American Freightways and now has reached a fair resolution of this lawsuit," says Robert G. Johnson, regional attorney for EEOC's St. Louis District Office.