Labor & Employment Law Daily Wrap Up, EEOC NEWS—Alabama recycler will pay $2.6M to settle suit alleging long-standing pattern of refusal to hire female laborers, (Jul 23, 2026)
Organizations Mentioned:Personnel Staffing, Inc. | TCI of Alabama, LLC | U.S. Equal Employment Opportunity Commission | WorkSmart, Inc.
By WK Editorial Staff
The agency alleged that the company intentionally hired only men for laborer jobs, converted workplace showers and locker rooms into male-only facilities, and later instructed staffing agencies to refer only male applicants.
TCI of Alabama, LLC has agreed to pay $2.6 million and implement extensive workplace reforms to settle a federal sex discrimination lawsuit alleging the company systematically refused to hire women for laborer positions at its Pell City recycling facility for more than 15 years, the U.S. Equal Employment Opportunity Commission (EEOC) announced.
According to the EEOC, TCI engaged in a long-standing pattern of discrimination beginning in 2006, when it purchased the facility, and continuing through late 2022. The agency alleged that the company intentionally hired only men for laborer jobs, converted workplace showers and locker rooms into male-only facilities, and later instructed staffing agencies to refer only male applicants, even when qualified women were available for the positions.
Previous whistleblower. The lawsuit further alleged that the discriminatory practices persisted after the EEOC investigated a whistleblower complaint from a long-time employee. That employee was later terminated after disclosing information about the company’s hiring practices. The EEOC previously settled a related retaliation lawsuit involving the whistleblower for $90,000.
“Employers cannot evade Title VII by outsourcing their hiring and directing staffing agencies to carry out their discriminatory preferences based on sex,” said Marsha Rucker, regional attorney for the EEOC’s Birmingham District. She added that the agency will continue pursuing both employers and staffing agencies that participate in unlawful discriminatory hiring practices.
Consent decree. Under a three-year consent decree approved to resolve the case, TCI will compensate women who were denied employment opportunities and adopt several corrective measures. The company must appoint a Title VII coordinator, provide anti-discrimination training for managers and employees, notify staffing agencies that discriminatory requests will not be tolerated, and post notices explaining employees’ rights and how to report discrimination. Details on how affected women may file claims for compensation will be announced later.
Acting EEOC Birmingham District Director Linda Sales-Long said federal law prohibits employers from denying jobs to qualified applicants because of their sex and emphasized the agency’s commitment to ensuring equal employment opportunities.
Staffing agencies settled. The settlement follows additional EEOC enforcement actions involving staffing agencies that allegedly complied with TCI’s preference for male workers. The agency recently secured settlements of $150,000 from WorkSmart, Inc. and $155,000 from Personnel Staffing, Inc. related to the same hiring practices.
The EEOC filed the lawsuit in federal court after efforts to reach a voluntary settlement through the administrative process were unsuccessful.
Companies: TCI of Alabama, LLC; WorkSmart, Inc.; Personnel Staffing, Inc.
News: AgencyNews RemediesDamages Discrimination SexDiscrimination LitigationNewsTrends