Wal-Mart to pay $440K in ethnic harassment suit

New York City -- Wal-Mart Stores has agreed to pay $440,000 to settle a federal harassment lawsuit by 10 employees who say they endured ethnic slurs and derogatory remarks on a daily basis while working at a Sam's Club store in Fresno, Calif. The EEOC announced the settlement Thursday.

Nine of the lawsuit plaintiffs were of Mexican descent and one was married to a Mexican. The alleged harasser was a Mexican-American co-worker.

The plaintiffs say they first complained in April 2006 but managers failed to address the harassment. The Equal Employment Opportunity Commission filed a complaint in October of that year, and the harasser was fired two months later.

The agreement also calls for Wal-Mart to review its policies and provide training on discrimination at Sam's Club locations in Fresno and Bakersfield.

The settlement comes as chain is trying to halt the largest class-action sex-discrimination lawsuit in history by female employees who are seeking billions of dollars. That case is before the U.S. Supreme Court.

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